General Dynamics IT awarded $34.6M for ADP and telecommunications services over 5 years

Contract Overview

Contract Amount: $34,633,689 ($34.6M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2004-06-15

End Date: 2009-09-15

Contract Duration: 1,918 days

Daily Burn Rate: $18.1K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: OTHER ADP AND TELECOMMUNICATIONS SERVICES

Plain-Language Summary

General Services Administration obligated $34.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: OTHER ADP AND TELECOMMUNICATIONS SERVICES Key points: 1. Contract awarded via competitive delivery order, suggesting a favorable pricing environment. 2. Services fall under Computer Systems Design, a common IT sector for federal spending. 3. The contract duration of 1918 days (approx. 5.25 years) is typical for IT services. 4. Awarded by GSA's Federal Acquisition Service, indicating a centralized procurement approach. 5. The Cost Plus Award Fee (CPAF) structure incentivizes performance but requires careful oversight.

Value Assessment

Rating: good

The total award of $34.6 million over approximately 5.25 years averages to about $6.6 million annually. This figure appears reasonable for comprehensive ADP and telecommunications services, especially considering the contractor's role in supporting federal IT infrastructure. Benchmarking against similar large-scale IT service contracts managed by GSA would provide a more precise value-for-money assessment, but the competitive nature of the award suggests a fair market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. The use of a competitive process is a positive sign for price discovery and ensures that the government is receiving services at a potentially reduced cost compared to a sole-source award. The specific number of bidders is not provided, but the 'COMPETITIVE DELIVERY ORDER' designation implies a robust competition.

Taxpayer Impact: A competitive award means taxpayer dollars are being used more efficiently, as the bidding process generally drives down prices and encourages better service offerings.

Public Impact

Federal agencies requiring ADP and telecommunications support benefit from these services. Ensures continuity and modernization of critical IT infrastructure for government operations. Supports the broader federal IT ecosystem by providing essential technology services. Potential impact on IT workforce through employment opportunities with the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee (CPAF) contracts can lead to cost overruns if not managed diligently.
Lack of specific performance metrics or detailed scope of work in the provided data makes assessing performance risk difficult.

Positive Signals

Awarded through a competitive process, which generally leads to better pricing and value.
Contract duration of over 5 years suggests a stable, long-term need for these services.
Contractor is General Dynamics Information Technology, a large and established federal IT provider.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design and telecommunications services. The federal IT market is substantial, with agencies consistently investing in maintaining and upgrading their technological capabilities. Contracts like this are crucial for enabling government operations, supporting everything from internal communications to citizen-facing digital services. Benchmarks for similar IT service contracts often range from millions to billions of dollars annually, depending on scope and complexity.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, as a large prime contract awarded to a major IT provider, there may be opportunities for small businesses to participate as subcontractors, depending on the prime contractor's subcontracting plan and the specific needs of the delivery order.

Oversight & Accountability

The contract is managed by the General Services Administration (GSA), which has established procurement regulations and oversight mechanisms. As a Cost Plus Award Fee (CPAF) contract, oversight is critical to ensure that award fees are justified by performance and that costs are reasonable. The Federal Acquisition Service (FAS) within GSA is responsible for managing such contracts. Transparency would be enhanced by public access to performance reports and detailed cost breakdowns, which are not available in this summary.

Related Government Programs

IT Infrastructure Services
Telecommunications Services
Computer Systems Design
GSA Schedules
Federal IT Modernization

Risk Flags

Potential for cost overruns due to CPAF structure.
Lack of detailed performance metrics in summary data.
Contract duration may exceed technology lifecycle for some components.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $34.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. OTHER ADP AND TELECOMMUNICATIONS 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 $34.6 million.

What is the period of performance?

Start: 2004-06-15. End: 2009-09-15.

What is the track record of General Dynamics Information Technology (GDIT) in delivering similar IT and telecommunications services to the federal government?

General Dynamics Information Technology (GDIT) is a major federal contractor with a long history of providing a wide range of IT and telecommunications services. They have held numerous large-scale contracts across various federal agencies, including defense, civilian, and intelligence communities. Their experience spans areas such as cloud computing, cybersecurity, data center operations, enterprise IT modernization, and network infrastructure. GDIT's track record includes supporting complex systems and ensuring operational continuity for critical government functions. While specific performance details for individual contracts are often proprietary, their sustained presence and significant contract awards suggest a generally capable performance history. However, like any large contractor, they may have faced past performance issues or disputes on specific projects, which would typically be documented in federal procurement databases or agency performance reviews.

