DoD's $20.4M IT refresh contract awarded to General Dynamics for 3 years

Contract Overview

Contract Amount: $20,388,407 ($20.4M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-09-26

End Date: 2025-09-26

Contract Duration: 1,096 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST NO FEE

Sector: IT

Official Description: CAPITAL EQUIPMENT REFRESH PROGRAM

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: CAPITAL EQUIPMENT REFRESH PROGRAM Key points: 1. Contract aims to modernize critical IT infrastructure, enhancing operational efficiency. 2. Competition was open, suggesting a potentially competitive pricing environment. 3. Performance period spans three years, indicating a medium-term investment. 4. Focus on computer facilities management aligns with essential defense IT needs. 5. The contract's value is moderate within the context of large federal IT procurements.

Value Assessment

Rating: good

The contract's value of approximately $20.4 million over three years for IT refresh and facilities management appears reasonable for a Department of Defense requirement. Benchmarking against similar IT infrastructure modernization contracts within the DoD suggests that this pricing is within expected ranges, especially considering the specialized nature of defense IT. The cost-no-fee (CNF) pricing structure, while not directly indicating value, implies that the contractor bears the risk of cost overruns, which can be a positive signal for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been excluded based on pre-qualification or other criteria. The fact that it was open competition suggests multiple bidders likely vied for the contract, which generally promotes price discovery and can lead to more competitive pricing for the government. The specific exclusion of sources warrants further investigation to understand its impact on the breadth of competition.

Taxpayer Impact: The open competition, even with exclusions, provides a degree of assurance that the government sought the best value. This approach helps taxpayers by ensuring that the contract price is likely influenced by market forces rather than being set without competitive pressure.

Public Impact

The Department of Defense, specifically the Air Force, benefits from updated IT infrastructure. Services delivered include computer facilities management and equipment refresh. The geographic impact is likely concentrated within DoD facilities where the IT infrastructure is deployed. Workforce implications may include IT specialists managing and maintaining the new equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if refresh cycles are not managed effectively.
Dependence on a single large contractor for critical IT infrastructure.
Risk of scope creep if requirements are not clearly defined and managed.

Positive Signals

Modernization of IT infrastructure can lead to improved cybersecurity posture.
Enhanced operational efficiency and reliability of critical systems.
Potential for cost savings through more efficient hardware and management.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT facilities management and equipment refresh. The federal IT market is vast, with agencies consistently investing in modernization to maintain operational readiness and cybersecurity. Comparable spending benchmarks for IT infrastructure support and refresh programs within the DoD often run into tens or hundreds of millions of dollars annually, making this $20.4 million contract a significant but not exceptionally large investment in this domain.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). General Dynamics Information Technology, Inc. is a large business. There is no explicit information on subcontracting plans for small businesses within this award notice. Without specific set-aside requirements or mandated subcontracting goals, the direct impact on the small business ecosystem for this particular contract may be limited, though large prime contractors often engage small businesses for specialized services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Air Force. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

DoD IT Modernization Programs
Air Force Network Infrastructure Support
Federal Capital Equipment Procurement
IT Services for Defense Agencies

Risk Flags

Potential for vendor lock-in
Cybersecurity risks during transition
Dependence on contractor performance
Technological obsolescence if not managed proactively

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. CAPITAL EQUIPMENT REFRESH PROGRAM

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 $20.4 million.

What is the period of performance?

Start: 2022-09-26. End: 2025-09-26.

What is the track record of General Dynamics Information Technology, Inc. with similar IT infrastructure refresh contracts for the Department of Defense?

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record with the Department of Defense, including numerous contracts related to IT infrastructure, network management, and modernization. They have historically been a major player in providing IT services to various branches of the military. Analyzing their past performance on similar large-scale refresh programs would involve reviewing contract performance reports, any past performance questionnaires, and data on contract modifications or disputes. GDIT's extensive experience suggests a capacity to handle complex IT projects, but a detailed review of their specific performance on comparable DoD refresh contracts would be necessary to fully assess their suitability and reliability for this particular award.

How does the awarded price of $20.4 million compare to market rates for similar IT facilities management and equipment refresh services?

Benchmarking the $20.4 million price against market rates requires a detailed understanding of the specific services, equipment, and service levels included. However, for a three-year contract involving IT facilities management and capital equipment refresh for a major federal agency like the Department of Defense, this figure appears to be within a reasonable range. The IT services market, particularly for defense clients, often commands premium pricing due to security requirements, integration complexities, and the need for high reliability. Without specific details on the scope of work, number of users supported, or types of equipment refreshed, a precise comparison is difficult. However, given the scale and nature of DoD IT operations, the price suggests a substantial undertaking that aligns with typical federal IT spending for such services.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this contract include potential technological obsolescence if the refresh cycle is too long, cybersecurity vulnerabilities during the transition, and contractor performance issues. Mitigation strategies likely involve clearly defined performance metrics, robust cybersecurity protocols integrated into the refresh process, and regular performance reviews by the Air Force. The contract's three-year duration with specific delivery orders also allows for phased implementation and oversight. Furthermore, the 'Full and Open Competition After Exclusion of Sources' award type, while potentially limiting the pool, suggests a structured procurement process aimed at selecting a capable vendor, thereby mitigating some performance risks.

What is the expected effectiveness of this IT refresh program in improving the Air Force's operational capabilities?

The effectiveness of this IT refresh program is expected to be significant in improving the Air Force's operational capabilities by enhancing the reliability, security, and performance of its IT infrastructure. Outdated equipment and facilities can lead to system downtime, slower processing speeds, and increased vulnerability to cyber threats. By refreshing capital equipment and improving facilities management, the Air Force can expect more stable operations, faster data processing, and a stronger defense against cyberattacks. This modernization is crucial for supporting advanced command and control systems, data analytics, and communication networks essential for modern air operations.

How does the historical spending on IT facilities management and equipment refresh by the Department of the Air Force compare to this contract's value?

The Department of the Air Force historically spends billions of dollars annually on IT services, including infrastructure, network operations, and equipment sustainment and refresh. A single contract valued at $20.4 million for a three-year period represents a moderate portion of the Air Force's overall IT budget. Larger modernization initiatives or enterprise-wide IT service contracts can easily reach hundreds of millions or even billions. This specific contract likely addresses a particular segment or set of facilities requiring refresh. Therefore, while significant in its own right, it fits within the broader context of substantial and ongoing IT investments made by the Air Force.

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: $20,388,407

Exercised Options: $20,388,407

Current Obligation: $20,388,407

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