EPA's $82.9M IT Contract for Computer Systems Design Services Awarded to General Dynamics

Contract Overview

Contract Amount: $82,901,161 ($82.9M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2009-10-15

End Date: 2010-12-31

Contract Duration: 442 days

Daily Burn Rate: $187.6K/day

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: ITS-EPA BRIDGE TASK ORDER

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27711

State: North Carolina Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $82.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: ITS-EPA BRIDGE TASK ORDER Key points: 1. The contract value is substantial at $82.9 million. 2. General Dynamics Information Technology Inc. is the sole awardee. 3. The contract type is Cost Plus Fixed Fee, which can carry cost overrun risks. 4. The sector is Information Technology, specifically Computer Systems Design Services.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee type, which allows for cost reimbursement plus a fixed fee. This can lead to higher costs if not managed carefully compared to fixed-price contracts. Benchmarking against similar IT services contracts is difficult without more detailed scope information.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This was awarded as a delivery order, likely under a pre-existing contract or GSA schedule, suggesting limited competition for this specific task order. The sole-source nature limits price discovery and competitive pressure.

Taxpayer Impact: The sole-source award to a single large contractor may not represent the best value for taxpayers if competitive bidding could have secured lower prices or better terms.

Public Impact

Taxpayers are funding a significant IT services contract for the EPA. The use of a Cost Plus Fixed Fee contract structure warrants scrutiny for potential cost inefficiencies. The lack of open competition for this task order raises questions about optimal resource allocation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the IT sector, specifically Computer Systems Design Services. Spending in this area is critical for government operations, but competitive procurement is essential to ensure cost-effectiveness and innovation.

Small Business Impact

The awardee, General Dynamics Information Technology Inc., is a large business. There is no indication of small business participation in this specific task order, which could be an area for improvement in future procurements.

Oversight & Accountability

The Cost Plus Fixed Fee structure requires robust oversight from the EPA to ensure costs are reasonable and the fixed fee is justified. Tracking performance against the defined scope is crucial for accountability.

Related Government Programs

Risk Flags

Tags

computer-systems-design-services, environmental-protection-agency, nc, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $82.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. ITS-EPA BRIDGE TASK ORDER

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 $82.9 million.

What is the period of performance?

Start: 2009-10-15. End: 2010-12-31.

What was the justification for awarding this task order on a sole-source basis, and what steps were taken to ensure fair pricing?

The justification for a sole-source award typically involves specific circumstances like urgency, unique capabilities, or continuation of existing work. Without access to the contract file, it's impossible to determine the exact justification. However, for Cost Plus Fixed Fee contracts, fair pricing is usually assessed through negotiation, comparison to similar contracts, and review of the contractor's proposed costs and fee structure by the agency's contracting officers and technical experts.

What are the potential risks associated with a Cost Plus Fixed Fee contract for IT services, and how can they be mitigated?

The primary risk of a Cost Plus Fixed Fee contract is that the contractor may have less incentive to control costs, as costs are reimbursed. This can lead to cost overruns. Mitigation strategies include strong government oversight, detailed cost monitoring, clear performance metrics, and robust negotiation of the fixed fee based on realistic cost estimates and the contractor's profit margin.

How does this contract contribute to the EPA's overall IT infrastructure and mission effectiveness?

This contract for Computer Systems Design Services likely supports the development, integration, or maintenance of critical IT systems for the Environmental Protection Agency. Effective IT infrastructure is essential for the EPA to collect, analyze, and disseminate environmental data, manage regulatory programs, and communicate with the public, thereby directly impacting its mission effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

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

Contractor Details

Parent Company: General Dynamics Corp

Address: 3170 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $86,467,242

Exercised Options: $86,467,242

Current Obligation: $82,901,161

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00T99ALD0203

IDV Type: GWAC

Timeline

Start Date: 2009-10-15

Current End Date: 2010-12-31

Potential End Date: 2010-12-31 00:00:00

Last Modified: 2022-04-02

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