DOT's FAA awards $33.4M for EIM Platform FOC, with General Dynamics IT as prime

Contract Overview

Contract Amount: $33,375,333 ($33.4M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Transportation

Start Date: 2019-02-05

End Date: 2025-09-30

Contract Duration: 2,429 days

Daily Burn Rate: $13.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: EIM PLATFORM FULL OPERATIONAL CAPABILITIES (FOC) (FCS TAG #49)

Place of Performance

Location: HANOVER, ANNE ARUNDEL County, MARYLAND, 21076

State: Maryland Government Spending

Plain-Language Summary

Department of Transportation obligated $33.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: EIM PLATFORM FULL OPERATIONAL CAPABILITIES (FOC) (FCS TAG #49) Key points: 1. Contract value represents a significant investment in critical IT infrastructure for the FAA. 2. The use of Time and Materials pricing may pose a risk of cost overruns if not closely managed. 3. Full and open competition suggests a potentially competitive bidding process, which can drive better value. 4. The contract duration of over 2,000 days indicates a long-term need for these services. 5. The specific NAICS code (518210) points to a focus on computing infrastructure and data processing services. 6. The award is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

The contract value of $33.4 million over approximately 6.7 years (February 2019 to September 2025) averages around $5 million annually. Benchmarking this against similar large-scale IT platform development and operational contracts is challenging without more specific service details. However, the Time and Materials (T&M) pricing structure, while common for evolving IT needs, carries inherent risks for cost control compared to fixed-price contracts. The FAA will need robust oversight to ensure efficient resource utilization and prevent scope creep from inflating costs beyond initial expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding environment, which typically leads to more competitive pricing and a wider selection of qualified contractors. The specific number of bidders is not provided, but the nature of the competition implies that the FAA sought to leverage the broadest possible market to meet its requirements for the EIM Platform.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for public funds.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving enhanced capabilities for its Enterprise Information Management (EIM) platform. The contract supports the full operational capabilities (FOC) of the EIM platform, crucial for managing aviation data and operations. The geographic impact is likely nationwide, supporting FAA operations across various facilities and potentially impacting air traffic management systems. Workforce implications may include the need for specialized IT personnel to develop, implement, and maintain the platform, both within the government and at the contractor's facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not meticulously managed and monitored for efficiency.
The long contract duration increases the risk of technology obsolescence or the need for significant adaptation over its life.
Lack of specific details on performance metrics makes it difficult to assess the true value and effectiveness of the delivered capabilities.
The reliance on a single prime contractor for a critical platform raises concerns about vendor lock-in and future flexibility.

Positive Signals

Awarded under full and open competition, suggesting a potentially competitive pricing structure and access to a broad market.
The contract aims to deliver Full Operational Capabilities (FOC) for a critical EIM platform, indicating a focus on essential functionality.
The long-term nature of the contract (over 2 years) suggests a sustained commitment to improving FAA's information management infrastructure.

Sector Analysis

The contract falls within the IT services sector, specifically focusing on computing infrastructure, data processing, and web hosting. This is a large and dynamic market driven by government needs for modernizing IT systems and managing vast amounts of data. The FAA's EIM platform is a significant undertaking within this space, comparable to other large federal agencies investing heavily in enterprise-wide data management and IT modernization initiatives to improve operational efficiency and decision-making.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While General Dynamics Information Technology, Inc. is a large prime contractor, there may be subcontracting opportunities for small businesses within the scope of this award. However, without specific subcontracting plans or goals detailed in the award, the direct impact on the small business ecosystem is unclear and likely dependent on the prime's procurement practices.

Oversight & Accountability

Oversight for this contract would primarily reside within the Federal Aviation Administration (FAA), likely managed by program managers and contracting officers responsible for the EIM platform. Accountability measures would be tied to the contract's performance requirements and milestones, with potential for review by the DOT's Office of Inspector General (OIG) if performance issues or financial irregularities arise. Transparency is facilitated through contract award databases, though detailed performance data may be less accessible to the public.

