DoD Awards $69M IT Contract to General Dynamics for Computer Facilities Management

Contract Overview

Contract Amount: $6,916,987 ($6.9M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-09-28

End Date: 2026-05-31

Contract Duration: 1,706 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST NO FEE

Sector: IT

Official Description: CROSS DOMAIN DELIVERY ORDER AGAINST BICES IDIQ

Place of Performance

Location: LANGLEY AFB, HAMPTON CITY County, VIRGINIA, 23665

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $6.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: CROSS DOMAIN DELIVERY ORDER AGAINST BICES IDIQ Key points: 1. The contract is a delivery order against an existing IDIQ, indicating a pre-vetted vendor. 2. General Dynamics Information Technology, Inc. is a major defense contractor, suggesting significant competition in the sector. 3. The contract's duration and value present a moderate financial commitment for the Air Force. 4. Focus on IT infrastructure management highlights a critical but common government spending area.

Value Assessment

Rating: good

The contract type is 'COST NO FEE', which is unusual for a delivery order of this size. Typically, cost-reimbursement contracts have fee structures. This may indicate a specific service arrangement or a potential area for further review regarding profit margins.

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 suggests that while the initial pool might have been limited, the final award was competitive. The pricing discovery mechanism is not detailed but likely involved competitive bids.

Taxpayer Impact: Taxpayers benefit from competitive bidding, which should drive down costs for essential IT services. However, the 'COST NO FEE' structure warrants scrutiny to ensure optimal value.

Public Impact

Ensures continued operation of critical Air Force IT facilities. Supports national defense through reliable technological infrastructure. Provides employment opportunities within the IT sector. Potential for innovation in facility management services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Unusual 'COST NO FEE' structure for a large delivery order.
Lack of detailed pricing breakdown for cost-plus contracts.
Potential for scope creep over the contract's long duration.

Positive Signals

Awarded through full and open competition.
Established contractor with a track record.
Long-term contract provides stability for services.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer facilities management. Government spending in this area is substantial, driven by the need to maintain complex and aging infrastructure. Benchmarks for similar contracts would typically involve competitive bids for managed services.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). Large prime contractors like General Dynamics often subcontract portions of their work, potentially creating opportunities for small businesses, but this contract itself is not directly set aside for them.

Oversight & Accountability

The 'VA' (Virginia) designation suggests state-level oversight might be involved, in addition to federal DoD oversight. The 'COST NO FEE' structure could be a point of focus for auditors to ensure cost reasonableness and prevent contractor overreach.

Related Government Programs

Computer Facilities Management Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Potential lack of profit incentive for contractor efficiency.
Limited transparency on cost justification due to 'COST NO FEE'.
Risk of scope creep over the multi-year contract duration.
Initial exclusion of sources may have limited competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. CROSS DOMAIN DELIVERY ORDER AGAINST BICES IDIQ

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 $6.9 million.

What is the period of performance?

Start: 2021-09-28. End: 2026-05-31.

What is the rationale behind the 'COST NO FEE' contract type for this significant IT services delivery order, and how does it impact contractor incentives for efficiency?

The 'COST NO FEE' structure is atypical for a large delivery order and warrants further investigation. It typically means the contractor is reimbursed for allowable costs but receives no additional profit or fee. This could incentivize cost control, but without a fee, there might be less motivation for innovation or exceeding performance expectations unless tied to other contract clauses or future opportunities.

Given the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award method, what specific factors led to the exclusion of other potential bidders initially, and how did this affect the final pricin

The exclusion of sources likely stemmed from the original IDIQ's pre-qualification requirements. While the final award was competitive, the initial exclusion might have limited the pool of potential offerors, potentially impacting the breadth of competition and the ultimate price discovery. Understanding the IDIQ's criteria is key to assessing this.

How does the $69 million cost over approximately 5.7 years (1706 days) for Computer Facilities Management Services compare to industry benchmarks for similar scope and scale?

The average annual cost is roughly $12.1 million. Benchmarking requires detailed scope comparison, but for comprehensive IT facilities management for a large organization like the Air Force, this figure appears within a reasonable range, assuming it covers significant infrastructure and personnel. However, the 'COST NO FEE' aspect makes direct profit-based comparisons difficult.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

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: $6,916,987

Exercised Options: $6,916,987

Current Obligation: $6,916,987

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