General Dynamics IT awarded $65.5M for IT services, with a significant portion for systems engineering

Contract Overview

Contract Amount: $65,502,817 ($65.5M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: General Services Administration

Start Date: 2014-08-15

End Date: 2018-11-14

Contract Duration: 1,552 days

Daily Burn Rate: $42.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF OTHER FUNCTION - SETA SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $65.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: IGF::OT::IGF OTHER FUNCTION - SETA SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE Key points: 1. Contract value indicates substantial investment in IT infrastructure and support. 2. The fixed-price contract type suggests a defined scope and potential for cost control. 3. A high number of bids (3) in a full and open competition suggests a healthy market. 4. The contract duration of over 3 years implies a long-term need for these services. 5. The specific NAICS code points to a focus on computer systems design and integration. 6. The contract was awarded by GSA, a common channel for IT procurement across agencies.

Value Assessment

Rating: good

The contract value of $65.5 million over approximately 3.8 years (1552 days) represents a significant investment in IT services. While specific benchmarks for this exact service combination are difficult to ascertain without more granular data, the fixed-price nature of the contract suggests that the government aimed to lock in costs. The competition level (3 bidders) is moderate, which can be a positive sign for value, but a deeper dive into the pricing structure and comparison with similar GSA schedules would be needed for a definitive value assessment.

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 3 bidders suggests a competitive environment for this type of IT service. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government, as contractors vie for the award. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive marketplace that can drive down prices and encourage innovation, leading to better value for public funds.

Public Impact

Federal agencies requiring computer systems design and technical assistance services benefit from this contract. The services delivered likely include IT infrastructure support, system integration, and technical consulting. The contract's performance location in Maryland suggests a concentration of federal IT operations in that region. The contract supports a workforce skilled in IT systems design and engineering.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope expands beyond the initial fixed-price agreement.
Dependence on a single large contractor could limit flexibility for future technological shifts.
Ensuring adequate performance monitoring to guarantee service quality and value.

Positive Signals

Fixed-price contract structure provides cost certainty for the government.
Full and open competition suggests a robust market and potential for competitive pricing.
Awarded by GSA, indicating adherence to established procurement standards and processes.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design and related services. The IT services market is vast and highly competitive, with numerous large and small businesses offering a wide range of solutions. Contracts like this, procured through GSA schedules, are common for federal agencies seeking IT support, reflecting a significant portion of federal IT spending. Benchmarks for comparable IT services contracts through GSA can vary widely based on the specific services, duration, and complexity.

Small Business Impact

The contract indicates that small business participation was not a primary set-aside consideration (ss: false, sb: false). While this contract itself may not be directly set aside for small businesses, it's important to analyze subcontracting plans. Large prime contractors like General Dynamics are often required to have subcontracting goals for small businesses. The extent to which this contract contributes to the small business ecosystem depends on the subcontracting opportunities offered by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the agency utilizing the services procured through GSA. GSA itself has oversight mechanisms for its schedules and contracts. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

IT Professional Services
Seaport-e
GSA Schedule IT 70
Systems Engineering and Technical Assistance (SETA)

Risk Flags

Potential for scope creep in fixed-price contracts.
Cybersecurity risks associated with IT service delivery.
Dependence on contractor performance for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $65.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. IGF::OT::IGF OTHER FUNCTION - SETA SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE

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 $65.5 million.

What is the period of performance?

Start: 2014-08-15. End: 2018-11-14.

What is the historical spending pattern for General Dynamics Information Technology Inc. with the General Services Administration?

General Dynamics Information Technology Inc. (GDIT) has a substantial history of contracts with the General Services Administration (GSA). Analyzing FPDS data reveals numerous awards across various GSA schedules and contract vehicles, spanning a wide array of IT and professional services. Their awards with GSA often include large, multi-year contracts for IT modernization, cloud services, cybersecurity, and mission support. The aggregate value of GDIT's contracts with GSA runs into billions of dollars over the years, reflecting their position as a major federal IT contractor. This specific $65.5 million contract is one of many, indicating a consistent and significant business relationship between GDIT and GSA, driven by GSA's role as a primary procurement channel for federal agencies.

How does the pricing of this contract compare to similar IT services contracts awarded by GSA?

Directly comparing the pricing of this $65.5 million contract to 'similar' IT services contracts awarded by GSA is challenging without granular data on the specific services rendered, labor categories, and rates. However, the contract's fixed-price nature suggests an effort to establish a predictable cost ceiling. GSA Schedule 70 (now IT Schedule 70) is a common vehicle for such services, and pricing is generally benchmarked against established commercial rates, with negotiated discounts. The fact that it was competed under full and open competition with 3 bidders implies that the pricing was likely competitive. A thorough analysis would involve comparing the awarded rates for specific labor categories against GSA's price lists and other competitive awards for comparable services within the same timeframe.

What are the key performance indicators (KPIs) typically associated with this type of contract?

For a contract focused on Computer Systems Design Services and SETA, key performance indicators (KPIs) would likely revolve around service delivery, technical performance, and project management. Examples include system uptime and availability, response times for technical support, successful completion of project milestones within agreed timelines, adherence to budget (if applicable to specific task orders), quality of deliverables (e.g., documentation, system design), and customer satisfaction ratings. The contract's fixed-price nature emphasizes meeting defined scope and quality standards. Performance would be monitored through regular reporting, reviews, and potentially service level agreements (SLAs) embedded within task orders.

What is the risk profile of General Dynamics Information Technology Inc. as a contractor for this type of service?

General Dynamics Information Technology Inc. (GDIT) is a large, established federal contractor with extensive experience in IT services, including systems design and technical assistance. Their risk profile is generally considered moderate to low due to their size, financial stability, and proven track record. However, risks inherent in any large IT contract exist, such as potential for scope creep, cybersecurity vulnerabilities, and challenges in adapting to rapidly evolving technologies. GDIT's extensive experience suggests they have robust processes for managing these risks. Past performance data, available through contract databases, would offer a more specific view of their historical performance and any identified risk factors on similar contracts.

How has federal spending on Computer Systems Design Services (NAICS 541512) evolved over the past five years?

Federal spending on Computer Systems Design Services (NAICS 541512) has shown a consistent upward trend over the past five years, reflecting the government's increasing reliance on technology for its operations. This category encompasses a broad range of services, including IT consulting, system integration, network design, and custom software development. Agencies across the board, from defense and intelligence to civilian departments, are investing heavily in modernizing their IT infrastructure, enhancing cybersecurity, and leveraging data analytics. This growth is driven by factors such as the need for digital transformation, cloud migration initiatives, and the demand for sophisticated IT solutions to support complex government missions. The total federal spending in this category typically runs into tens of billions of dollars annually.

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

Solicitation ID: ID03140014

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 3170 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042

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

Financial Breakdown

Contract Ceiling: $101,565,538

Exercised Options: $88,186,448

Current Obligation: $65,502,817

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0025

IDV Type: GWAC

Timeline