General Dynamics IT Awarded $70.9M for Missile Defense Agency Program Management and IT Support

Contract Overview

Contract Amount: $70,902,720 ($70.9M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2005-02-18

End Date: 2010-03-20

Contract Duration: 1,856 days

Daily Burn Rate: $38.2K/day

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: TO PROVIDE PROGRAM MANAGEMENT, IT MANAGEMENT & DEVELOPMENT, SYSTEM ENGINEERING, STRATEGIC & IMPLEMENTATION PLANNING, CHANG MANAGEMENT, ANALYTICAL SUPPORT, ENTERPRISE ARCHITECTURE MAINTENANCE & ENHANCEMENT, & IT TRAINING TO MEET MDA STRATEGIC GOALS.

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $70.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: TO PROVIDE PROGRAM MANAGEMENT, IT MANAGEMENT & DEVELOPMENT, SYSTEM ENGINEERING, STRATEGIC & IMPLEMENTATION PLANNING, CHANG MANAGEMENT, ANALYTICAL SUPPORT, ENTERPRISE ARCHITECTURE MAINTENANCE & ENHANCEMENT, & IT TRAINING TO MEET MDA STRATEGIC GOALS. Key points: 1. Contract focuses on critical program management and IT services for the Missile Defense Agency. 2. General Dynamics Information Technology, Inc. is the sole awardee. 3. The contract spans over 5 years, indicating a long-term need for these services. 4. Services include system engineering, strategic planning, and enterprise architecture.

Value Assessment

Rating: fair

The contract type is Cost Plus Award Fee (CPAF), which can lead to higher costs if not managed carefully. Benchmarking CPAF contracts is challenging due to performance-based incentives.

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.

Taxpayer Impact: The lack of competition for a contract of this size raises concerns about potential overspending of taxpayer funds.

Public Impact

Missile Defense Agency's strategic goals are directly supported by these services. Long-term IT and program management support ensures continuity for critical defense systems. Potential for cost overruns due to CPAF contract type and sole-source nature.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Cost Plus Award Fee structure can incentivize higher costs.
Lack of small business participation noted.

Positive Signals

Provides essential program management and IT support for national security.
Long contract duration suggests a stable and ongoing requirement.
Services align with strategic goals of a key defense agency.

Sector Analysis

This contract falls under Computer Systems Design Services, a significant sector within federal IT spending. Benchmarks for similar large-scale IT support contracts vary widely based on scope and complexity.

Small Business Impact

The data indicates no small business participation in this contract. Larger sole-source contracts often bypass small businesses, potentially limiting opportunities for them.

Oversight & Accountability

The Cost Plus Award Fee structure requires robust oversight to ensure performance targets are met and costs are controlled effectively. Agency oversight is crucial for managing this sole-source award.

Related Government Programs

Computer Systems Design Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Sole-source award
Cost Plus Award Fee contract type
No small business participation
Potential for cost overruns
Lack of transparency in pricing due to sole-source nature

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $70.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. TO PROVIDE PROGRAM MANAGEMENT, IT MANAGEMENT & DEVELOPMENT, SYSTEM ENGINEERING, STRATEGIC & IMPLEMENTATION PLANNING, CHANG MANAGEMENT, ANALYTICAL SUPPORT, ENTERPRISE ARCHITECTURE MAINTENANCE & ENHANCEMENT, & IT TRAINING TO MEET MDA STRATEGIC GOALS.

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 $70.9 million.

What is the period of performance?

Start: 2005-02-18. End: 2010-03-20.

What was the justification for a sole-source award for these critical IT and program management services?

The justification for a sole-source award would typically involve factors such as unique capabilities, urgent need, or lack of adequate competition. Without specific documentation, it's presumed the agency determined that only General Dynamics Information Technology, Inc. could meet the stringent requirements for supporting the Missile Defense Agency's complex strategic goals and existing systems.

How is the performance of General Dynamics Information Technology, Inc. being measured and incentivized under the Cost Plus Award Fee structure?

Under a CPAF contract, the contractor receives a base fee plus an award fee based on performance against pre-defined criteria. The Missile Defense Agency would have established specific metrics related to program management, IT development, system engineering, and strategic planning. The award fee component incentivizes the contractor to exceed expectations, but requires diligent oversight to ensure the incentives align with cost control and mission success.

What is the potential long-term financial risk to taxpayers given the sole-source nature and CPAF structure of this contract?

The primary financial risk stems from the lack of competitive pricing and the potential for cost escalation inherent in CPAF contracts. Without competitive pressure, costs may not be optimized. The CPAF structure, while incentivizing performance, can lead to higher overall expenditures if award fees are consistently maximized. Robust agency oversight and negotiation are critical to mitigate these risks.

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

Contractor Details

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

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $80,468,481

Exercised Options: $80,468,481

Current Obligation: $70,902,720

Parent Contract

Parent Award PIID: GS00T99ALD0211

IDV Type: GWAC

Timeline