General Dynamics IT awarded $113.5M for STRATEGIC COMMAND IT Lifecycle Support, a 364-day contract

Contract Overview

Contract Amount: $113,504,349 ($113.5M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2025-06-30

End Date: 2026-06-29

Contract Duration: 364 days

Daily Burn Rate: $311.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: STRATEGIC COMMAND INFORMATION TECHNOLOGY LIFECYCLE SUPPORT (SCITLS) TASK ORDER AWARD

Place of Performance

Location: OFFUTT AFB, SARPY County, NEBRASKA, 68113

State: Nebraska Government Spending

Plain-Language Summary

General Services Administration obligated $113.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: STRATEGIC COMMAND INFORMATION TECHNOLOGY LIFECYCLE SUPPORT (SCITLS) TASK ORDER AWARD Key points: 1. Contract value represents a significant investment in IT lifecycle support for strategic command. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The cost-plus award fee structure allows for flexibility but requires careful oversight of contractor performance. 4. The contract duration of 364 days indicates a need for ongoing, sustained IT support services. 5. The IT lifecycle support sector is critical for maintaining operational readiness and technological advantage. 6. The award to a large, established contractor like General Dynamics IT suggests a focus on proven capabilities.

Value Assessment

Rating: good

The contract value of $113.5 million for a 364-day period for IT lifecycle support appears reasonable given the scope of services for a strategic command. Benchmarking against similar large-scale IT support contracts for defense or intelligence agencies would provide further context. The cost-plus award fee (CPAF) pricing structure, while common for complex services, necessitates robust performance metrics to ensure value for money and prevent cost overruns. Without specific performance data or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award suggests a degree of price sensitivity.

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 bids. The presence of 4 bidders suggests a healthy level of competition for this significant IT support requirement. A competitive process generally leads to better price discovery and encourages contractors to offer their best value propositions. The fact that multiple bidders participated implies that the market has sufficient capacity and interest in providing these specialized services.

Taxpayer Impact: Taxpayers benefit from a competitive process as it typically drives down costs and ensures that the government receives services at a fair market price. The competition here likely resulted in a more cost-effective solution than a sole-source award.

Public Impact

The primary beneficiaries are the U.S. Strategic Command (STRATCOM) and its personnel, who will receive enhanced IT lifecycle support. Services delivered include computer systems design and lifecycle support, crucial for maintaining operational systems. The geographic impact is likely focused on STRATCOM's primary operating locations, potentially including Offutt Air Force Base in Nebraska. Workforce implications may include the direct employment of IT professionals by General Dynamics Information Technology, Inc., and potentially through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus award fee contracts require diligent oversight to ensure costs are reasonable and performance meets expectations.
The reliance on a single large contractor for critical IT lifecycle support could pose a risk if performance degrades or if the contractor faces financial instability.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The contractor, General Dynamics Information Technology, Inc., is a well-established entity with significant experience in government IT services.
The contract aims to provide essential IT lifecycle support, crucial for the operational effectiveness of STRATCOM.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive and essential for national security operations. This contract falls under computer systems design services, a segment focused on integrating hardware, software, and communication technologies to meet specific user needs. The market for such services is substantial, with significant spending allocated annually by federal agencies to maintain and upgrade their IT infrastructure. General Dynamics IT is a major player in this space, competing with other large system integrators for substantial government contracts.

Small Business Impact

This contract was not set aside for small businesses and was awarded to a large prime contractor. While General Dynamics IT may utilize small business subcontractors, the primary award does not directly benefit the small business ecosystem through a set-aside. Further analysis of the subcontracting plan would be necessary to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA) and the U.S. Strategic Command's contracting officers and program managers. The cost-plus award fee structure necessitates detailed performance monitoring and financial audits to ensure accountability and prevent waste. Transparency will depend on GSA's reporting practices and any public disclosures related to contract performance and expenditures. Inspector General involvement would be triggered by specific allegations of fraud, waste, or abuse.

Related Government Programs

STRATCOM IT Support Services
Defense Information Technology Contracting
Federal Civilian IT Lifecycle Management
General Services Administration IT Schedules
Computer Systems Design Services Contracts

Risk Flags

Cost-plus award fee contracts require diligent oversight to manage costs and ensure performance.
Reliance on a single large contractor for critical IT functions can pose risks if performance falters.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $113.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. STRATEGIC COMMAND INFORMATION TECHNOLOGY LIFECYCLE SUPPORT (SCITLS) TASK ORDER AWARD

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 $113.5 million.

