GSA awards $10.9M contract to General Dynamics for legacy IT application support and transition

Contract Overview

Contract Amount: $10,902,056 ($10.9M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2005-09-30

End Date: 2009-03-31

Contract Duration: 1,278 days

Daily Burn Rate: $8.5K/day

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IT SERVICES FOR OPERATING, MAINTAINING, AND UPGRADING THE ITS NATIONAL PROGRAM'S LEGACY APPLICATIONS TO INCLUDE TOS NEXT, LEGACY TOS, OMIS, FM LITE, AND FMT APPLICATIONS UNTIL RETIREMENT; AND TO SUPPORT TRANSITION TO THE PLANNED GSA-PREFERRED SYSTEM.

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $10.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IT SERVICES FOR OPERATING, MAINTAINING, AND UPGRADING THE ITS NATIONAL PROGRAM'S LEGACY APPLICATIONS TO INCLUDE TOS NEXT, LEGACY TOS, OMIS, FM LITE, AND FMT APPLICATIONS UNTIL RETIREMENT; AND TO SUPPORT TRANSITION TO THE PLANNED GSA-PREFERRED SYSTEM. Key points: 1. Contract focuses on maintaining critical legacy applications until retirement. 2. Supports transition to a planned GSA-preferred system. 3. General Dynamics Information Technology, Inc. is the sole awardee. 4. The contract value is $10,902,055.67 over 1278 days.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The total award value of $10.9M for a 3.5-year period needs careful scrutiny against the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This appears to be a sole-source award, limiting competition. Without competitive bidding, it's difficult to ascertain if the government received the best possible price for these services.

Taxpayer Impact: Taxpayer funds are being used to maintain legacy systems, which is a necessary but potentially inefficient expenditure compared to modernizing or replacing them.

Public Impact

Ensures continued operation of essential government IT systems. Supports the modernization efforts of the GSA. Potential for cost savings if the transition to the new system is successful and efficient.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Cost-plus contract type carries inherent cost overrun risk.
Reliance on legacy systems can be a security and efficiency concern.

Positive Signals

Supports critical government IT infrastructure.
Aims to transition to a more modern GSA-preferred system.

Sector Analysis

This contract falls under IT services, specifically custom computer programming. Spending in this sector is substantial, and contracts for maintaining legacy systems are common but often represent a significant cost center.

Small Business Impact

The awardee, General Dynamics Information Technology, Inc., is a large business. There is no indication that small businesses were involved in this specific contract.

Oversight & Accountability

The contract is managed by the General Services Administration (GSA), which has established procurement processes. However, the sole-source nature warrants close oversight to ensure fair pricing and effective service delivery.

Related Government Programs

Custom Computer Programming Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Potential for cost overruns due to Cost Plus Fixed Fee structure.
Lack of competition may lead to suboptimal pricing.
Reliance on legacy systems poses ongoing security and operational risks.
Contract duration is lengthy, requiring sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $10.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IT SERVICES FOR OPERATING, MAINTAINING, AND UPGRADING THE ITS NATIONAL PROGRAM'S LEGACY APPLICATIONS TO INCLUDE TOS NEXT, LEGACY TOS, OMIS, FM LITE, AND FMT APPLICATIONS UNTIL RETIREMENT; AND TO SUPPORT TRANSITION TO THE PLANNED GSA-PREFERRED SYSTEM.

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 $10.9 million.

What is the period of performance?

Start: 2005-09-30. End: 2009-03-31.

What is the projected cost savings or efficiency gain from transitioning to the GSA-preferred system compared to maintaining these legacy applications?

The transition to a GSA-preferred system is intended to streamline operations, reduce maintenance costs associated with disparate legacy applications, and improve overall IT infrastructure efficiency. While specific cost savings figures are not provided, the move away from multiple aging systems aims to consolidate support, reduce technical debt, and enhance security posture, ultimately leading to long-term financial and operational benefits for the agency.

What are the specific risks associated with relying on legacy applications like TOS Next and OMIS, and how does this contract mitigate them?

Legacy applications often face risks such as security vulnerabilities due to outdated code, lack of vendor support, difficulty finding skilled personnel, and integration challenges with modern systems. This contract aims to mitigate these risks by ensuring continued operational support and maintenance until retirement, thereby preventing service disruptions. It also directly supports the transition to a new system, which is the ultimate mitigation strategy.

How will the effectiveness of General Dynamics' support be measured throughout the contract period, especially given the sole-source nature?

Effectiveness will likely be measured through performance metrics outlined in the contract, such as system uptime, response times for issue resolution, and successful completion of maintenance and upgrade tasks. Despite the sole-source award, the GSA will monitor adherence to the Cost Plus Fixed Fee structure and evaluate the contractor's ability to meet defined service level agreements (SLAs) and support the transition objectives.

Industry Classification

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

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

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 3211 JERMANTOWN RD, FAIRFAX, VA, 11

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,902,056

Exercised Options: $10,902,056

Current Obligation: $10,902,056

Parent Contract

Parent Award PIID: GS07T00BGD0063

IDV Type: GWAC

Timeline