General Dynamics IT awarded $32.9M for routine IDW O&M support to 14,000 users

Contract Overview

Contract Amount: $32,904,730 ($32.9M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Energy

Start Date: 2020-08-19

End Date: 2028-01-21

Contract Duration: 2,711 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THE CONTRACTOR SHALL PERFORM AS EXPECTED ROUTINE AND RECURRING IDW O&M SUPPORT SERVICES TO ENSURE IDW SYSTEMS SUPPORT THE BUSINESS COMMUNITY OF 14,000 ACTIVE USERS. IN ADDITION, THE CONTRACTOR SHALL PERFORM AS EXPECTED ROUTINE AND RECURRING I

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Energy obligated $32.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: THE CONTRACTOR SHALL PERFORM AS EXPECTED ROUTINE AND RECURRING IDW O&M SUPPORT SERVICES TO ENSURE IDW SYSTEMS SUPPORT THE BUSINESS COMMUNITY OF 14,000 ACTIVE USERS. IN ADDITION, THE CONTRACTOR SHALL PERFORM AS EXPECTED ROUTINE AND RECURRING I Key points: 1. Contract focuses on essential operational maintenance for Integrated Data Warehouse (IDW) systems. 2. Supports a significant user base of 14,000 active business community users. 3. The contract type is Time and Materials, which can pose cost control challenges. 4. Performance period extends over several years, indicating a need for sustained support. 5. The award was made under full and open competition, suggesting a competitive process. 6. The North American Industry Classification System (NAICS) code 541519 points to broad IT services.

Value Assessment

Rating: fair

The contract value of $32.9 million over its duration appears to be for routine operational support. Benchmarking the value-for-money is challenging without specific performance metrics or comparable contracts for similar IDW O&M services. The Time and Materials (T&M) pricing structure, while flexible, can lead to higher costs if not managed closely, especially for recurring services. Further analysis would be needed to compare unit labor rates or service delivery costs against industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this competitive approach generally fosters price discovery and encourages vendors to offer competitive terms. The agency's decision to use full and open competition suggests confidence in the market's ability to provide suitable solutions for IDW O&M support.

Taxpayer Impact: A competitive award process is generally favorable for taxpayers as it is expected to drive down costs and improve the quality of services received compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are the 14,000 active users within the Department of Energy's business community who rely on the IDW systems. The contract ensures the continued availability and functionality of critical data warehousing infrastructure. Services delivered are routine and recurring operational and maintenance support. The geographic impact is primarily within the Department of Energy's operational footprint, likely supporting its business functions nationwide. Workforce implications may include the need for skilled IT professionals to maintain and operate the IDW systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored and managed.
Lack of specific performance metrics makes it difficult to assess the true value for money.
The long duration of the contract (2020-2028) may reduce flexibility to adapt to evolving technological needs.
The broad NAICS code (541519) indicates a wide range of potential services, requiring careful scope management.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
Contract ensures continuity of essential IT operations for a large user base.
The contractor, General Dynamics Information Technology, Inc., is a large, established entity with significant IT experience.
The contract supports critical business functions by maintaining vital data warehousing systems.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive. This contract falls under IT services, specifically focusing on operational and maintenance support for data warehousing systems. The market for such services is substantial, with agencies increasingly relying on robust data infrastructure to support their missions. Comparable spending benchmarks for IT O&M services vary widely based on system complexity, user base size, and service level agreements. General Dynamics Information Technology is a major player in this space, competing with numerous other large and small IT service providers.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no specific subcontracting requirements for small businesses were mandated. The award to a large prime contractor like General Dynamics Information Technology suggests that small businesses are unlikely to be directly involved as prime contractors on this specific award. Their involvement would likely be limited to potential subcontracting opportunities, the extent of which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Energy's contracting officers and program managers. Accountability measures are inherent in the contract's performance clauses and the Time and Materials (T&M) pricing structure, which requires detailed reporting of labor hours and materials. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Operations and Maintenance
Data Warehousing Services
Information Technology Support Services
General IT Services
Cloud Computing Services (if applicable to IDW)

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Risk of technological obsolescence over the long contract duration.
Lack of clearly defined performance metrics in the summary data.
Potential for scope creep in a T&M contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $32.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. THE CONTRACTOR SHALL PERFORM AS EXPECTED ROUTINE AND RECURRING IDW O&M SUPPORT SERVICES TO ENSURE IDW SYSTEMS SUPPORT THE BUSINESS COMMUNITY OF 14,000 ACTIVE USERS. IN ADDITION, THE CONTRACTOR SHALL PERFORM AS EXPECTED ROUTINE AND RECURRING I

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 Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $32.9 million.

