GSA awards $305M IT task order to General Dynamics for computer systems design

Contract Overview

Contract Amount: $304,948,724 ($304.9M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2024-02-05

End Date: 2027-02-04

Contract Duration: 1,095 days

Daily Burn Rate: $278.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: THE PURPOSE OF THIS IS TO INCREMENTALLY FUND AND AWARD THE CITS TASK ORDER.

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $304.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: THE PURPOSE OF THIS IS TO INCREMENTALLY FUND AND AWARD THE CITS TASK ORDER. Key points: 1. Value for money assessed through cost-plus award fee structure, incentivizing performance. 2. Full and open competition suggests a competitive environment for this IT service. 3. Risk indicators include the cost-plus award fee structure, which requires careful monitoring. 4. Performance context is tied to the CITS task order, indicating ongoing IT support. 5. Sector positioning within Computer Systems Design Services (NAICS 541512) is clear.

Value Assessment

Rating: good

The contract utilizes a Cost Plus Award Fee (CPAF) structure, which aims to align contractor performance with government objectives by offering award fees based on performance metrics. While CPAF can incentivize good performance, it also requires robust oversight to ensure costs remain reasonable and award fees are justified. Benchmarking this specific award fee structure against similar IT services contracts would provide a clearer picture of its value, but the structure itself suggests an effort to achieve value through performance incentives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 3 bidders suggests a moderate level of competition for this specific task order. A higher number of bidders typically leads to more competitive pricing and a wider range of technical solutions, but three bidders still provide a basis for price discovery and selection of a qualified contractor.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve the quality of services received.

Public Impact

The primary beneficiary is the General Services Administration (GSA) and potentially other federal agencies utilizing the CITS program. Services delivered include computer systems design, supporting federal IT infrastructure. Geographic impact is primarily within Florida (ST), where the contractor is located. Workforce implications include employment opportunities for IT professionals within General Dynamics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Award Fee contracts if not closely managed.
Reliance on a single contractor for this task order could pose a risk if performance degrades significantly.
The specific performance metrics for award fees are not detailed, making independent assessment of value difficult.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Cost Plus Award Fee structure incentivizes contractor performance and efficiency.
Contractor (General Dynamics Information Technology) is a large, established entity with significant federal contracting experience.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the federal IT landscape. This sector encompasses a wide range of services, from custom software development to IT infrastructure management. The federal government is a significant consumer of these services, with spending often concentrated in areas like defense, civilian agency IT modernization, and cybersecurity. Benchmarking this award against other IT services contracts awarded by GSA or other agencies for similar scope would be informative.

Small Business Impact

This contract was not set aside for small businesses, and the prime contractor, General Dynamics Information Technology, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. The absence of a small business set-aside suggests that the scope or nature of the services may not have been conducive to a small business set-aside, or that larger prime contractors were deemed more capable.

Oversight & Accountability

Oversight for this contract will likely be managed by the GSA's Federal Acquisition Service, which awarded the task order. The Cost Plus Award Fee structure necessitates diligent oversight of contractor performance and costs to ensure that award fees are earned appropriately. Transparency is facilitated through contract award databases, but detailed performance metrics and cost breakdowns may be less publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

CITS (Comprehensive IT Services)
IT Professional Services
Computer Systems Design Services
General Services Administration Contracts

Risk Flags

Cost Plus Award Fee requires diligent oversight.
Performance metrics for award fees are not publicly detailed.
Limited number of bidders (3) may impact price competition.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $304.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. THE PURPOSE OF THIS IS TO INCREMENTALLY FUND AND AWARD THE CITS TASK ORDER.

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $304.9 million.

What is the period of performance?

Start: 2024-02-05. End: 2027-02-04.

What is the track record of General Dynamics Information Technology in delivering similar IT services under federal contracts?

General Dynamics Information Technology (GDIT) is a major federal contractor with a long history of providing a wide array of IT services to various government agencies. Their experience spans areas such as cloud computing, cybersecurity, enterprise IT, data analytics, and mission support. GDIT has held numerous large-scale contracts, including significant task orders under broader IT vehicles. While specific performance details for every contract are not always public, their sustained presence and numerous awards suggest a generally capable performance history. However, like any large contractor, they may have faced past performance issues or disputes on specific contracts, which would typically be documented in past performance evaluations during the bidding process.

How does the estimated value of this task order compare to similar IT services contracts awarded by GSA?

The estimated value of $305 million for this task order over its 1095-day duration (approximately $100 million per year) places it in the mid-to-large range for IT services task orders. GSA awards numerous IT task orders annually, with values varying significantly based on scope and duration. Larger, more comprehensive IT modernization or support contracts can reach hundreds of millions or even billions of dollars. This specific award appears to be a substantial but not exceptionally large task order within the broader context of GSA's IT procurement. A direct comparison would require analyzing task orders with similar NAICS codes (541512) and service scopes awarded by GSA within the last 1-2 years.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract structure for IT services?

The primary risks associated with a CPAF contract for IT services revolve around cost control and performance measurement. For the government, there's a risk that costs could escalate beyond initial projections if the contractor's efforts to achieve award fees lead to inefficient or unnecessary expenditures. It requires robust government oversight to ensure that costs are reasonable and allocable, and that award fees are tied to clearly defined, objective performance metrics. For the contractor, the risk lies in not meeting the performance standards required to earn the award fee, thus reducing their overall profit margin. Effective implementation of CPAF relies heavily on the government's ability to establish clear performance standards and diligently monitor progress.

What does the 'Computer Systems Design Services' (NAICS 541512) classification imply about the services being procured?

The NAICS code 541512, 'Computer Systems Design Services,' indicates that the contract is for services that involve planning and designing computer systems that integrate hardware, software, and communication technologies. This can include a broad range of activities such as analyzing user needs, designing system architecture, developing system specifications, and overseeing the implementation of these systems. It typically does not include the manufacturing or sale of computer hardware or software itself, but rather the expertise in making these components work together effectively to meet specific organizational requirements. This could encompass everything from designing a new agency-wide network to developing a custom software solution integrated with existing infrastructure.

How has federal spending on IT services, specifically computer systems design, trended in recent years?

Federal spending on IT services, including computer systems design, has been on a consistent upward trend for many years, driven by the increasing reliance on technology across all government functions and the need for modernization, cybersecurity, and digital transformation. Agencies are continuously seeking to upgrade legacy systems, implement cloud solutions, enhance data analytics capabilities, and improve citizen-facing digital services. While specific figures for 'computer systems design' can be difficult to isolate from broader IT services categories, the overall federal IT budget remains substantial and is a significant portion of overall government expenditures. Factors like national security, evolving cyber threats, and the push for efficiency continue to fuel this spending.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFCA23R0045

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3211 JERMANTOWN RD, FAIRFAX, VA, 22030

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $922,056,345

Exercised Options: $431,022,761

Current Obligation: $304,948,724

Subaward Activity

Number of Subawards: 65

Total Subaward Amount: $293,723,252

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0003

IDV Type: GWAC

Timeline