How does the $34.6 million award compare to other federal spending on similar IT and telecommunications services?

The $34.6 million award for ADP and telecommunications services over approximately 5.25 years represents an average annual expenditure of roughly $6.6 million. This amount is moderate within the context of overall federal IT spending, which runs into the hundreds of billions of dollars annually. Many federal agencies procure similar services through larger, multi-year blanket purchase agreements (BPAs) or indefinite-delivery/indefinite-quantity (IDIQ) contracts that can reach tens or hundreds of millions, or even billions, of dollars. For instance, major cloud service contracts or large-scale network modernization projects often dwarf this individual award. However, for a specific set of services under a competitive delivery order, $6.6 million per year is a significant sum, indicating a substantial scope of work and a valuable service to the procuring agency, likely GSA's Federal Acquisition Service.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract structure for these services?

The primary risk with a Cost Plus Award Fee (CPAF) contract is the potential for cost escalation and reduced incentive for the contractor to control expenses. In a CPAF structure, the contractor is reimbursed for allowable costs plus a fee that consists of a base amount and an award amount. The award amount is contingent upon meeting or exceeding certain performance objectives. While the award fee is intended to incentivize performance, it can also lead to ambiguity in defining and measuring those objectives. If performance metrics are poorly defined or if the government's evaluation process for the award fee is not rigorous, the contractor may receive a higher fee than warranted, increasing the overall cost to the government. Effective oversight, clear performance standards, and objective evaluation criteria are crucial to mitigate these risks and ensure the government receives good value.

How does the competitive nature of this award impact price discovery and potential savings for taxpayers?

The fact that this contract was awarded as a 'COMPETITIVE DELIVERY ORDER' is a significant positive indicator for price discovery and taxpayer savings. Competition inherently drives vendors to offer their best pricing and most competitive terms to win the contract. When multiple bidders vie for a contract, they are incentivized to propose lower prices, more efficient service delivery methods, and superior technical solutions. This process allows the government to compare different offers and select the one that provides the best overall value, not just the lowest price. Without competition, a sole-source award could result in higher costs as the contractor faces less pressure to be economical. Therefore, the competitive award suggests that the government likely secured these ADP and telecommunications services at a more favorable price point than might have been possible otherwise.

What is the typical duration for federal IT service contracts of this nature, and how does this contract's duration compare?

Federal IT service contracts, particularly those involving complex systems design, telecommunications, and ongoing support, often have durations ranging from one to five years, with options for extensions. The duration of this contract is 1918 days, which is approximately 5.25 years (1918 days / 365.25 days/year). This duration falls at the longer end of the typical range for such services. Longer contract durations can provide stability and predictability for both the government and the contractor, allowing for deeper integration and long-term planning. However, they also carry risks, such as the potential for technology to become outdated or for requirements to change significantly over time. The government must carefully consider the trade-offs between stability and flexibility when determining contract length, often incorporating clauses for review and modification.

What does the NAICS code '541512' (Computer Systems Design Services) signify in terms of the services provided under this contract?

The North American Industry Classification System (NAICS) code '541512' specifically designates 'Computer Systems Design Services.' This classification indicates that the primary services procured under this contract involve the planning, design, development, and integration of computer systems. This can encompass a broad range of activities, including analyzing user needs, designing system architecture, developing software and hardware solutions, implementing and testing systems, and providing ongoing support and maintenance for these systems. Given the contract also mentions 'OTHER ADP AND TELECOMMUNICATIONS SERVICES,' the scope likely includes the design and integration of both computing infrastructure and the communication networks that support it, ensuring these systems function cohesively and meet the agency's operational requirements.

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: COMPETITIVE DELIVERY ORDER

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Parent Company: SRA International, Inc. (UEI: 606261683)

Address: 4300 FAIR LAKES CT, FAIRFAX, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $34,633,689

Exercised Options: $34,633,689

Current Obligation: $34,633,689

Parent Contract

Parent Award PIID: GS00T99ALD0211

IDV Type: GWAC

Timeline