General Dynamics IT received $40.6M for IT Support Services from GSA over nearly 6 years

Contract Overview

Contract Amount: $40,611,929 ($40.6M)

Contractor: General Dynamics Information Technology, Inc

Awarding Agency: General Services Administration

Start Date: 2005-12-29

End Date: 2011-05-31

Contract Duration: 1,979 days

Daily Burn Rate: $20.5K/day

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: IT SUPPORT SERVICES

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245, UNITED STATES OF AMERICA

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $40.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC for work described as: IT SUPPORT SERVICES Key points: 1. Contract awarded under a Cost Plus Award Fee structure, which incentivizes performance but can lead to higher costs if not managed tightly. 2. The contract was awarded to a single vendor, raising questions about the extent of competition and potential for price optimization. 3. A significant duration of nearly 2000 days suggests a long-term need for these IT support services. 4. The contract's value of over $40 million indicates a substantial investment in IT infrastructure and support. 5. The specific NAICS code (541512) points to a focus on computer systems design services, a critical area for government operations. 6. The contract was not set aside for small businesses, suggesting it was likely awarded based on technical capabilities and past performance.

Value Assessment

Rating: fair

The contract's Cost Plus Award Fee (CPA) structure allows for flexibility and performance incentives but can be more expensive than fixed-price contracts if costs are not carefully controlled. Benchmarking the value is difficult without more detailed service descriptions and comparison to similar IT support contracts. The total award value of $40.6 million over nearly six years averages to approximately $7 million annually, which may be reasonable for comprehensive IT support for a federal agency, but requires further analysis of the scope of services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source action, meaning only one vendor was solicited. While sole-source awards can be justified for specific circumstances like unique capabilities or urgent needs, they limit price discovery and competition. The absence of multiple bidders means the government did not benefit from a competitive bidding process that could have driven down costs or spurred innovation.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is less pressure on the contractor to offer the most competitive pricing.

Public Impact

Federal agencies, particularly those utilizing GSA's Federal Acquisition Service, benefit from the IT support services provided. The contract ensures the continuity and operational efficiency of critical IT systems and infrastructure. The services likely support a wide range of government functions, impacting various departments and their employees. Workforce implications may include the direct employment of IT professionals by the contractor and potential indirect impacts on government IT staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Cost Plus Award Fee contracts require diligent oversight to ensure cost control and prevent overspending.
Lack of transparency in the justification for a sole-source award could indicate potential inefficiencies.
The long duration of the contract might reduce flexibility to adapt to evolving technological needs or market changes.

Positive Signals

The contract was awarded to a large, established IT services provider (General Dynamics Information Technology, Inc.), suggesting a high level of capability and experience.
The Cost Plus Award Fee structure, if managed effectively, can incentivize high performance and quality service delivery.
The contract's duration indicates a stable and ongoing need for these services, suggesting a successful prior relationship or proven capability.
The award to General Dynamics IT likely ensures access to specialized IT expertise and resources for the government.

Sector Analysis

This contract falls within the IT Support Services sector, a critical component of government operations. The market for IT support services is vast and highly competitive, with numerous large and small businesses offering a wide range of solutions. Government spending in this area is substantial, driven by the need to maintain complex IT infrastructures, cybersecurity, and digital transformation initiatives. Comparable spending benchmarks would typically involve analyzing other large IT support contracts awarded by federal agencies for similar services and durations.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses in the provided data. This suggests that the primary focus was on the capabilities of the large prime contractor. The absence of small business considerations in the award data means there is no direct indication of benefits flowing to the small business ecosystem through this specific contract, though the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the General Services Administration (GSA), the awarding agency. As a Cost Plus Award Fee contract, robust oversight is crucial to monitor costs, evaluate performance against award criteria, and ensure value for money. Transparency would be assessed through contract modifications, performance reports, and any available audit findings. Inspector General jurisdiction would depend on the specific IG office responsible for GSA oversight.

