General Dynamics IT received $57M for Enterprise Operations and Maintenance (O&M) from USDA's FSIS over six years

Contract Overview

Contract Amount: $57,046,476 ($57.0M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2009-08-05

End Date: 2015-04-10

Contract Duration: 2,074 days

Daily Burn Rate: $27.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE OPERATIONS AND MAINTENANCE (O&M) FY09-13

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20250

State: District of Columbia Government Spending

Plain-Language Summary

Department of Agriculture obligated $57.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: ENTERPRISE OPERATIONS AND MAINTENANCE (O&M) FY09-13 Key points: 1. Contract value of $57M over six years suggests a significant, long-term commitment to enterprise operations. 2. The contract was awarded as a competitive delivery order, indicating a degree of market vetting. 3. A fixed-price contract type generally shifts performance risk to the contractor. 4. The duration of the contract (2074 days) points to a need for sustained support services. 5. The award was not set aside for small businesses, implying larger prime contractors were involved. 6. The North American Industry Classification System (NAICS) code 443120 relates to computer and software stores, which may indicate the scope of O&M services.

Value Assessment

Rating: fair

Benchmarking the value of this $57M contract requires more granular data on the specific services provided under Enterprise Operations and Maintenance (O&M). Without details on the scope of work, it's difficult to compare its cost-effectiveness against similar contracts. The fixed-price nature suggests an attempt to control costs, but the overall value proposition depends heavily on the delivered performance and the efficiency of the services rendered by General Dynamics Information Technology, Inc.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' which implies it was part of a larger, pre-competed contract vehicle. However, the term 'limited' suggests that the competition might have been restricted to a specific pool of pre-qualified vendors or that the delivery order itself was not subject to full and open competition. The number of bids received (5) indicates some level of interest, but the extent of competition needs further clarification to assess its impact on price discovery.

Taxpayer Impact: A competitive delivery order, even if limited, generally offers better price discovery than a sole-source award. However, the true benefit to taxpayers depends on whether the competition was robust enough to drive down costs effectively.

Public Impact

The primary beneficiaries are likely the Department of Agriculture's Food Safety and Inspection Service (FSIS), which receives ongoing support for its enterprise operations. The services delivered are related to enterprise operations and maintenance, crucial for the functioning of the agency's IT infrastructure and related systems. The geographic impact is centered in the District of Columbia, where the contract was awarded. Workforce implications could include the employment of IT professionals and support staff by General Dynamics Information Technology, Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed service scope makes it hard to assess true value for money.
Competition level described as 'competitive delivery order' may not represent full and open competition.
The NAICS code 443120 (Computer and Software Stores) seems potentially narrow for 'Enterprise Operations and Maintenance' and warrants clarification.
The contract duration of over six years could lead to vendor lock-in if not managed carefully.

Positive Signals

The contract was awarded competitively, suggesting some level of market evaluation.
The use of a Firm Fixed Price (FFP) contract type shifts cost risk to the contractor.
The contract has a defined start and end date, providing a clear period of performance.
The award was made to a known entity, General Dynamics Information Technology, Inc., which may have a track record with the agency.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on enterprise operations and maintenance. The IT services market is highly competitive, with significant government spending allocated to maintaining and upgrading federal IT infrastructure. The value of this contract, approximately $57 million over six years, is moderate within the context of large federal IT procurements. Comparable spending benchmarks would typically involve analyzing other O&M contracts for similar agencies or IT scopes of work.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the prime contract was likely awarded to a large business, General Dynamics Information Technology, Inc. There is no direct information on subcontracting plans or their impact on the small business ecosystem from the provided data. However, large prime contracts often include subcontracting goals, which could potentially benefit small businesses if effectively managed.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the contracting officers and program managers within the Department of Agriculture's Food Safety and Inspection Service. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within agreed-upon costs. Transparency would be enhanced through contract award databases and reporting requirements, though specific oversight activities are not detailed in the provided data.