What is the period of performance?

Start: 2025-06-30. End: 2026-06-29.

What is the historical spending pattern for IT lifecycle support at U.S. Strategic Command?

Analyzing historical spending for IT lifecycle support at U.S. Strategic Command (STRATCOM) is crucial for understanding trends and justifying current investments. While specific historical data for STRATCOM's IT lifecycle support is not provided in this award notice, agencies like STRATCOM typically have consistent, significant budgets allocated to IT infrastructure and services due to the critical nature of their mission. Past contracts for similar services, whether awarded to the same or different contractors, would reveal spending levels, contract types (e.g., fixed-price, cost-plus), and durations. This context helps assess whether the current $113.5 million award for a 364-day period represents an increase, decrease, or stable level of investment compared to previous years. Understanding these patterns can highlight potential shifts in technology needs, strategic priorities, or efficiency gains/losses over time.

How does the pricing structure (Cost Plus Award Fee) compare to other IT lifecycle support contracts?

The Cost Plus Award Fee (CPAF) pricing structure used for this $113.5 million STRATCOM IT Lifecycle Support contract is common for complex, performance-based services where the scope may evolve or where contractor innovation is highly valued. In a CPAF contract, the contractor is reimbursed for allowable costs plus a fee that is composed of a base amount and an award amount, which is earned if the contractor meets or exceeds certain performance objectives. This differs from fixed-price contracts, where the price is set regardless of costs incurred, or Cost Plus Incentive Fee (CPIF) contracts, which adjust the fee based on cost targets. Compared to other IT lifecycle support contracts, CPAF offers flexibility but requires robust government oversight to manage costs and ensure the award fee is tied to meaningful performance metrics. Agencies often choose CPAF when precise performance outcomes are difficult to define upfront or when they want to incentivize superior performance beyond basic requirements.

What is General Dynamics Information Technology, Inc.'s track record with similar large-scale IT support contracts?

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record with large-scale IT support contracts, particularly within the federal government and defense sectors. They are a major provider of IT services to various agencies, including the Department of Defense, intelligence community, and civilian departments. Their experience often encompasses a wide range of services, including network operations, cybersecurity, cloud migration, enterprise IT modernization, and lifecycle management, similar to the requirements of the STRATCOM SCITLS contract. GDIT has historically managed multi-billion dollar portfolios and has been a prime contractor on numerous complex, long-term IT programs. Evaluating their past performance on similar contracts, including any past performance issues or successes, is critical for assessing the risk associated with this new award. Their established presence suggests they possess the resources, personnel, and expertise to handle such demanding requirements.

What are the key performance indicators (KPIs) likely used to determine the award fee for this contract?

For a Cost Plus Award Fee (CPAF) contract like the STRATCOM IT Lifecycle Support (SCITLS) award, Key Performance Indicators (KPIs) are critical for determining the contractor's fee. While specific KPIs are not detailed in the award notice, they would typically align with the core objectives of IT lifecycle support. These could include metrics related to system uptime and availability (e.g., 99.9% availability for critical systems), response times for service requests and incident resolution, successful implementation of system upgrades and patches, cybersecurity compliance rates, user satisfaction surveys, and adherence to project schedules and budgets for specific tasks. The award fee would be contingent on GDIT meeting or exceeding predefined targets for these KPIs, incentivizing high-quality service delivery and operational efficiency for STRATCOM's IT infrastructure.

What is the potential impact of this contract on cybersecurity posture for U.S. Strategic Command?

This contract for IT Lifecycle Support is highly likely to have a significant positive impact on the cybersecurity posture of U.S. Strategic Command (STRATCOM). Modern IT lifecycle support inherently includes robust cybersecurity measures, such as vulnerability management, patch deployment, intrusion detection and prevention, security monitoring, and incident response. By ensuring that STRATCOM's systems are kept up-to-date, secure, and resilient, the contractor plays a vital role in protecting sensitive strategic information and operational capabilities from cyber threats. The contract's focus on the entire lifecycle means that security is integrated from system design through maintenance and eventual decommissioning, rather than being an afterthought. Effective execution of this contract should strengthen STRATCOM's defenses against evolving cyber adversaries.

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 - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFCA25R0006

Offers Received: 4

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: $1,475,321,852

Exercised Options: $137,103,994

Current Obligation: $113,504,349

Subaward Activity

Number of Subawards: 53

Total Subaward Amount: $161,973,215

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0003

IDV Type: GWAC

Timeline