DoD Awards $121.5M Undefinitized Contract to General Dynamics for Next Generation Gateway Phase II
Contract Overview
Contract Amount: $121,505,658 ($121.5M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-03-14
End Date: 2026-11-30
Contract Duration: 626 days
Daily Burn Rate: $194.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: UNDEFINITIZED CONTRACT ACTION FOR NEXT GENERATION GATEWAY PHASE II
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $121.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: UNDEFINITIZED CONTRACT ACTION FOR NEXT GENERATION GATEWAY PHASE II Key points: 1. Significant award for custom computer programming services, indicating a need for advanced IT solutions. 2. General Dynamics Information Technology, Inc. is a major player in the defense IT sector. 3. The contract's undefinitized nature (VA) suggests potential for cost growth and requires close monitoring. 4. The award falls under the 'Custom Computer Programming Services' NAICS code, a common area for federal IT spending.
Value Assessment
Rating: questionable
The contract is undefinitized (VA), meaning final pricing is not yet established. This poses a risk for cost overruns compared to definitized contracts where prices are fixed upfront.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, suggesting a competitive bidding process. However, the undefinitized nature may impact the final price discovery and negotiation.
Taxpayer Impact: Taxpayers may face higher costs due to the undefinitized contract status, requiring diligent oversight to ensure fair pricing upon final definitization.
Public Impact
Impacts the Department of the Air Force's technological infrastructure and operational capabilities. Supports critical defense IT modernization efforts, potentially enhancing national security. General Dynamics' role highlights the reliance on large contractors for complex defense systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Undefinitized Contract Action (VA)
- Potential for cost growth due to VA status
- Long contract duration (626 days)
Positive Signals
- Full and Open Competition
- Firm Fixed Price contract type (upon definitization)
- Awarded to a known industry leader
Sector Analysis
This contract falls within the IT sector, specifically custom computer programming. Federal IT spending is substantial, and this award represents a portion of the DoD's investment in modernizing its systems.
Small Business Impact
The award was not set aside for small businesses and was made to a large, established contractor, General Dynamics Information Technology, Inc. There is no indication of small business participation in this specific award.
Oversight & Accountability
The undefinitized nature of the contract requires robust oversight from the Department of the Air Force to ensure costs are controlled and the contract is definitized promptly and fairly.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Undefinitized Contract Action (VA)
- Potential for cost overruns
- Long contract duration
- Lack of small business participation noted
- Complexity of 'Next Generation Gateway' systems
Tags
custom-computer-programming-services, department-of-defense, va, bpa-call, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $121.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. UNDEFINITIZED CONTRACT ACTION FOR NEXT GENERATION GATEWAY PHASE II
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 $121.5 million.
What is the period of performance?
Start: 2025-03-14. End: 2026-11-30.
What specific services are included in the 'Next Generation Gateway Phase II' and how do they align with current Air Force modernization goals?
The 'Next Generation Gateway Phase II' likely encompasses advanced software development, system integration, and network infrastructure upgrades critical for the Air Force's future operational capabilities. These services are expected to support modernization efforts by enhancing data flow, cybersecurity, and command and control systems, ensuring the Air Force maintains a technological edge.
What are the primary risks associated with the undefinitized contract action (VA) for this $121.5 million award?
The primary risk of an undefinitized contract action (VA) is the potential for cost escalation. Without a finalized price, the contractor may incur costs that exceed the eventual negotiated price. This necessitates stringent oversight to ensure the contractor's costs are reasonable and allocable, and that the final definitized price reflects fair market value.
How will the effectiveness of the 'Next Generation Gateway Phase II' be measured, and what are the key performance indicators (KPIs)?
Effectiveness will likely be measured through performance metrics tied to system uptime, data processing speeds, cybersecurity compliance, and successful integration with existing Air Force networks. Key Performance Indicators (KPIs) may include achievement of specific technical milestones, reduction in system latency, successful threat mitigation rates, and user satisfaction surveys from Air Force personnel.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Pricing Type: FIRM FIXED PRICE (J)
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: $214,361,156
Exercised Options: $214,361,156
Current Obligation: $121,505,658
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47QTCA21A0001
IDV Type: BPA
Timeline
Start Date: 2025-03-14
Current End Date: 2026-11-30
Potential End Date: 2026-11-30 00:00:00
Last Modified: 2026-03-19
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