DoD's $25.9M WARHAWK software contract awarded to General Dynamics IT for tactical data communications

Contract Overview

Contract Amount: $25,887,641 ($25.9M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-10-21

End Date: 2023-03-23

Contract Duration: 883 days

Daily Burn Rate: $29.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: WARHAWK-SOFTWARE SOLUTION FOR BATTLEFIELD DATA COMMS,TARGETING,&BATTLESPACE AWARENESS TO SUPPORT TACTICAL AIR CONTROL PARTY TACTICAL OPERATION CENTER, AIR SUPPORT OPERATION CENTER DIGITALLY AIDED COMMAND&CONTROL AND CLOSE AIR SUPPORT OPERATIONS

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $25.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: WARHAWK-SOFTWARE SOLUTION FOR BATTLEFIELD DATA COMMS,TARGETING,&BATTLESPACE AWARENESS TO SUPPORT TACTICAL AIR CONTROL PARTY TACTICAL OPERATION CENTER, AIR SUPPORT OPERATION CENTER DIGITALLY AIDED COMMAND&CONTROL AND CLOSE AIR SUPPORT OPERATIONS Key points: 1. The contract aims to enhance battlefield data communications, targeting, and battlespace awareness for tactical air control. 2. It supports critical operations for Tactical Operation Centers and Air Support Operation Centers. 3. The software solution is designed to improve digitally aided command and control and close air support. 4. Awarded via full and open competition, suggesting a potentially competitive pricing environment. 5. The contract duration of 883 days indicates a significant, ongoing need for these capabilities. 6. The use of a Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring of costs to ensure value. 7. This contract falls under the Custom Computer Programming Services NAICS code.

Value Assessment

Rating: fair

Benchmarking the value of this specific software solution is challenging without detailed cost breakdowns and performance metrics. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs if not managed diligently, as the contractor is reimbursed for allowable costs plus a fixed fee. Comparing the total award amount to similar custom software development contracts for defense applications would provide better context, but such data is not readily available. The contract's value is tied to its ability to deliver critical battlefield awareness and communication capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This approach generally fosters a competitive environment, which can lead to better pricing and innovation. The presence of a single award delivery order suggests that General Dynamics Information Technology, Inc. was selected as the best value among the competing proposals. The specific number of bidders is not provided, but the method of competition implies a robust process.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at a competitive price, reducing the risk of overpayment.

Public Impact

The primary beneficiaries are tactical air control parties and air support operations centers within the Department of Defense. The contract delivers enhanced battlefield data communications, targeting, and battlespace awareness capabilities. These improvements directly support close air support operations and digitally aided command and control. The software is intended for use in tactical operations centers, enhancing real-time decision-making. Workforce implications include the need for personnel trained to operate and maintain advanced communication and targeting systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can incentivize cost overruns if not closely monitored.
The duration of the contract (883 days) suggests a long-term reliance, making performance issues potentially impactful.
Dependence on a single software solution for critical battlefield awareness carries inherent operational risks.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
The contract addresses critical needs for tactical data communications and battlespace awareness.
General Dynamics Information Technology, Inc. is a large, established defense contractor with significant experience.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. The market for defense-related software development is substantial, driven by the need for advanced technological capabilities in military operations. Comparable spending benchmarks would involve looking at other large-scale software development contracts for command and control systems or battlefield awareness platforms within the DoD and other defense agencies. The size of this contract, approximately $25.9 million, is moderate for a defense IT project of this nature.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award went to a large prime contractor, General Dynamics Information Technology, Inc. This suggests that the primary focus was on the prime contractor's capabilities rather than leveraging the small business ecosystem for this specific requirement. Further analysis would be needed to determine if any small business participation is occurring indirectly through the prime contractor's supply chain.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to ensure that costs are allowable, reasonable, and allocable, and that the fixed fee is earned. Transparency is typically managed through contract reporting requirements and performance reviews. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Tactical Data Links
Command and Control Systems
Battlefield Management Systems
Air Support Operations Software
Digital Warfare Platforms

Risk Flags

Cost Plus Fixed Fee contract type requires close monitoring for cost control.
Potential for integration challenges with existing military systems.
Dependency on a single vendor for critical battlefield awareness software.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. WARHAWK-SOFTWARE SOLUTION FOR BATTLEFIELD DATA COMMS,TARGETING,&BATTLESPACE AWARENESS TO SUPPORT TACTICAL AIR CONTROL PARTY TACTICAL OPERATION CENTER, AIR SUPPORT OPERATION CENTER DIGITALLY AIDED COMMAND&CONTROL AND CLOSE AIR SUPPORT OPERATIONS

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 $25.9 million.

