DoD's $21.9M IT Services Contract with General Dynamics Faces Scrutiny for Value and Competition
Contract Overview
Contract Amount: $21,884,255 ($21.9M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-09-01
End Date: 2017-03-31
Contract Duration: 211 days
Daily Burn Rate: $103.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF US BICES X IT SERVICES
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $21.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF US BICES X IT SERVICES Key points: 1. The contract awarded to General Dynamics Information Technology, Inc. for IT services represents a significant expenditure. 2. Competition was full and open after exclusion of sources, suggesting a structured but potentially limited bidding process. 3. The cost-plus-fixed-fee structure warrants close examination for potential cost overruns and value for money. 4. This spending falls within the IT sector, a critical area for government operations and modernization.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee structure makes direct pricing comparison difficult without detailed cost breakdowns. Benchmarking against similar IT facility management contracts is necessary to assess if the $21.9M award represents fair value.
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,' indicating that while competition was sought, certain entities were excluded. This method can impact price discovery by limiting the pool of potential bidders.
Taxpayer Impact: The effectiveness of the competition method in securing the best price for taxpayers is questionable due to the exclusion of sources.
Public Impact
Taxpayers may not have received the most competitive pricing due to the exclusion of certain sources during the bidding process. The use of a cost-plus-fixed-fee contract type could lead to increased costs if not managed rigorously. The contract supports essential IT infrastructure for the Department of the Air Force, impacting operational readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contract type
- Exclusion of sources in competition
Positive Signals
- Full and open competition was utilized
- Contract supports critical Air Force IT services
Sector Analysis
This contract falls under IT services, specifically Computer Facilities Management Services. Spending in this sector is substantial across government agencies, with benchmarks varying widely based on service scope and complexity.
Small Business Impact
The contract was awarded to General Dynamics Information Technology, Inc., a large business. There is no indication of small business participation in this specific award, which could be an area for improvement in future contracting.
Oversight & Accountability
The 'exclusion of sources' clause requires careful review to ensure it was justified and did not unduly restrict competition. Ongoing oversight is needed to manage the cost-plus-fixed-fee structure effectively.
Related Government Programs
- Computer Facilities Management Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for inflated costs due to cost-plus-fixed-fee structure.
- Limited competition due to exclusion of sources.
- Lack of transparency in cost build-up.
- No clear indication of small business participation.
Tags
computer-facilities-management-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF US BICES X IT 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 $21.9 million.
What is the period of performance?
Start: 2016-09-01. End: 2017-03-31.
What specific criteria led to the exclusion of certain sources in the 'full and open competition after exclusion of sources' process, and how did this impact the final price?
The exclusion of sources typically occurs when specific technical capabilities, security clearances, or past performance are required that only a limited number of contractors possess. This process, while aiming for specialized expertise, can reduce the number of bidders, potentially leading to higher prices than if a broader competition were held. A thorough review of the justification for exclusion is crucial to ensure it was necessary and did not artificially inflate costs.
How effectively was the cost-plus-fixed-fee structure managed to ensure cost control and prevent contractor inefficiencies?
Cost-plus-fixed-fee contracts incentivize contractors to incur costs, as a portion of their profit is tied to these expenses. Effective management requires rigorous oversight, detailed cost auditing, and clear performance metrics to prevent cost overruns and ensure the government receives value. Without transparent cost reporting and proactive management, this contract type carries a higher risk of exceeding budget compared to fixed-price contracts.
What is the long-term strategic value of this IT services contract for the Department of the Air Force, beyond the immediate operational support?
The long-term strategic value hinges on whether the services provided by General Dynamics contribute to the Air Force's modernization goals, enhance cybersecurity posture, or enable new technological capabilities. If the contract fosters innovation and supports the adoption of advanced IT solutions, it can be strategically valuable. However, if it merely maintains existing systems without driving progress, its strategic impact may be limited.
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
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 3211 JERMANTOWN RD, FAIRFAX, VA, 22030
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $39,679,629
Exercised Options: $39,679,629
Current Obligation: $21,884,255
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA824015D2780
IDV Type: IDC
Timeline
Start Date: 2016-09-01
Current End Date: 2017-03-31
Potential End Date: 2017-03-31 00:00:00
Last Modified: 2023-05-11
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