Commerce Department's NOAA contract for IT support awarded to General Dynamics for $11.16M

Contract Overview

Contract Amount: $11,159,234 ($11.2M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Commerce

Start Date: 2007-01-03

End Date: 2008-01-31

Contract Duration: 393 days

Daily Burn Rate: $28.4K/day

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: CLASS AND CRITICAL INFRASTRUCTURE SUPPORT

Place of Performance

Location: SUITLAND, PRINCE GEORGE'S County, MARYLAND, 20746, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $11.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: CLASS AND CRITICAL INFRASTRUCTURE SUPPORT Key points: 1. Contract value appears reasonable for the scope of IT support services. 2. Sole-source award limits competitive pressure on pricing. 3. Contract duration and type (Time and Materials) may pose cost control risks. 4. Performance period is relatively short, suggesting a focused scope. 5. IT services sector is highly competitive, making sole-source awards notable. 6. No small business set-aside indicates potential for large prime contractor focus.

Value Assessment

Rating: fair

The contract value of $11.16 million for a one-year period of performance for IT support services appears within a reasonable range for a federal contract of this nature. However, without specific details on the services rendered and the labor categories involved, a precise value-for-money assessment is challenging. Benchmarking against similar IT support contracts awarded by NOAA or other Department of Commerce agencies would provide a clearer picture of whether the pricing was competitive. The Time and Materials (T&M) contract type, while flexible, can sometimes lead to higher costs if not managed closely, as it directly reimburses labor hours and material costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one contractor, General Dynamics Information Technology, Inc., was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities, urgent needs), they generally result in less price discovery and potentially higher costs for the government compared to full and open competition. The lack of competition here means taxpayers did not benefit from potentially lower prices that could have emerged from a bidding war.

Taxpayer Impact: The sole-source nature of this award means taxpayers may have paid a premium due to the absence of competitive bidding. This limits the government's ability to leverage market forces to secure the best possible price for these IT services.

Public Impact

The National Oceanic and Atmospheric Administration (NOAA) benefits from continued IT support services, crucial for its scientific and operational missions. The contract ensures the availability of essential IT infrastructure and services for NOAA personnel. Geographic impact is likely concentrated around NOAA facilities where the IT support is rendered. Workforce implications include employment for IT professionals within General Dynamics Information Technology, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Sole-source award limits competitive pressure, potentially impacting price efficiency.
Lack of specific performance metrics in the provided data makes outcome assessment difficult.

Positive Signals

General Dynamics Information Technology is a large, established federal contractor with significant IT experience.
Contract award to an incumbent or experienced provider can ensure continuity of essential services.
The contract duration, though short, allows for reassessment and potential re-competition.

Sector Analysis

The Information Technology services sector is a vast and critical component of federal spending. This contract falls under the 'Other Computer Related Services' category (NAICS 541519), which encompasses a wide range of IT support, consulting, and integration services. The federal government is a major consumer of IT services, with annual spending in the hundreds of billions of dollars across various agencies. This specific contract, valued at $11.16 million, represents a small fraction of overall federal IT expenditures but is significant for the specific IT support needs of NOAA.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The award to a large prime contractor like General Dynamics Information Technology, Inc. suggests that subcontracting opportunities for small businesses may exist, but this is not guaranteed by the contract's structure. The absence of a set-aside means the primary focus is on the capabilities of the large business, rather than specifically fostering small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within NOAA. The Time and Materials (T&M) nature of the contract necessitates diligent oversight to ensure that labor hours and material costs are reasonable and directly related to the work performed. Transparency would be enhanced through regular reporting requirements from the contractor and potentially through contract performance reviews. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

NOAA IT Support Services
Department of Commerce IT Contracts
General Dynamics IT Contracts
Federal IT Services Procurement
Time and Materials IT Contracts

Risk Flags

Sole-source award may limit price competition.
Time and Materials contract type carries inherent cost control risks.
Limited data provided on specific performance metrics and outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $11.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. CLASS AND CRITICAL INFRASTRUCTURE SUPPORT

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 Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $11.2 million.