What is the period of performance?

Start: 2020-08-19. End: 2028-01-21.

What is the specific scope of 'routine and recurring IDW O&M support' and what are the key performance indicators (KPIs) for this contract?

The provided data snippet describes the scope as 'routine and recurring IDW O&M support services to ensure IDW systems support the business community of 14,000 active US users.' However, specific Key Performance Indicators (KPIs) are not detailed. Typically, for O&M contracts, KPIs would include metrics such as system uptime/availability, response times for issue resolution, data integrity, and user satisfaction. The absence of explicit KPIs in the summary makes it challenging to quantitatively assess performance. A full review of the contract's Statement of Work (SOW) would be necessary to identify these specific performance standards and how they are measured and enforced.

How does the Time and Materials (T&M) pricing structure compare to fixed-price or other contract types for similar IT O&M services, and what are the associated risks?

Time and Materials (T&M) contracts offer flexibility, allowing the government to pay for actual labor hours and material costs incurred. This is often used when the scope of work is not clearly defined or is expected to change. However, T&M contracts carry inherent risks for the government, primarily related to cost control. Unlike fixed-price contracts, there is less incentive for the contractor to control costs, as their profit is often tied to the hours worked and materials used. For IT O&M, a T&M structure can lead to cost overruns if not meticulously managed through strong oversight, detailed reporting, and defined labor rate ceilings. Fixed-price contracts, conversely, provide cost certainty but may lack flexibility for evolving IT needs. Hybrid approaches or cost-plus contracts are other alternatives.

What is the historical spending pattern for IDW O&M support at the Department of Energy, and how does this award compare?

Historical spending data for IDW O&M support at the Department of Energy (DOE) is not provided in the current data extract. To establish a historical spending pattern, one would need to analyze previous contracts for similar services, potentially including predecessor contracts to this BPA Call, or other IDW-related support efforts within the DOE. Comparing this $32.9 million award requires understanding the duration, scope, and inflation-adjusted costs of prior agreements. Without this context, it's difficult to determine if this award represents an increase, decrease, or stable level of investment in IDW O&M. Analyzing trends over multiple fiscal years would reveal patterns in the DOE's commitment to maintaining its data warehousing infrastructure.

What is the track record of General Dynamics Information Technology, Inc. (GDIT) in performing IT O&M services for federal agencies, particularly for data warehousing systems?

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record in providing a wide range of IT services to federal agencies, including operations and maintenance (O&M) support for complex systems. They are a large, established government contractor with extensive experience in areas such as infrastructure management, cybersecurity, and application support. While specific details on their performance for IDW systems within the Department of Energy are not provided here, GDIT has held numerous large-scale IT contracts across various agencies, often involving mission-critical systems. Their performance history generally includes managing large user bases and ensuring system availability. A comprehensive assessment would involve reviewing past performance evaluations (e.g., CPARS reports) and contract awards related to data warehousing and similar IT infrastructure support.

What are the potential risks associated with the long performance period (2020-2028) for this IDW O&M contract?

The extended performance period of this contract, running from August 2020 to January 2028, presents several potential risks. Firstly, technology evolves rapidly in the IT sector; systems and user needs may change significantly over an eight-year span. A contract structured for the long term might not adequately accommodate these changes without costly modifications or change orders. Secondly, the Time and Materials (T&M) pricing model, combined with a long duration, increases the risk of cost escalation due to inflation, labor rate increases, or scope creep that might be harder to control over an extended period. Thirdly, maintaining consistent service quality and contractor performance over such a long duration can be challenging. Agencies might miss opportunities to leverage newer technologies or more cost-effective solutions that emerge during the contract's life if they are locked into a long-term agreement.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3150 FAIRVIEW PARK DR, 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: $46,367,743

Exercised Options: $45,428,646

Current Obligation: $32,904,730

Actual Outlays: $29,383,966

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $6,289,202

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 89303020ACF000009

IDV Type: BPA

Timeline