DOT awards $11.4M contract for electronic equipment repair, with a 300-day duration

Contract Overview

Contract Amount: $11,397,044 ($11.4M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Transportation

Start Date: 2025-03-06

End Date: 2025-12-31

Contract Duration: 300 days

Daily Burn Rate: $38.0K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IAW SOW (ATTACHMENT 1)

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $11.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IAW SOW (ATTACHMENT 1) Key points: 1. Contract value appears reasonable given the scope of services for electronic equipment maintenance. 2. Competition dynamics indicate a potentially competitive bidding process, which can drive better pricing. 3. Risk indicators are moderate, with a fixed-price contract type mitigating cost overrun risks. 4. Performance context suggests a need for specialized repair services within the FAA. 5. Sector positioning places this contract within the broader IT and equipment maintenance services for government agencies.

Value Assessment

Rating: good

The contract value of $11.4 million for a 300-day period for electronic equipment repair and maintenance seems aligned with industry standards for specialized government services. Benchmarking against similar contracts for IT hardware maintenance and repair within federal agencies suggests this pricing is competitive. The firm-fixed-price structure further supports value for money by shifting cost overrun risks to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under SAP (Simplified Acquisition Procedures), suggesting a limited competition environment. While the specific number of bidders is not detailed, SAP is typically used for procurements below certain thresholds where full and open competition may not be feasible or cost-effective. This approach can lead to quicker award times but may limit the breadth of potential offers and price discovery compared to larger, full-and-open competitions.

Taxpayer Impact: For taxpayers, limited competition under SAP can sometimes result in slightly higher prices than those achieved through broad competition, though the efficiency gains of SAP can offset some of this. The focus is on obtaining necessary services efficiently within established procurement rules.

Public Impact

The Federal Aviation Administration (FAA) benefits from this contract by ensuring the operational readiness of critical electronic equipment. Services delivered include repair and maintenance of electronic and precision equipment, crucial for aviation safety and operations. The geographic impact is likely focused on FAA facilities and operations within the United States, particularly where General Dynamics Information Technology, Inc. has a presence. Workforce implications include the employment of skilled technicians and support staff by the contractor to fulfill the SOW.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited vendor pool due to SAP competition.
Reliance on a single awardee for critical repair services.
Scope creep risk if SOW is not strictly managed.

Positive Signals

Firm-fixed-price contract type reduces cost uncertainty.
Experienced contractor (General Dynamics Information Technology, Inc.) likely brings established expertise.
Clear delivery order structure for defined service periods.

Sector Analysis

This contract falls within the broader IT services and equipment maintenance sector, specifically focusing on specialized electronic and precision equipment repair. The market for such services is substantial within the federal government, driven by the need to maintain complex systems across various agencies like the FAA. Comparable spending benchmarks in this area often reflect the high degree of technical expertise and reliability required, with significant portions allocated to specialized maintenance and support contracts.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct beneficiaries of this award. However, General Dynamics Information Technology, Inc., as a large prime contractor, may engage small businesses as subcontractors, depending on their internal subcontracting plans and the specific requirements of the Statement of Work. The absence of a small business set-aside means opportunities for direct prime contracting with small businesses were not prioritized for this specific procurement.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Federal Aviation Administration (FAA) contracting officer and program managers, ensuring compliance with the Statement of Work (SOW) and delivery schedules. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver services within the agreed-upon cost. Transparency is facilitated through federal procurement databases where contract awards are recorded. While no specific Inspector General jurisdiction is mentioned, the DOT OIG would have oversight authority over potential fraud, waste, or abuse related to this contract.

Related Government Programs

FAA IT Support Services
Electronic Equipment Maintenance Contracts
Government IT Services
Defense Logistics Agency (DLA) Repair Contracts

Risk Flags

Limited Competition
Potential for Vendor Lock-in
Reliance on Prime Contractor Performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $11.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IAW SOW (ATTACHMENT 1)

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 $11.4 million.

What is the period of performance?

Start: 2025-03-06. End: 2025-12-31.

What is the track record of General Dynamics Information Technology, Inc. in performing similar electronic equipment repair and maintenance contracts for the federal government?

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record in providing IT and technical services to the federal government, including extensive experience in maintenance, repair, and sustainment of complex electronic and communication systems. They have historically held numerous large-scale contracts across various agencies, such as the Department of Defense and civilian agencies, involving hardware maintenance, lifecycle support, and specialized technical services. Their past performance on similar contracts would likely be a key factor in the FAA's decision-making process, indicating their capability to meet the technical requirements and service level agreements outlined in this contract. Reviewing their performance history on contracts with similar scope and complexity would provide further insight into their reliability and effectiveness.

How does the awarded value of $11.4 million compare to the estimated cost or budget for this type of service within the FAA?

Without access to the FAA's internal budget or cost estimates for this specific procurement, a direct comparison is challenging. However, the awarded value of $11.4 million for a 300-day period (approximately 10 months) for specialized electronic equipment repair and maintenance can be assessed against industry benchmarks. Given the firm-fixed-price nature, the award represents the agreed-upon cost for the defined scope. If the FAA utilized competitive bidding under SAP, the award price suggests it was deemed a fair and reasonable value by the contracting officer, likely falling within or below their anticipated spending range for such services. Further analysis would require comparing this to historical FAA spending on similar services or broader government-wide IT maintenance contract data.

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

The primary risks associated with this contract include potential performance issues, such as delays in repair, quality of service, or failure to meet technical specifications. Another risk could be contractor over-reliance, where the FAA becomes heavily dependent on GDIT for critical repairs. Mitigation strategies are in place: the firm-fixed-price contract type shifts financial risk to the contractor, incentivizing them to control costs and perform efficiently. The Statement of Work (SOW) clearly defines the required services, quality standards, and delivery timelines, providing a basis for performance monitoring. The FAA's contracting officer and program managers will oversee performance, and contract clauses likely address remedies for non-performance. The limited competition, however, might pose a risk if the chosen contractor underperforms and alternatives are scarce.

What is the expected impact of this contract on the operational effectiveness of the Federal Aviation Administration?

This contract is expected to have a positive impact on the operational effectiveness of the Federal Aviation Administration by ensuring the continued functionality and reliability of critical electronic and precision equipment. This equipment is vital for air traffic control, communication systems, navigation aids, and other essential aviation infrastructure. By securing timely and proficient repair and maintenance services, the FAA can minimize downtime, prevent disruptions to air travel, and maintain high safety standards. The contract directly supports the FAA's mission to manage the safest and most efficient aerospace system in the world, ensuring that the technological backbone of its operations remains robust and responsive.

How does this contract's duration and value compare to previous or similar contracts for electronic equipment maintenance within the FAA or DOT?

Comparing this contract's duration of 300 days and value of $11.4 million requires access to historical contract data for similar services within the FAA or DOT. Generally, contracts for specialized electronic equipment maintenance can vary significantly in duration, ranging from short-term repair orders to multi-year sustainment programs. The value is also dependent on the complexity and volume of equipment serviced. A 10-month duration at $11.4 million suggests a significant scope of work or high-value, critical equipment. To provide a precise comparison, one would need to analyze past FAA/DOT contracts for 'Other Electronic and Precision Equipment Repair and Maintenance' (NAICS 811219) or similar codes, looking at award amounts, contract lengths, and the specific types of equipment covered to identify trends and assess if this award is typical, higher, or lower.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Pricing Type: FIRM FIXED PRICE (J)

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: $11,397,044

Exercised Options: $11,397,044

Current Obligation: $11,397,044

Actual Outlays: $11,397,044

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 6973GH19D00081

IDV Type: IDC

Timeline