DoD's JIAMDO SETA Support Contract Awarded to General Dynamics for $15.9M

Contract Overview

Contract Amount: $15,949,366 ($15.9M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2010-04-01

End Date: 2011-02-28

Contract Duration: 333 days

Daily Burn Rate: $47.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Defense

Official Description: JOINT INTEGRATED AIR AND MISSILE DEFENSE ORGANIZATION (JIAMDO) SETA SUPPORT CONTRACT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $15.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: JOINT INTEGRATED AIR AND MISSILE DEFENSE ORGANIZATION (JIAMDO) SETA SUPPORT CONTRACT Key points: 1. Contract awarded for engineering services to support the Joint Integrated Air and Missile Defense Organization. 2. The contract was not competed, raising questions about potential price discovery and value. 3. Performance period was relatively short, spanning less than a year. 4. The contract type was labor hours, which can introduce cost uncertainty if not managed closely. 5. The awarded amount represents a significant investment in specialized defense support services. 6. The contractor, General Dynamics Information Technology Inc., is a major player in the defense IT sector.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its specific nature and lack of competitive bidding. The total value of $15.9 million for a 333-day period suggests a substantial daily rate for the services provided. Without comparable sole-source contracts or a competitive process, it's difficult to definitively assess if the pricing represents excellent value for money. However, given the specialized expertise required for JIAMDO support, the cost may be justified if the services delivered were critical and met all requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when only one responsible source is available or authorized by statute. The lack of competition means that taxpayers did not benefit from the price reductions that can arise from multiple bidders vying for the contract. It also limits the government's ability to explore a wider range of technical solutions or innovative approaches that might have been offered by other firms.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government may not achieve the most favorable pricing. It also reduces transparency in the procurement process.

Public Impact

The primary beneficiaries are the Department of Defense and its Joint Integrated Air and Missile Defense Organization, receiving critical support services. The services delivered likely involve technical expertise, program management, and strategic planning for air and missile defense systems. The geographic impact is primarily within the District of Columbia, where the contract was administered. The contract supports a specialized workforce within the defense sector, likely requiring engineers and technical experts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than a competed contract.
Sole-source awards can limit innovation by not exploring solutions from a broader market.
The short performance period might indicate a need for urgent support or a contract modification risk.

Positive Signals

Awarded to a well-established defense contractor with significant experience.
The contract supports a critical national defense function (air and missile defense).
The contract was awarded to a single, presumably qualified, entity.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related technology and program management. The broader defense engineering services market is substantial, with significant government spending allocated to research, development, and sustainment of advanced military capabilities. Contracts like this are crucial for maintaining the technological edge of military branches, often involving highly specialized knowledge and proprietary systems. Benchmarking against similar specialized defense support contracts is difficult without more specific service details.

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 Inc., 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, though large prime contractors often engage small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would fall under the Department of the Air Force, which administered the award on behalf of the Department of Defense. As a definitive contract, it is subject to standard federal procurement regulations and oversight. The specific mechanisms for oversight, such as performance reviews, audits, and reporting requirements, would be detailed in the contract itself. Transparency is generally maintained through contract databases, but detailed operational oversight is internal to the agency.

Related Government Programs

Joint Integrated Air and Missile Defense Organization (JIAMDO) Programs
Department of Defense Engineering Services
Air Force Research and Development Support
Missile Defense Agency Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Potential for cost overruns with 'Labor Hours' contract type.
Limited transparency on specific service details and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. JOINT INTEGRATED AIR AND MISSILE DEFENSE ORGANIZATION (JIAMDO) SETA SUPPORT CONTRACT

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 $15.9 million.

What is the period of performance?

Start: 2010-04-01. End: 2011-02-28.

What is the specific nature of the 'SETA Support' provided under this contract?

SETA stands for Systems Engineering and Technical Assistance. Under this contract, General Dynamics Information Technology Inc. likely provided specialized expertise to the Joint Integrated Air and Missile Defense Organization (JIAMDO). This typically includes support in areas such as systems engineering, technical analysis, program management, acquisition support, and independent assessments of missile defense technologies and strategies. The goal is to provide objective, expert advice to government program managers to help them make informed decisions regarding the development, acquisition, and deployment of complex defense systems.

Why was this contract awarded on a sole-source basis instead of being competed?

The provided data indicates the contract was 'NOT COMPETED' and is a 'SOLE-SOURCE' award. This typically occurs when the government determines that only one responsible source is capable of providing the required services, often due to unique capabilities, proprietary knowledge, or urgent needs where competition is not feasible or practical. For specialized technical assistance like SETA support for a specific organization like JIAMDO, there might have been a belief that only General Dynamics possessed the necessary intimate knowledge of ongoing programs, personnel expertise, or security clearances required to continue support without disruption.

How does the $15.9 million value compare to similar SETA support contracts within the DoD?

Direct comparison of the $15.9 million value is difficult without knowing the precise scope, duration, and specific services rendered. However, SETA support contracts within the Department of Defense can range significantly, from a few million to hundreds of millions of dollars, depending on the complexity and criticality of the supported program. Given this contract's duration of approximately 333 days (less than a year), the implied annual cost is substantial, suggesting a high level of specialized expertise was required. Without access to a benchmark database of similar sole-source SETA contracts for comparable organizations, a definitive value assessment is challenging.

What are the potential risks associated with a sole-source award for critical defense support?

The primary risk of a sole-source award for critical defense support is the potential for inflated costs due to the absence of competitive pressure. Taxpayers may end up paying more than necessary. Additionally, the government misses out on potential innovations and efficiencies that a competitive bidding process might uncover from a wider range of contractors. There's also a risk of vendor lock-in, where the government becomes overly reliant on a single provider, potentially diminishing leverage in future negotiations. Ensuring robust oversight and performance management becomes even more critical in sole-source situations.

What is General Dynamics Information Technology Inc.'s track record with similar DoD contracts?

General Dynamics Information Technology Inc. (GDIT) has a long and extensive history of providing a wide array of IT and technical support services to the Department of Defense and other federal agencies. They are a major contractor involved in complex systems integration, cybersecurity, cloud computing, and program management support across various defense programs. Their track record includes numerous large-scale contracts supporting military branches and defense organizations, indicating significant experience and capability in delivering services similar to SETA support. However, like any large contractor, they have also faced scrutiny on specific contracts regarding performance or cost.

How does the 'Labor Hours' contract type affect cost control and oversight?

A 'Labor Hours' contract type, like the one used here, is a type of cost-plus-fixed-fee contract where the fee is fixed but the direct labor hours are negotiated and paid at specified fixed hourly rates. This type of contract is often used when the extent or nature of the work cannot be determined in advance. While it offers flexibility, it places a greater burden on the government to closely monitor and control the number of labor hours used. Without stringent oversight, there's a risk of cost overruns if labor hours exceed estimates or are not efficiently utilized. The fixed hourly rates aim to provide some cost predictability for labor.

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: ONLY ONE SOURCE

Solicitation ID: FA701410R0022

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 3160 FAIRVIEW PARK DR, 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: $15,949,366

Exercised Options: $15,949,366

Current Obligation: $15,949,366

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline