DoD awards $20M task order for systems engineering to General Dynamics IT, highlighting IT services sector growth

Contract Overview

Contract Amount: $20,202,958 ($20.2M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-06-16

End Date: 2028-06-15

Contract Duration: 1,826 days

Daily Burn Rate: $11.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: SYSTEMS ENGINEERING & INTEGRATION TASK ORDER 1

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: SYSTEMS ENGINEERING & INTEGRATION TASK ORDER 1 Key points: 1. Task order awarded under a broad IT services contract, indicating potential for follow-on work. 2. Competition was full and open, suggesting a robust bidding process and potential for competitive pricing. 3. Contract type is Cost Plus Fixed Fee, which can incentivize contractor efficiency but requires careful oversight. 4. The contract duration of five years suggests a long-term need for these systems engineering services. 5. The award to a large, established contractor like General Dynamics IT points to the complexity and scale of the services required. 6. Focus on computer systems design services aligns with broader trends in defense IT modernization.

Value Assessment

Rating: good

The $20 million award for systems engineering and integration services appears reasonable given the five-year duration and the nature of the work. Benchmarking against similar large-scale IT services contracts within the Department of Defense suggests that pricing structures for Cost Plus Fixed Fee contracts can vary widely. However, the fixed fee component provides a degree of cost certainty. Further analysis would require detailed cost breakdowns and comparison to specific service delivery metrics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under a full and open competition, indicating that all eligible responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the 'full and open' designation generally implies a competitive environment. This approach is intended to ensure the government receives the best value by allowing a wide range of contractors to compete for the work.

Taxpayer Impact: A full and open competition maximizes the potential for competitive pricing, which benefits taxpayers by driving down costs and ensuring efficient use of public funds.

Public Impact

The Department of the Air Force benefits from enhanced systems engineering and integration capabilities. Services delivered are critical for the design, development, and maintenance of complex defense IT systems. The geographic impact is primarily within the Department of Defense's operational and support infrastructure, likely concentrated in Virginia where the contractor is located. Workforce implications include employment opportunities for systems engineers, IT specialists, and support staff within General Dynamics Information Technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage costs and prevent scope creep.
The long duration of the contract necessitates ongoing performance monitoring to ensure continued value.
Reliance on a single large contractor for critical systems engineering could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield good value.
General Dynamics Information Technology is an established contractor with a significant presence in defense IT.
The task order addresses a clear need for systems engineering and integration within the Air Force.

Sector Analysis

The contract falls within the Computer Systems Design Services sector, a critical component of the broader Information Technology industry. This sector is characterized by high demand for specialized expertise in areas like systems integration, software development, and IT consulting. Spending in this area within the federal government, particularly the Department of Defense, has been substantial and is driven by the need for advanced technological capabilities and modernization efforts. Comparable spending benchmarks would involve analyzing other large IT services contracts awarded to major defense contractors for similar engineering and integration tasks.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. The award to a large prime contractor like General Dynamics Information Technology suggests that the primary focus is on leveraging the capabilities of major industry players. This may limit direct opportunities for small businesses to participate in this specific task order, although they may be involved in the broader contract vehicle under which this order was placed.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Accountability measures will be tied to performance metrics outlined in the task order and adherence to the fixed fee. Transparency is facilitated through contract award databases, though detailed cost breakdowns and performance reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Information Technology Contracting Office (DITCO) contracts
Air Force Enterprise IT contracts
Systems Engineering and Technical Assistance (SETA) contracts
General Services Administration (GSA) IT Schedule contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Long contract duration necessitates ongoing performance monitoring.
Potential for contractor performance issues over the five-year term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. SYSTEMS ENGINEERING & INTEGRATION TASK ORDER 1

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 $20.2 million.

What is the period of performance?

Start: 2023-06-16. End: 2028-06-15.

What is the historical spending pattern for General Dynamics Information Technology with the Department of Defense for similar IT services?

General Dynamics Information Technology (GDIT), now part of General Dynamics, has a long and substantial history of contracting with the Department of Defense (DoD) across a wide array of IT services. Their awards typically span areas such as enterprise IT infrastructure, cloud services, cybersecurity, data analytics, and systems engineering. Historical data indicates consistent multi-billion dollar awards annually from the DoD, reflecting their position as a major defense contractor. Analyzing specific task orders like this one against their overall DoD portfolio reveals a pattern of supporting large-scale, complex IT modernization and sustainment efforts. The $20 million task order for systems engineering is consistent with the types of specialized, high-value services GDIT provides to the military branches, particularly the Air Force, which often requires sophisticated integration and design capabilities for its advanced systems.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar systems engineering services?

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development or complex services where the scope is not precisely defined at the outset, allowing for flexibility. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This contrasts with Fixed Price contracts, where the contractor agrees to a set price regardless of actual costs, offering more cost certainty to the government but potentially higher risk for the contractor if costs escalate. Cost Plus Incentive Fee (CPIF) contracts, another alternative, share costs and profits based on meeting specific performance targets. For systems engineering, CPFF offers a balance: it allows the contractor to adapt to evolving technical requirements while the fixed fee provides a predictable profit margin, incentivizing efficient cost management to maximize that fee. However, it requires robust government oversight to ensure costs remain reasonable and within the anticipated scope.

What are the key performance indicators (KPIs) typically associated with systems engineering and integration task orders of this nature?

Key performance indicators (KPIs) for systems engineering and integration task orders like this one are crucial for ensuring the successful delivery of complex IT solutions. Common KPIs often revolve around technical performance, schedule adherence, and cost control. For technical performance, metrics might include system reliability, availability, maintainability, and the successful integration of various components according to specified requirements. Schedule adherence is measured by the timely completion of milestones and deliverables. Cost control KPIs focus on managing project expenses within the allocated budget and ensuring the fixed fee is earned through efficient performance. Additionally, KPIs related to risk management, such as the identification and mitigation of technical risks, and stakeholder satisfaction, are often incorporated to gauge the overall success and value delivered by the contractor.

What is the typical duration for large-scale systems engineering task orders within the Department of Defense?

The typical duration for large-scale systems engineering task orders within the Department of Defense (DoD) can vary significantly based on the complexity, scope, and nature of the project. However, task orders spanning multiple years, such as the five-year duration of this $20 million award, are quite common, especially for programs involving significant system development, integration, modernization, or sustainment. Shorter durations, perhaps one to three years, might be more typical for specific project phases or specialized studies. Longer-term task orders allow for continuity of services, deeper integration with government teams, and the phased implementation of complex technical solutions. The five-year timeframe suggests a sustained requirement for these critical engineering and integration services, aligning with the long lifecycle of many defense systems.

How does the 'Computer Systems Design Services' NAICS code relate to the broader defense IT spending landscape?

The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' is a fundamental category within the broader defense IT spending landscape. This code encompasses establishments primarily engaged in planning and designing computer systems that integrate hardware, software, and communication technologies. For the Department of Defense (DoD), this translates into critical services such as architecting new IT infrastructures, integrating disparate systems, developing custom software solutions, and providing technical consulting for complex technology deployments. Defense spending under this NAICS code is substantial, reflecting the military's reliance on sophisticated, interconnected systems for command and control, intelligence, logistics, and operations. Contracts awarded under this code are essential for maintaining and modernizing the technological edge required for national security.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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: General Dynamics Corp

Address: 3150 FAIRVIEW PARK DR STE 100, 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: $35,457,877

Exercised Options: $35,457,877

Current Obligation: $20,202,958

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $4,199,136

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA862923D5031

IDV Type: IDC

Timeline