Department of Education's $177M IT integration contract awarded to General Dynamics Information Technology

Contract Overview

Contract Amount: $176,936,385 ($176.9M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Education

Start Date: 2018-03-01

End Date: 2026-04-30

Contract Duration: 2,982 days

Daily Burn Rate: $59.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CRITICAL FUNCTIONS: PORTFOLIO OF INTEGRATED VALUE-ORIENTED TECHNOLOGIES - INTEGRATION (PIVOT-I) - THE PIVOT-I CONTRACTOR IS RESPONSIBLE FOR THE TECHNICAL MANAGEMENT AND INTEGRATION OF PIVOT IT INFRASTRUCTURE SERVICES.

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Education obligated $176.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: CRITICAL FUNCTIONS: PORTFOLIO OF INTEGRATED VALUE-ORIENTED TECHNOLOGIES - INTEGRATION (PIVOT-I) - THE PIVOT-I CONTRACTOR IS RESPONSIBLE FOR THE TECHNICAL MANAGEMENT AND INTEGRATION OF PIVOT IT INFRASTRUCTURE SERVICES. Key points: 1. Contract focuses on technical management and integration of IT infrastructure services. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Firm Fixed Price contract type aims to control costs for the government. 4. Long duration of nearly 3000 days indicates a significant, ongoing need. 5. The contract is categorized under Computer Systems Design Services. 6. Located in Virginia, potentially impacting local IT workforce and economy.

Value Assessment

Rating: good

The total contract value of approximately $177 million over its duration appears reasonable for comprehensive IT integration services. Benchmarking against similar large-scale IT infrastructure contracts within federal agencies suggests this pricing is within expected ranges. The firm-fixed-price structure provides cost certainty, which is a positive indicator of value for money, assuming the scope of work is well-defined and managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bids suggests a healthy level of competition for this significant IT services requirement. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down prices and encouraging innovative solutions from multiple vendors.

Public Impact

Benefits the Department of Education by ensuring the smooth technical management and integration of its IT infrastructure. Delivers essential IT services that support the department's educational mission and administrative functions. Geographic impact is primarily within Virginia, where the contractor is located. Potential workforce implications for IT professionals in the Virginia region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if integration is highly proprietary.
Risk of scope creep if requirements are not tightly managed over the long contract duration.
Dependence on a single contractor for critical IT infrastructure integration.

Positive Signals

Firm Fixed Price contract type provides cost predictability.
Full and open competition suggests a robust selection process.
Long contract duration allows for sustained focus on critical IT functions.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader Information Technology (IT) industry. The IT services market is highly competitive, with significant government spending allocated to systems integration, infrastructure management, and software development. The Department of Education's reliance on such services highlights the increasing digital transformation within federal agencies. Comparable spending benchmarks for large-scale IT integration contracts often range in the hundreds of millions of dollars, depending on the scope and complexity.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the prime contractor, General Dynamics Information Technology, Inc., is a large business. There is no explicit information regarding subcontracting plans for small businesses. This suggests that the primary focus is on large-scale IT capabilities, and the direct impact on the small business ecosystem may be limited unless specific subcontracting opportunities are pursued by the prime.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Education's contracting officers and program managers. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver services within the agreed-upon cost. Transparency is generally facilitated through contract award databases and reporting requirements, though specific performance metrics and oversight activities are not detailed here. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Education IT Modernization Efforts
Federal Civilian Agency IT Infrastructure Support
Large-Scale Systems Integration Contracts
Computer Systems Design Services

Risk Flags

Long contract duration may lead to technology obsolescence risk.
Potential for vendor lock-in with integrated systems.
Dependence on a single contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $176.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. CRITICAL FUNCTIONS: PORTFOLIO OF INTEGRATED VALUE-ORIENTED TECHNOLOGIES - INTEGRATION (PIVOT-I) - THE PIVOT-I CONTRACTOR IS RESPONSIBLE FOR THE TECHNICAL MANAGEMENT AND INTEGRATION OF PIVOT IT INFRASTRUCTURE SERVICES.

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 Education (Department of Education).

What is the total obligated amount?

The obligated amount is $176.9 million.

What is the period of performance?

Start: 2018-03-01. End: 2026-04-30.

What is the specific nature of the 'integrated value-oriented technologies' being managed and integrated under this contract?

The provided data describes the contract's purpose as the 'technical management and integration of PIVOT IT infrastructure services.' PIVOT-I (PORTFOLIO OF INTEGRATED VALUE-ORIENTED TECHNOLOGIES - INTEGRATION) suggests a focus on consolidating, modernizing, and integrating various IT systems and platforms to enhance efficiency and value. This likely involves managing networks, servers, cloud services, cybersecurity components, and application interdependencies to ensure seamless operation and support for the Department of Education's mission. The 'value-oriented' aspect implies an emphasis on achieving measurable benefits, such as cost savings, improved performance, or enhanced user experience, through the integration process.

How does the $177 million contract value compare to historical IT spending by the Department of Education for similar services?

Without specific historical spending data for comparable IT integration services at the Department of Education, a direct comparison is challenging. However, the $177 million figure over approximately 8 years (March 2018 to April 2026) represents an average annual spend of roughly $22 million. This amount is substantial and aligns with the scale of IT infrastructure management and integration required by a large federal agency. To provide a more precise benchmark, one would need to analyze past contracts for IT infrastructure support, systems integration, and managed services awarded by the Department of Education, looking at both total values and annual expenditures for similar scopes of work.

What are the key performance indicators (KPIs) used to measure the success of General Dynamics Information Technology, Inc. in managing and integrating the PIVOT-I infrastructure?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for a contract focused on technical management and integration of IT infrastructure, typical KPIs would likely include metrics related to system uptime and availability, network performance, incident response and resolution times, successful integration of new technologies or services, cybersecurity compliance, and adherence to project timelines and budgets. Performance would also be assessed against the achievement of 'value-oriented' objectives, which might involve cost savings realized through integration or improvements in operational efficiency. These KPIs are usually detailed in the contract's Performance Work Statement (PWS).

What are the potential risks associated with a long-term (nearly 8-year) contract for IT infrastructure integration?

Long-term contracts for IT infrastructure integration carry several potential risks. Firstly, technology evolves rapidly; an 8-year contract might lock the Department of Education into outdated technologies or architectures if not managed proactively with flexibility. Secondly, there's a risk of vendor lock-in, where the contractor's proprietary solutions make it difficult and costly to switch providers later. Thirdly, over such an extended period, the risk of scope creep increases if requirements are not meticulously managed, potentially leading to cost overruns despite the firm-fixed-price structure. Finally, maintaining consistent service quality and innovation from the contractor over many years can be challenging.

Given the 'full and open competition' award, what does the number of bidders (4) suggest about the market for these specialized IT integration services?

The fact that this contract was awarded under 'full and open competition' with four bidders suggests a moderately competitive market for these specialized IT integration services. While four bidders indicate that multiple companies were capable and interested, it is not an exceptionally high number for a contract of this magnitude. This level of competition is generally sufficient to ensure fair pricing and a reasonable selection of qualified vendors. However, a higher number of bidders might indicate even more robust competition, potentially leading to lower prices or more innovative solutions. The specific nature of the PIVOT-I services likely narrows the field of qualified potential bidders.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ED-CIO-17-Q-0002

Offers Received: 4

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: $194,709,222

Exercised Options: $176,936,385

Current Obligation: $176,936,385

Actual Outlays: $149,668,026

Subaward Activity

Number of Subawards: 82

Total Subaward Amount: $57,890,429

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200050W

IDV Type: GWAC

Timeline