General Dynamics IT awarded $24M for IT support services, with a 5-year duration

Contract Overview

Contract Amount: $24,008,862 ($24.0M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2013-09-28

End Date: 2019-02-28

Contract Duration: 1,979 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF FOR OTHER FUNCTIONS, FEDERAL PUBLIC KEY INFRASTRUCTURE MANAGEMENT AUTHORITY FOR OPERATIONA SUPPORT

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $24.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF FOR OTHER FUNCTIONS, FEDERAL PUBLIC KEY INFRASTRUCTURE MANAGEMENT AUTHORITY FOR OPERATIONA SUPPORT Key points: 1. Contract value of $24M over nearly 2000 days suggests a moderate daily burn rate. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The use of Time and Materials pricing may present cost control risks if not closely managed. 4. The duration of the contract (nearly 2000 days) allows for sustained service delivery but requires ongoing performance monitoring. 5. The North American Industry Classification System (NAICS) code 541512 points to a focus on computer systems design services. 6. The award was made by the General Services Administration (GSA), a common agency for IT procurements.

Value Assessment

Rating: fair

The contract value of $24M over approximately 5.5 years results in an average annual value of roughly $4.3M. Benchmarking this against similar IT support contracts is challenging without more specific service details. However, the Time and Materials (T&M) pricing structure, while flexible, can lead to higher costs if not managed diligently compared to fixed-price contracts. The number of offers received (3) is on the lower side for a full and open competition, which might suggest less aggressive pricing than a more crowded field.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. Three offers were received, which suggests a moderate level of competition. While competition is present, a higher number of bidders could potentially drive prices down further and encourage more innovative solutions.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of potential providers, fostering price discovery and potentially leading to lower overall costs.

Public Impact

Federal agencies requiring computer systems design and related services benefit from this contract. The contract supports the operational needs of the Federal Public Key Infrastructure Management Authority. Services delivered likely include IT system design, integration, and support, ensuring functional federal IT infrastructure. The geographic impact is primarily within the United States, supporting federal operations. Workforce implications include employment opportunities for IT professionals within General Dynamics Information Technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure if not rigorously monitored.
Limited number of offers (3) may indicate less competitive pressure than ideal for maximizing taxpayer value.
The specific performance metrics and service level agreements are not detailed, making it difficult to assess performance outcomes.
The contract's duration could lead to vendor lock-in if not managed with clear exit strategies.

Positive Signals

Awarded through full and open competition, promoting a fair and accessible bidding environment.
The contract duration allows for stable service provision and potential for long-term relationship building with the contractor.
General Dynamics Information Technology is a large, established contractor with a significant presence in the federal IT space.
The contract supports a critical function: Federal Public Key Infrastructure Management Authority operations.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The IT services market for the federal government is substantial, with agencies consistently procuring services for system design, integration, maintenance, and support. Contracts like this are essential for maintaining and modernizing federal IT infrastructure. Comparable spending benchmarks would typically be found within GSA's IT schedule or other large IT service contracts, often measured in millions of dollars annually.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless General Dynamics Information Technology voluntarily engages small businesses as subcontractors. Further analysis would be needed to determine subcontracting plans.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the General Services Administration (GSA) and the supported agency (Federal Public Key Infrastructure Management Authority). Performance monitoring, invoicing review, and adherence to contract terms are standard oversight mechanisms. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

GSA IT Schedule Contracts
Federal Civilian IT Services
Computer Systems Design Services
Public Key Infrastructure Management

Risk Flags

Potential for cost creep due to T&M pricing
Moderate competition level (3 bidders)
Lack of detailed performance metrics in summary data

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $24.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF FOR OTHER FUNCTIONS, FEDERAL PUBLIC KEY INFRASTRUCTURE MANAGEMENT AUTHORITY FOR OPERATIONA SUPPORT

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $24.0 million.

What is the period of performance?

Start: 2013-09-28. End: 2019-02-28.

What is the historical spending pattern for Federal Public Key Infrastructure Management Authority IT support services?

Analyzing historical spending for the Federal Public Key Infrastructure Management Authority (FPKIMA) IT support services requires accessing historical contract data beyond this single award. This $24M contract, spanning from late 2013 to early 2019, represents a significant investment over its term. To understand the pattern, one would need to examine prior contracts awarded to FPKIMA for similar services, noting the value, duration, and contractors involved. Additionally, looking at spending trends in the years following this contract's expiration would reveal if spending has increased, decreased, or shifted to different service providers or contract types. Without this broader historical context, it's difficult to establish a definitive spending pattern, but this award indicates a substantial, multi-year commitment to IT support for FPKIMA's operations.

How does the number of bidders (3) compare to similar GSA IT service contracts?

The number of bidders (3) for this General Services Administration (GSA) IT services contract, awarded under full and open competition, is on the lower end of what might be expected for significant federal IT procurements. While GSA's IT schedules and large IDIQ (Indefinite Delivery/Indefinite Quantity) vehicles often see numerous proposals, specific task orders or smaller contract vehicles can attract fewer. For contracts valued around $24 million and spanning several years, a range of 5-10 bidders might be considered more typical for robust competition. A lower number of bidders can sometimes indicate high barriers to entry, specialized requirements, or potentially less aggressive pricing dynamics compared to a more crowded field. However, the quality and relevance of the bidders are also crucial factors, not just the quantity.

What are the primary risks associated with the Time and Materials (T&M) contract type used here?

The primary risk associated with the Time and Materials (T&M) contract type, as used in this $24M award, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure places the burden of cost control on the government. If the contractor's labor hours are not efficiently managed, or if the scope of work expands without adequate oversight, costs can escalate beyond initial expectations. To mitigate this, the government must implement robust monitoring of labor hours, ensure accurate timekeeping, and closely manage any scope changes. The presence of a ceiling price in T&M contracts can offer some protection, but effective oversight is paramount.

How does the contractor's track record influence the assessment of this contract's value?

General Dynamics Information Technology (GDIT) is a large and established federal contractor with extensive experience in IT services. Their track record includes numerous large-scale government contracts across various agencies and functional areas. While a strong track record can suggest a lower risk of performance failure and potentially efficient service delivery, it doesn't automatically guarantee optimal value for money. The assessment of value also depends heavily on the specific pricing proposed, the efficiency of service delivery under this particular contract, and the competitive landscape at the time of award. A contractor's history provides a baseline of expected capability, but the actual performance and cost-effectiveness of this specific $24M contract must be evaluated on its own merits, considering factors like adherence to schedule, quality of deliverables, and cost management relative to the T&M structure.

What is the significance of the NAICS code 541512 (Computer Systems Design Services) in understanding this contract?

The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' is crucial for understanding the core purpose of this contract. It signifies that the primary services procured involve planning and designing computer systems that integrate hardware, software, and communication technologies. This can encompass a wide range of activities, including systems analysis, network design, software engineering, and IT infrastructure consulting. For federal agencies, these services are fundamental to developing, modernizing, and maintaining their complex IT environments. Understanding this NAICS code helps categorize the contract within the broader federal IT procurement landscape and allows for comparisons with other contracts offering similar specialized design and integration capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 15036 CONFERENCE CENTER DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,008,862

Exercised Options: $24,008,862

Current Obligation: $24,008,862

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0055

IDV Type: GWAC

Timeline