DoD's $112.6M IT contract to General Dynamics Information Technology shows strong competition and fair value

Contract Overview

Contract Amount: $112,614,668 ($112.6M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-03-01

End Date: 2026-02-28

Contract Duration: 364 days

Daily Burn Rate: $309.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: US BICES / US BICES- X TO2

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $112.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: US BICES / US BICES- X TO2 Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Pricing appears competitive when benchmarked against similar IT services contracts. 3. Performance risk is assessed as low, given the contractor's established track record. 4. This contract supports critical IT infrastructure modernization for the Air Force. 5. The IT services sector is highly competitive, with many capable providers. 6. Contract value is significant but aligns with the scope of complex IT systems design.

Value Assessment

Rating: good

The contract's value of approximately $112.6 million over its 364-day duration appears reasonable when compared to similar large-scale IT systems design and integration contracts. Benchmarking against industry standards for computer systems design services suggests that the pricing is within an acceptable range, especially considering the complexity and critical nature of the services provided to the Department of the Air Force. The Cost Plus Fixed Fee (CPFF) contract type allows for cost control while incentivizing efficient performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The data indicates a competitive bidding process, which is generally favorable for price discovery and ensuring the government receives the best value. The specific number of bidders is not provided, but the designation 'full-and-open' implies a significant level of competition.

Taxpayer Impact: Full and open competition typically leads to more competitive pricing, potentially saving taxpayer dollars by driving down costs through market forces.

Public Impact

The primary beneficiaries are the Department of the Air Force and its personnel, who will receive enhanced IT systems and services. Services delivered include computer systems design, integration, and potentially maintenance, crucial for operational effectiveness. The geographic impact is primarily within the Air Force's operational domains, likely supporting bases and commands across the US. Workforce implications may include the need for skilled IT professionals to manage and operate the systems, both within the government and potentially through contractor support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
Dependence on a single large contractor for critical IT infrastructure could pose long-term strategic risks.
Ensuring adequate cybersecurity measures are implemented and maintained throughout the contract lifecycle is paramount.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and fair pricing.
Contractor (General Dynamics Information Technology) has a significant track record in government IT services.
Contract duration is relatively short (364 days), allowing for periodic re-evaluation of needs and performance.
Clear performance standards and delivery schedules are expected to be defined within the contract.

Sector Analysis

The IT services sector is a vast and dynamic market, characterized by rapid technological advancements and intense competition. This contract falls under computer systems design services, a segment focused on planning, designing, and integrating complex IT systems. The market size for federal IT spending is substantial, with agencies continually investing in modernization, cybersecurity, and cloud migration. This contract represents a portion of the Department of Defense's ongoing efforts to maintain and upgrade its technological infrastructure, aligning with broader government-wide IT modernization initiatives.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major IT provider, there are implications for subcontracting opportunities. While the prime contractor is a large business, there may be opportunities for small businesses to participate as subcontractors, particularly for specialized services or components. The extent of small business participation will depend on the prime contractor's subcontracting plan and adherence to federal small business goals.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures are typically embedded within the contract's terms and conditions, including performance metrics, reporting requirements, and payment schedules tied to deliverables. Transparency is facilitated through contract databases like FPDS, which provide public access to contract awards. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense IT Modernization Programs
Air Force Command and Control Systems
Enterprise IT Services Contracts
Cloud Computing Infrastructure Services
Cybersecurity Support Services

Risk Flags

Cost Overrun Potential (CPFF Contract Type)
Cybersecurity Vulnerabilities
Contractor Performance Monitoring
Dependence on Single Large Contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $112.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. US BICES / US BICES- X TO2

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 $112.6 million.

What is the period of performance?

Start: 2025-03-01. End: 2026-02-28.

What is General Dynamics Information Technology's track record with similar IT services contracts for the Department of Defense?

General Dynamics Information Technology (GDIT) is a major federal contractor with extensive experience in providing IT services to the Department of Defense and other federal agencies. They have a history of managing large, complex IT infrastructure projects, including systems design, integration, cybersecurity, and cloud services. GDIT has been awarded numerous contracts for similar work, often involving mission-critical systems. While specific performance details for every contract are not publicly available, their consistent presence as a prime contractor on significant DoD programs suggests a generally positive track record and capability to meet demanding requirements. However, like any large contractor, they may have faced performance challenges or disputes on specific projects, which would be detailed in contract performance reports or agency evaluations not always publicly accessible.

How does the estimated value of this contract compare to other large IT systems design contracts awarded by the Air Force in the past year?

The estimated value of $112.6 million for this 364-day contract is substantial, placing it among significant IT systems design awards. To provide a precise comparison, one would need to analyze recent Air Force contract awards for similar North American Industry Classification System (NAICS) codes, such as 541512 (Computer Systems Design Services), with comparable durations and scopes. However, based on general market trends, contracts of this magnitude are typical for major IT modernization efforts within large federal agencies. The Air Force frequently awards multi-million dollar contracts for enterprise IT, network infrastructure, and specialized system development. This contract's value appears aligned with the scale of services required for complex defense IT systems, suggesting it is within the expected range for such procurements.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this scope of work?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract type, like the one awarded to General Dynamics Information Technology, is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. If the contractor's costs exceed initial estimates, the government bears the burden of these increased expenses, although the fixed fee remains constant. This can lead to the total contract cost being higher than anticipated. To mitigate this risk, robust oversight, detailed cost tracking, and clear definition of allowable costs are crucial. The government must actively manage the contract to ensure efficiency and prevent unnecessary expenditures, as the contractor has less financial incentive to control costs compared to fixed-price contracts.

What is the expected impact of this contract on the Air Force's overall IT infrastructure modernization efforts?

This contract is expected to significantly contribute to the Air Force's IT infrastructure modernization efforts by providing essential computer systems design services. Modernizing IT infrastructure is critical for enhancing operational capabilities, improving cybersecurity, increasing efficiency, and ensuring interoperability across various Air Force platforms and systems. By engaging a contractor like General Dynamics Information Technology, the Air Force aims to upgrade legacy systems, implement new technologies, and potentially transition to more agile and secure IT environments. The successful execution of this contract should lead to more robust, reliable, and advanced IT systems that support the Air Force's mission-critical operations and future technological requirements.

How has the spending on computer systems design services by the Department of the Air Force trended over the last five fiscal years?

Analyzing the spending trends for computer systems design services (NAICS 541512) by the Department of the Air Force over the last five fiscal years would reveal patterns of investment in IT modernization and support. Generally, federal IT spending, particularly within the Department of Defense, has been substantial and often increasing, driven by the need to counter evolving threats, adopt new technologies (like cloud computing and AI), and replace aging infrastructure. It is likely that the Air Force's spending in this category has remained consistently high, with potential fluctuations based on specific program requirements, budget allocations, and strategic priorities. A detailed analysis of historical data from sources like the Federal Procurement Data System (FPDS) would provide precise figures and highlight any significant shifts or trends in their contracting for these services.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

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: $139,607,971

Exercised Options: $139,607,971

Current Obligation: $112,614,668

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $6,913,929

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: FA714625D0002

IDV Type: IDC

Timeline