General Dynamics IT awarded $583.6M for Enterprise Mission IT Services, with 7 orders placed

Contract Overview

Contract Amount: $583,600,328 ($583.6M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2020-11-01

End Date: 2026-01-31

Contract Duration: 1,917 days

Daily Burn Rate: $304.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: ENTERPRISE MISSION INFORMATION TECHNOLOGY SERVICES (EMITS)

Plain-Language Summary

General Services Administration obligated $583.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: ENTERPRISE MISSION INFORMATION TECHNOLOGY SERVICES (EMITS) Key points: 1. Value for money appears fair given the contract's duration and scope, though specific performance metrics are key. 2. Competition dynamics indicate a full and open process, suggesting a competitive pricing environment. 3. Risk indicators are moderate, with contract type (Cost Plus Fixed Fee) potentially leading to cost overruns if not managed closely. 4. Performance context is tied to IT services delivery, a critical but complex area for government operations. 5. Sector positioning is within IT services, a large and dynamic market with significant government spending.

Value Assessment

Rating: fair

The total award amount of $583.6 million over approximately 6 years suggests a substantial but not exceptionally high annual spend for enterprise IT services. Benchmarking against similar large-scale IT service contracts is difficult without more granular data on service scope and performance. The Cost Plus Fixed Fee (CPFF) contract type introduces a risk of cost escalation if the contractor's actual costs exceed projections, necessitating robust oversight to ensure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with seven bids received. This level of competition is generally positive for price discovery and ensures a broad range of potential contractors could participate. The presence of multiple bidders suggests that the government likely received competitive proposals, potentially leading to more favorable pricing and service offerings than a sole-source or limited competition award.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it maximizes the potential for cost savings through competitive bidding and encourages contractors to offer their best value propositions.

Public Impact

Federal agencies requiring enterprise-level IT support and mission-critical services are the primary beneficiaries. The contract facilitates the delivery of essential IT infrastructure, systems integration, and operational support. Geographic impact is likely nationwide, supporting federal operations across various locations. Workforce implications include the potential for IT professionals to be employed by the prime contractor and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize higher costs if not rigorously managed.
The long duration of the contract (over 6 years) increases the risk of scope creep or evolving technological needs not being optimally addressed.
Lack of specific performance metrics in the provided data makes it difficult to assess true value for money.
Potential for vendor lock-in if the contractor becomes deeply integrated into agency IT infrastructure.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Multiple bids received (7), suggesting a healthy level of market interest and competition.
Contract supports critical enterprise mission IT services, indicating alignment with government operational needs.
The contract is managed by the General Services Administration (GSA), which often brings expertise in federal procurement.

Sector Analysis

The IT services sector is a significant portion of federal spending, encompassing a wide range of capabilities from software development to cloud computing and cybersecurity. This contract falls under computer systems design services, a core component of the IT services market. Government spending in this area is consistently high, driven by the need to modernize legacy systems, enhance cybersecurity, and support digital transformation initiatives across agencies. Comparable spending benchmarks would typically involve analyzing other large IT service contracts awarded by agencies like GSA, DoD, or DHS.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this prime contract. This suggests that the primary focus was on securing the best overall technical and price proposal from any qualified source. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business IT ecosystem. Future analysis should investigate if subcontracting goals were established or met.

Oversight & Accountability

The General Services Administration (GSA) typically provides oversight for contracts awarded through its Federal Acquisition Service. Oversight mechanisms would likely include contract performance reviews, financial audits, and adherence to service level agreements. Accountability measures are embedded in the contract terms, including reporting requirements and potential penalties for non-performance. Transparency is generally facilitated through contract databases like FPDS, though detailed performance data may be less accessible.

Related Government Programs

IT Schedule 70 (now IT Professional Services)
Alliant Government Services
Chief Information Officer-Solutions and Partners (CIO-SP)
டிஜிட்டல் சேவைகள்
Enterprise Infrastructure Solutions (EIS)

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Long contract duration may not adapt optimally to rapidly changing technology landscapes.
Lack of specific performance metrics in summary data hinders value assessment.
Potential for scope creep without stringent oversight.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $583.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. ENTERPRISE MISSION INFORMATION TECHNOLOGY SERVICES (EMITS)

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 $583.6 million.

What is the period of performance?

Start: 2020-11-01. End: 2026-01-31.

What is the historical spending trend for Enterprise Mission Information Technology Services (EMITS) under General Dynamics Information Technology, Inc.?