Related Government Programs

IT Professional Services
IT Operations and Maintenance
Computer Systems Design Services
Cloud Computing Services
Cybersecurity Services

Risk Flags

Sole-source award
Cost-plus contract type
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $40.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. IT 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 $40.6 million.

What is the period of performance?

Start: 2005-12-29. End: 2011-05-31.

What was the specific justification for awarding this contract as sole-source?

The provided data indicates the contract was awarded as a sole-source action (st: 'CA'). However, the specific justification for this sole-source award is not detailed in the available information. Typically, sole-source justifications are required for reasons such as the existence of only one responsible source, urgent and compelling needs, or when the services are so unique that only one contractor can provide them. Without the official justification document, it's impossible to definitively state why competition was precluded. This lack of competitive bidding means taxpayers may not have received the most cost-effective solution, as the government did not benefit from a bidding process that could have driven down prices or encouraged innovative approaches from multiple vendors.

How does the average annual cost of this contract compare to similar IT support contracts?

The contract's total value of $40.6 million over a duration of 1979 days (approximately 5.4 years) results in an average annual cost of roughly $7.5 million. Comparing this to similar IT support contracts is challenging without more specific details on the scope of services, service level agreements (SLAs), and the specific agencies involved. However, for comprehensive IT support encompassing systems design, maintenance, and potentially cybersecurity for a federal agency, this annual figure might fall within a reasonable range. To provide a more precise benchmark, one would need to analyze contracts with comparable NAICS codes (like 541512), contract types (CPA), and agency sizes, looking at metrics such as cost per user, cost per system supported, or cost as a percentage of agency IT budgets.

What are the key performance indicators (KPIs) associated with this Cost Plus Award Fee contract?

The data indicates this was a Cost Plus Award Fee (CPAF) contract, which means performance is evaluated against specific criteria, and the contractor can earn an award fee based on exceeding expectations. While the exact KPIs are not provided, typical metrics for IT support services under a CPAF structure often include system uptime and availability, response times for issue resolution, successful implementation of upgrades or new systems, adherence to security protocols, and customer satisfaction. The 'Award Fee' component suggests that the government had defined targets for these KPIs, and General Dynamics Information Technology, Inc. would have been evaluated on its ability to meet or exceed them to earn its fee. Effective oversight would involve rigorous tracking of these metrics.

What is the track record of General Dynamics Information Technology, Inc. with similar government contracts?

General Dynamics Information Technology, Inc. (GDIT) is a major federal contractor with a long history of providing IT services to various government agencies. Their track record with similar contracts is generally extensive, covering areas such as IT infrastructure management, cybersecurity, cloud migration, and software development. GDIT has held numerous large-scale IT support contracts with agencies like the Department of Defense, NASA, and other civilian departments. While specific performance details for each contract vary, their sustained presence as a prime contractor suggests a consistent ability to meet government requirements. However, like any large contractor, they may have faced scrutiny or challenges on specific contracts, which would be detailed in contract performance reports or IG audits.

What are the potential risks associated with the long duration (nearly 6 years) of this contract?

A contract duration of nearly six years, as seen with this $40.6 million IT support services contract, presents several potential risks. Firstly, technology evolves rapidly; a long-term contract might lock the government into outdated systems or solutions, making it difficult to adopt newer, more efficient technologies. Secondly, it reduces flexibility. If the government's needs change significantly, modifying or terminating a long-term contract can be complex and costly. Thirdly, prolonged reliance on a single vendor, especially if awarded through limited competition, can lead to complacency and reduced innovation over time. Finally, long-term cost commitments can become a significant budgetary burden, especially if initial cost estimates were optimistic or if unforeseen issues arise.

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: Computer Sciences Corporation (UEI: 009581091)

Address: 15245 SHADY GROVE RD STE 200, ROCKVILLE, MD, 20850

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $47,895,639

Exercised Options: $47,890,553

Current Obligation: $40,611,929

Parent Contract

Parent Award PIID: GS00T99ALD0203

IDV Type: GWAC

Timeline