What is the period of performance?

Start: 2020-10-21. End: 2023-03-23.

What is the track record of General Dynamics Information Technology, Inc. with similar defense software contracts?

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record with the Department of Defense and other federal agencies, frequently securing large contracts for IT services, software development, and systems integration. They are known for supporting complex command, control, communications, computers, and intelligence (C4I) systems, as well as providing enterprise IT infrastructure and cybersecurity solutions. Their experience spans various military branches and mission areas, including tactical communications and battlefield awareness. While specific performance metrics for past contracts are often proprietary or buried within extensive reporting, GDIT's consistent win rate on large-scale defense contracts suggests a perceived capability and reliability by awarding agencies. However, like any large contractor, they have also faced scrutiny and performance challenges on specific projects, underscoring the importance of ongoing oversight for contracts like WARHAWK.

How does the $25.9 million cost compare to similar battlefield awareness software solutions?

Directly comparing the $25.9 million cost of the WARHAWK software solution to similar battlefield awareness software is difficult without access to detailed cost breakdowns, feature sets, and performance requirements of comparable systems. The market for defense software is highly specialized, with costs varying significantly based on factors like complexity, integration needs, security requirements, and the specific operational environment. Contracts for custom computer programming services (NAICS 541511) can range widely. However, for a system designed to support tactical air control, targeting, and battlespace awareness for multiple operational centers, $25.9 million over approximately two years (883 days) appears to be within a plausible range for a significant defense IT development effort. Benchmarking would ideally involve comparing it against other digitally aided command and control systems or tactical data communication platforms procured by the DoD or allied nations, considering the scope and technological sophistication.

What are the primary risks associated with this WARHAWK software contract?

The primary risks associated with the WARHAWK software contract include technical risks, such as potential integration challenges with existing military systems, software bugs, or performance issues in demanding operational environments. Schedule risks exist, as complex software development projects can experience delays. Cost risks are present, particularly given the Cost Plus Fixed Fee (CPFF) contract type, which could lead to cost overruns if not managed effectively; the contractor is reimbursed for allowable costs plus a fixed fee, creating less incentive for cost efficiency compared to fixed-price contracts. Operational risks involve the potential for the software to become obsolete quickly due to rapid technological advancements or to fail during critical missions. Finally, there's a risk related to contractor performance and dependency, as the success of critical tactical operations relies heavily on the reliability and effectiveness of this single software solution.

How effective is the Cost Plus Fixed Fee (CPFF) contract type for delivering advanced military software?

The Cost Plus Fixed Fee (CPFF) contract type is often used for research and development or complex projects where the scope and costs are not well-defined at the outset, such as advanced military software development. Its primary advantage is flexibility, allowing the contractor to adapt to evolving requirements and pursue innovative solutions without being penalized for unforeseen cost increases beyond their control. The 'fixed fee' provides the contractor with a defined profit margin. However, CPFF contracts carry significant risks for the government. They offer less incentive for the contractor to control costs compared to fixed-price contracts, as all allowable costs are reimbursed. This necessitates robust government oversight to scrutinize costs, ensure they are reasonable and allocable, and prevent potential cost overruns. For advanced military software, CPFF can facilitate innovation but requires diligent management to ensure value for taxpayer money.

What is the historical spending pattern for similar battlefield awareness and data communication systems within the Department of Defense?

Historical spending patterns for battlefield awareness and data communication systems within the Department of Defense show a consistent and significant investment in these capabilities, driven by the evolving nature of modern warfare. These systems often involve substantial research, development, and procurement costs, frequently spanning multiple years and contract vehicles. Spending can range from tens of millions to billions of dollars, depending on the scale and technological sophistication of the systems. Contracts often involve complex integration efforts across various platforms and services. Trends indicate a move towards more networked, data-centric, and AI-enabled systems to enhance situational awareness and decision-making speed. The WARHAWK contract, at approximately $25.9 million, represents a component of this broader, ongoing investment in modernizing military communication and intelligence infrastructure.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $50,832,817

Exercised Options: $37,765,570

Current Obligation: $25,887,641

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $791,770

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA873214D0029

IDV Type: IDC

Timeline