Analyzing historical spending trends for EMITS under General Dynamics Information Technology, Inc. requires access to detailed contract performance data over its lifespan. The current award of $583.6 million is for the period of November 1, 2020, to January 31, 2026. To understand trends, one would need to examine the actual obligated amounts versus the ceiling amount year-over-year. For instance, if spending consistently approached the ceiling, it would indicate high demand and utilization. Conversely, significantly lower spending might suggest underutilization or scope adjustments. Without historical obligation data prior to this award or for previous iterations of similar contracts, a comprehensive trend analysis is not possible from the provided summary data. However, the total ceiling suggests a significant and sustained need for these services.

How does the per-unit cost of services under this contract compare to market rates for similar IT services?

Determining a precise per-unit cost comparison is challenging with the provided data, as it lacks granular details on the specific services rendered (e.g., hours of support, specific IT solutions implemented, number of users supported). The contract type, Cost Plus Fixed Fee (CPFF), means that costs are based on actual expenses plus a fixed fee, making direct per-unit comparisons difficult without knowing the underlying cost structure and the nature of the work performed. To benchmark effectively, one would need to compare the contractor's labor rates, overhead, and fee against industry standards for comparable roles and services within the federal IT sector. Additionally, comparing the total contract value against the number of delivery orders (7) and the contract duration (1917 days) provides a very high-level average, but doesn't reflect the variability in service delivery.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how is performance being measured?

The provided summary data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for the Enterprise Mission Information Technology Services (EMITS) contract. Typically, for IT service contracts of this magnitude and duration, KPIs would focus on areas such as system uptime, response times for technical support, project completion rates, cybersecurity compliance, and user satisfaction. SLAs would define the minimum acceptable performance levels for these metrics. Performance measurement is usually conducted through regular reporting by the contractor, government inspections, user feedback mechanisms, and potentially independent audits. The effectiveness of the contract hinges on robustly defined and monitored KPIs/SLAs to ensure the government receives the intended value and service quality.

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

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record of performing large-scale IT service contracts for various federal agencies. They are a major player in the federal IT contracting space, often winning significant awards across defense, civilian, and intelligence sectors. Their experience typically includes managing complex IT infrastructure, cybersecurity solutions, software development, and mission support services. Past performance evaluations, available through sources like the Federal Procurement Data System (FPDS) or agency-specific past performance databases, would provide detailed insights into their success rates, any performance issues encountered, and client satisfaction levels on previous contracts. GDIT's size and market presence suggest they are generally capable of handling contracts of this scope, but specific performance on EMITS would depend on execution.

What is the potential impact of the Cost Plus Fixed Fee (CPFF) contract type on overall cost efficiency for this IT services contract?

The Cost Plus Fixed Fee (CPFF) contract type presents a mixed bag regarding cost efficiency. On the one hand, it allows for flexibility in adapting to evolving requirements, which is common in IT projects. The fixed fee provides the contractor with a predictable profit margin. However, the 'cost-plus' element means the government reimburses the contractor's allowable costs, which can incentivize higher spending if not tightly controlled. The government bears the risk of cost overruns if the contractor's actual costs exceed estimates. To ensure cost efficiency, rigorous oversight, detailed cost tracking, and clear definition of allowable costs are crucial. Without strong government management, CPFF contracts can sometimes lead to higher final costs compared to fixed-price arrangements, though they may be necessary for high-risk or R&D-intensive efforts.

How does the $583.6 million award compare to overall federal spending on computer systems design services?

The $583.6 million award for Enterprise Mission Information Technology Services (EMITS) represents a significant single contract within the broader federal spending on computer systems design services. Federal spending in the IT services category, which includes systems design, integration, and support, consistently ranks among the largest categories of government procurement. While this specific contract is substantial, it is one of many awarded annually. To contextualize its size, one would need to compare it against the total annual federal outlays for NAICS code 541512 (Computer Systems Design Services) or broader IT services spending. For example, if total federal spending in this category is tens or hundreds of billions annually, this $583.6 million contract, while large, would be a fraction of the total market. Its significance lies more in its scale for a single award rather than its proportion of the entire federal IT budget.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

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: $695,092,709

Exercised Options: $676,300,825

Current Obligation: $583,600,328

Actual Outlays: $-716,610

Subaward Activity

Number of Subawards: 168

Total Subaward Amount: $60,691,867

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0003

IDV Type: GWAC

Timeline