Transportation's $8.4M cloud distribution service contract awarded to General Dynamics IT

Contract Overview

Contract Amount: $8,448,497 ($8.4M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Transportation

Start Date: 2018-05-15

End Date: 2026-08-31

Contract Duration: 3,030 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SWIM CLOUD DISTRIBUTION SERVICE

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $8.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: SWIM CLOUD DISTRIBUTION SERVICE Key points: 1. Contract value appears reasonable given the duration and scope of cloud distribution services. 2. Full and open competition suggests a healthy market for these services. 3. Potential risks include vendor lock-in and the need for ongoing performance monitoring. 4. This contract supports critical IT infrastructure for the Federal Aviation Administration. 5. The IT services sector is highly competitive, with many providers offering similar solutions. 6. The contract's Time and Materials pricing model requires careful oversight to manage costs.

Value Assessment

Rating: good

The contract's total value of $8.45 million over its potential duration (May 2018 - August 2026) suggests a moderate annual spend. Benchmarking against similar cloud distribution and hosting contracts is challenging without more specific service details. However, the duration and the nature of the services provided by a large IT contractor like General Dynamics Information Technology indicate a potentially fair price, assuming performance meets expectations. The Time and Materials (T&M) pricing structure, while flexible, necessitates diligent oversight to ensure costs remain aligned with value delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters competitive pricing and encourages a wider range of solutions. The open competition suggests that the government sought the best value from the market, rather than being limited to a pre-selected group of contractors. This approach is typically favored for its potential to drive down costs and improve service quality through market forces.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider array of innovative solutions. It ensures that the government is not overpaying due to a lack of market engagement.

Public Impact

Federal Aviation Administration (FAA) personnel benefit from reliable cloud distribution services for their operations. The contract supports the delivery of essential IT infrastructure and computing services. Services are likely utilized across various FAA programs and administrative functions. The contract supports IT jobs within General Dynamics Information Technology and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) pricing model can lead to cost overruns if not closely monitored.
Reliance on a single vendor for critical cloud distribution services could pose a risk.
Ensuring data security and compliance within the cloud environment requires continuous vigilance.

Positive Signals

Awarded through full and open competition, suggesting a competitive market.
Long-term contract duration provides stability for service delivery.
General Dynamics Information Technology is a large, established IT services provider.

Sector Analysis

The contract falls within the broader Information Technology (IT) sector, specifically focusing on cloud computing, data processing, and hosting services. This market is characterized by rapid technological advancements, significant investment, and a dynamic competitive landscape. The Federal Aviation Administration's need for reliable cloud infrastructure is representative of a growing trend across government agencies seeking to modernize IT systems and improve service delivery through cloud solutions. Comparable spending benchmarks would typically involve analyzing other large-scale cloud hosting and distribution contracts awarded by federal agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. General Dynamics Information Technology, Inc. is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Without this data, it's difficult to assess the direct impact on the small business ecosystem for this specific award, though large prime contractors often engage small businesses for specialized services.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Federal Aviation Administration (FAA). The Time and Materials (T&M) pricing structure necessitates robust monitoring of labor hours and material costs to ensure fair pricing and prevent overruns. Transparency is facilitated through contract award databases, but detailed performance metrics and cost breakdowns are typically internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Cloud Computing Services
Data Processing and Hosting Services
IT Infrastructure Services
Federal Aviation Administration IT Modernization

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Risk of technological obsolescence over the contract's long duration.
Need for continuous monitoring of vendor performance and security compliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $8.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. SWIM CLOUD DISTRIBUTION SERVICE

Who is the contractor on this award?

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

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $8.4 million.

What is the period of performance?

Start: 2018-05-15. End: 2026-08-31.

What is the historical spending pattern for cloud distribution services by the Federal Aviation Administration?

Analyzing the historical spending patterns for cloud distribution services by the FAA is crucial for understanding the context of this $8.45 million contract. While specific historical data for this exact service category is not provided in the abbreviated data, federal agencies like the FAA have increasingly shifted towards cloud-based solutions over the past decade. This trend is driven by the desire for greater scalability, cost efficiency, and agility compared to traditional on-premises data centers. Spending in this area typically involves contracts for Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS), encompassing data storage, processing, hosting, and distribution. The FAA, in particular, manages vast amounts of data related to air traffic control, flight information, and safety, making robust cloud infrastructure a necessity. Understanding previous investments in similar services, the number and types of contracts awarded, and their associated costs would provide a baseline against which the current contract's value and performance can be more accurately assessed.

