NASA's $38M Contract for Shared Services with General Dynamics Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $38,004,754 ($38.0M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2019-10-01
End Date: 2020-09-30
Contract Duration: 365 days
Daily Burn Rate: $104.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: NASA SHARED SERVICES CENTER SUPPORT SERVICES
Place of Performance
Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39529
Plain-Language Summary
National Aeronautics and Space Administration obligated $38.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: NASA SHARED SERVICES CENTER SUPPORT SERVICES Key points: 1. The contract awarded to General Dynamics Information Technology, Inc. for administrative services represents a significant investment. 2. Full and open competition was utilized, but the effectiveness of price discovery needs further examination. 3. Potential risks include ensuring the fixed-price contract delivers optimal value for the $38M expenditure. 4. The IT sector is highly competitive, suggesting opportunities for cost savings or enhanced service delivery.
Value Assessment
Rating: fair
The $38M contract value for administrative services needs to be benchmarked against similar government contracts to assess its fairness. Without specific per-unit cost data, a definitive value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive indicator for price discovery. However, the specific bidding process and the number of bidders would provide a clearer picture of the competitive landscape and its impact on the final price.
Taxpayer Impact: Taxpayer funds totaling $38M were allocated. Ensuring this expenditure represents the best value through competitive bidding is crucial for responsible fiscal management.
Public Impact
Federal agencies rely on administrative support services to maintain operational efficiency. The use of large IT contractors like General Dynamics highlights the trend towards outsourcing specialized functions. Transparency in contract awards and performance is vital for public trust in government spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed per-unit cost data for value assessment.
- Need for deeper analysis of price discovery effectiveness despite full competition.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract provides cost certainty.
Sector Analysis
This contract falls within the administrative services sector, which is crucial for the functioning of government agencies like NASA. Spending benchmarks in this area often focus on efficiency gains and cost-effectiveness compared to in-house operations.
Small Business Impact
The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had an opportunity to compete or if subcontracting opportunities were made available.
Oversight & Accountability
Oversight of this contract would involve monitoring General Dynamics' performance against the firm fixed-price terms and ensuring that NASA receives the agreed-upon administrative support services. Accountability lies in meeting contract deliverables and budget adherence.
Related Government Programs
- Office Administrative Services
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Potential for overpricing given the contract value.
- Need for detailed performance metrics to ensure value for money.
- Limited insight into the specific services rendered for the cost.
- Lack of small business participation noted.
Tags
office-administrative-services, national-aeronautics-and-space-administr, ms, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $38.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. NASA SHARED SERVICES CENTER SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $38.0 million.
What is the period of performance?
Start: 2019-10-01. End: 2020-09-30.
How does the $38M contract value compare to industry benchmarks for similar administrative support services provided to federal agencies?
Benchmarking the $38M contract value requires detailed analysis of comparable contracts, considering scope, duration, and service levels. Without specific data points on per-unit costs or service metrics, it's difficult to definitively state its competitiveness. However, the use of full and open competition suggests an attempt to achieve market-driven pricing.
What specific metrics were used to evaluate the effectiveness of the full and open competition in achieving the best possible price for these services?
Evaluating the effectiveness of full and open competition involves examining the number of bids received, the range of proposed prices, and the evaluation criteria used. A robust competition typically results in multiple competitive bids, driving down costs. Further details on the bidding process and the final price negotiation would clarify how effectively competition influenced the final award.
What is the potential taxpayer impact if the services provided under this contract do not meet expectations or are significantly over-priced compared to alternatives?
If services under this $38M contract underperform or are over-priced, taxpayers could face financial losses through wasted funds and potentially reduced efficiency in NASA's operations. A firm fixed-price contract offers some protection against cost overruns, but value for money is still contingent on service quality and necessity.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: NNX14494502R
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: $38,004,754
Exercised Options: $38,004,754
Current Obligation: $38,004,754
Actual Outlays: $38,004,754
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: NNX16MA01B
IDV Type: IDC
Timeline
Start Date: 2019-10-01
Current End Date: 2020-09-30
Potential End Date: 2020-09-30 00:00:00
Last Modified: 2022-12-02
More Contracts from General Dynamics Information Technology, Inc.
