General Dynamics awarded $167.8M contract for computer systems design services to support CISA/ECD

Contract Overview

Contract Amount: $167,769,426 ($167.8M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2019-08-17

End Date: 2025-01-16

Contract Duration: 1,979 days

Daily Burn Rate: $84.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: NEW CONTRACT AWARD FOR PTS WITH CISA/ECD

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $167.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: NEW CONTRACT AWARD FOR PTS WITH CISA/ECD Key points: 1. Contract value of $167.8M over approximately 6.5 years indicates significant investment in IT support. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The contract type (Cost Plus Award Fee) introduces performance incentives but requires careful monitoring of costs. 4. Services are categorized under Computer Systems Design, aligning with critical cybersecurity and infrastructure needs. 5. The award to General Dynamics Information Technology, Inc. places a large, established IT provider in a key role. 6. The duration of the contract (1979 days) suggests a long-term need for these services.

Value Assessment

Rating: good

The contract value of $167.8 million for computer systems design services appears reasonable given the duration and the nature of support for CISA/ECD. Benchmarking against similar large-scale IT support contracts for federal agencies suggests this falls within expected ranges for comprehensive system design and integration. The Cost Plus Award Fee structure allows for flexibility and incentivizes performance, but requires diligent oversight to ensure costs remain controlled and aligned with value delivered. Without specific details on the scope of services, a precise value-for-money assessment is challenging, but the competitive award process provides a degree of assurance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The specific number of bidders is not provided, but the 'full and open' designation suggests a healthy level of interest and competition, which is beneficial for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider array of innovative solutions being considered. This process helps prevent cost overruns and ensures that public funds are used efficiently by selecting the most capable and cost-effective provider.

Public Impact

The primary beneficiaries are the Cybersecurity and Infrastructure Security Agency (CISA) and its Emergency Communications Division (ECD), receiving essential IT support. Services delivered include computer systems design, crucial for maintaining and enhancing the nation's cybersecurity infrastructure. The geographic impact is national, as CISA's mission spans across the United States. Workforce implications may include the direct employment of IT professionals by General Dynamics and potential indirect impacts on related technology sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts require rigorous oversight to manage costs and ensure award fees are justified by performance.
The long contract duration necessitates ongoing performance monitoring to ensure continued alignment with evolving CISA/ECD needs.
Reliance on a single large contractor for critical IT systems design could pose risks if not managed effectively.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded favorable terms.
The contract's focus on computer systems design aligns with critical national security and infrastructure protection missions.
General Dynamics Information Technology, Inc. is an established contractor with significant experience in government IT services.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design. This sector is characterized by rapid technological advancements and a high demand for specialized expertise in areas like cybersecurity, cloud computing, and network infrastructure. The market size for federal IT services is substantial, with agencies continually investing in modernizing their systems to meet evolving threats and operational requirements. This contract represents a significant investment by DHS in maintaining and enhancing its critical IT capabilities, fitting within the trend of agencies outsourcing complex IT design and integration work to experienced providers.

Small Business Impact

This contract was awarded as a full and open competition and does not indicate any specific small business set-aside. Therefore, the direct impact on small businesses through this specific award is likely minimal unless General Dynamics Information Technology, Inc. engages in significant subcontracting with small businesses. The absence of a set-aside suggests that the primary focus was on securing the best overall solution from the broadest possible pool of contractors, rather than specifically targeting small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Homeland Security (DHS), specifically the Office of Procurement Operations and the CISA/ECD. The Cost Plus Award Fee (CPAF) structure necessitates performance metrics and regular evaluations to determine award fees, providing a built-in oversight mechanism. Transparency is expected through standard federal procurement reporting, and accountability will be driven by contract performance reviews and potential Inspector General audits if performance issues or irregularities arise.

Related Government Programs

CISA IT Modernization
DHS Cybersecurity Services
Federal Civilian IT Infrastructure Support
Computer Systems Design Services Contracts
Emergency Communications IT Support

Risk Flags

Cost Plus Award Fee (CPAF) requires diligent oversight to manage costs and ensure performance justifies fees.
Long contract duration necessitates continuous monitoring for evolving needs and performance.
Potential for vendor lock-in with a large, single provider.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $167.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. NEW CONTRACT AWARD FOR PTS WITH CISA/ECD

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 Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $167.8 million.

What is the period of performance?

Start: 2019-08-17. End: 2025-01-16.

What is the specific scope of 'Computer Systems Design Services' covered under this contract for CISA/ECD?

The contract specifies 'Computer Systems Design Services' (NAICS code 541512). This typically encompasses a broad range of activities related to the planning, design, development, and integration of computer systems. For CISA/ECD, this likely includes designing secure network architectures, developing system specifications, advising on hardware and software selection, planning for system upgrades and expansions, and ensuring interoperability between various IT components. Given CISA's mission, the design services are expected to focus on enhancing cybersecurity capabilities, improving emergency communication systems, and supporting the overall IT infrastructure that underpins national critical infrastructure protection efforts. The Cost Plus Award Fee structure suggests that the quality and effectiveness of these design services will be directly tied to performance incentives.