How does the pricing structure (Time and Materials) compare to other cloud service contracts?

The Time and Materials (T&M) pricing structure used for this $8.45 million cloud distribution service contract is common, particularly for IT services where the scope of work can evolve or is difficult to define precisely upfront. In a T&M contract, the government pays the contractor for the actual cost of labor (at specified hourly rates) and materials used, plus a fee or profit. This contrasts with fixed-price contracts, where a set price is agreed upon regardless of the actual costs incurred. For cloud services, T&M can offer flexibility, allowing the government to adapt to changing needs or unforeseen technical challenges. However, it also carries a higher risk of cost overruns if not managed diligently. Compared to other cloud contracts, fixed-price models are often preferred for well-defined services like standard cloud hosting or specific software subscriptions, as they offer greater cost certainty. Hybrid models, combining fixed-price elements with T&M for specific tasks, are also prevalent. The effectiveness of this T&M contract hinges on robust government oversight to track hours, validate costs, and ensure efficient service delivery.

What are the key performance indicators (KPIs) typically used to evaluate cloud distribution services?

Evaluating the performance of cloud distribution services like the one provided by General Dynamics Information Technology under this $8.45 million contract typically involves a set of Key Performance Indicators (KPIs) focused on reliability, performance, security, and cost-effectiveness. Common KPIs include **Availability/Uptime**, measuring the percentage of time the service is operational (e.g., 99.9% uptime). **Latency/Response Time** assesses how quickly data is delivered and services respond. **Throughput** measures the volume of data that can be transferred within a given period. **Scalability** evaluates the ease with which resources can be increased or decreased based on demand. **Security Compliance** ensures adherence to relevant government regulations (e.g., FedRAMP) and data protection standards. **Incident Resolution Time** tracks how quickly issues are identified and resolved. **Cost Efficiency** monitors spending against budget and benchmarks. For this specific contract, the FAA would likely define precise KPIs in the Performance Work Statement (PWS) to ensure the cloud distribution services meet their operational requirements effectively and efficiently.

What is General Dynamics Information Technology's track record with similar federal IT contracts?

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record of performing large-scale IT services contracts for various U.S. federal agencies, including those involving cloud computing, data management, and infrastructure support. As a major government IT contractor, GDIT has been involved in numerous complex projects across defense, civilian, and intelligence communities. Their experience often includes managing critical systems, modernizing legacy infrastructure, and providing cybersecurity solutions. While specific details on past performance for cloud distribution services comparable to the FAA's $8.45 million contract would require deeper analysis of contract databases (like FPDS or SAM.gov), GDIT's overall profile suggests they possess the technical capabilities and resources to handle such requirements. Past performance evaluations, available through federal procurement records, would offer insights into their reliability, quality of service, and adherence to schedules and budgets on previous engagements.

How does the duration of this contract (over 8 years) impact risk and value?

The contract's extended duration, spanning from May 2018 to August 2026 (over 8 years), has significant implications for both risk and value. On the value side, a longer contract term can provide cost savings through economies of scale and reduced administrative burden associated with frequent re-procurement. It also allows for greater stability and continuity of essential services, which is critical for an agency like the FAA. Furthermore, it enables the contractor to make longer-term investments in infrastructure and personnel dedicated to the contract. However, this extended period also introduces risks. Technological obsolescence is a major concern; cloud technologies evolve rapidly, and an 8-year-old contract might not reflect the latest, most efficient solutions by its end date. Vendor lock-in can become a risk, making it difficult to switch providers even if better options emerge. Price stability is another factor; while T&M offers flexibility, long-term escalation of labor and material costs needs careful management. The government must ensure robust contract management and potential review points to mitigate these risks and ensure continued value.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3150 FAIRVIEW PARK DR STE 100, FALLS CHURCH, VA, 22042

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

Financial Breakdown

Contract Ceiling: $8,448,497

Exercised Options: $8,448,497

Current Obligation: $8,448,497

Actual Outlays: $7,310,448

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFACT15D00003

IDV Type: IDC

Timeline