DoD's $32.7M IT contract for BICES Southwest Asia Support awarded to General Dynamics

Contract Overview

Contract Amount: $32,711,106 ($32.7M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-24

End Date: 2025-09-23

Contract Duration: 730 days

Daily Burn Rate: $44.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: BICES SOUTHWEST ASIA SUPPORT. INFORMATION TECHNOLOGY SERVICES.

Plain-Language Summary

Department of Defense obligated $32.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: BICES SOUTHWEST ASIA SUPPORT. INFORMATION TECHNOLOGY SERVICES. Key points: 1. Contract focuses on essential IT services for a critical geographic region. 2. General Dynamics, a major defense contractor, secured this award. 3. The contract type, Cost Plus Fixed Fee, warrants close monitoring of expenses. 4. Performance period spans two years, indicating a medium-term need. 5. The award was made under full and open competition, suggesting a robust bidding process. 6. IT services are fundamental to modern military operations and intelligence gathering.

Value Assessment

Rating: good

The contract's value of $32.7 million over two years for IT services in a complex operational environment appears reasonable. Benchmarking against similar IT support contracts for overseas operations is necessary for a definitive value assessment. The Cost Plus Fixed Fee (CPFF) structure requires careful oversight to ensure costs remain within projected bounds and that the fixed fee adequately compensates the contractor for their effort without excessive profit.

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 multiple vendors were likely solicited and allowed to bid. The specific exclusion of sources suggests a potential need for specialized capabilities or security clearances, but the overall 'full and open' nature implies a competitive process. The number of bidders is not specified, but this approach generally fosters price discovery and encourages competitive pricing.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces. It signals that the government sought the best value, not just the lowest price, potentially leading to better service quality for the investment.

Public Impact

Provides critical information technology infrastructure and management services to support U.S. military operations in Southwest Asia. Ensures the continuity and security of essential communication and data systems for personnel in the region. Supports intelligence, surveillance, and reconnaissance (ISR) capabilities through reliable IT. Facilitates command and control operations by maintaining robust network connectivity. Impacts the operational effectiveness and safety of deployed military and civilian personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can incentivize cost overruns if not managed diligently.
The geographic location (Southwest Asia) may present logistical and security challenges impacting service delivery.
Reliance on a single large contractor for critical IT infrastructure could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive market was leveraged.
General Dynamics Information Technology is an established contractor with significant experience in defense IT.
The two-year duration allows for stable service provision and potential for performance-based incentives.

Sector Analysis

The Information Technology (IT) services sector is a vast and critical component of government operations, encompassing everything from network management to software development. This contract falls under the 'Computer Facilities Management Services' category, a sub-sector focused on the operational upkeep and management of IT infrastructure. The global IT services market is highly competitive, with major players like General Dynamics vying for significant government contracts. This specific award represents a portion of the Department of Defense's substantial IT spending, which is essential for maintaining technological superiority and operational readiness.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. General Dynamics Information Technology, Inc. is a large prime contractor. There is no explicit information provided regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contracts often involve a tiered subcontracting structure where small businesses may participate.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant program management office within the Department of the Air Force. The Cost Plus Fixed Fee (CPFF) nature necessitates rigorous financial oversight to track expenditures against the fixed fee and ensure compliance with contract terms. Transparency is typically maintained through contract databases and reporting requirements. Inspector General (IG) jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
Global Information Grid (GIG) Support Contracts
Theater-Specific IT Support Contracts
Contingency Operations IT Support

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Geographic location presents potential logistical and security challenges.
Dependence on a single large contractor for critical IT services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. BICES SOUTHWEST ASIA SUPPORT. INFORMATION TECHNOLOGY SERVICES.

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 $32.7 million.

What is the period of performance?

Start: 2023-09-24. End: 2025-09-23.

What is General Dynamics Information Technology's track record with similar IT support contracts for the Department of Defense, particularly in overseas or contingency environments?

General Dynamics Information Technology (GDIT) has a substantial track record supporting the Department of Defense (DoD) with a wide array of IT services, including those in complex overseas environments. They have historically managed large-scale network operations, cybersecurity, and infrastructure support for various military branches. For instance, GDIT has held significant contracts for services like the Global Combat Support System-Army (GCSS-Army) and IT support for U.S. Forces Korea. Their experience in contingency operations is also well-documented, often involving rapid deployment of IT capabilities and adaptation to evolving mission requirements. This extensive background suggests they possess the organizational capacity, technical expertise, and security clearances necessary to manage the BICES Southwest Asia Support contract effectively, though performance on specific past contracts would require detailed review.