- Global Security Engineering&supply Chain Services — $1.5B (Department of State)
- THE Purpose of This Action IS to Establish a NEW Contract With General Dynamics Information Technology for Global Supply Chain Management, Logistics and Technology Development Services to Support the Department of State. the Initial Funding Associated With This Contract IS $22,304,578.00. the Overall Contract Value IS $2,200,000,000.00 — $1.2B (Department of State)
- Cloud Products&tools (CPT) — $902.0M (Department of Health and Human Services)
- Beneficiary Contact Center Operations — $879.1M (Department of Health and Human Services)
- Award of Task Order 47qfca210051-Nawcad Wolf Ship and AIR C5isr Systems Support — $832.3M (General Services Administration)
View all General Dynamics Information Technology, Inc. federal contracts →
Other National Aeronautics and Space Administration Contracts
- International Space Station — $22.4B (THE Boeing Company)
- TAS::80 0124::TAS Design, Development, Test&evaluation of Project Orion — $15.5B (Lockheed Martin Corp)
- Provide Developmental Hardware and Test Articles, and Manufacture and Assemble Ares I Upper Stages. the Upper Stage (US) Element IS an Integral Part of the Ares I Launch Vehicle and Provides the Second Stage of Flight. the US Element IS Responsible for the Roll Control During the First Stage Burn and Separation; and Will Provide the Guidance and Navigation, Command and Data Handling, and Other Avionics Functions for the Ares I During ALL Phases of the Ascent Flight. the US Element IS a NEW Design That Emphasizes Safety, Operability, and Minimum Life Cycle Cost. the Overall Design, Development, Test and Evaluation (ddt&e), Production, and Sustaining Engineering Efforts Include Activities Performed by Three Organizations; the Nasa Design Team (NDT), the Upper Stage Production Contractor (uspc) and the Instrument Unit Production Contractor (iupc). for Clarity, the Uspc Will BE Referred to AS the Contractor Throughout This Document. Nasa IS Responsible for the Integration of the Primary Elements of the Ares I Launch Vehicle Including: the First Stage, US Including Instrument Unit (IU), and US Engine; and Will Also Integrate the Ares I Launch Vehicle AT the Launch Site. Nasa IS Responsible for the Ddt&e, Including Technical and Programmatic Integration of the US Subsystems and Government-Furnished Property. Nasa Will Lead the Effort to Develop the Requirements and Specifications of the US Element, the Development Plan and Testing Requirements, and ALL Design Documentation, Initial Manufacturing and Assembly Process Planning, Logistics Planning, and Operations Support Planning. Development, Qualification, and Acceptance Testing Will BE Conducted by Nasa and the Contractor to Satisfy Requirements and for Risk Mitigation. Nasa IS Responsible for the Overall Upper Stage Verification and Validation Process and Will Require Support From the Contractor. the Contractor IS Responsible for the Manufacture and Assembly of the Upper Stage Test Flight and Operational Upper Stage Units Including the Installation of Upper Stage Instrument Unit, the Government-Furnished US Engine, Booster Separation Motors, and Other Government-Furnished Property. a Description of the Nasa Managed and Performed Efforts IS Contained in the US Work Packages and Will BE Made Available to the Contractor to Ensure Their Understanding of the Roles and Responsibilities of the NDT, Iupc, and Contractor During the Design, Development, and Operation of the US Element. the US Conceptual Design Described in the Uso-Clv-Se-25704 US Design Definition Document (DDD) IS the Baseline Design for This Contract. the Contractors Early Role Will BE to Provide Producibility Engineering Support to Nasa VIA the Established US Office Structure and to Provide Inputs Into the Final Design Configuration, Specifications, and Standards. Nasa Will Transition the Manufacturing and Assembly, Logistics Support Infrastructure, Configuration Management, and the Sustaining Engineering Functions to the Contractor AT the KEY Points During the Development and Implementation of the Program Currently Planned to Occur NO Later Than 90 Days After the Completion of the Following Major Milestones: Manufacturing and Assembly US Preliminary Design Review (PDR) Logistics Support Infrastructure US PDR Configuration Management US Critical Design Review CDR) Sustaining Engineering US Design Certification Review (DCR) After the Completion of an Orderly Transition of Roles and Responsibilities to the Contractor, Nasa Will Assume an Insight Role Into the Contractors Production, Sustaining Engineering, and Operations Support of the Ares I US Test Program and Flight Hardware. After DCR, the Contractor Will BE Responsible for Sustaining Engineering PER SOW Section 4.7, AS Necessary to Maintain and Support the US Configuration and for Production and Operations Support — $10.5B (THE Boeing Company)
- Space Program Operations Contract (spoc) — $8.5B (United Space Alliance, LLC)
- Joint Us/Russian Human Space Flight Activities — $4.7B (Russia Space Agency)
View all National Aeronautics and Space Administration contracts →