DOT's $28.3M engineering services contract awarded to General Dynamics IT, a sole-source procurement

Contract Overview

Contract Amount: $28,264,895 ($28.3M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Transportation

Start Date: 2003-10-21

End Date: 2009-09-30

Contract Duration: 2,171 days

Daily Burn Rate: $13.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: DAFIS UDO RECONSTRUCT W/O ADVANCE

Place of Performance

Location: RICHMOND, HENRICO County, VIRGINIA, 23228

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $28.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: DAFIS UDO RECONSTRUCT W/O ADVANCE Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Services procured under a Time and Materials (T&M) pricing structure, which can pose cost control challenges. 3. Contract duration of over 6 years suggests a long-term need for these engineering services. 4. The procurement was not competed, raising questions about potential cost savings from a competitive process. 5. The contract value is substantial, indicating a significant investment in engineering support. 6. The specific NAICS code (541330) points to a focus on engineering services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without comparable sole-source engineering service contracts from the FAA. The Time and Materials (T&M) pricing structure, while flexible, can lead to higher costs compared to fixed-price contracts if not managed closely. The absence of competition means there's no direct market comparison to assess if the pricing was optimal. However, the contract was awarded in 2003, and pricing structures and market rates may have evolved significantly since then.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities or when circumstances prevent a competitive solicitation. The lack of competition limits the government's ability to leverage market forces to achieve the best possible price and value.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the potential cost savings that can arise from a competitive bidding process, where multiple vendors vie for the contract.

Public Impact

The Federal Aviation Administration (FAA) benefits from specialized engineering services to support its operations. These services likely contribute to the maintenance, development, or oversight of aviation infrastructure and systems. The contract's duration suggests a sustained impact on the FAA's engineering capabilities. The workforce implications are primarily within General Dynamics Information Technology, supporting their engineering staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Time and Materials contract type can lead to cost overruns if not closely monitored.
Long contract duration (over 6 years) may not reflect current market conditions or technological advancements.
Lack of transparency in the justification for sole-source award.

Positive Signals

General Dynamics Information Technology is a large, established contractor with significant experience.
The contract addresses a specific engineering need for the FAA, indicating a clear requirement.
The contract was awarded to a single, presumably capable, vendor.

Sector Analysis

The engineering services sector is a critical component of government contracting, supporting a wide range of agencies. This contract falls under the Engineering Services (NAICS 541330) category, which includes firms that provide engineering, research, and development services. The federal government is a significant consumer of these services, particularly within defense, transportation, and infrastructure. The market for engineering services is competitive, but specific, specialized needs can sometimes lead to sole-source or limited competition awards.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, General Dynamics Information Technology, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, and there's no indication of specific efforts to include small businesses in the supply chain for this contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation's Federal Aviation Administration. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply to any investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Aviation Administration IT Services
Department of Transportation Engineering Support
General Dynamics Information Technology Contracts
Sole-Source Engineering Procurements
Time and Materials Contracts

Risk Flags

Sole-source award
Time and Materials pricing
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $28.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. DAFIS UDO RECONSTRUCT W/O ADVANCE

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 Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $28.3 million.

What is the period of performance?

Start: 2003-10-21. End: 2009-09-30.

What was the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified when only one responsible source is available or capable of meeting the agency's needs. This could be due to unique capabilities, proprietary technology, or urgent requirements where competition is not feasible. A detailed justification would normally be documented by the agency and potentially made public, outlining the rationale for bypassing the competitive bidding process. Without this documentation, it is difficult to assess the validity of the sole-source determination.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar engineering services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change. They reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. While offering flexibility, T&M contracts can be riskier for the government in terms of cost control compared to fixed-price contracts, as the final cost is not predetermined. For engineering services where the scope is well-defined, fixed-price contracts generally offer better value and predictability. However, for research, development, or highly uncertain projects, T&M can be appropriate if managed diligently with labor hour limitations and oversight.

What is the historical spending pattern for engineering services by the Federal Aviation Administration?

The provided data focuses on a single contract and does not offer insights into the FAA's broader historical spending on engineering services. To analyze historical spending patterns, one would need access to comprehensive procurement data for the FAA across multiple fiscal years, categorized by service type (e.g., engineering, IT, maintenance) and contract vehicle. This would allow for trend analysis, identification of major spending areas, and comparison of spending levels over time. Such an analysis would reveal if this $28.3 million contract represents a typical investment or an outlier for the FAA's engineering needs.

What is General Dynamics Information Technology's track record with the Department of Transportation?

The provided data indicates that General Dynamics Information Technology (GDIT) was awarded this specific contract by the Department of Transportation's Federal Aviation Administration. To assess GDIT's broader track record with the DOT, a comprehensive review of all contracts awarded to GDIT by the DOT across various administrations and agencies would be necessary. This would involve examining contract performance history, any past performance issues or awards, and the total value of contracts held. Without this broader dataset, we can only confirm GDIT's involvement in this particular engineering services contract.

What are the potential risks associated with a sole-source Time and Materials contract of this duration?

A sole-source Time and Materials (T&M) contract of over six years carries several risks. Firstly, the lack of competition means the government may not be achieving the best possible price, as there's no market pressure to drive down costs. Secondly, T&M contracts can lead to cost overruns if not rigorously managed, as the contractor is reimbursed for all labor hours and materials. The long duration exacerbates this risk, as costs can escalate significantly over an extended period. Additionally, without competition, there's less incentive for the contractor to innovate or improve efficiency. Finally, the government might be locked into a vendor whose technology or approach becomes outdated over the contract's life.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 1526 E PARHAM RD, RICHMOND, VA, 04

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $197,129,288

Exercised Options: $185,384,511

Current Obligation: $28,264,895

Parent Contract

Parent Award PIID: DTFA0100C00047

IDV Type: IDC

Timeline