DoD Awards $39.2M for Engineering Services to General Dynamics IT, Facing Potential Cost Overruns
Contract Overview
Contract Amount: $39,220,656 ($39.2M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-07-23
End Date: 2017-09-29
Contract Duration: 1,894 days
Daily Burn Rate: $20.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SYSTEM INSTALLATION, IN-SERVICE ENGINEERING, OPERATIONS&MAINTENANCE, SYSTEMS ENGINEERING AND PROGRAM MANAGEMENT SUPPORT
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $39.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: SYSTEM INSTALLATION, IN-SERVICE ENGINEERING, OPERATIONS&MAINTENANCE, SYSTEMS ENGINEERING AND PROGRAM MANAGEMENT SUPPORT Key points: 1. Significant contract value ($39.2M) for comprehensive engineering and program management support. 2. General Dynamics Information Technology, Inc. secured the award under full and open competition. 3. Potential risk identified due to Cost Plus Fixed Fee contract type and duration. 4. Spending falls within the Engineering Services sector (NAICS 541330).
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed tightly. The total award value of $39.2M over 1894 days suggests a high potential for increased costs beyond initial estimates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. However, the CPFF structure may still allow for cost escalation.
Taxpayer Impact: Taxpayer funds are utilized for critical defense engineering services. The CPFF structure necessitates vigilant oversight to ensure cost efficiency and prevent unnecessary expenditure.
Public Impact
Ensures continued operational readiness and system development for Department of Defense assets. Supports critical engineering and program management functions, impacting national security. The contract's duration and CPFF nature may lead to higher-than-expected costs for taxpayers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration (1894 days)
- Potential for cost escalation
Positive Signals
- Awarded under full and open competition
- Supports critical defense functions
Sector Analysis
This contract falls under Engineering Services (NAICS 541330), a sector crucial for defense readiness and technological advancement. Spending benchmarks for similar large-scale engineering support contracts vary widely based on scope and duration.
Small Business Impact
The contract was awarded to General Dynamics Information Technology, Inc., a large business. There is no indication of specific small business participation or subcontracting goals within the provided data.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for oversight. The CPFF contract type requires rigorous monitoring of costs and performance to ensure accountability and value for money.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type
- Long contract duration
- Potential for cost overruns
- Lack of specific small business participation data
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. SYSTEM INSTALLATION, IN-SERVICE ENGINEERING, OPERATIONS&MAINTENANCE, SYSTEMS ENGINEERING AND PROGRAM MANAGEMENT SUPPORT
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 $39.2 million.
What is the period of performance?
Start: 2012-07-23. End: 2017-09-29.
What specific engineering services are included in this contract, and how do they align with current defense priorities?
The contract encompasses system installation, in-service engineering, operations & maintenance, and systems engineering/program management support. These services are vital for maintaining and upgrading complex defense systems, ensuring operational readiness and technological superiority in line with evolving defense strategies and threat landscapes.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type in this context?
The primary risk of a CPFF contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. Without stringent oversight and clear performance metrics, the contractor may have less incentive to control costs, leading to higher overall expenditure for the government.
How effectively does this contract leverage competition to ensure optimal pricing and value for the taxpayer?
The contract was awarded through full and open competition, which is a positive indicator for price discovery. However, the CPFF structure itself can mitigate some of the cost-saving benefits of competition if not managed proactively. Continuous monitoring of expenditures against benchmarks is crucial.
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: N0002411R3272
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
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: $44,382,933
Exercised Options: $44,382,933
Current Obligation: $39,220,656
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
Start Date: 2012-07-23
Current End Date: 2017-09-29
Potential End Date: 2017-09-29 00:00:00
Last Modified: 2025-10-29
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