General Dynamics IT awarded $36.6M for IT support services under a BPA Call

Contract Overview

Contract Amount: $36,602,889 ($36.6M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2014-01-31

End Date: 2016-01-31

Contract Duration: 730 days

Daily Burn Rate: $50.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF. MIDAS SI BLUEPRINTING RELEASE SUPPORT SERVICES

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $36.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF. MIDAS SI BLUEPRINTING RELEASE SUPPORT SERVICES Key points: 1. Contract awarded on a sole-source basis, raising questions about price competition. 2. Services provided under a Time and Materials contract, which can pose cost control risks. 3. The contract duration of two years is relatively standard for this type of service. 4. The award falls under the 'Other Computer Related Services' NAICS code. 5. The contract was awarded by the General Services Administration (GSA). 6. The contractor, General Dynamics Information Technology, Inc., is a large, established entity in the federal IT space.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed service descriptions and performance metrics. The Time and Materials (T&M) pricing structure, while common for IT support, can lead to cost overruns if not managed closely. Comparing it to similar GSA BPA Call awards for IT support services would be necessary for a more precise value assessment. The raw dollar amount of $36.6 million over two years suggests a significant scope of work, but the absence of competition makes it difficult to ascertain if this represents optimal value for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a GSA Federal Supply Schedule (FSS) BPA Call, which was not competed. While GSA schedules offer pre-negotiated pricing, the specific call order was not subject to a competitive bidding process among multiple vendors. This sole-source approach limits the opportunity for price discovery and potentially higher prices compared to a fully competed contract. The number of bidders was effectively one, as it was a direct award under the BPA.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the lowest possible price that could have been achieved through a bidding process.

Public Impact

Federal agencies requiring IT support services benefit from the continuity of operations provided by this contract. The contract supports the delivery of 'Other Computer Related Services,' crucial for maintaining federal IT infrastructure. The geographic impact is primarily within Virginia, where the contractor is located, but services likely support federal operations nationwide. The contract supports a workforce of IT professionals employed by General Dynamics Information Technology, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Risk of cost overruns due to Time and Materials pricing structure.
Limited transparency on performance metrics and service level adherence.
Sole-source award limits competitive pressure on pricing.
Potential for scope creep without rigorous oversight.

Positive Signals

Contract awarded to an experienced IT service provider with a track record in the federal sector.
Utilizes an existing GSA Schedule BPA Call, potentially streamlining the acquisition process.
Services are critical for maintaining federal IT operations.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on IT support and related services. The federal IT services market is substantial, with agencies constantly seeking to modernize and maintain their digital infrastructure. Contracts like this are common for providing ongoing operational support, system maintenance, and technical assistance. Benchmarks for comparable IT support services from GSA schedules would typically range widely based on skill sets and service levels, but a $36.6 million award over two years indicates a significant, ongoing requirement.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a large prime contractor like General Dynamics Information Technology, Inc. suggests that small business participation is unlikely unless they are direct subcontractors to the prime, which is not specified. This contract does not appear to contribute to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA) contracting officers and program managers within the agencies utilizing the services. As a GSA Schedule BPA Call, there are established procedures for task order management. However, the effectiveness of oversight depends on the diligence of the government personnel in monitoring performance, costs, and adherence to the contract terms, especially given the T&M structure. Transparency is limited to the extent of reporting required by the contract and GSA.

Related Government Programs

GSA Federal Supply Schedule IT Contracts
IT Support Services
General Dynamics Information Technology Contracts
Time and Materials Contracts

Risk Flags

Sole-source award
Time and Materials contract type
Lack of detailed performance metrics in award notice

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $36.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF. MIDAS SI BLUEPRINTING RELEASE 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: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $36.6 million.

What is the period of performance?

Start: 2014-01-31. End: 2016-01-31.

What is the track record of General Dynamics Information Technology, Inc. in delivering similar IT support services to the federal government?

General Dynamics Information Technology, Inc. (GDIT) has a long and extensive history of providing IT support services to various federal agencies. They are a major federal contractor with a broad portfolio encompassing IT modernization, cybersecurity, cloud services, and mission support. Their track record includes numerous large-scale contracts for system integration, network management, help desk support, and application development. While specific performance metrics for this particular BPA Call are not publicly detailed, GDIT's overall presence and continued awards suggest a generally accepted capability to meet federal IT requirements. However, past performance on specific contracts, including any past issues or successes, would require a deeper dive into contract databases and agency performance reports.

How does the awarded price of $36.6 million compare to similar IT support contracts awarded by GSA?

Comparing the $36.6 million award over two years (approximately $18.3 million annually) to similar IT support contracts requires careful consideration of scope, service levels, and the specific GSA Schedule. GSA's IT Schedule 70 (now IT Professional Services and Cloud Computing) hosts a wide range of services. For broad IT support, help desk, and system maintenance, this annual value is within a typical range for large federal contracts awarded to established prime contractors. However, without knowing the exact labor categories, hours, and specific services covered by this BPA Call, a precise benchmark is difficult. Contracts with higher levels of specialized technical expertise or extensive geographic coverage would naturally command higher prices. The sole-source nature of this award also means it may not reflect the most competitive pricing available in the market.

What are the primary risks associated with a Time and Materials (T&M) contract for IT support services?

The primary risk with Time and Materials (T&M) contracts, like this one, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fixed fee or percentage for profit. This structure places the onus on the government to meticulously track hours worked and materials used. If not managed with rigorous oversight, contractors may bill for excessive hours, inefficient work, or unnecessary materials, leading to costs exceeding initial estimates. For IT support, this can manifest as prolonged troubleshooting, inefficient task completion, or the use of more senior (and expensive) personnel than necessary for certain tasks. Effective government oversight, including detailed work breakdown structures and vigilant monitoring of timesheets and material requisitions, is crucial to mitigate these risks.

What is the expected effectiveness of the IT support services provided under this contract?

The expected effectiveness of the IT support services under this contract hinges on the contractor's performance and the government's oversight. GDIT, as an experienced provider, is expected to deliver competent IT support, likely encompassing help desk functions, system maintenance, network support, and potentially application support. The effectiveness will be measured by factors such as response times, resolution rates for technical issues, system uptime, and user satisfaction. Given the sole-source nature and T&M structure, the government's program managers must actively monitor performance against defined objectives and ensure that the services provided are necessary and efficiently delivered. Without specific performance metrics or Service Level Agreements (SLAs) detailed in the public award, a definitive assessment of expected effectiveness is speculative, but the contract's renewal and value suggest it meets a continuing need.

How has federal spending on IT support services, particularly through GSA Schedules, evolved over the past five years?

Federal spending on IT support services, especially through GSA Schedules, has seen consistent growth over the past five years, driven by the ongoing need for digital transformation, cybersecurity enhancements, and modernization of legacy systems. GSA Schedules remain a primary vehicle for agencies to procure IT services due to their streamlined acquisition process and pre-negotiated rates. Spending in this category has increased as agencies rely more heavily on cloud computing, data analytics, and advanced IT infrastructure. While specific figures fluctuate, the overall trend indicates a sustained and significant investment in IT support to maintain and improve government operations. The COVID-19 pandemic further accelerated the demand for robust IT infrastructure to support remote work, contributing to increased spending in this area.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Csra LLC (UEI: 080011988)

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

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

Financial Breakdown

Contract Ceiling: $474,496,647

Exercised Options: $79,403,895

Current Obligation: $36,602,889

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GSTFMGBPA100001

IDV Type: BPA

Timeline