Department of Energy awards $2.25M IT services contract to General Dynamics Information Technology, Inc
Contract Overview
Contract Amount: $2,249,480 ($2.2M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Energy
Start Date: 2022-03-24
End Date: 2028-01-21
Contract Duration: 2,129 days
Daily Burn Rate: $1.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: LABOR HOURS
Sector: IT
Official Description: IN GENERAL, THE CONTRACTOR SHALL PROVIDE PROJECT MANAGEMENT APPLICATION MANAGEMENT SOFTWARE DEVELOPMENT/RELEASE MANAGEMENT SOFTWARE CHANGE MANAGEMENT ORGANIZATIONAL CHANGE MANAGEMENT INFRASTRUCTURE SUPPORT SECURITY/CYBER SUPPORT HELP DESK SUP
Place of Performance
Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20874
State: Maryland Government Spending
Plain-Language Summary
Department of Energy obligated $2.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IN GENERAL, THE CONTRACTOR SHALL PROVIDE PROJECT MANAGEMENT APPLICATION MANAGEMENT SOFTWARE DEVELOPMENT/RELEASE MANAGEMENT SOFTWARE CHANGE MANAGEMENT ORGANIZATIONAL CHANGE MANAGEMENT INFRASTRUCTURE SUPPORT SECURITY/CYBER SUPPORT HELP DESK SUP Key points: 1. Contract focuses on IT services including project management, application management, and cybersecurity support. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Performance period spans from March 2022 to January 2028, indicating a long-term engagement. 4. The contract type is a Blanket Purchase Agreement (BPA) Call, often used for streamlined procurement. 5. The North American Industry Classification System (NAICS) code 541519 points to 'Other Computer Related Services'. 6. The contractor, General Dynamics Information Technology, Inc., is a large, established IT services provider. 7. The contract is not set aside for small businesses, nor does it indicate specific subcontracting goals. 8. The contract is for labor hours, implying payment based on time and materials.
Value Assessment
Rating: fair
The total award amount of $2.25 million over approximately five years suggests a moderate investment in IT services. Without specific deliverables or performance metrics, a direct value-for-money assessment is challenging. Benchmarking against similar IT service contracts for project management, application development, and cybersecurity support would be necessary to determine if the pricing is competitive. The labor hour pricing model can sometimes lead to cost overruns if not closely managed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' which typically means that all responsible sources were permitted to submit a bid. This suggests a robust competitive environment. The number of bidders is not specified, but full and open competition generally leads to better price discovery and potentially lower costs for the government compared to limited or sole-source procurements.
Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the best value from a wide range of qualified vendors.
Public Impact
The Department of Energy benefits from comprehensive IT support services. Services include project management, application management, software development, and cybersecurity. The contract supports the operational infrastructure and technological needs of the agency. The geographic impact is primarily within the agency's operational locations, likely nationwide. Workforce implications include the potential for employment opportunities within General Dynamics IT and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Labor hour contracts can be susceptible to scope creep and cost overruns if not meticulously managed.
- Lack of specific performance metrics makes it difficult to assess the contractor's efficiency and effectiveness.
- The long performance period could lead to vendor lock-in if not periodically re-evaluated.
- No explicit small business subcontracting goals are mentioned, potentially limiting opportunities for smaller firms.
Positive Signals
- Awarded under full and open competition, indicating a competitive process.
- The contractor, General Dynamics Information Technology, Inc., is a well-established entity with significant experience in government IT services.
- The contract covers a broad range of essential IT services critical to agency operations.
- The BPA Call mechanism can streamline the ordering process for the agency.
Sector Analysis
This contract falls within the broader IT services sector, specifically 'Other Computer Related Services.' The IT services market is highly competitive and dynamic, with significant government spending allocated to software development, infrastructure support, and cybersecurity. The Department of Energy, like many federal agencies, relies heavily on IT services to manage its complex operations, research, and data. Comparable spending benchmarks would involve looking at other large IT service contracts awarded by agencies of similar size and mission.
Small Business Impact
This contract does not appear to have been set aside for small businesses, nor is there explicit information regarding small business subcontracting requirements. This means that opportunities for small businesses to participate in this contract are likely limited to subcontracting roles, if any are pursued by the prime contractor. The absence of set-aside provisions means the primary focus was on obtaining the best value from the broadest possible pool of offerors, which may not prioritize small business participation.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Energy's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract databases like FPDS. Accountability measures would be tied to the performance standards outlined in the contract, though these are not detailed here. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- IT Services
- Software Development
- Cybersecurity Support
- Project Management
- Application Management
- Infrastructure Support
Risk Flags
- Labor Hour Pricing
- Lack of Specific Performance Metrics
- Long Contract Duration
Tags
it-services, department-of-energy, general-dynamics-information-technology, full-and-open-competition, bpa-call, labor-hours, cybersecurity, project-management, software-development, application-management, infrastructure-support, maryland
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $2.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IN GENERAL, THE CONTRACTOR SHALL PROVIDE PROJECT MANAGEMENT APPLICATION MANAGEMENT SOFTWARE DEVELOPMENT/RELEASE MANAGEMENT SOFTWARE CHANGE MANAGEMENT ORGANIZATIONAL CHANGE MANAGEMENT INFRASTRUCTURE SUPPORT SECURITY/CYBER SUPPORT HELP DESK SUP
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 $2.2 million.
