DOT's FAA DroneZone contract awarded to General Dynamics IT for $23.6M over 5 years

Contract Overview

Contract Amount: $23,562,551 ($23.6M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Transportation

Start Date: 2021-02-22

End Date: 2026-08-31

Contract Duration: 2,016 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: FCS TAG 0136 - FAA DRONEZONE (FAADZ)

Place of Performance

Location: HANOVER, ANNE ARUNDEL County, MARYLAND, 21076

State: Maryland Government Spending

Plain-Language Summary

Department of Transportation obligated $23.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: FCS TAG 0136 - FAA DRONEZONE (FAADZ) Key points: 1. Contract provides essential IT infrastructure and services for the FAA's drone management system. 2. General Dynamics IT, a large established contractor, holds this significant award. 3. The contract's duration and value suggest a critical, long-term need for drone management capabilities. 4. Performance will be monitored through delivery orders against a time and materials base. 5. The IT services sector is characterized by rapid technological evolution and significant government investment. 6. This contract aligns with the growing integration of Unmanned Aircraft Systems (UAS) into national airspace.

Value Assessment

Rating: good

The contract value of $23.6 million over approximately five years for IT infrastructure and services appears reasonable given the scope of managing a national drone system. Benchmarking against similar large-scale IT service contracts for government agencies suggests this pricing is within expected ranges. The time and materials pricing model allows for flexibility but requires diligent oversight to ensure cost-effectiveness and prevent scope creep. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the overall investment seems justified by the strategic importance of drone management.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive process that likely drove pricing and innovation. This approach is generally favored for ensuring the government receives the best possible value by leveraging the widest range of market capabilities.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, maximizing the return on public investment.

Public Impact

The Federal Aviation Administration (FAA) benefits directly through enhanced capabilities for managing the national airspace for drones. The contract supports the delivery of critical IT infrastructure and services for the DroneZone platform. The geographic impact is national, as the DroneZone system affects all drone operators and operations within U.S. airspace. Workforce implications include the need for skilled IT professionals to manage and maintain the system, potentially supporting jobs in the technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Time and Materials (T&M) contract type if not closely managed.
Dependence on a single large contractor for a critical national system.
Risk of technological obsolescence if system upgrades are not proactively managed.
Ensuring adequate cybersecurity measures for a system managing sensitive airspace data.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Long-term contract duration indicates a stable and ongoing need for the service.
General Dynamics Information Technology is an established IT services provider with a track record.
The contract supports a critical function for the FAA's modernization efforts in drone management.

Sector Analysis

The Information Technology (IT) sector, particularly cloud computing, data processing, and web hosting, is a rapidly growing area of government spending. This contract falls within the 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services' category. The market is characterized by large, established players and significant investment in cloud infrastructure and cybersecurity. Government spending in this area is driven by the need for modern, scalable, and secure IT systems to support agency missions, with comparable contracts often running into tens or hundreds of millions of dollars for similar scope and duration.

Small Business Impact

This contract was not set aside for small businesses, and the prime contractor, General Dynamics Information Technology, Inc., is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. The absence of a small business set-aside suggests that the scope of work was deemed best suited for large-scale IT providers, or that competition among large businesses was prioritized. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this contract's execution.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Aviation Administration (FAA) contracting officers and program managers. The delivery order structure under a base contract allows for phased oversight of specific tasks and deliverables. Transparency is generally maintained through contract award databases and reporting requirements. Accountability measures would be tied to the performance standards outlined in the delivery orders and the overall contract terms. The Inspector General for the Department of Transportation may have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

FAA UAS Data Exchange
FAA Air Traffic Control Systems
DoT IT Modernization Initiatives
Cloud Computing Services for Federal Agencies
Cybersecurity Services for Government Systems

Risk Flags

Potential for cost overruns due to T&M contract type.
Cybersecurity vulnerabilities in managing sensitive airspace data.
Risk of technological obsolescence if upgrades are not managed proactively.
Dependence on a single large contractor for a critical national system.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $23.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. FCS TAG 0136 - FAA DRONEZONE (FAADZ)

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 $23.6 million.

What is the period of performance?

Start: 2021-02-22. End: 2026-08-31.

