General Dynamics IT awarded $81.8M for IT services to EPA over 7 years

Contract Overview

Contract Amount: $81,791,158 ($81.8M)

Contractor: General Dynamics Information Technology, Inc

Awarding Agency: Environmental Protection Agency

Start Date: 2002-03-28

End Date: 2009-09-27

Contract Duration: 2,740 days

Daily Burn Rate: $29.9K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: DEVELOPMENT OF CDX

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $81.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC for work described as: DEVELOPMENT OF CDX Key points: 1. Contract value represents a significant investment in IT infrastructure. 2. Competition dynamics suggest potential for price optimization. 3. Long duration indicates a need for sustained IT support. 4. Performance-based contract structure incentivizes successful outcomes. 5. IT services sector is a major area of federal spending. 6. Contract awarded to a large, established IT provider.

Value Assessment

Rating: good

The contract value of $81.8 million over approximately 7 years averages to about $11.7 million annually. Benchmarking this against similar large-scale IT service contracts for federal agencies is challenging without more granular data on the specific services provided. However, the Cost Plus Award Fee (CPAF) structure allows for flexibility and incentivizes performance, which can lead to good value if managed effectively. The pricing would need to be assessed against industry standards for comparable IT support and development services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that it underwent a full and open competition. The presence of multiple bidders in such competitions generally fosters a more competitive pricing environment. The specific number of bidders is not provided, but the competitive nature suggests that the EPA sought the best value through a structured procurement process.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Federal employees within the Environmental Protection Agency (EPA) are the primary beneficiaries, receiving enhanced IT systems and support. Services delivered include computer systems design and related services, crucial for the EPA's operational efficiency. The contract's geographic impact is likely national, supporting EPA operations across various locations. Workforce implications include support for IT professionals within General Dynamics Information Technology and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in Cost Plus Award Fee contracts if not closely monitored.
Long contract duration may lead to vendor lock-in if not managed proactively.
Dependence on a single large contractor for critical IT services.

Positive Signals

Competitive award process suggests a focus on achieving best value.
Performance-based contract structure incentivizes contractor to meet or exceed performance standards.
Award to an established contractor with a track record in government IT services.

Sector Analysis

The IT services sector is a significant component of federal spending, encompassing a wide range of activities from software development to network management. This contract for computer systems design services falls within this broad category. The federal government is a major consumer of IT services, with spending often driven by the need to modernize legacy systems, enhance cybersecurity, and support agency missions. Comparable spending benchmarks would typically be found within IT services categories for agencies of similar size and mission scope.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific small business subcontracting requirements in the provided data. The award to a large prime contractor like General Dynamics Information Technology suggests that the primary focus was on the prime's capabilities. This may limit direct opportunities for small businesses unless they are engaged as subcontractors by the prime.

Oversight & Accountability

The contract's Cost Plus Award Fee structure implies performance metrics and award criteria that are subject to oversight. The EPA's contracting officers and program managers would be responsible for monitoring performance and determining award fees. Inspector General oversight would also apply to ensure proper use of funds and adherence to contract terms.

Related Government Programs

EPA IT Modernization Programs
Federal Civilian Agency IT Services
Computer Systems Design and Related Services Contracts
Cost Plus Award Fee Contracts

Risk Flags

Long contract duration may increase risk of technological obsolescence.
Cost Plus Award Fee contracts require diligent oversight to ensure value.
Dependence on a single large contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $81.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. DEVELOPMENT OF CDX

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $81.8 million.

What is the period of performance?

Start: 2002-03-28. End: 2009-09-27.

What was the specific scope of 'Computer Systems Design Services' under this contract?

The provided data indicates the contract falls under NAICS code 541512 for 'Computer Systems Design Services'. This typically encompasses a broad range of activities including analyzing and designing information systems, integrating hardware and software, and providing consulting services related to IT infrastructure. For this specific EPA contract, the services likely included the development, implementation, and maintenance of IT systems supporting the agency's environmental mission. Detailed statements of work (SOWs) from the original contract award would provide precise details on system architecture, software development lifecycle support, network integration, and potentially cybersecurity measures implemented.

How does the annual average cost compare to similar EPA IT contracts?

The annual average cost of approximately $11.7 million ($81.8M / 7 years) for this contract requires comparison with other EPA IT service contracts of similar scope and duration. Without access to a comprehensive database of EPA's IT procurements, a direct comparison is difficult. However, federal IT spending is substantial, and contracts of this magnitude are not uncommon for agencies with complex operational needs like the EPA. Factors influencing cost include the criticality of the systems supported, the level of customization required, and the specific technologies employed. A detailed analysis would involve comparing the services rendered, the number of users supported, and the complexity of the IT environment managed.

What were the key performance indicators (KPIs) that determined the 'Award Fee' component?

The 'Award Fee' component in a Cost Plus Award Fee (CPAF) contract is determined by the government's assessment of the contractor's performance against pre-defined criteria and metrics. While the specific KPIs for this General Dynamics IT contract are not detailed in the provided summary, they typically relate to areas such as system uptime and availability, response times for technical support, successful project completion within schedule and budget, quality of deliverables, and customer satisfaction. The EPA contracting officer would evaluate performance against these metrics, assigning a rating that dictates the amount of award fee earned, incentivizing high performance.

What is the historical spending trend for this specific contract vehicle or similar services at the EPA?

The provided data covers a single contract award from March 2002 to September 2009. To understand historical spending trends, one would need to examine prior contracts awarded by the EPA for similar IT services and subsequent contracts awarded after this period. Analyzing trends would involve looking at the total dollar value of IT service procurements over time, the types of services most frequently contracted, and the dominant contractors in the space. This contract represents a significant, but isolated, data point without a broader historical context of EPA's IT investment strategy and evolution.

What risks are associated with a long-duration contract like this for IT services?

Long-duration contracts, such as this 7-year award, carry several inherent risks. One primary risk is technological obsolescence; IT environments can change rapidly, and a contract spanning several years might lock the agency into outdated technologies if not managed with flexibility. Another risk is vendor lock-in, where the agency becomes heavily reliant on the incumbent contractor, making it difficult and costly to switch providers. Cost control can also be a challenge over extended periods, as market rates for services may fluctuate. Furthermore, maintaining contractor performance and engagement over a long period requires continuous oversight and proactive contract management to prevent complacency or degradation of service quality.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 15245 SHADY GROVE RD STE 200, ROCKVILLE, MD, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $83,642,846

Exercised Options: $83,642,846

Current Obligation: $81,791,158

Parent Contract

Parent Award PIID: GS00T99ALD0203

IDV Type: GWAC

Timeline