How does the awarded value of $32.7 million over two years compare to similar IT support contracts for the Southwest Asia region or comparable operational theaters?

Benchmarking the $32.7 million award for two years of IT support in Southwest Asia requires comparison with contracts of similar scope, duration, and geographic complexity. Contracts for IT services in high-risk or remote locations often carry a premium due to logistical challenges, security requirements, and the need for specialized personnel. For example, similar contracts supporting U.S. Central Command (CENTCOM) or other regional commands for network operations, systems administration, and cybersecurity can range from tens to hundreds of millions of dollars over multi-year periods. Without specific details on the exact services provided (e.g., number of users supported, scope of network infrastructure, specific systems managed), a precise comparison is difficult. However, the value appears within a plausible range for sustained IT operations in a demanding theater, assuming it covers essential functions and personnel.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT services in a challenging operational environment like Southwest Asia?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially for IT services in Southwest Asia, is the potential for cost escalation. While the contractor is reimbursed for allowable costs, the fixed fee is predetermined. This structure can incentivize contractors to incur higher costs if they believe it will lead to a larger overall profit margin, particularly if the fixed fee is a significant portion of the total contract value or if cost controls are weak. In a challenging environment, unforeseen logistical issues, security incidents, or rapid technological changes could drive up costs beyond initial estimates. Effective oversight is crucial to scrutinize all claimed costs, ensure they are reasonable and allocable, and prevent scope creep that isn't properly managed. The government bears the risk of cost overruns, while the contractor is assured a profit margin.

What are the implications of this contract being awarded under 'full and open competition after exclusion of sources' for price discovery and overall value for taxpayers?

The 'full and open competition after exclusion of sources' designation suggests that while the competition was broad, certain potential bidders were excluded, likely due to specific requirements such as security clearances, specialized technical capabilities, or existing infrastructure. This approach aims to ensure a competitive environment while tailoring the pool of bidders to those most capable of meeting stringent needs. For taxpayers, this means the government likely received competitive bids from qualified vendors, which should drive prices down compared to a sole-source award. However, the exclusion of some sources might limit the absolute lowest price achievable if those excluded vendors could have offered a more competitive bid. The key is whether the exclusion was justified by essential requirements and if sufficient competition remained among the eligible bidders to ensure fair market value.

How does the IT infrastructure supported by this contract contribute to the broader mission objectives of the Department of Defense in the region?

The IT infrastructure supported by this contract is fundamental to the Department of Defense's (DoD) mission objectives in Southwest Asia. It provides the backbone for secure communications, enabling commanders to receive real-time intelligence, issue orders, and coordinate operations across dispersed units. Reliable network connectivity is essential for intelligence, surveillance, and reconnaissance (ISR) platforms, data analysis, and the dissemination of critical information. Furthermore, robust IT systems support logistics, personnel management, and administrative functions, ensuring the smooth operation of military bases and forward operating locations. In essence, this contract ensures that the digital infrastructure necessary for command and control, situational awareness, and operational effectiveness is maintained, directly contributing to mission success and the safety of personnel in a complex geopolitical environment.

What are the potential workforce implications, both for the contractor and potentially for military personnel, associated with this IT support contract?

This contract implies the need for a skilled workforce to manage and operate the IT infrastructure in Southwest Asia. General Dynamics Information Technology will likely employ a mix of U.S. civilian personnel and potentially local nationals, requiring expertise in network administration, systems engineering, cybersecurity, and help desk support. These roles often demand specific security clearances and technical certifications. For military personnel, the contract aims to offload the burden of routine IT maintenance and support, allowing them to focus on core warfighting missions rather than managing complex IT systems. This can enhance operational readiness by freeing up military IT specialists for more strategic tasks or combat-related duties. The presence of contractor personnel also requires clear lines of authority and integration with military command structures.

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 - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

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: $48,103,682

Exercised Options: $33,599,863

Current Obligation: $32,711,106

Actual Outlays: $916,947

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