DOJ's $37.9M IT support contract for USTP database management awarded to General Dynamics IT

Contract Overview

Contract Amount: $37,925,940 ($37.9M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Justice

Start Date: 2012-04-26

End Date: 2022-03-31

Contract Duration: 3,626 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: CRITICAL - IT SUPPORT FOR USTP DATABASE MANAGEMENT SYSTEMS AND SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20530

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $37.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: CRITICAL - IT SUPPORT FOR USTP DATABASE MANAGEMENT SYSTEMS AND SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 9 years indicates a long-term need for these IT services. 3. Awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The use of Time and Materials pricing may present cost control challenges if not closely managed. 5. The contract's focus on database management systems and services highlights critical IT infrastructure support. 6. The significant dollar value suggests a substantial investment in maintaining and enhancing DOJ's data capabilities.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the parent IDIQ contract's terms and overall value. However, the duration and total value suggest a significant investment. The Time and Materials (T&M) pricing structure, while flexible, can lead to cost overruns if not meticulously monitored, potentially impacting value for money. Comparing it to similar IT support contracts for database management within federal agencies would require detailed analysis of scope, duration, and labor rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it was a delivery order suggests it was likely competed as part of a broader IDIQ vehicle. The number of bidders and the specific competition dynamics for the parent IDIQ would provide a clearer picture of the competitive landscape and its impact on price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. This approach ensures that the government is likely receiving services at a reasonable cost compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are the Department of Justice (DOJ) components relying on the USTP database management systems. Services delivered include IT support, database management, and related services crucial for operational efficiency. The geographic impact is primarily within the District of Columbia, where the contract is registered. Workforce implications may include the need for specialized IT personnel to manage and maintain complex database systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials pricing structure if not managed effectively.
Long contract duration (over 9 years) increases the risk of technology obsolescence or changing requirements.
Dependence on a single contractor (General Dynamics Information Technology, Inc.) for critical database support.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contract addresses critical IT infrastructure needs for database management systems.
Long-term award indicates a stable and ongoing requirement, potentially leading to contractor expertise development.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. This sector encompasses a wide range of services, including IT consulting, systems integration, and custom software development. Federal spending in IT support and database management is substantial, driven by the need to maintain and modernize complex government systems. Comparable spending benchmarks would typically involve analyzing IT support contracts for other large federal agencies with similar database infrastructure needs.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the 'sb' (small business set-aside) flag is false. There is no explicit information on subcontracting plans for small businesses. Without further details on the parent IDIQ or specific subcontracting goals, the direct impact on the small business ecosystem is unclear, though large prime contractors often utilize small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Justice. Accountability measures are inherent in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS, which provide award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Support Services
Database Management Systems
Computer Systems Design Services
General Services Administration (GSA) Schedules (potential parent IDIQ vehicle)
Department of Justice IT Modernization Efforts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Risk of technology obsolescence over the long contract duration.
Dependence on a single contractor for critical IT infrastructure.
Need for robust oversight to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $37.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. CRITICAL - IT SUPPORT FOR USTP DATABASE MANAGEMENT SYSTEMS AND 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 Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $37.9 million.

What is the period of performance?

Start: 2012-04-26. End: 2022-03-31.

What is the track record of General Dynamics Information Technology, Inc. in performing similar IT support and database management contracts for the federal government?

General Dynamics Information Technology, Inc. (GDIT) has a substantial history of performing IT support and database management contracts across various federal agencies. They are a major federal contractor known for providing a wide array of IT services, including systems integration, cybersecurity, cloud computing, and enterprise IT support. Their experience often includes managing complex databases, developing and maintaining critical infrastructure, and providing technical support for large-scale government systems. Analyzing their past performance on similar contracts, particularly those involving database management for agencies of similar size and complexity to the DOJ, would be crucial for a comprehensive assessment. This would involve reviewing past performance evaluations, any contract disputes or awards, and the scope and value of previous related engagements to gauge their capability and reliability in fulfilling the requirements of this specific DOJ contract.

How does the total contract value of $37.9 million compare to similar IT support contracts for database management within the Department of Justice or other large federal agencies?

