Commerce Department's $18.4M IT Managed Service Contract Awarded to General Dynamics

Contract Overview

Contract Amount: $18,436,089 ($18.4M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Commerce

Start Date: 2017-09-24

End Date: 2023-10-31

Contract Duration: 2,228 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF ESO LMS FOR DOC AS A MANAGED SERVICE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230

State: District of Columbia Government Spending

Plain-Language Summary

Department of Commerce obligated $18.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF ESO LMS FOR DOC AS A MANAGED SERVICE Key points: 1. Contract provides custom computer programming services for the Commerce Department's ESO LMS. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. A firm-fixed-price contract type generally shifts cost risk to the contractor. 4. The contract duration of 2228 days indicates a long-term service requirement. 5. The award was made via a BPA Call, a streamlined procurement method. 6. The contractor, General Dynamics Information Technology, Inc., has a significant presence in federal IT services.

Value Assessment

Rating: good

The contract value of $18.4 million over approximately six years represents a significant investment in IT managed services. Benchmarking this against similar custom computer programming services contracts is challenging without more specific service details. However, the firm-fixed-price structure suggests that the government aimed to control costs, and the competitive award process should have driven a reasonable price. Further analysis would require comparing the per-unit cost of specific services delivered under this contract to industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This typically leads to a more robust selection of offers and potentially better pricing due to market forces. The number of bidders is not specified, but the open competition suggests that multiple companies likely vied for this contract, fostering price discovery and innovation.

Taxpayer Impact: Taxpayers benefit from the potential for lower prices and higher quality services resulting from a competitive bidding environment. Full and open competition ensures that the government is not limited to a single provider, maximizing the use of taxpayer funds.

Public Impact

The primary beneficiaries are the Department of Commerce employees and potentially other federal agencies utilizing the ESO LMS. The contract delivers managed IT services, likely encompassing software development, maintenance, and support for the ESO LMS. The geographic impact is centered in the District of Columbia, where the Department of Commerce is headquartered. The contract supports a workforce of IT professionals employed by General Dynamics Information Technology, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the managed service becomes highly integrated and difficult to transition away from.
Reliance on a single contractor for critical IT infrastructure could pose a risk if the contractor experiences financial instability or service disruptions.
The long contract duration might lead to less incentive for continuous innovation if not managed proactively.

Positive Signals

Awarded through full and open competition, indicating a competitive market for these services.
Firm-fixed-price contract type helps manage cost overruns and provides budget certainty.
General Dynamics Information Technology is a large, established federal contractor with a track record in IT services.
The contract supports a critical function (ESO LMS) for the Department of Commerce.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services and managed IT services. The federal IT services market is substantial, with agencies consistently investing in software development, cloud migration, cybersecurity, and IT modernization. Contracts for managed services are common as agencies seek to offload operational burdens and leverage specialized expertise. Comparable spending benchmarks would depend on the specific scope and scale of the ESO LMS.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). General Dynamics Information Technology, Inc. is a large business. There is no explicit information on subcontracting plans for small businesses within this data, which could be a missed opportunity to engage the small business ecosystem. Future contracts of this nature should explore opportunities for small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of Commerce. Performance reviews, regular reporting requirements, and adherence to the contract's statement of work are standard accountability measures. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Commerce IT Modernization Initiatives
Federal Civilian Agency IT Managed Services
Custom Software Development Contracts
General Services Administration (GSA) Schedules (if applicable for BPA Call)

Risk Flags

Long contract duration may reduce flexibility.
Potential for vendor lock-in.
Reliance on a single provider for critical systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $18.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF ESO LMS FOR DOC AS A MANAGED SERVICE

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 (Office of the Secretary).

What is the total obligated amount?

The obligated amount is $18.4 million.

What is the period of performance?

Start: 2017-09-24. End: 2023-10-31.

What specific services are included under the 'ESO LMS Managed Service' and how do they align with the contractor's capabilities?

