DoD awards $41.5M for C4ISR tech development to General Dynamics, raising value-for-money questions

Contract Overview

Contract Amount: $41,468,822 ($41.5M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-02-27

End Date: 2012-12-31

Contract Duration: 1,403 days

Daily Burn Rate: $29.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ADVANCED C4ISR TECHNOLOGY AND CONCEPT DEVELOPMENT

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $41.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: ADVANCED C4ISR TECHNOLOGY AND CONCEPT DEVELOPMENT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract's duration of 1403 days indicates a significant, long-term project. 3. Cost-plus-fixed-fee contract type may incentivize cost overruns. 4. The engineering services NAICS code (541330) points to a focus on technical expertise. 5. Awarded by the Department of Defense, highlighting its strategic importance. 6. The contract was a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: questionable

Benchmarking the value for this specific contract is challenging without more detailed cost breakdowns. The cost-plus-fixed-fee (CPFF) structure, while common for R&D, can lead to higher final costs compared to fixed-price contracts if not managed tightly. Comparing it to similar C4ISR technology development contracts would be necessary to assess if the $41.5 million expenditure represents a fair price for the services rendered over its 1403-day duration. The lack of detailed performance metrics makes a definitive value assessment difficult.

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 2 bidders suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred, the limited number of bidders could still impact price discovery and potentially lead to less aggressive pricing than if more firms had participated.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in full and open competition, though the actual savings depend on the number and aggressiveness of bidders.

Public Impact

The Department of Defense is the primary beneficiary, receiving advanced C4ISR technologies. Services delivered include technology development and concept refinement for command, control, communications, computers, intelligence, surveillance, and reconnaissance systems. The geographic impact is likely concentrated within defense research and development facilities, with potential for broader operational deployment. Workforce implications include specialized engineering and technical roles within General Dynamics Information Technology and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contract type may lead to cost overruns if not closely monitored.
Limited number of bidders (2) may have reduced competitive pressure on pricing.
Lack of specific performance metrics makes it difficult to assess the true value delivered.
The long duration could introduce risks related to technological obsolescence or changing requirements.

Positive Signals

Awarded under full and open competition, maximizing the pool of potential offerors.
General Dynamics Information Technology is a large, established contractor with significant experience in defense IT.
The contract addresses critical C4ISR capabilities, vital for national security.
The delivery order structure suggests it aligns with a broader strategic acquisition framework.

Sector Analysis

This contract falls within the Defense Information Technology sector, specifically focusing on advanced C4ISR technologies. The market for C4ISR systems is substantial, driven by continuous military modernization efforts and the need for integrated battlefield awareness. Comparable spending benchmarks would involve analyzing other DoD contracts for similar R&D efforts in command and control, intelligence, and communication systems, which often represent significant investments.

Small Business Impact

The data indicates that small business participation was not a specific set-aside requirement for this contract (ss: false, sb: false). As a large prime contract awarded to General Dynamics Information Technology, there may be subcontracting opportunities for small businesses, but this is not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on the extent to which General Dynamics utilizes small business subcontractors for specialized services or components.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are embedded within the contract terms, including milestones and deliverables. Transparency is facilitated through contract databases like FPDS, although detailed cost breakdowns and performance reports may be restricted. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Command and Control Systems
Intelligence, Surveillance, and Reconnaissance (ISR) Platforms
Tactical Data Links
Network Centric Warfare Initiatives
Defense Research and Development

Risk Flags

Cost-Plus-Fixed-Fee contract type
Limited number of bidders
Long contract duration
Lack of detailed performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. ADVANCED C4ISR TECHNOLOGY AND CONCEPT DEVELOPMENT

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 $41.5 million.

What is the period of performance?

Start: 2009-02-27. End: 2012-12-31.

What is the track record of General Dynamics Information Technology with similar C4ISR development contracts?