Related Government Programs

FAA Enterprise Information Management (EIM) Systems
Federal Data Center Consolidation Initiative
Cloud Computing Services Contracts
IT Infrastructure Modernization Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Risk of technology obsolescence over the long contract duration.
Need for robust oversight to manage performance and scope.
Potential vendor lock-in with a single prime contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $33.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. EIM PLATFORM FULL OPERATIONAL CAPABILITIES (FOC) (FCS TAG #49)

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 $33.4 million.

What is the period of performance?

Start: 2019-02-05. End: 2025-09-30.

What specific IT infrastructure and services are included under the EIM Platform FOC award?

The contract, valued at approximately $33.4 million, is for the Federal Aviation Administration's (FAA) Enterprise Information Management (EIM) Platform Full Operational Capabilities (FOC). The NAICS code 518210 indicates services related to computing infrastructure, data processing, web hosting, and related services. While specific deliverables are not detailed in the provided data, FOC typically implies the complete, functional system is ready for operational use. This likely encompasses hardware, software, network infrastructure, data storage, security protocols, and potentially ongoing maintenance and support services necessary for the EIM platform to perform its intended functions within the FAA.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar IT projects?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to evolve, as is common in IT development and modernization. Unlike fixed-price contracts, T&M pays the contractor for the actual labor hours and materials used. While offering flexibility, T&M contracts carry a higher risk of cost overruns for the government if not managed stringently. Compared to firm-fixed-price (FFP) contracts, which offer greater cost certainty but less flexibility, or cost-plus contracts, which share risk and reward, T&M places more burden on the government to monitor contractor effort and prevent inefficiencies. For a project like the EIM Platform FOC, the FAA must implement robust oversight to ensure the T&M approach delivers value.

What is the typical performance period and value range for large-scale IT platform contracts awarded by the FAA?

The FAA's IT platform contracts can vary significantly in value and duration depending on the complexity and scope of the system. This EIM Platform FOC contract, awarded in February 2019 with an end date of September 2025, has a duration of approximately 6.7 years and a value of $33.4 million. This translates to an average annual value of roughly $5 million. Larger, more complex IT modernization efforts within the FAA, such as air traffic control system upgrades, can span over a decade and involve hundreds of millions or even billions of dollars. This $33.4 million award appears to be a substantial, but not exceptionally large, investment for a critical enterprise-wide platform.

What are the potential risks associated with a long contract duration (over 2000 days) for an IT platform?

A long contract duration, such as the 2429 days (approx. 6.7 years) for the EIM Platform FOC, presents several risks for IT projects. Technology evolves rapidly, meaning the platform's architecture and components could become outdated before the contract ends, requiring costly upgrades or workarounds. There's also a risk of vendor lock-in, where the government becomes heavily reliant on a single provider, potentially limiting future flexibility and negotiation power. Furthermore, maintaining consistent performance and managing scope creep over such an extended period requires sustained, diligent oversight from the contracting agency. The initial requirements may also shift significantly due to changing operational needs or policy directives, necessitating contract modifications that could impact cost and schedule.

How does the 'Delivery Order' (aw) status impact the overall contract structure and funding?

A 'Delivery Order' (aw) status indicates that this contract is a task order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract. IDIQ contracts establish terms and conditions for services or supplies over a period, allowing the government to issue specific orders (delivery or task orders) as needed. This approach provides flexibility for agencies to procure services incrementally. The $33.4 million represents the value allocated to this specific delivery order, not necessarily the total value of the parent IDIQ contract. Funding for delivery orders is typically obligated at the time the order is placed, drawing from the agency's allocated budget for that fiscal year or period.

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: $33,375,333

Exercised Options: $33,317,403

Current Obligation: $33,375,333

Actual Outlays: $31,135,058

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