DOT's FAA Awards $38.3M for EIM Platform O&M to General Dynamics IT

Contract Overview

Contract Amount: $38,323,954 ($38.3M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Transportation

Start Date: 2018-12-13

End Date: 2026-08-31

Contract Duration: 2,818 days

Daily Burn Rate: $13.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: FCS TAG #0045 - ENTERPRISE INFORMATION MANAGEMENT (EIM) INITIAL OPERATION CAPABILITIES (IOC) PLATFORM OPERATIONS AND MAINTENANCE

Place of Performance

Location: HANOVER, ANNE ARUNDEL County, MARYLAND, 21076

State: Maryland Government Spending

Plain-Language Summary

Department of Transportation obligated $38.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: FCS TAG #0045 - ENTERPRISE INFORMATION MANAGEMENT (EIM) INITIAL OPERATION CAPABILITIES (IOC) PLATFORM OPERATIONS AND MAINTENANCE Key points: 1. Contract awarded via full and open competition, suggesting market availability. 2. General Dynamics IT is the sole awardee, indicating a single point of delivery. 3. The contract is Time and Materials, which can pose cost control risks. 4. Spending is within the Computing Infrastructure Providers, Data Processing, and Hosting sector.

Value Assessment

Rating: fair

The contract's Time and Materials pricing structure, without a defined ceiling, presents a risk for cost escalation compared to fixed-price contracts. Benchmarking against similar IT operations and maintenance contracts is difficult without more granular cost data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the Time and Materials (T&M) pricing type may limit price discovery and control over the full contract duration.

Taxpayer Impact: Taxpayer funds are being used for essential IT infrastructure maintenance. The T&M nature of the contract warrants close monitoring to ensure costs remain reasonable and aligned with service delivery.

Public Impact

Ensures continued operation of the FAA's Enterprise Information Management platform. Supports critical data processing and hosting services for aviation management. Potential for cost overruns due to Time and Materials pricing model. Lack of small business participation noted.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing
No small business participation
Long contract duration

Positive Signals

Full and open competition
Supports critical FAA functions

Sector Analysis

This contract falls within the IT sector, specifically focusing on computing infrastructure, data processing, and hosting services. Spending benchmarks for similar EIM platform operations and maintenance contracts vary widely based on scope and complexity, but $38.3M over nearly 8 years suggests a significant operational footprint.

Small Business Impact

The contract data indicates no small business participation (sb: false). This suggests that the prime contractor, General Dynamics Information Technology, Inc., is performing the work directly or subcontracting to large businesses, missing opportunities to engage smaller firms in this significant IT services contract.

Oversight & Accountability

The Time and Materials (T&M) contract type necessitates robust oversight to manage costs effectively and prevent scope creep. The Federal Aviation Administration (FAA) must ensure diligent monitoring of labor hours and material costs to maintain accountability and taxpayer value.

Related Government Programs

Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Time and Materials pricing model increases cost risk.
No small business participation.
Potential for undefined scope creep.
Long contract duration without clear performance incentives.
Sole awardee may limit future competitive pressure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $38.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. FCS TAG #0045 - ENTERPRISE INFORMATION MANAGEMENT (EIM) INITIAL OPERATION CAPABILITIES (IOC) PLATFORM OPERATIONS AND MAINTENANCE

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 $38.3 million.

What is the period of performance?

Start: 2018-12-13. End: 2026-08-31.

What is the estimated total cost per year, and how does it compare to industry benchmarks for similar EIM platform operations?

The total award is $38.3 million over approximately 8 years (2818 days). This averages to roughly $4.8 million per year. Comparing this to industry benchmarks is challenging without detailed service level agreements and specific platform functionalities. However, for large-scale enterprise information management systems, this annual cost could be considered moderate, but a detailed analysis of the services provided is necessary for a true benchmark.

What are the specific risks associated with the Time and Materials pricing structure for this contract, and what mitigation strategies are in place?

The primary risk of Time and Materials (T&M) is the potential for cost overruns as the contractor is reimbursed for actual labor hours and material costs, with less incentive for efficiency. Mitigation strategies should include strict monitoring of hours, defined labor categories and rates, clear scope definitions, and potentially incorporating cost-plus-incentive-fee elements or establishing a ceiling price to manage risk.

How does the performance of General Dynamics Information Technology on this contract align with the FAA's objectives for EIM platform reliability and efficiency?

Assessing the alignment requires performance metrics and service level agreement (SLA) adherence data, which are not provided in the current data. The FAA's objectives for EIM platform reliability and efficiency would be measured through uptime, response times, data integrity, and user satisfaction. Regular performance reviews and adherence to SLAs by General Dynamics IT are crucial for ensuring these objectives are met.

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: $38,668,905

Exercised Options: $38,323,954

Current Obligation: $38,323,954

Actual Outlays: $34,995,937

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