The provided data identifies the contract as 'IGF::OT::IGF ESO LMS FOR DOC AS A MANAGED SERVICE' and classifies the North American Industry Classification System (NAICS) code as 541511, 'Custom Computer Programming Services'. This suggests the managed service likely encompasses the development, maintenance, and operational support of the Electronic Systems Office (ESO) Learning Management System (LMS) for the Department of Commerce. General Dynamics Information Technology, Inc. (GDIT) is a large federal contractor with extensive experience in custom software development, IT infrastructure management, and cloud services. Their capabilities typically include system design, coding, testing, deployment, ongoing support, and potentially cybersecurity integration for complex software systems like an LMS. The specific deliverables and service level agreements (SLAs) would be detailed in the contract's Statement of Work (SOW).

How does the $18.4 million contract value compare to similar managed IT service contracts for federal agencies?

The $18.4 million contract value over approximately six years (2228 days) for a managed IT service, specifically for an LMS, is a moderate-sized federal contract. Without knowing the exact scope, number of users, and specific services included (e.g., hosting, development, security, training support), a precise comparison is difficult. However, federal agencies frequently award contracts in the tens to hundreds of millions of dollars for comprehensive IT managed services, including custom development and system operations. For instance, contracts for enterprise resource planning (ERP) systems, large-scale cloud migrations, or agency-wide cybersecurity solutions can far exceed this amount. Conversely, smaller, more specialized IT support contracts might be in the low millions. This contract appears to be within a typical range for a dedicated, long-term managed service for a specific system like an LMS within a large department.

What are the key performance indicators (KPIs) or metrics used to evaluate the contractor's performance under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or metrics used to evaluate General Dynamics Information Technology, Inc.'s performance. However, for a managed IT service contract of this nature, common KPIs would likely include: System Uptime/Availability (e.g., 99.9% availability for the LMS), Response Time for issue resolution (e.g., critical issues resolved within 4 hours), Resolution Time (e.g., non-critical issues resolved within 24 hours), User Satisfaction Scores, Security Compliance adherence, and successful deployment of new features or updates according to the schedule. The contracting officer's representative (COR) would monitor these metrics, often reported by the contractor through regular performance reports, to ensure the Department of Commerce receives the agreed-upon level of service and value.

What is the historical spending pattern for the ESO LMS or similar systems within the Department of Commerce?

The provided data only includes details for this specific contract (ID: IGF::OT::IGF ESO LMS FOR DOC AS A MANAGED SERVICE), awarded on 2017-09-24 and ending 2023-10-31 with a value of $18,436,088.73. It does not offer historical spending patterns for the ESO LMS or comparable systems within the Department of Commerce. To determine historical spending, one would need to access federal procurement databases (like FPDS or USASpending.gov) and search for previous contracts related to the ESO LMS, or for other learning management systems and custom programming services utilized by the Department of Commerce over several fiscal years. This would reveal trends in contract values, durations, awardees, and competition levels, providing context for the current contract's scale and cost.

What is the potential impact of this contract on the broader federal IT services market, particularly regarding custom computer programming?

This contract represents a significant award within the custom computer programming and managed IT services segment of the federal market. The award to General Dynamics Information Technology, Inc. (GDIT) reinforces their position as a major player in providing these services to large civilian agencies like the Department of Commerce. As a full and open competition, it signals that the market is robust enough to support multiple capable vendors, potentially encouraging other firms to invest in similar capabilities. The $18.4 million value over six years indicates a sustained demand for specialized IT development and operational support. This can influence market dynamics by setting benchmarks for service delivery, pricing, and technological approaches, while also highlighting the ongoing need for agencies to modernize and manage their internal systems through external expertise.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 3150 FAIRVIEW PARK DR STE 100, FALLS CHURCH, VA, 22042

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

Financial Breakdown

Contract Ceiling: $18,436,089

Exercised Options: $18,436,089

Current Obligation: $18,436,089

Actual Outlays: $146,112

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: DOCSS130117BU0002

IDV Type: BPA

Timeline