DOJ's $45.4M contract for computer hardware and software awarded to General Dynamics IT

Contract Overview

Contract Amount: $45,380,429 ($45.4M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Justice

Start Date: 2015-08-31

End Date: 2015-08-31

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20535

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $45.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF Key points: 1. Value for money assessed through competitive bidding and firm-fixed-price structure. 2. Competition dynamics indicate a robust market for IT hardware and software solutions. 3. Risk indicators are moderate, given the standard nature of IT procurement. 4. Performance context relies on the FBI's ability to manage and utilize procured assets effectively. 5. Sector positioning places this contract within the broader federal IT procurement landscape.

Value Assessment

Rating: good

The contract's firm-fixed-price nature suggests a clear understanding of costs between the government and the contractor. Benchmarking against similar IT hardware and software procurements by the FBI and other agencies would provide a more precise value assessment. However, the competitive award process generally supports favorable pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 8 bidders suggests a healthy level of competition for this type of IT procurement, which typically leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The full and open competition process ensures that taxpayer dollars are used efficiently by leveraging market forces to secure competitive pricing for essential IT resources.

Public Impact

Federal Bureau of Investigation (FBI) personnel benefit from updated computer hardware and software. Services delivered include the provision of necessary IT equipment to support law enforcement and investigative functions. Geographic impact is primarily within the District of Columbia, where the FBI's headquarters are located. Workforce implications include enabling FBI staff with the tools needed for their daily operations and mission success.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively bid.
Ensuring compatibility and integration of procured hardware and software with existing FBI IT infrastructure.
Timely delivery and installation of equipment to avoid operational disruptions.

Positive Signals

Awarded through full and open competition, maximizing potential for cost savings.
Firm-fixed-price contract type provides cost certainty for the government.
General Dynamics Information Technology is an established contractor with experience in federal IT procurements.

Sector Analysis

This contract falls within the Information Technology sector, specifically the procurement of computer hardware and software. The federal IT market is substantial, with agencies consistently investing in technology to support their missions. This contract represents a typical expenditure for an agency like the FBI to maintain and upgrade its technological capabilities, aligning with broader government-wide IT modernization efforts.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While General Dynamics Information Technology is a large business, there is always potential for subcontracting opportunities for small businesses within the performance of such a large contract, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically reside with the Department of Justice's Office of the Inspector General and the contracting officers within the Federal Bureau of Investigation. Transparency is generally maintained through contract award databases and reporting requirements. Accountability measures are enforced through contract terms and performance monitoring.

Related Government Programs

FBI IT Modernization Programs
Federal Civilian IT Procurement
Department of Justice IT Spending
General Services Administration (GSA) Schedule Contracts

Risk Flags

Potential for obsolescence if refresh cycles are not maintained.
Dependence on contractor for timely delivery and support.
Cybersecurity risks associated with hardware and software vulnerabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $45.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF

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 Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $45.4 million.

What is the period of performance?

Start: 2015-08-31. End: 2015-08-31.

What is the track record of General Dynamics Information Technology with the FBI and other federal agencies for similar IT procurements?

General Dynamics Information Technology (GDIT) has a significant history of contracting with federal agencies, including the FBI and the Department of Justice. They are a large, established IT services provider with extensive experience in delivering hardware, software, and related IT solutions. Their track record typically involves large-scale system integration, cybersecurity, and infrastructure support. For the FBI specifically, GDIT has been involved in various IT modernization efforts and support contracts. While specific performance metrics for this particular $45.4 million contract are not detailed here, GDIT's overall performance with federal clients is generally characterized by their capacity to handle complex, large-volume procurements. Agencies often rely on contractors like GDIT for their ability to scale, manage complex projects, and provide a wide range of IT services, though like any large contractor, past performance reviews and contract close-outs would offer a more granular view of their specific successes and challenges on individual contracts.

How does the $45.4 million value of this contract compare to typical FBI IT hardware and software spending?

The $45.4 million value of this contract is substantial but falls within the expected range for significant IT hardware and software procurements by a large federal agency like the FBI. The FBI, as a major law enforcement and intelligence agency, requires continuous investment in up-to-date technology to support its vast operations, data analysis, and investigative needs. Annual IT spending for agencies of this size can easily reach hundreds of millions or even billions of dollars when considering all aspects of IT infrastructure, software development, cybersecurity, and end-user devices. Therefore, a single contract of this magnitude for computer hardware and software is indicative of a major refresh or upgrade cycle, or the provisioning of equipment for a significant new initiative. It represents a considerable portion of their hardware and software acquisition budget for a given period but is not an outlier in the context of overall federal IT spending.

What are the primary risks associated with a firm-fixed-price contract for IT hardware and software?

The primary risks associated with a firm-fixed-price (FFP) contract for IT hardware and software primarily lie with the contractor, but can indirectly impact the government. For the contractor, the risk is that costs may exceed the fixed price due to unforeseen issues, scope creep (if not managed contractually), or market fluctuations in component prices. If the contractor underestimates costs or encounters significant problems, they may incur losses. For the government, the main risk is that the contractor might cut corners on quality or service to maintain profitability if they are losing money, or that the fixed price might not reflect the best possible value if the market conditions change favorably after the contract is awarded and the government is locked into the higher price. However, FFP contracts are generally favored by the government for IT procurements because they offer the highest degree of cost certainty and predictability, shifting the cost-risk burden to the contractor.

What does the 'full and open competition' award status imply about the effectiveness of the procurement process for this contract?

The 'full and open competition' award status for this $45.4 million contract implies a highly effective and transparent procurement process. It means that the FBI actively sought proposals from all responsible sources, without restrictions, allowing any interested and capable vendor to compete. This broad solicitation typically results in a larger pool of bidders, fostering robust competition. The presence of 8 bidders, as indicated, suggests that the market for these IT goods and services is competitive and that the FBI's solicitation was well-defined and accessible. Such a process is designed to drive down prices, encourage innovation, and ensure the government receives the best value for its investment. It minimizes the risk of favoritism and maximizes the opportunity to leverage market dynamics for cost savings and superior product/service selection.

How does this contract contribute to the FBI's overall mission objectives?

This contract directly contributes to the FBI's mission objectives by ensuring its personnel have access to modern and reliable computer hardware and software. Effective law enforcement and national security operations are heavily dependent on robust IT infrastructure. Updated equipment enables agents and analysts to process information more efficiently, manage vast databases, utilize advanced analytical tools for investigations, communicate securely, and maintain situational awareness. Without adequate and current technology, the FBI's ability to investigate crimes, gather intelligence, protect against threats, and prosecute offenders would be significantly hampered. This procurement is therefore a foundational element supporting the operational readiness and effectiveness of the Bureau.

What are the potential implications for IT market competition and pricing given this contract's size and scope?

A $45.4 million contract for computer hardware and software awarded under full and open competition has significant implications for the IT market. Firstly, it signals to the market that the FBI is a major customer with substantial needs, encouraging vendors to invest in capabilities to compete for future opportunities. The competitive nature of the award, with 8 bidders, suggests that the market is healthy and that pricing is likely to be competitive. For taxpayers, this means that the government is likely benefiting from economies of scale and aggressive bidding, leading to more efficient use of funds. It also reinforces the expectation that large federal IT procurements should be subject to open competition to ensure fair pricing and access to a wide range of technological solutions, potentially driving down overall market prices for similar goods and services over time.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

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: $50,864,411

Exercised Options: $45,380,429

Current Obligation: $45,380,429

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4357D

IDV Type: FSS

Timeline