Department of Energy's $116.5M IT Support Services Contract Awarded to General Dynamics
Contract Overview
Contract Amount: $116,502,327 ($116.5M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Energy
Start Date: 2009-07-01
End Date: 2025-09-30
Contract Duration: 5,935 days
Daily Burn Rate: $19.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: IT SUPPORT SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20426
Plain-Language Summary
Department of Energy obligated $116.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IT SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes performance but can lead to higher costs. 3. A long performance period of nearly 10 years (5935 days) indicates a significant, ongoing need for IT support. 4. The contract is for IT Support Services, a critical function for agency operations. 5. The awardee, General Dynamics Information Technology, Inc., is a large, established federal contractor. 6. The contract is not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned.
Value Assessment
Rating: fair
Benchmarking the value of this Cost Plus Award Fee contract is challenging without detailed performance metrics and award fee payouts. However, the duration and scope suggest a substantial investment in IT infrastructure. Comparing it to similar large-scale IT support contracts across federal agencies would be necessary for a more precise value assessment. The pricing structure, being cost-plus, requires careful monitoring to ensure costs remain reasonable and aligned with awarded performance.
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 bids. The presence of 6 bidders (implied by 'no': 6) suggests a healthy level of competition for this significant IT support requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award. Multiple bidders help ensure the government receives a fair market price.
Public Impact
Federal Energy Regulatory Commission (FERC) staff benefit from reliable IT support, enabling efficient operations. Essential IT services are delivered, including hardware and software support, network management, and potentially cybersecurity. The contract's impact is primarily within the District of Columbia, where FERC is headquartered. The contract supports a workforce involved in IT infrastructure management and service delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can lead to cost overruns if not managed diligently.
- The long contract duration may reduce flexibility to adopt newer technologies if not managed proactively.
- Reliance on a single large contractor for critical IT support could pose a risk if performance degrades.
Positive Signals
- Awarded through full and open competition, indicating a competitive market for these services.
- General Dynamics is an experienced IT service provider with a track record in the federal sector.
- The contract aims to ensure continuity of essential IT services for the agency.
Sector Analysis
This contract falls within the IT Support Services sector, a critical component of government operations. The federal IT market is vast, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract represents a significant portion of spending for IT support within the Department of Energy, specifically for the Federal Energy Regulatory Commission. Comparable spending benchmarks would involve looking at other large federal agencies' IT support contracts, which often run into tens or hundreds of millions of dollars.
Small Business Impact
The data indicates this contract was not set aside for small businesses (sb: false) and there is no explicit mention of small business subcontracting goals. This suggests that the primary awardee is a large business, and opportunities for small businesses would likely be through subcontracting, if any are mandated or pursued by the prime contractor.
Oversight & Accountability
Oversight for this contract would typically be managed by the Federal Energy Regulatory Commission's contracting officers and program managers. The Cost Plus Award Fee structure implies performance monitoring to determine award fee payouts. Transparency would be enhanced through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- IT Services
- IT Infrastructure Support
- Cloud Computing Services
- Cybersecurity Services
- Managed Services Contracts
Risk Flags
- Long contract duration may lead to technology obsolescence.
- Cost Plus Award Fee structure requires diligent oversight to control costs.
- Potential for vendor lock-in due to long-term IT support reliance.
Tags
it-support-services, department-of-energy, federal-energy-regulatory-commission, general-dynamics-information-technology, cost-plus-award-fee, definitive-contract, full-and-open-competition, district-of-columbia, large-contract, it-services, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $116.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IT SUPPORT 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 Energy (Federal Energy Regulatory Commission).
What is the total obligated amount?
The obligated amount is $116.5 million.
What is the period of performance?
Start: 2009-07-01. End: 2025-09-30.
What is the historical spending trend for IT support services at the Federal Energy Regulatory Commission?
Analyzing historical spending for IT support services at the Federal Energy Regulatory Commission (FERC) requires examining contract data over several years. While this specific contract (awarded in 2009 with a potential end date in 2025) represents a significant portion of IT spending, FERC likely has other contracts for specialized IT functions or smaller support needs. Trends would reveal if spending has increased, decreased, or remained stable, potentially influenced by technological shifts, agency growth, or budget allocations. Understanding these patterns provides context for the current contract's value and necessity, and helps forecast future IT investment requirements.
How does the per-unit cost of this contract compare to similar IT support contracts awarded by other federal agencies?
A direct per-unit cost comparison for this $116.5 million IT Support Services contract is difficult without granular data on the specific services rendered and their associated units (e.g., per help desk ticket, per server managed, per user supported). However, the contract's total value and duration (nearly 10 years) place it among significant federal IT support agreements. To benchmark, one would need to identify comparable contracts from agencies of similar size and mission, focusing on the scope of services. Factors like geographic location, security requirements, and the specific technologies supported heavily influence pricing, making direct comparisons challenging but essential for assessing value for money.
What is General Dynamics Information Technology's track record with Cost Plus Award Fee contracts?
General Dynamics Information Technology (GDIT), now part of General Dynamics, has a substantial track record with various contract types, including Cost Plus Award Fee (CPAF) contracts, across numerous federal agencies. CPAF contracts are common for complex IT services where performance outcomes are critical and can be measured. GDIT's experience suggests they are familiar with the performance metrics and award fee structures inherent in such agreements. Assessing their specific performance on past CPAF contracts would involve reviewing past performance evaluations and award fee determinations, which are often available through federal procurement data systems, to gauge their consistency in meeting performance targets and managing costs effectively.
What are the key performance indicators (KPIs) used to determine award fees for this contract?
The specific Key Performance Indicators (KPIs) used to determine award fees for this contract are not publicly detailed in the provided data. However, for IT Support Services contracts, typical KPIs often include metrics related to system uptime and availability, response times for service requests and incident resolution, customer satisfaction ratings, successful completion of maintenance tasks, adherence to security protocols, and project milestone achievements. The 'Award Fee' component suggests that the government has established targets for these KPIs, and the contractor receives a portion of the potential award fee based on their performance against these targets.
What is the risk associated with the long duration of this contract (nearly 10 years)?
The nearly 10-year duration of this IT Support Services contract presents several potential risks. Firstly, technology evolves rapidly; a contract spanning this length of time may not adequately account for emerging technologies or shifts in IT strategy, potentially leading to the use of outdated systems or inefficient processes. Secondly, long-term reliance on a single contractor could reduce the agency's flexibility to adapt to changing requirements or to seek out innovative solutions from other vendors. Lastly, maintaining consistent high performance from the contractor over such an extended period can be challenging, requiring continuous oversight and re-evaluation of needs.
Industry Classification
NAICS: Manufacturing › Hardware Manufacturing › Hardware Manufacturing
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 6
Pricing Type: COST PLUS AWARD FEE (R)
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: $120,996,058
Exercised Options: $120,996,058
Current Obligation: $116,502,327
Actual Outlays: $505,587
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2009-07-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2022-04-14
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