FAA awards $12.1M task order for TFMS engineering to General Dynamics IT under full and open competition

Contract Overview

Contract Amount: $12,126,468 ($12.1M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Transportation

Start Date: 2025-02-12

End Date: 2026-02-11

Contract Duration: 364 days

Daily Burn Rate: $33.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO EXERCISE AND AWARD OPTIONAL CPFF CLIN 2.8 FOR TFMS SECOND LEVEL ENGINEERING (SLE) OF THE SUBJECT TFM2 CONTRACT 693KA7-18-D-00001.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $12.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: THE PURPOSE OF THIS TASK ORDER IS TO EXERCISE AND AWARD OPTIONAL CPFF CLIN 2.8 FOR TFMS SECOND LEVEL ENGINEERING (SLE) OF THE SUBJECT TFM2 CONTRACT 693KA7-18-D-00001. Key points: 1. The task order focuses on second-level engineering for the TFMS program. 2. General Dynamics Information Technology, Inc. is the incumbent contractor. 3. The contract type is Cost Plus Fixed Fee (CPFF). 4. This award falls under the Computer Systems Design Services NAICS code.

Value Assessment

Rating: good

The $12.1M award for 364 days at a CPFF structure appears reasonable for specialized engineering services. Benchmarking against similar complex system engineering contracts is needed for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and value for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for critical engineering support.

Public Impact

Ensures continued operation and enhancement of the Transportation Federal Management System (TFMS). Supports critical aviation infrastructure through specialized engineering services. Maintains continuity of essential technical support for the FAA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contracts can incentivize cost overruns if not closely monitored.
Reliance on a single contractor for critical engineering could pose a risk if performance degrades.

Positive Signals

Awarded under full and open competition.
Supports a critical national infrastructure system (TFMS).
Ensures continuity of essential engineering services.

Sector Analysis

This award is within the IT services sector, specifically Computer Systems Design Services. Spending in this area is substantial across government, supporting complex IT infrastructure and software development.

Small Business Impact

The awardee, General Dynamics Information Technology, Inc., is a large business. There is no indication of small business participation in this specific task order.

Oversight & Accountability

The task order is part of a larger contract (693KA7-18-D-00001), implying existing oversight mechanisms. Continued monitoring of performance and costs under the CPFF structure is crucial.

Related Government Programs

Computer Systems Design Services
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Potential for cost overruns.
Reliance on incumbent for critical engineering.
Lack of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $12.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. THE PURPOSE OF THIS TASK ORDER IS TO EXERCISE AND AWARD OPTIONAL CPFF CLIN 2.8 FOR TFMS SECOND LEVEL ENGINEERING (SLE) OF THE SUBJECT TFM2 CONTRACT 693KA7-18-D-00001.

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 $12.1 million.

What is the period of performance?

Start: 2025-02-12. End: 2026-02-11.

What is the projected cost savings or value added by exercising this option compared to re-competing the service?

Exercising an option typically aims to leverage existing relationships and established performance, potentially offering cost savings through reduced acquisition lead times and contractor ramp-up. However, the true value depends on whether the current pricing reflects market rates and if the incumbent's performance justifies avoiding a new competition.

What are the specific risks associated with the CPFF contract type for this engineering service?

The primary risk with Cost Plus Fixed Fee (CPFF) is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. Without stringent oversight and clear performance metrics, there's less incentive for the contractor to control costs aggressively, potentially leading to higher overall expenditure than anticipated.

How does the continuity of engineering support impact the overall effectiveness of the TFMS program?

Continuity of engineering support is vital for the ongoing effectiveness of complex systems like TFMS. It ensures that technical issues are addressed promptly, system upgrades are implemented smoothly, and the system remains aligned with evolving operational needs, thereby maintaining its critical function for transportation management.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: PURCHASE OF STRUCTURES/FACILITIES › PURCHASE BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

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: $14,183,157

Exercised Options: $12,126,468

Current Obligation: $12,126,468

Actual Outlays: $10,362,105

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 693KA718D00001

IDV Type: IDC

Timeline