Department of Education awards $117.7M for IT O&M to General Dynamics, lacking competition
Contract Overview
Contract Amount: $117,680,962 ($117.7M)
Contractor: General Dynamics ONE Source LLC
Awarding Agency: Department of Education
Start Date: 2019-09-30
End Date: 2025-09-30
Contract Duration: 2,192 days
Daily Burn Rate: $53.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THE PURPOSE OF THIS CONTRACT IS FOR CONTRACTOR TO CONTINUE PROVIDING OPERATION AND MAINTENANCE OF THE APPLICATION AND ELIGIBILITY DETERMINATION SYSTEM AS THE DEPART. OF EDUCATION MOVES TOWARD IMPLEMENTING THE NEXT GENERATION DATA CENTER IT PLATFORM.
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042
State: Virginia Government Spending
Plain-Language Summary
Department of Education obligated $117.7 million to GENERAL DYNAMICS ONE SOURCE LLC for work described as: THE PURPOSE OF THIS CONTRACT IS FOR CONTRACTOR TO CONTINUE PROVIDING OPERATION AND MAINTENANCE OF THE APPLICATION AND ELIGIBILITY DETERMINATION SYSTEM AS THE DEPART. OF EDUCATION MOVES TOWARD IMPLEMENTING THE NEXT GENERATION DATA CENTER IT PLATFORM. Key points: 1. The contract focuses on maintaining an existing application and eligibility system during a platform transition. 2. General Dynamics One Source LLC is the sole awardee, indicating a lack of competitive bidding. 3. The contract's duration extends to September 2025, covering a significant operational period. 4. The 'Other Computer Related Services' NAICS code suggests a broad range of IT support.
Value Assessment
Rating: fair
The $117.7 million award over approximately 6 years (2192 days) averages to about $53,687 per year. Without specific benchmarks for similar application O&M contracts, it's difficult to definitively assess pricing, but the annual average seems moderate for complex IT systems.
Cost Per Unit: $53,687
Competition Analysis
Competition Level: sole-source
This contract was not competed, meaning it was awarded directly to General Dynamics One Source LLC. This approach limits price discovery and potentially leads to higher costs compared to a competitive process.
Taxpayer Impact: The lack of competition raises concerns about whether taxpayers are receiving the best possible value for the services provided.
Public Impact
Students and educators rely on the eligibility determination system for access to educational programs. The transition to a new data center platform could impact the availability and performance of critical systems. Continued operation and maintenance are crucial to prevent disruptions during the IT modernization effort.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Long contract duration without re-competition
Positive Signals
- Ensures continuity of critical IT operations during platform transition
- Experienced contractor likely familiar with the system
Sector Analysis
This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. Spending in this area is substantial across government, with O&M contracts being common for maintaining legacy systems during modernization efforts.
Small Business Impact
The contract was not awarded to a small business, and there is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is meeting all performance requirements and that the pricing remains reasonable throughout the contract term.
Related Government Programs
- Other Computer Related Services
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns due to non-competitive pricing
- Risk of system obsolescence and security vulnerabilities
- Dependency on a single contractor for critical IT functions
Tags
other-computer-related-services, department-of-education, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $117.7 million to GENERAL DYNAMICS ONE SOURCE LLC. THE PURPOSE OF THIS CONTRACT IS FOR CONTRACTOR TO CONTINUE PROVIDING OPERATION AND MAINTENANCE OF THE APPLICATION AND ELIGIBILITY DETERMINATION SYSTEM AS THE DEPART. OF EDUCATION MOVES TOWARD IMPLEMENTING THE NEXT GENERATION DATA CENTER IT PLATFORM.
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS ONE SOURCE LLC.
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $117.7 million.
What is the period of performance?
Start: 2019-09-30. End: 2025-09-30.
What is the justification for awarding this contract on a sole-source basis, especially given the long duration?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that cannot be met through competition. For a long-duration contract like this, agencies are generally expected to seek competitive bids unless specific circumstances, such as a critical transition period or the need for specialized expertise tied to the existing system, prevent it. Further investigation into the agency's justification is warranted.
How does the annual cost of this contract compare to industry benchmarks for similar IT application O&M services?
The average annual cost is approximately $53,687. Benchmarking this against industry standards for similar IT application Operation and Maintenance (O&M) services requires access to proprietary cost data or government databases that track comparable contracts. Without such data, a precise comparison is difficult. However, for complex, mission-critical systems, this annual cost might be considered reasonable, but a lack of competition prevents confirmation of optimal value.
What are the potential risks associated with continuing to operate an older system while the agency transitions to a new data center platform?
The primary risks include increased vulnerability to cyber threats, potential integration issues with the new platform, and a higher likelihood of system failures or performance degradation as the system ages. Maintaining an older system can also divert resources and attention from the new platform's development and implementation, potentially delaying the transition and its intended benefits.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 91003119R0016
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 3150 FAIRVIEW PARK DR STE 100, FALLS CHURCH, VA, 22042
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $145,599,899
Exercised Options: $145,599,899
Current Obligation: $117,680,962
Actual Outlays: $118,032,075
Subaward Activity
Number of Subawards: 17
Total Subaward Amount: $10,095,892
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2019-09-30
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2026-03-16
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