What is the period of performance?

Start: 2007-01-03. End: 2008-01-31.

What specific IT services were provided under this contract?

The provided data indicates the contract was for 'CLASS AND CRITICAL INFRASTRUCTURE SUPPORT' under NAICS code 541519 ('Other Computer Related Services'). While the specific services are not detailed, this category typically includes a broad range of IT support functions such as network administration, system maintenance, help desk support, IT consulting, software installation and maintenance, and potentially cybersecurity services. For NOAA, these services are critical for maintaining the operational integrity of their data collection, processing, and dissemination systems, which support weather forecasting, climate research, and oceanic monitoring.

How does the $11.16 million contract value compare to similar NOAA IT support contracts?

Benchmarking this $11.16 million contract against similar NOAA IT support contracts requires access to historical procurement data. However, for a one-year contract focused on IT support, this value is substantial but not extraordinary, especially considering the critical nature of NOAA's infrastructure. Federal IT contracts can range from a few hundred thousand dollars for specialized services to hundreds of millions for large-scale system modernizations. Without knowing the exact scope, duration, and specific services, a direct comparison is difficult. The sole-source nature also suggests it might be a continuation of existing services or for a highly specialized need, which can influence pricing compared to competitively bid contracts.

What are the risks associated with the Time and Materials (T&M) contract type for this service?

The primary risk with a Time and Materials (T&M) contract type, like the one awarded to General Dynamics Information Technology, Inc., is the potential for cost overruns. T&M contracts reimburse the contractor for direct labor hours at specified rates and for the cost of materials. If the scope of work is not well-defined or if project management is weak, the contractor may incur more hours or use more materials than initially anticipated, leading to a final cost exceeding initial estimates. For IT support, this could manifest as extended troubleshooting times or the use of more expensive components. Effective government oversight, including detailed monitoring of labor hours and material usage, is crucial to mitigate these risks.

What is the significance of this contract being awarded as sole-source?

A sole-source award signifies that the government determined, for specific reasons, that only one contractor could meet the requirement. This could be due to the contractor possessing unique capabilities, proprietary technology, or being the only source capable of performing the work within the required timeframe. For taxpayers, the main implication is the potential lack of price competition. When multiple companies bid on a contract, they often lower their prices to win the business. A sole-source award removes this competitive pressure, potentially leading to a higher price than might have been achieved through a competitive process. It also raises questions about whether the market was adequately explored for other potential sources.

What is General Dynamics Information Technology's track record with federal IT contracts?

General Dynamics Information Technology, Inc. (GDIT) has a long and extensive track record as a major federal IT contractor across numerous government agencies. They have historically secured and performed on a wide array of large-scale IT service contracts, including infrastructure management, cloud services, cybersecurity, and mission-critical IT support. Their experience spans decades, and they are known for handling complex technological requirements for defense, civilian, and intelligence agencies. While specific performance details for every contract are not publicly available, their continued success in winning significant federal contracts suggests a generally positive track record in delivering IT solutions, though like any large contractor, they may have faced challenges on specific projects.

How does this contract fit into NOAA's broader IT strategy or spending?

This contract for 'CLASS AND CRITICAL INFRASTRUCTURE SUPPORT' likely represents a component of NOAA's ongoing efforts to maintain and modernize its IT infrastructure, which is fundamental to its scientific and operational missions. NOAA relies heavily on robust IT systems for data acquisition, processing, analysis, and dissemination related to weather, climate, oceans, and coasts. Contracts like this ensure the continuity of essential IT services that underpin these functions. Its value of $11.16 million for a year suggests it covers core operational support rather than a major system overhaul, fitting into a pattern of sustained investment in IT operational readiness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 15000 CONFERENCE CENTER DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,506,104

Exercised Options: $12,506,104

Current Obligation: $11,159,234

Parent Contract

Parent Award PIID: GS35F4381G

IDV Type: FSS

Timeline