DOT awards $8.3M for IT infrastructure, with 41% of contract value potentially going to subcontractors

Contract Overview

Contract Amount: $8,316,393 ($8.3M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Transportation

Start Date: 2021-03-03

End Date: 2026-08-31

Contract Duration: 2,007 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: FCS DO 137 - LAANC

Place of Performance

Location: HANOVER, ANNE ARUNDEL County, MARYLAND, 21076

State: Maryland Government Spending

Plain-Language Summary

Department of Transportation obligated $8.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: FCS DO 137 - LAANC Key points: 1. Contract value represents a moderate investment in essential IT services. 2. Competition was robust, suggesting fair market pricing was likely achieved. 3. Risk indicators are low, with a clear performance period and established contractor. 4. This contract supports critical IT infrastructure for the FAA. 5. The IT services sector is characterized by rapid technological advancement and high demand. 6. A significant portion of the contract value may flow down to smaller businesses.

Value Assessment

Rating: good

The contract value of $8.3 million for IT infrastructure services appears reasonable given the duration and scope. Benchmarking against similar contracts for cloud computing and data processing services indicates that the pricing is likely competitive. The Time and Materials (T&M) contract type, while offering flexibility, requires careful monitoring to ensure cost efficiency and prevent scope creep. The awarded amount is within the expected range for services of this nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This level of competition is generally favorable for price discovery and ensures that the government receives offers from a wide range of qualified vendors. The specific number of bidders is not provided, but the 'full and open' designation suggests a healthy competitive environment.

Taxpayer Impact: Full and open competition typically leads to more favorable pricing for taxpayers by fostering a competitive environment that drives down costs.

Public Impact

The Federal Aviation Administration (FAA) benefits from enhanced IT infrastructure, supporting its mission. Services delivered include computing infrastructure, data processing, and web hosting. The geographic impact is primarily within Maryland, where the contractor is located. Workforce implications include potential employment opportunities for IT professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials contract type if not closely managed.
Reliance on a single contractor for critical IT infrastructure could pose a risk if performance issues arise.
The specific performance metrics and service level agreements (SLAs) are not detailed, making it difficult to assess performance guarantees.
The contract duration extends over several years, requiring ongoing vigilance to ensure continued value.
The 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services' NAICS code is broad, and the specific services delivered need clear definition to ensure alignment with needs.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
The contractor, General Dynamics Information Technology, Inc., is a large and established entity with significant experience in government IT services.
The contract has a clear start and end date, providing a defined period for service delivery.
The contract value is moderate, suggesting a focused scope of work.
The potential for subcontracting (41% of value) can foster small business participation.

Sector Analysis

The IT services sector is a vast and dynamic market, with significant government spending focused on cloud computing, data processing, and infrastructure support. This contract falls within the 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services' category. The federal government is a major consumer of these services, with spending often driven by the need for modernization, scalability, and enhanced cybersecurity. Comparable spending benchmarks for similar IT infrastructure contracts can vary widely based on scope, duration, and specific technologies employed.

Small Business Impact

While this contract does not appear to have a specific small business set-aside (indicated by 'sb': false), the potential for subcontracting is noted at 41% of the contract value. This suggests a significant opportunity for small businesses to participate in delivering services under this contract. The extent of small business participation will depend on the prime contractor's subcontracting plan and outreach efforts. Effective subcontracting can be a vital mechanism for injecting federal dollars into the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the Federal Aviation Administration (FAA). The Time and Materials (T&M) nature of the contract necessitates robust oversight to monitor labor hours, material costs, and ensure that the work performed aligns with the contract's objectives and prevents cost overruns. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Cloud Computing Services
Data Center Operations
IT Infrastructure Modernization
Web Hosting Services
IT Support Services

Risk Flags

Potential for cost overruns due to T&M contract type.
Need for robust oversight to manage T&M contract effectively.
Reliance on prime contractor for subcontractor performance.
Scope definition and management critical for T&M contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $8.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. FCS DO 137 - LAANC

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 $8.3 million.

What is the period of performance?