What is the period of performance?
Start: 2022-03-24. End: 2028-01-21.
What is the track record of General Dynamics Information Technology, Inc. with the Department of Energy and other federal agencies for similar IT services?
General Dynamics Information Technology, Inc. (GDIT) has a substantial track record with the Department of Energy and numerous other federal agencies, providing a wide array of IT services. Historically, GDIT has secured and successfully executed large-scale contracts for IT modernization, cybersecurity, cloud migration, application development, and infrastructure management across various departments including Defense, Health and Human Services, and Homeland Security. Their experience often involves managing complex projects with significant budgets and stringent security requirements. For the Department of Energy specifically, GDIT has been involved in supporting critical IT infrastructure and mission-specific applications. A review of past performance evaluations and contract awards would provide a more granular understanding of their performance on similar task orders and their overall relationship with the agency.
How does the estimated annual cost of this contract compare to similar IT service contracts awarded by the Department of Energy or other agencies?
The total award of $2.25 million over approximately five years equates to an average annual value of roughly $450,000. To benchmark this, one would need to compare it against IT service contracts of similar scope (project management, application development, cybersecurity) awarded by the Department of Energy or comparable agencies like the Department of the Interior or the Environmental Protection Agency. Factors such as the specific services required, the level of expertise needed, the security clearance requirements, and the duration of the contract significantly influence pricing. If this contract involves highly specialized skills or extensive cybersecurity measures, the annual cost might be considered reasonable. Conversely, if it covers more standard IT support, it could be on the higher end, especially if competition was robust.
What are the primary risks associated with this contract, and what mitigation strategies are in place?
Key risks include potential cost overruns due to the labor hour pricing model, scope creep if project requirements are not clearly defined and managed, and performance deficiencies if the contractor fails to meet service level expectations. Cybersecurity risks are also inherent in IT service contracts, requiring robust security protocols and monitoring. Mitigation strategies typically involve strong contract oversight by the agency, detailed work breakdown structures, regular performance reviews, clearly defined milestones, and adherence to strict cybersecurity policies. The use of a BPA Call may streamline ordering but requires diligent management to ensure each call aligns with the overall contract objectives and budget. The long duration also presents a risk of technological obsolescence if not managed proactively.
How effective is the 'full and open competition' approach in ensuring value for money for this specific IT services contract?
Full and open competition is generally considered the most effective method for ensuring value for money, as it allows the widest possible range of qualified vendors to compete, driving down prices and encouraging innovation. For this IT services contract, it suggests that the Department of Energy sought to leverage the competitive market to obtain the best possible combination of price and technical capability. The effectiveness hinges on the clarity of the solicitation requirements, the evaluation criteria used, and the number and quality of the bids received. If multiple capable vendors submitted proposals, the government is likely to have secured a competitive price. However, the true measure of value for money will be realized through the contractor's performance over the contract's duration.
What are the implications of this contract being a BPA Call for the Department of Energy's IT modernization efforts?
A Blanket Purchase Agreement (BPA) Call is a mechanism used to streamline the procurement process for recurring needs under an existing contract, often a larger IDIQ (Indefinite Delivery/Indefinite Quantity) contract. For the Department of Energy's IT modernization efforts, using a BPA Call implies that this contract is part of a pre-negotiated framework, allowing for faster ordering of specific IT services. This can accelerate the deployment of necessary IT solutions. However, it also means that the initial competition and negotiation happened at the BPA level. The effectiveness of the BPA Call depends on how well the underlying BPA was structured and how effectively individual calls are managed to ensure they align with modernization goals and represent good value.
Are there any specific cybersecurity requirements or performance metrics detailed within this contract that indicate its robustness?
The provided data indicates 'SECURITY/CYBER SUPPORT' as a service provided, but it does not detail specific cybersecurity requirements or performance metrics within this contract. Typically, federal IT contracts, especially those supporting agencies like the Department of Energy, would include stringent cybersecurity clauses, compliance with NIST standards (e.g., NIST SP 800-53), and potentially specific performance metrics related to incident response times, vulnerability patching, or security audit results. Without access to the full contract document or task orders, it's impossible to assess the robustness of the cybersecurity provisions. However, given the nature of the agency and the services, it is highly probable that comprehensive cybersecurity measures are mandated.
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 › IT AND TELECOM - DELIVERY
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Pricing Type: LABOR HOURS (Z)
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: $3,693,602
Exercised Options: $3,693,602
Current Obligation: $2,249,480
Actual Outlays: $1,648,393
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 89303020ACF000009
IDV Type: BPA
Timeline
Start Date: 2022-03-24
Current End Date: 2028-01-21
Potential End Date: 2028-01-21 00:00:00
Last Modified: 2026-02-26
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