Related Government Programs

USDA IT Modernization Projects
Federal Enterprise Resource Planning (ERP) Systems
Government IT Infrastructure Support Contracts
Agency-Specific Operations and Maintenance Services

Risk Flags

Potential misalignment between NAICS code and contract description.
Limited detail on specific services and performance metrics.
Competition level described as 'competitive delivery order' requires further scrutiny.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $57.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. ENTERPRISE OPERATIONS AND MAINTENANCE (O&M) FY09-13

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 Agriculture (Food Safety and Inspection Service).

What is the total obligated amount?

The obligated amount is $57.0 million.

What is the period of performance?

Start: 2009-08-05. End: 2015-04-10.

What specific enterprise operations and maintenance services were included under this contract?

The provided data indicates the contract was for 'ENTERPRISE OPERATIONS AND MAINTENANCE (O&M)' and associated with NAICS code 443120 (Computer and Software Stores). However, the specific services are not detailed. Typically, O&M contracts encompass a range of activities such as system administration, network management, software maintenance and updates, hardware support, help desk services, and potentially data center operations. The NAICS code suggests a focus on computer hardware and software, but the 'enterprise operations' aspect implies a broader scope related to the agency's overall IT infrastructure and business processes.

How does the $57 million contract value compare to similar O&M contracts within the USDA or other agencies?

Without specific details on the scope of services and performance metrics, a direct comparison of the $57 million contract value is challenging. However, for a six-year period, this averages to approximately $9.5 million per year. This figure is moderate for enterprise-level IT operations and maintenance, especially for a large agency like the USDA. Larger agencies often spend tens or hundreds of millions annually on comprehensive IT O&M. To provide a more accurate benchmark, one would need to compare it against contracts with similar service levels, user bases, and system complexities within the federal government.

What is the track record of General Dynamics Information Technology, Inc. with the Department of Agriculture for similar services?

General Dynamics Information Technology, Inc. (GDIT) is a major federal IT contractor with a long history of serving various government agencies, including the Department of Agriculture. While this specific contract ran from August 2009 to April 2015, GDIT has likely held numerous other contracts with USDA and its various branches, potentially including IT support, O&M, and other technology services. A deeper dive into federal procurement databases (like FPDS or USASpending) would reveal the full extent and nature of their past performance with USDA to assess their experience and reliability for such services.

What were the key performance indicators (KPIs) or service level agreements (SLAs) for this contract?

The provided data does not include information on Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. In a typical federal O&M contract, such metrics are crucial for measuring contractor performance and ensuring the government receives the expected value. Common KPIs might include system uptime percentages, response times for help desk tickets, patch deployment rates, or successful completion of maintenance tasks. The absence of this information in the summary data limits the ability to assess the contractor's performance effectiveness beyond the contract's completion.

What is the significance of the contract being a 'COMPETITIVE DELIVERY ORDER'?

A 'Competitive Delivery Order' signifies that this specific task order was competed among multiple vendors, likely under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar framework agreement. This implies that the agency sought proposals and evaluated them based on defined criteria, aiming to secure the best value for this particular requirement. While it indicates competition, the level of competition (e.g., number of bidders, scope of the pool) can vary. It is generally considered a more favorable approach for price discovery and ensuring fair market value compared to a sole-source award.

How does the NAICS code 443120 (Computer and Software Stores) align with 'Enterprise Operations and Maintenance'?

The alignment between NAICS code 443120 ('Computer and Software Stores') and 'Enterprise Operations and Maintenance (O&M)' is not immediately direct. NAICS 443120 typically covers establishments primarily engaged in retailing computers, computer peripheral equipment, and software. Enterprise O&M usually falls under broader IT services categories like NAICS 541512 (Computer Systems Design Services) or 541513 (Computer Facilities Management Services). It's possible that the contract involved the procurement and maintenance of hardware/software through a retail-like model, or the NAICS code might be a less precise fit for the full scope of O&M services rendered.

Industry Classification

NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: AG-3A94-S-09-0026

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 3211 JERMANTOWN RD, FAIRFAX, VA, 22030

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $57,046,476

Exercised Options: $57,046,476

Current Obligation: $57,046,476

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4357D

IDV Type: FSS

Timeline