What is the track record of General Dynamics Information Technology, Inc. with the FAA and similar government contracts?

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record of performing IT services for various U.S. government agencies, including the Department of Transportation (DOT) and its sub-agencies like the Federal Aviation Administration (FAA). They are a large, established federal contractor known for providing a wide range of IT solutions, including cloud computing, cybersecurity, data management, and infrastructure support. Their experience often involves managing complex, large-scale systems critical to agency operations. For the FAA specifically, GDIT has likely been involved in various IT modernization and support contracts. Their history suggests a capacity to handle the technical demands and scale required for the DroneZone platform. However, a detailed review of past performance on similar FAA contracts, including any past performance issues or successes, would provide a more granular understanding of their suitability for this specific award.

How does the pricing of this contract compare to similar IT infrastructure and data processing contracts awarded by the federal government?

The total contract value of $23.6 million over approximately five years, averaging around $4.7 million per year, for comprehensive IT infrastructure and data processing services for a national system like the FAA DroneZone, appears to be within a reasonable range for the federal market. Large-scale IT service contracts for agencies often involve significant investments. For instance, similar contracts for cloud hosting, data management, and system integration for agencies like the Department of Defense or Health and Human Services can range from tens to hundreds of millions of dollars over similar or longer periods. The Time and Materials (T&M) pricing model, while flexible, can lead to higher costs if not managed tightly compared to fixed-price contracts. Benchmarking requires detailed analysis of the specific services, Service Level Agreements (SLAs), and the complexity of the DroneZone system against other comparable federal IT procurements. However, based on the general scope and duration, the pricing does not immediately suggest significant overvaluation, assuming effective service delivery.

What are the primary risks associated with this contract, and how are they being mitigated?

Several risks are associated with this contract. Firstly, the Time and Materials (T&M) pricing structure presents a risk of cost overruns if not meticulously managed and monitored by the FAA. Mitigation involves robust oversight, detailed tracking of labor hours and material costs, and clear task definitions within delivery orders. Secondly, reliance on a single large contractor, General Dynamics Information Technology, Inc., for a critical national system like DroneZone poses a risk of vendor lock-in or service disruption. Mitigation strategies include strong contract management, performance incentives, and contingency planning. Thirdly, the rapid pace of technological change in IT and drone technology poses a risk of the system becoming obsolete. Mitigation requires proactive contract modifications for upgrades and incorporating forward-looking requirements. Finally, cybersecurity risks are inherent in managing airspace data; mitigation involves stringent cybersecurity requirements, regular audits, and adherence to federal security standards.

How effective is the FAA DroneZone system expected to be in managing drone operations, and what is the historical spending context?

The FAA DroneZone system is designed to be the central platform for managing Unmanned Aircraft Systems (UAS) registration, authorization, and operational data within the U.S. airspace. Its effectiveness is crucial for enabling the safe integration of drones into the national airspace, supporting both recreational and commercial operations. Historically, federal spending on IT infrastructure and services supporting aviation management has been substantial, reflecting the complexity and critical nature of air traffic control and safety. While specific historical spending figures for the DroneZone system prior to this award are not detailed here, the FAA has consistently invested in modernizing its IT systems to keep pace with technological advancements and increasing air traffic. This $23.6 million contract represents a significant, multi-year investment aimed at ensuring the platform's robustness, scalability, and continued operational effectiveness in a rapidly evolving drone landscape.

What are the implications of this contract for the broader IT services market and federal procurement strategies?

This contract signifies the federal government's continued reliance on large, established IT service providers like General Dynamics Information Technology, Inc. for critical infrastructure and complex system management. The award through full and open competition highlights a preference for leveraging the broad capabilities of the market. The use of a Time and Materials (T&M) contract type, while offering flexibility, underscores the ongoing debate in federal procurement regarding the balance between flexibility and cost control. For the IT services market, it represents a substantial opportunity for the prime contractor and potentially its subcontractors, reinforcing the importance of expertise in cloud computing, data processing, and specialized government IT solutions. It also reflects a strategic procurement approach focused on long-term support for essential, evolving technological platforms, such as those managing emerging technologies like drones.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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: $23,562,551

Exercised Options: $23,562,551

Current Obligation: $23,562,551

Actual Outlays: $21,933,759

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