How does the $167.8 million contract value compare to historical spending on similar IT services for CISA/ECD?

Comparing the $167.8 million contract value requires context on historical spending patterns for CISA/ECD's IT services. This contract, with a duration of approximately 1979 days (roughly 5.4 years), averages around $31 million per year. This figure appears substantial and reflects the critical nature of CISA's mission and the complexity of its IT requirements. Without specific historical data for CISA/ECD's IT services procurement, it's difficult to provide a precise comparison. However, federal agencies, particularly those focused on cybersecurity and emergency response, often have significant and growing IT budgets. This award suggests a sustained investment in advanced IT design and support, potentially indicating an increase or continuation of high-level spending in this area compared to previous periods, driven by evolving threats and technological needs.

What are the key performance indicators (KPIs) likely used to determine award fees under this Cost Plus Award Fee (CPAF) contract?

Under a Cost Plus Award Fee (CPAF) contract, Key Performance Indicators (KPIs) are crucial for determining the 'award fee' portion, which incentivizes contractor performance beyond just cost reimbursement. For a contract focused on computer systems design for CISA/ECD, likely KPIs would include: 1. Timeliness of design deliverables (e.g., meeting project milestones for system blueprints, integration plans). 2. Quality and effectiveness of designed systems (e.g., adherence to security standards, performance benchmarks met by proposed designs, successful integration testing). 3. Innovation and technical merit of proposed solutions (e.g., incorporating cutting-edge technologies, demonstrating cost-saving efficiencies in design). 4. Responsiveness to CISA/ECD requirements and feedback (e.g., ability to adapt designs based on evolving needs or stakeholder input). 5. System reliability and security of designed components. These KPIs are typically defined in the contract's Performance Work Statement (PWS) and are evaluated by a government-appointed Performance Evaluation Board.

What is the track record of General Dynamics Information Technology, Inc. in delivering similar large-scale IT design services to federal agencies?

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record in delivering large-scale IT services, including systems design, integration, and support, to numerous federal agencies. They are a major incumbent contractor across various departments, including Defense, Homeland Security, and civilian agencies. Their experience often involves complex, mission-critical systems, cybersecurity solutions, and large IT infrastructure modernization projects. GDIT has historically managed contracts of similar or larger magnitudes, demonstrating capability in managing complex projects, large workforces, and stringent security requirements. While specific performance details for every contract are not publicly available, their continued success in winning and performing on significant federal IT contracts suggests a generally positive track record in meeting government needs for sophisticated IT design and implementation services.

What are the potential risks associated with a single, large contractor like General Dynamics holding this significant IT services contract?

A significant risk associated with awarding a large, long-term contract to a single entity like General Dynamics Information Technology, Inc. is potential contractor over-reliance and reduced agility. If GDIT becomes deeply embedded in CISA/ECD's systems, it could create vendor lock-in, making it difficult and costly to switch providers or integrate new technologies from other vendors in the future. There's also a risk of complacency; while the CPAF structure incentivizes performance, the sheer size and duration of the contract could potentially lead to a decrease in proactive innovation or responsiveness over time if not actively managed. Furthermore, a major disruption to GDIT's operations (e.g., financial instability, cybersecurity breach affecting their internal systems) could have a cascading negative impact on CISA/ECD's critical functions. Robust contract management, clear performance expectations, and contingency planning are essential to mitigate these risks.

How does the 'Computer Systems Design Services' category (NAICS 541512) align with CISA's overall mission and current cybersecurity challenges?

The 'Computer Systems Design Services' category (NAICS 541512) is highly aligned with CISA's core mission of leading the nation in efforts to understand, manage, and reduce risks to cyber and physical infrastructure. CISA is responsible for protecting critical infrastructure from cyber threats, and designing robust, secure, and resilient computer systems is fundamental to this mandate. As cyber threats evolve in sophistication and frequency, CISA needs state-of-the-art systems for threat detection, incident response, information sharing, and vulnerability management. This contract enables CISA/ECD to design and implement advanced IT solutions that can better defend against attacks, ensure operational continuity during emergencies, and facilitate effective communication across government and private sector partners. The focus on design services ensures that CISA's technological foundation is built with security and resilience as primary considerations from the outset.

Industry Classification

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

Solicitation ID: 70RNPP19R00000004

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

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: $329,562,972

Exercised Options: $329,562,972

Current Obligation: $167,769,426

Actual Outlays: $71,727,431

Subaward Activity

Number of Subawards: 100

Total Subaward Amount: $34,323,042

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline