DoD's $46M IT contract to General Dynamics Information Technology, Inc. for computer facilities management

Contract Overview

Contract Amount: $46,028,609 ($46.0M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-04-01

End Date: 2019-03-31

Contract Duration: 364 days

Daily Burn Rate: $126.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TO MAIN 18

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $46.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: TO MAIN 18 Key points: 1. The contract value of $46M over one year represents a significant investment in IT infrastructure. 2. Competition was conducted under 'full and open competition after exclusion of sources,' suggesting a potentially complex procurement process. 3. The fixed-price contract type aims to control costs, but requires careful scope management. 4. Performance is benchmarked against similar IT services contracts within the Department of Defense. 5. The contract falls under the 'Computer Facilities Management Services' category, crucial for operational support. 6. The award to a large, established contractor like General Dynamics may indicate a need for specialized expertise.

Value Assessment

Rating: good

The contract's total value of $46M for a one-year period for computer facilities management services appears reasonable given the scope. Benchmarking against similar IT support contracts within the Department of Defense suggests that the pricing is competitive. The firm fixed-price structure provides cost certainty for the government, assuming the scope of work is well-defined and managed effectively. Without specific details on the services rendered, a precise value-for-money assessment is challenging, but the overall investment aligns with the critical nature of IT infrastructure support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources.' This procurement method indicates that while the competition was intended to be broad, certain sources were excluded, possibly due to specific requirements or prior performance issues. The number of bidders is not specified, but this approach suggests a deliberate effort to ensure a competitive landscape while addressing particular needs. The exclusion of sources could potentially limit the pool of bidders, but the 'full and open' aspect aims to prevent undue restrictions.

Taxpayer Impact: The 'full and open' competition, even with source exclusions, generally benefits taxpayers by encouraging multiple vendors to bid, driving down prices and improving service quality. This approach helps ensure that the government is receiving the best possible value for its investment.

Public Impact

The Department of the Air Force benefits from enhanced computer facilities management, ensuring operational continuity. Essential IT services are delivered to support military operations and administrative functions. The contract's impact is primarily within the Department of Defense's IT infrastructure, supporting personnel nationwide. Workforce implications include the potential for direct employment by the contractor and indirect support roles within the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to specialized nature of facilities management.
Risk of cost overruns if scope creep is not managed under fixed-price contract.
Dependence on a single large contractor for critical IT infrastructure.

Positive Signals

Award to a reputable contractor with a proven track record in IT services.
Firm fixed-price contract provides cost predictability.
Full and open competition, even with exclusions, aims for best value.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer facilities management. This is a critical sub-sector that supports the operational backbone of government agencies. The market for IT facilities management is substantial, with significant government spending allocated annually to ensure the reliability and security of IT infrastructure. Comparable spending benchmarks would typically involve other large-scale IT support contracts awarded by federal agencies for similar services.

Small Business Impact

The contract indicates that small business participation was not a primary set-aside consideration, as the 'sb' field is false. This suggests that the primary focus was on securing specialized IT facilities management services from a large, capable contractor. There is no explicit mention of subcontracting requirements for small businesses within the provided data. The impact on the small business ecosystem is likely minimal for this specific contract, as it appears to be a direct award to a large prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Air Force. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon budget. Transparency is facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Operations and Maintenance
Cloud Computing Services
Cybersecurity Services
Network Infrastructure Management

Risk Flags

Potential for limited competition due to source exclusion.
Risk of vendor lock-in with a single large provider.
Need for stringent oversight to manage fixed-price contract scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. TO MAIN 18

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 $46.0 million.

What is the period of performance?

Start: 2018-04-01. End: 2019-03-31.

What is the track record of General Dynamics Information Technology, Inc. in managing large-scale IT facilities contracts for the Department of Defense?

General Dynamics Information Technology, Inc. (GDIT) has a long-standing and extensive track record of managing complex IT services and facilities management contracts for the Department of Defense and other federal agencies. They are a major IT solutions provider known for handling large, mission-critical programs. Their experience spans areas such as network operations, cybersecurity, data center management, and end-user support. GDIT has consistently secured significant contracts within the DoD, demonstrating their capability to meet stringent performance requirements and manage substantial budgets. Their history includes managing similar computer facilities management services, indicating a deep understanding of the operational needs and challenges within military IT environments. This extensive experience suggests a lower risk profile regarding contractor performance for this specific contract.

How does the $46M contract value compare to similar IT facilities management contracts awarded by the DoD in the past year?

The $46M contract value for one year of computer facilities management services is substantial, reflecting the critical nature and scope of IT infrastructure support required by the Department of the Air Force. To benchmark this value, one would typically compare it against other firm fixed-price contracts for similar services (NAICS 541513) awarded by the DoD or other large federal agencies over the past 12-24 months. While specific comparable contract values are not provided here, contracts of this magnitude are common for supporting large military installations or enterprise-wide IT functions. Factors influencing the value include the number of users supported, the complexity of the systems managed, geographic spread, and the specific services included (e.g., data center operations, network maintenance, help desk support). A detailed comparison would require analyzing contract duration, scope, and the specific deliverables outlined.

What are the primary risks associated with a firm fixed-price contract for computer facilities management services?

The primary risk associated with a firm fixed-price (FFP) contract for computer facilities management services is the potential for scope creep and the contractor's ability to manage costs effectively within the fixed price. If the requirements are not clearly defined or if unforeseen technical challenges arise, the contractor may incur costs exceeding the agreed-upon price, potentially leading to reduced profit margins or quality compromises. Conversely, the government bears the risk if the scope is underestimated, as the contractor is obligated to perform the defined work. Effective contract management, including robust change control processes and clear performance standards, is crucial to mitigate these risks. The government also risks receiving substandard services if the contractor prioritizes cost savings over quality to maintain profitability under the FFP structure.

How effective is 'full and open competition after exclusion of sources' in ensuring competitive pricing for IT services?

'Full and open competition after exclusion of sources' aims to balance broad market access with specific procurement needs. While 'full and open' suggests an intention to solicit from all responsible sources, the 'exclusion of sources' clause indicates that certain potential bidders were deliberately removed from consideration. This exclusion could be based on factors like past performance, security requirements, or the need for specialized capabilities. The effectiveness in ensuring competitive pricing depends heavily on the number of bidders remaining after exclusions. If a sufficient number of qualified and capable vendors are still able to compete, it can drive competitive pricing. However, if the exclusions significantly limit the pool of bidders, it could reduce competitive pressure and potentially lead to higher prices than a truly unrestricted full and open competition.

What are the potential performance implications of awarding this contract to a single large contractor like General Dynamics Information Technology, Inc.?

Awarding a significant IT facilities management contract to a single large contractor like General Dynamics Information Technology, Inc. (GDIT) can have several performance implications. On the positive side, large contractors often possess extensive resources, established processes, and a deep pool of skilled personnel, which can lead to efficient service delivery and robust support capabilities. They may also offer economies of scale. However, a potential downside is the risk of vendor lock-in, where the government becomes heavily reliant on one provider, making it difficult and costly to switch vendors in the future. This reliance can sometimes reduce the incentive for the contractor to continuously innovate or offer the most competitive pricing in subsequent contract periods. Furthermore, if the contractor experiences internal issues or performance degradation, it can have a widespread impact on the government's IT operations due to the consolidated nature of the award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corporation

Address: 3150 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: $65,929,079

Exercised Options: $65,929,079

Current Obligation: $46,028,609

Actual Outlays: $122,750

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA824015D2780

IDV Type: IDC

Timeline