DoD's $17.6M engineering services contract awarded to General Dynamics IT shows fair value with a 96.5% benchmark

Contract Overview

Contract Amount: $17,640,978 ($17.6M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2007-03-07

End Date: 2012-03-07

Contract Duration: 1,827 days

Daily Burn Rate: $9.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: HYDRO/AERO PROPERTIES AND MODEL TEST

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20003, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $17.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: HYDRO/AERO PROPERTIES AND MODEL TEST Key points: 1. The contract's value appears reasonable, with a benchmark indicating strong performance relative to market rates. 2. Full and open competition was utilized, suggesting a competitive environment for this engineering services requirement. 3. The contract duration of 1827 days (approx. 5 years) indicates a long-term need for these specialized services. 4. Awarded under the 'Defense' sector, this contract supports critical engineering functions for the Department of Defense. 5. The contractor, General Dynamics Information Technology Inc., has a significant presence in the federal contracting space. 6. The 'Engineering Services' category is essential for complex defense projects and system development.

Value Assessment

Rating: good

The contract's benchmark of 96.5% suggests that the awarded price was favorable compared to similar services. While specific cost breakdowns are not provided, the overall value appears to be good given the competitive nature of the award and the contractor's established capabilities. The fixed-fee component of the Cost Plus Fixed Fee (CPFF) contract type implies that the contractor's profit margin was predetermined, which can help control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The fact that it was competed broadly suggests that the agency sought the best possible solution and price. While the number of bidders is not specified, the competitive process is a positive indicator for price discovery and value for taxpayers.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment where multiple companies vie for the contract, driving down costs.

Public Impact

The Department of Defense benefits from specialized engineering services crucial for its operations and technological advancements. This contract supports the development and maintenance of complex defense systems and infrastructure. The geographic impact is primarily within the District of Columbia, where the contract was managed. The contract likely supports a workforce of engineers and technical specialists, contributing to the skilled labor market in the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to cost overruns if not closely monitored, although the fixed fee component mitigates this risk to some extent.
Long contract durations, like this 5-year term, can sometimes lead to vendor lock-in or reduced flexibility for the agency if requirements change significantly.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process and potential for competitive pricing.
The contractor, General Dynamics Information Technology Inc., is a large and experienced federal contractor, suggesting a lower risk of performance issues.
A high benchmark score (96.5%) indicates strong value for money.
The contract is managed by the Defense Contract Management Agency (DCMA), a specialized agency for contract oversight.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader Information Technology and Defense industries. The market for engineering services supporting the federal government, particularly the Department of Defense, is substantial, driven by the need for specialized expertise in areas like systems design, analysis, and testing. Comparable spending benchmarks in this sector often focus on the efficiency and effectiveness of technical solutions provided.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate specific subcontracting requirements for small businesses. As a large contract awarded to a major prime contractor, the primary focus is on the prime's capabilities. The impact on the small business ecosystem would depend on whether General Dynamics Information Technology Inc. actively seeks small business subcontractors for specialized support, which is not explicitly detailed here.

Oversight & Accountability

The contract is managed by the Defense Contract Management Agency (DCMA), which provides oversight for defense contracts. The Cost Plus Fixed Fee (CPFF) contract type requires diligent monitoring of costs and performance to ensure adherence to the fixed fee. Transparency is generally maintained through contract reporting mechanisms, and Inspector General jurisdiction would apply for any potential fraud, waste, or abuse.

Related Government Programs

Defense Engineering Services
Information Technology Support Services
Professional, Scientific, and Technical Services
Department of Defense IT Contracts

Risk Flags

Long contract duration may limit flexibility
CPFF contract type requires diligent cost oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. HYDRO/AERO PROPERTIES AND MODEL TEST

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $17.6 million.

What is the period of performance?

Start: 2007-03-07. End: 2012-03-07.

What specific types of engineering services were provided under this contract?

While the data indicates 'Engineering Services,' the specific nature of 'HYDRO/AERO PROPERTIES AND MODEL TEST' suggests a focus on fluid dynamics, aerodynamics, and potentially related simulation or testing activities. This could involve research and development, design analysis, performance modeling, or validation testing for defense systems, aircraft, or related equipment. The exact scope would be detailed in the contract's statement of work, which is not provided here but would outline deliverables such as reports, analyses, model development, and test results.

How does the benchmark of 96.5% translate to value for money?

A benchmark of 96.5% typically signifies that the contract's price was 96.5% of the expected or market rate for similar services. In this context, a higher percentage (closer to 100% or above) might indicate a higher price, while a lower percentage suggests a more favorable price. If 96.5% represents the actual cost relative to a benchmark of what the service *should* cost, it implies the government paid 3.5% less than anticipated or the market average, indicating good value for money. Conversely, if 96.5% is the *performance* against a benchmark, it means the contractor achieved 96.5% of the expected performance for the price paid, which would be a different interpretation. Assuming it relates to price, it's a positive indicator.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract?

CPFF contracts, while offering flexibility, carry inherent risks. The primary risk is that the contractor may not have a strong incentive to control costs beyond what is necessary to achieve the fixed fee, as the government bears the cost of performance. If the contractor's cost estimates are inaccurate, the government might end up paying more than anticipated. However, the 'fixed fee' component aims to mitigate this by capping the contractor's profit. Effective oversight by the government is crucial to monitor costs, ensure efficiency, and prevent scope creep that could inflate expenses without commensurate benefit.

What is the significance of the contract being managed by the Defense Contract Management Agency (DCMA)?

The DCMA's involvement signifies that this contract is subject to specialized oversight focused on ensuring contractor performance, quality, and compliance with contractual terms. DCMA plays a critical role in monitoring costs, schedules, and technical progress, particularly for complex defense procurements. Their expertise helps the Department of Defense manage risks, ensure timely delivery of goods and services, and maintain accountability throughout the contract lifecycle. This suggests a structured approach to managing this significant engineering services contract.

How does the contract's duration (1827 days) impact its overall assessment?

A duration of 1827 days, approximately five years, indicates a long-term, strategic need for the engineering services provided. This extended period allows for continuity in support and the development of deep expertise by the contractor. However, it also presents risks such as potential obsolescence of technology or changing requirements that may not be adequately addressed by the initial contract scope. Agencies must carefully plan for such long-term needs, ensuring flexibility clauses or regular reviews are in place to adapt to evolving circumstances and maintain optimal value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002406R3639

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 3160 FAIRVIEW PARK DRIVE, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,115,742

Exercised Options: $20,115,742

Current Obligation: $17,640,978

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4030

IDV Type: IDC

Timeline