DoD's $15.7M Engineering Services Contract Awarded to General Dynamics Information Technology Inc

Contract Overview

Contract Amount: $15,678,383 ($15.7M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2009-10-29

End Date: 2014-04-28

Contract Duration: 1,642 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CONTRACTOR ASSISTANCE AND ADVISORY/ANALYTICAL SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20003

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $15.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: CONTRACTOR ASSISTANCE AND ADVISORY/ANALYTICAL SERVICES Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risks. 3. The duration of the contract is over 1600 days, indicating a long-term need for these services. 4. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a critical sector for defense operations. 6. The contract was awarded to a single entity, General Dynamics Information Technology Inc., for a specific task order.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the scope of work and the overall IDIQ contract it belongs to. The Cost Plus Fixed Fee (CPFF) contract type means the final cost is subject to actual expenses incurred plus a fixed fee, which can lead to cost overruns if not managed carefully. Comparing it to similar engineering services contracts within the Department of Defense would require detailed analysis of service scope, duration, and contractor performance on other CPFF contracts.

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 a bid. The fact that it resulted in a single delivery order suggests that General Dynamics Information Technology Inc. was the selected contractor for this specific task under a broader IDIQ contract. The level of competition for the IDIQ vehicle itself is not detailed here, but the award of a delivery order implies a competitive selection process for this particular task.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. However, the specifics of the competition for the parent IDIQ contract would provide a clearer picture of the taxpayer advantage.

Public Impact

The Department of Defense benefits from specialized engineering services to support its complex operational and technological needs. These services likely contribute to the design, development, or maintenance of military systems and infrastructure. The contract's impact is primarily within the defense sector, supporting national security objectives. The workforce implications would involve skilled engineers and technical personnel employed by General Dynamics Information Technology Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to higher costs if not rigorously managed due to the reimbursement of actual expenses.
The long duration of the contract (over 4 years) increases the risk of scope creep or changing requirements impacting the final cost.
Without details on the specific engineering services, it's difficult to assess if the fixed fee adequately compensates the contractor for the effort.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process for the parent IDIQ.
General Dynamics Information Technology Inc. is a large, established contractor with a significant presence in the federal IT and defense sectors.
The contract is for engineering services, which are essential for maintaining and advancing defense capabilities.

Sector Analysis

The engineering services sector is a critical component of the defense industrial base, providing essential expertise for the design, development, testing, and sustainment of military platforms and systems. This contract falls under the broader category of professional, scientific, and technical services. Spending in this area is substantial across the federal government, particularly within the Department of Defense, to maintain technological superiority and address evolving threats. Comparable spending benchmarks would typically be found within the context of specific engineering disciplines or defense programs.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major defense contractor, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specified within the task order. The focus appears to be on leveraging the capabilities of a large prime contractor rather than specifically promoting small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy contracting officers and program managers. As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing are crucial to ensure that costs are reasonable and allocable to the contract. Transparency would be enhanced through contract reporting mechanisms and potentially through Inspector General reviews if any irregularities are suspected. The specific oversight mechanisms would be detailed in the contract clauses.

Related Government Programs

Department of Defense IT Services
Defense Engineering Support Contracts
Professional and Technical Services Contracts
Naval Systems Engineering Support

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Long contract duration increases risk of scope creep and obsolescence.
Lack of specific scope of work details hinders precise value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. CONTRACTOR ASSISTANCE AND ADVISORY/ANALYTICAL 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 Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $15.7 million.

What is the period of performance?

Start: 2009-10-29. End: 2014-04-28.

What is the specific scope of engineering services provided under this contract?

The provided data indicates the contract is for 'CONTRACTOR ASSISTANCE AND ADVISORY/ANALYTICAL SERVICES' under NAICS code 541330 (Engineering Services). However, the specific scope of work for this particular delivery order is not detailed. Engineering services can encompass a wide range of activities, including system design, technical analysis, research and development support, testing and evaluation, and program management support. Given the awarding agency (Department of the Navy) and the contractor (General Dynamics Information Technology Inc.), the services likely relate to naval systems, platforms, or related infrastructure. A detailed statement of work (SOW) within the contract documents would specify the precise tasks, deliverables, and performance standards.

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

Cost Plus Fixed Fee (CPFF) contracts are common for research and development or complex services where the scope is not fully defined at the outset. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This differs from fixed-price contracts, where the price is set regardless of actual costs, and cost-reimbursement contracts without a fixed fee, where profit is a percentage of costs. For engineering services, CPFF can be advantageous when innovation or exploration is key, as it allows flexibility. However, it carries a risk of cost overruns for the government if costs escalate beyond initial estimates, as the contractor has less incentive to control costs compared to fixed-price arrangements. Other contract types like Firm-Fixed-Price (FFP) or Cost-Plus-Incentive-Fee (CPIF) might be used depending on the level of cost certainty and performance incentives desired.

What is General Dynamics Information Technology Inc.'s track record with similar DoD engineering contracts?

General Dynamics Information Technology Inc. (GDIT) is a major federal contractor with extensive experience in providing IT, engineering, and professional services to the Department of Defense and other federal agencies. They have a long history of performing complex engineering and technical support tasks across various military branches. While specific performance metrics for this particular delivery order are not available in the provided data, GDIT's overall track record includes managing large-scale contracts, often involving advanced technology integration, system sustainment, and program support. Their performance on similar contracts would typically be evaluated through past performance questionnaires and contract administration records, which are not publicly detailed here but are crucial for future contract awards.

What are the potential risks associated with a contract duration of over 1600 days?

A contract duration of over 1600 days (approximately 4.4 years) presents several potential risks for the government. Firstly, the risk of 'scope creep' increases significantly, where the requirements may expand beyond the original intent, leading to increased costs and potential delays. Secondly, technology and operational needs can evolve rapidly, especially in the defense sector; a long-duration contract might become outdated or less effective if not managed with flexibility. Thirdly, maintaining consistent oversight and ensuring contractor performance remains high over an extended period can be challenging for government program managers. Finally, economic fluctuations or changes in budget priorities could impact the funding availability for such a long-term commitment, potentially leading to contract modifications or termination.

How does the 'Delivery Order' award mechanism impact competition and pricing?

A 'Delivery Order' award typically signifies that this contract is a task order issued under a pre-existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract. The IDIQ contract itself was likely awarded after a competitive process (in this case, 'full and open competition'). For the specific delivery order, the competition mechanism can vary. It might be competed among all IDIQ holders, or it could be competed among a subset of IDIQ holders, or even awarded on a sole-source basis if the IDIQ contract allows for it under specific circumstances. The fact that this was a delivery order under a full and open IDIQ suggests that the initial competition for the IDIQ vehicle was broad. The pricing for the delivery order would be negotiated based on the terms established in the IDIQ contract, which could include pre-negotiated rates or a process for competitive bidding on individual task orders.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002409R3504

Offers Received: 3

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: $17,828,554

Exercised Options: $17,828,554

Current Obligation: $15,678,383

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4030

IDV Type: IDC

Timeline