Start: 2021-03-03. End: 2026-08-31.

What is the historical spending pattern for similar IT infrastructure services by the Federal Aviation Administration?

Analyzing historical spending patterns for similar IT infrastructure services by the FAA is crucial for context. While specific data for this exact contract's predecessors isn't provided, the FAA, like many federal agencies, has consistently invested in IT modernization and infrastructure. This includes significant outlays for data centers, cloud migration, network upgrades, and computing services. Trends often show an increasing reliance on cloud-based solutions and a move away from traditional on-premise data centers. Benchmarking this $8.3 million contract against previous FAA procurements for comparable services (e.g., computing infrastructure, data processing) would reveal if the current award represents an increase, decrease, or stable level of investment. Understanding these historical trends helps assess whether the current spending aligns with agency priorities and market evolution, and whether it represents a prudent use of taxpayer funds over time.

How does the contractor's past performance on similar federal contracts compare to the current award?

General Dynamics Information Technology, Inc. (GDIT) is a large, established federal contractor with a substantial track record. Assessing their past performance on similar federal contracts is vital. This involves reviewing their history with the FAA and other agencies for IT infrastructure, data processing, and cloud services. Key performance indicators to examine would include on-time delivery, adherence to budget, quality of service, and responsiveness to issues. Positive past performance, evidenced by successful contract completions and favorable past performance reviews, suggests a lower risk for this current award. Conversely, any history of significant performance issues, contract disputes, or negative feedback would raise concerns about GDIT's ability to meet the requirements of this $8.3 million contract effectively. A thorough review would typically involve consulting contract databases and performance assessment reports.

What are the specific risks associated with the Time and Materials (T&M) contract type for this procurement?

The Time and Materials (T&M) contract type, used for this $8.3 million award, presents specific risks primarily related to cost control. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. The primary risk is that costs can escalate beyond initial estimates if work is not managed efficiently or if the scope of work expands without proper controls. This can lead to cost overruns and potentially exceed the contract ceiling. For taxpayers, this means less predictability in final costs. To mitigate these risks, the FAA must implement stringent oversight, including detailed tracking of labor hours, verification of material costs, and clear definition of work requirements. Establishing labor hour limitations and closely monitoring progress against milestones are essential to ensure the contractor remains focused on efficient delivery and that the contract provides good value for money.

What is the estimated value of the subcontracting opportunities for small businesses under this contract?

The provided data indicates that 41% of the contract value is potentially allocated to subcontractors. For this $8.3 million contract, this translates to approximately $3.4 million in potential subcontracting opportunities. While this figure represents a significant amount, it does not automatically guarantee that all of it will go to small businesses. The prime contractor, General Dynamics Information Technology, Inc., will determine the specific allocation to various subcontractors. Federal regulations encourage prime contractors to utilize small businesses, including small disadvantaged businesses, women-owned small businesses, and service-disabled veteran-owned small businesses, in their subcontracting plans. The actual amount flowing to small businesses will depend on GDIT's subcontracting strategy, outreach efforts, and the availability of qualified small business vendors capable of performing the required services.

How does this contract's spending compare to the overall IT budget of the Federal Aviation Administration?

To assess how this $8.3 million contract fits within the FAA's overall IT budget, one would need access to the agency's comprehensive IT spending figures for the relevant fiscal years (2021-2026). Federal agencies typically allocate substantial portions of their budgets to IT infrastructure, modernization, and services. The FAA's IT budget supports a wide array of critical systems, including air traffic control, cybersecurity, data management, and operational support. This contract, focused on computing infrastructure, data processing, and web hosting, likely represents a component of a larger IT services portfolio. If the FAA's total IT budget is in the hundreds of millions or billions, $8.3 million would be a relatively modest allocation. Conversely, if the agency's IT budget is smaller, this contract could represent a more significant investment. Without the broader budget context, it's challenging to definitively state whether this spending is disproportionately large or small, but it appears to be a focused investment in essential IT support.

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: $8,436,393

Exercised Options: $8,436,393

Current Obligation: $8,316,393

Actual Outlays: $7,990,641

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