General Dynamics Information Technology (GDIT), now part of General Dynamics, has a long history of supporting the Department of Defense and other government agencies with complex IT solutions, including C4ISR systems. They have been involved in numerous large-scale programs related to command, control, communications, intelligence, surveillance, and reconnaissance. Their experience spans system integration, software development, network infrastructure, and lifecycle support for critical defense capabilities. While specific performance data for individual contracts is often not publicly detailed, GDIT's consistent presence as a prime contractor on major defense programs suggests a generally accepted capability and track record in delivering these types of advanced technological solutions. However, the success and value derived from any specific contract, including this one, depend heavily on program management, technical execution, and the evolving requirements of the DoD.

How does the $41.5 million cost compare to similar C4ISR technology development efforts?

Directly comparing the $41.5 million cost without granular details on the scope, duration, and specific technologies developed makes precise benchmarking difficult. However, C4ISR technology development contracts awarded by the DoD can range significantly, from tens of millions to billions of dollars, depending on complexity and scale. This $41.5 million award over approximately 3.8 years (1403 days) suggests a focused effort on specific technological advancements or concept development rather than a full system acquisition. To provide a more accurate comparison, one would need to analyze contracts with similar objectives, such as 'advanced C4ISR concept development,' 'prototype development for ISR sensors,' or 'next-generation communication system research,' awarded within a comparable timeframe and by similar defense agencies. The cost-plus-fixed-fee (CPFF) nature of this contract also implies that the final cost could deviate from the initial estimate, further complicating direct comparisons.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks include technical challenges in developing advanced C4ISR technologies, potential cost overruns due to the CPFF structure, schedule delays, and the risk of technological obsolescence over the contract's duration. Mitigation strategies typically involve robust program management by the DoD and DCMA, detailed technical reviews, milestone tracking, and performance incentives (though less common in CPFF). The contractor, General Dynamics Information Technology, is expected to employ its own risk management processes, including technical expertise, project planning, and resource allocation. The limited competition (2 bidders) also presents a risk of suboptimal pricing. Mitigation for obsolescence might involve incorporating modular designs or planning for future upgrades.

How effective is the cost-plus-fixed-fee (CPFF) contract type for R&D in C4ISR?

The CPFF contract type is often used for research and development (R&D) and complex projects where the scope or final costs are uncertain at the outset. For C4ISR technology development, where innovation and exploration are key, CPFF allows the government to leverage contractor expertise without precisely defining every technical requirement upfront. It incentivizes the contractor to perform the work diligently to earn the fixed fee. However, a significant drawback is the potential for cost overruns, as the government bears the risk of actual costs exceeding the estimate. Effective oversight, detailed cost tracking, and clear communication are crucial to manage this risk and ensure the government receives good value. While it facilitates innovation, it can be less cost-predictable than fixed-price contracts.

What does the 'Delivery Order' (AW) designation imply about this contract?

The 'Delivery Order' (AW) designation indicates that this contract is likely a task order or delivery order issued under a larger, pre-existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract or a similar contract vehicle. IDIQs allow agencies to procure supplies or services from contractors over a set period. Delivery orders specify the exact quantity and delivery date for a particular item or service. This approach provides flexibility for the government to acquire needed C4ISR technologies as requirements emerge, while establishing a framework and pricing structure upfront. It suggests that General Dynamics Information Technology was likely awarded a broader IDIQ contract, and this $41.5 million award represents one specific order against that larger contract.

What is the significance of the NAICS code 541330 (Engineering Services) for this contract?

The North American Industry Classification System (NAICS) code 541330, 'Engineering Services,' signifies that the primary purpose of this contract is to procure professional engineering expertise. This includes services like design, development, consulting, and project management related to engineering disciplines. For a C4ISR technology development contract, this code indicates that the work involves applying engineering principles to create, refine, or integrate complex systems. It suggests the contractor will be involved in technical problem-solving, system architecture, prototyping, and potentially testing of advanced command, control, communications, intelligence, surveillance, and reconnaissance capabilities. This focus on engineering services underscores the technical and specialized nature of the work being performed.

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: N0002408R3274

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 4300 FAIR LAKES CT, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $41,812,382

Exercised Options: $41,812,382

Current Obligation: $41,468,822

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4593

IDV Type: IDC

Timeline