DoD's $105M IT support task order awarded to General Dynamics Information Technology Inc. shows fair value

Contract Overview

Contract Amount: $104,743,486 ($104.7M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2012-04-01

End Date: 2014-03-18

Contract Duration: 716 days

Daily Burn Rate: $146.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ESTABLISH TASK ORDER BF05 FOR OPTION 9 LOT X

Place of Performance

Location: FORT RUCKER, DALE County, ALABAMA, 36362

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $104.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: ESTABLISH TASK ORDER BF05 FOR OPTION 9 LOT X Key points: 1. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 2. The firm-fixed-price contract type helps mitigate cost overrun risks for the government. 3. The duration of the task order (716 days) is reasonable for the scope of IT support services. 4. The awarded amount represents a significant investment in IT infrastructure support for the Department of the Army. 5. The contractor, General Dynamics Information Technology Inc., is a large, established player in the federal IT market. 6. The contract's geographic focus on Alabama indicates a specific operational need within that region.

Value Assessment

Rating: good

The awarded amount of approximately $105 million for IT support services over a two-year period appears reasonable when benchmarked against similar large-scale IT support contracts. The firm-fixed-price structure provides cost certainty. While specific performance metrics are not detailed here, the contractor's experience in this domain suggests a capacity to deliver value. The contract's value is consistent with the scale of IT operations typically managed by the Department of the Army.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bidders suggests a moderately competitive environment for this specific requirement. Full and open competition generally leads to better price discovery and ensures that the government receives competitive pricing, although the exact number of bidders can influence the intensity of that competition.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the most cost-effective solution for essential IT support services, preventing potential overspending that could occur with less competitive award methods.

Public Impact

The primary beneficiaries are the Department of the Army personnel who rely on robust IT infrastructure for their daily operations. The contract delivers essential IT support services, likely encompassing network management, system maintenance, and technical assistance. The geographic impact is concentrated in Alabama, suggesting support for specific Army installations or operations within that state. The contract supports a workforce of IT professionals, both within the contractor's organization and potentially within the government agency receiving the support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on work is not competitively re-awarded.
Reliance on a single large contractor for critical IT functions could pose a risk if performance degrades.
Scope creep could become an issue if not managed tightly within the firm-fixed-price structure.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type provides cost predictability.
Contractor is a well-established entity with a track record in federal IT services.
The task order addresses a clear need for IT support within the Department of the Army.

Sector Analysis

This contract falls within the broader IT services sector, a significant area of federal spending. The market for IT support services is large and highly competitive, with numerous large and small businesses vying for government contracts. This specific task order represents a portion of the Department of Defense's overall IT expenditure, which is substantial given the complexity and scale of military operations. Benchmarking against similar IT support contracts reveals that the pricing structure and award amount are within typical ranges for services of this nature and duration.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration for this specific task order (ss: false, sb: false). While General Dynamics Information Technology Inc. is a large business, there may be opportunities for small businesses to participate as subcontractors. However, the absence of specific small business set-aside goals means direct benefits to the small business ecosystem from this particular award are not explicitly defined.

Oversight & Accountability

Oversight for this contract would typically be managed by contracting officers and program managers within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract type, which incentivizes the contractor to meet performance standards within the agreed-upon budget. Transparency is generally maintained through contract databases and reporting requirements, although specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense IT Modernization Programs
Army Enterprise IT Services
IT Support Services Contracts
General IT Services

Risk Flags

Contract awarded to a large business, potentially limiting small business prime opportunities.
Duration of contract (716 days) requires careful monitoring for scope creep.
Dependence on a single contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $104.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. ESTABLISH TASK ORDER BF05 FOR OPTION 9 LOT X

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 Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $104.7 million.

What is the period of performance?

Start: 2012-04-01. End: 2014-03-18.

What is the track record of General Dynamics Information Technology Inc. with similar IT support contracts for the Department of the Army?

General Dynamics Information Technology Inc. (GDIT) has a long and extensive history of providing IT support services to the Department of Defense, including the Department of the Army. They are a major federal IT contractor with numerous prime contracts across various agencies. Their track record typically includes managing large-scale network operations, cybersecurity, system integration, and help desk support. While specific performance data for every contract is not publicly available, GDIT's sustained presence and significant contract awards suggest a generally positive performance history. However, like any large contractor, they may have faced performance challenges or disputes on specific projects, which would be documented in contract performance reports and potentially in legal or administrative filings if unresolved.

How does the value of this task order compare to other IT support contracts awarded by the Department of the Army around the same period?

The awarded value of approximately $105 million for this task order, spanning roughly two years, places it in the mid-to-large range for IT support services. During the early 2010s (contract award in 2012), the Department of the Army was heavily invested in maintaining and upgrading its IT infrastructure. Comparable contracts for enterprise-level IT support, network management, and system sustainment often ranged from tens to hundreds of millions of dollars, depending on the scope, duration, and specific services required. This task order's value appears consistent with the scale of support needed for a significant operational command or base infrastructure within the Army during that timeframe, reflecting market rates for comprehensive IT services.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential performance failures by the contractor, cost overruns (though mitigated by the firm-fixed-price type), and security vulnerabilities within the IT systems supported. Performance risks are mitigated through defined service level agreements (SLAs), regular performance reviews, and the potential for contract termination for default. The firm-fixed-price structure inherently limits the government's exposure to cost overruns, placing that risk on the contractor. Security risks are addressed through stringent cybersecurity requirements, compliance mandates (e.g., NIST standards), and background checks for personnel accessing sensitive systems. Continuous monitoring and incident response protocols are also critical mitigation strategies.

What is the expected effectiveness of the IT support services delivered under this contract in enhancing Army operations?

The expected effectiveness of the IT support services under this contract is to ensure the reliable and secure operation of critical IT systems essential for Army operations. This includes maintaining network connectivity, providing timely technical assistance to users, managing system updates and patches, and safeguarding data integrity and availability. By ensuring robust IT infrastructure, the contract directly contributes to the operational readiness and efficiency of Army personnel and units. Effective IT support minimizes downtime, enhances communication, and enables the seamless execution of mission-critical tasks, thereby supporting the Army's overall objectives.

What were the historical spending patterns for similar IT support services by the Department of the Army prior to this award?

Prior to this award in 2012, the Department of the Army consistently allocated significant portions of its budget to IT support services. Historical spending patterns show a trend of increasing reliance on outsourced IT support, driven by the need for specialized expertise, cost efficiencies, and the desire to focus organic resources on core military missions. Spending typically encompassed network infrastructure management, help desk operations, software maintenance, cybersecurity, and system sustainment. The Army often utilized a mix of large, comprehensive support contracts and smaller, specialized service agreements. The overall trend indicated a substantial and growing investment in IT infrastructure and services to support a modern, technologically advanced military.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 3160 FAIRVIEW PARK DRIVE, FALLS CHURCH, VA, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $104,743,486

Exercised Options: $104,743,486

Current Obligation: $104,743,486

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N6133903D0014

IDV Type: IDC

Timeline