DoD's $72.6M GATES Application Support Contract Awarded to General Dynamics Faces Scrutiny
Contract Overview
Contract Amount: $72,594,384 ($72.6M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-03-01
End Date: 2018-01-31
Contract Duration: 1,797 days
Daily Burn Rate: $40.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF GLOBAL AIR TRANSPORTATION EXECUTION SYSTEM (GATES) APPLICATION AND SYSTEM SUPPORT
Place of Performance
Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $72.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF GLOBAL AIR TRANSPORTATION EXECUTION SYSTEM (GATES) APPLICATION AND SYSTEM SUPPORT Key points: 1. The contract awarded to General Dynamics Information Technology, Inc. for GATES application and system support represents a significant investment. 2. Competition details are limited, but the contract was awarded under full and open competition. 3. Potential risks include the cost-plus-fixed-fee structure and the lack of specific performance metrics in the provided data. 4. The sector is IT services, specifically computer systems design, a common area for government contracting.
Value Assessment
Rating: fair
The contract value of $72.6 million over approximately five years suggests a substantial investment. Without specific performance benchmarks or comparison data for similar GATES support contracts, a precise value assessment is difficult. The Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were likely considered. However, the specific pricing mechanisms and how price discovery was achieved are not detailed, making it hard to assess if the final price reflects optimal value.
Taxpayer Impact: Taxpayer funds are being utilized for essential application and system support. The effectiveness of the competition and contract management will determine the ultimate value for taxpayers.
Public Impact
Ensures continued operation of the Global Air Transportation Execution System (GATES), critical for military logistics. Supports the Department of the Air Force's operational capabilities. Represents a significant portion of IT spending within the Department of Defense. Potential for cost efficiencies or overruns depending on contract oversight.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure
- Lack of detailed performance metrics
- Limited insight into price negotiation
Positive Signals
- Awarded under full and open competition
- Supports critical Air Force operations
Sector Analysis
This contract falls within the Information Technology sector, specifically computer systems design services. Government spending in this area is substantial, with benchmarks varying widely based on the complexity and criticality of the systems supported. The $72.6M value is significant for a single application support contract.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as indicated by 'sb': false. The prime contractor, General Dynamics Information Technology, Inc., is a large corporation, suggesting no direct benefit to small businesses through this specific award.
Oversight & Accountability
Oversight is crucial for Cost Plus Fixed Fee contracts to ensure costs remain reasonable and tied to performance. The Department of Defense and its Inspector General would typically monitor such contracts for efficiency and compliance.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns.
- Lack of specific performance metrics makes value assessment difficult.
- Limited insight into the competitive bidding process and price negotiation.
- Potential for contractor inefficiency due to fixed fee structure.
- No indication of small business participation.
Tags
computer-systems-design-services, department-of-defense, il, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $72.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF GLOBAL AIR TRANSPORTATION EXECUTION SYSTEM (GATES) APPLICATION AND SYSTEM 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 Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $72.6 million.
What is the period of performance?
Start: 2013-03-01. End: 2018-01-31.
What specific performance metrics were used to evaluate the success of General Dynamics in providing GATES application and system support?
The provided data does not specify the performance metrics used to evaluate the contractor's success. Typically, such metrics would include system uptime, response times, bug resolution rates, and user satisfaction. Without these, it's challenging to definitively assess the value delivered beyond the basic provision of services.
How did the 'full and open competition' process ensure the most cost-effective solution for the GATES support, given the CPFF contract type?
While 'full and open competition' aims to maximize bidder participation and drive down prices, the Cost Plus Fixed Fee (CPFF) structure can mitigate some of these benefits. CPFF contracts reimburse costs plus a fixed fee, potentially reducing the incentive for the contractor to aggressively control costs. Effective negotiation and stringent oversight are key to ensuring cost-effectiveness in this scenario.
What is the long-term strategic value of this contract for the Air Force's air transportation capabilities?
The GATES system is fundamental to the Air Force's global air transportation execution, managing logistics, scheduling, and movement of personnel and cargo. Continued, reliable support ensures operational readiness and efficiency. The strategic value lies in maintaining and potentially enhancing these critical capabilities, though the specific return on investment is tied to the system's effectiveness and cost management.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA445212R0001
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 8 EXECUTIVE DR STE 300, FAIRVIEW HEIGHTS, IL, 62208
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $74,652,765
Exercised Options: $74,547,765
Current Obligation: $72,594,384
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $6,083,607
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-03-01
Current End Date: 2018-01-31
Potential End Date: 2018-01-31 00:00:00
Last Modified: 2019-10-04
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