The total contract value of $37.9 million over approximately 9 years (from April 2012 to March 2022) averages around $4.2 million per year. This figure is within the range for significant IT support contracts, especially those involving specialized database management for large organizations like the DOJ. However, a precise comparison requires understanding the specific scope of work, the complexity of the USTP database systems, the number of users supported, and the level of service required. Contracts for enterprise-wide database solutions, cloud migration, or advanced analytics support can often exceed this value significantly. Conversely, contracts focused solely on routine maintenance or basic support might be lower. Benchmarking against contracts for similar services (e.g., IT infrastructure support, application maintenance) within DOJ or agencies like the FBI, DEA, or even larger departments such as Defense or HHS, would provide a more accurate context for assessing whether this value is competitive and reflective of the services rendered.

What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract, and how are they mitigated?

The primary risk associated with a Time and Materials (T&M) pricing structure is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual effort (labor hours) and materials used. This can lead to unpredictable costs for the government if the project scope expands, if inefficiencies arise, or if labor hours are not meticulously tracked and justified. For the government, it shifts much of the cost risk to the buyer. Mitigation strategies are critical and typically involve strong contract oversight, including detailed monitoring of labor hours, verification of material costs, and robust reporting requirements. Establishing clear ceiling prices, requiring detailed justifications for hours worked, and implementing performance metrics can help control costs. The contracting officer's representative (COR) plays a vital role in managing the day-to-day execution and ensuring that the contractor's efforts are necessary, efficient, and aligned with contract objectives to prevent uncontrolled cost growth.

Given the contract's duration of over 9 years, what are the potential implications for technology obsolescence and the need for system modernization?

A contract duration exceeding nine years presents significant risks related to technology obsolescence and the need for ongoing system modernization. Technology evolves rapidly, particularly in the IT sector. Systems and software that are cutting-edge at the start of such a long contract can become outdated, inefficient, or unsupported by vendors well before the contract's end date. This necessitates proactive management, including regular reviews of the technology stack, vendor roadmaps, and emerging solutions. The DOJ would need to ensure that the contract includes mechanisms for incorporating newer technologies, upgrading systems, and potentially re-competing parts of the service if significant technological shifts occur. Failure to address obsolescence can lead to increased maintenance costs for legacy systems, security vulnerabilities, and a decline in performance, ultimately hindering the DOJ's ability to effectively manage its databases and data.

How does the classification of this contract as 'Computer Systems Design Services' (NAICS 541512) align with the described services of 'IT Support for USTP Database Management Systems and Services'?

The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' is a broad category that appropriately encompasses the described services. This code typically covers establishments primarily engaged in planning and designing computer systems that integrate hardware, software, and communication technologies. This includes activities such as systems analysis, systems integration design, and implementation consulting. Providing 'IT Support for USTP Database Management Systems and Services' often involves elements of systems design, configuration, integration, and ongoing support to ensure the optimal functioning of complex database environments. Therefore, while the contract focuses on database management, the underlying activities likely involve designing, configuring, and supporting the integrated systems that house and manage these databases, making NAICS 541512 a fitting classification.

What does the award type 'Delivery Order' suggest about the nature of this contract and its relationship to a potential parent IDIQ contract?

The award type 'Delivery Order' strongly indicates that this contract is a task order issued under a larger, pre-existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract. IDIQ contracts establish terms and conditions, including pricing, for a broad range of services or supplies over a period of time, but do not guarantee a specific quantity. Delivery Orders (or Task Orders) are then issued as needed to procure specific quantities of goods or services at agreed-upon prices. This approach allows agencies to procure services flexibly and efficiently without needing to conduct a separate competition for each individual purchase. Therefore, this $37.9 million award represents a specific procurement action against a potentially much larger IDIQ contract vehicle, likely competed on a broader scope, under which multiple delivery orders could be issued to one or more contractors.

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

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 4300 FAIR LAKES CT, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $192,940,406

Exercised Options: $47,755,210

Current Obligation: $37,925,940

Actual Outlays: $2,567,141

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DJJ11C2167

IDV Type: IDC

Timeline