GSA Awards $44.4M IT Support Contract to General Dynamics, Raising Value Concerns

Contract Overview

Contract Amount: $44,365,121 ($44.4M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: General Services Administration

Start Date: 2007-09-21

End Date: 2011-07-18

Contract Duration: 1,396 days

Daily Burn Rate: $31.8K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SEC-BELVIOR IT SUPPORT SERVICES

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $44.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: SEC-BELVIOR IT SUPPORT SERVICES Key points: 1. Contract value of $44.4M over 4 years. 2. Sole competitor General Dynamics Information Technology Inc. secured the award. 3. Potential for overpayment due to limited competition and time-and-materials pricing. 4. IT support services sector, with benchmarks suggesting potential for higher costs.

Value Assessment

Rating: questionable

The contract's time-and-materials pricing structure, combined with limited competition, raises concerns about potential overspending. Benchmarking against similar IT support contracts is crucial to assess if the $44.4M award represents fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded as a competitive delivery order, but only one offer was received, indicating limited competition. This lack of robust competition may have hindered price discovery and potentially led to a less favorable price for the government.

Taxpayer Impact: The limited competition and time-and-materials pricing structure could result in taxpayers paying more than necessary for IT support services.

Public Impact

Taxpayers may be overpaying for IT support due to a lack of competitive bidding. The government's reliance on a single vendor for critical IT services poses a risk. Transparency in pricing for time-and-materials contracts is essential for accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Time and Materials pricing
Potential for cost overruns

Positive Signals

Contract awarded to a known entity
Services provided to a key agency (VA)

Sector Analysis

This contract falls within the IT support services sector, specifically wired telecommunications carriers. Spending in this area can vary widely, but competitive bidding is generally expected to yield better value.

Small Business Impact

There is no indication that small businesses were involved in this contract award, suggesting a missed opportunity for small business participation.

Oversight & Accountability

The limited competition and the nature of the award (delivery order) warrant further scrutiny to ensure adequate oversight and accountability in pricing and performance.

Related Government Programs

Wired Telecommunications Carriers
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Limited competition may have inflated costs.
Time-and-materials pricing lacks cost certainty.
Potential for vendor lock-in.
Lack of small business participation.
Contract duration is significant.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $44.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. SEC-BELVIOR 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 $44.4 million.

What is the period of performance?

Start: 2007-09-21. End: 2011-07-18.

What specific IT support services were provided under this contract, and how do they align with the 'Wired Telecommunications Carriers' NAICS code?

The NAICS code 517110, 'Wired Telecommunications Carriers,' typically covers services related to operating and providing access to telecommunications networks. The specific IT support services under this contract would need further detail, but could include network maintenance, infrastructure support, and related technical assistance. Clarification is needed to ensure the services precisely match the NAICS code's scope.

Given the limited competition, what steps were taken to ensure the government received fair market value for the IT support services?

With only one offer received, the government's ability to ensure fair market value is diminished. Standard procedures would involve market research, price analysis of the single offer against benchmarks, and potentially negotiating terms. However, the effectiveness of these measures is limited without competing proposals to establish a clear price baseline.

How does the time-and-materials pricing structure impact the government's ability to control costs and measure the effectiveness of the IT support provided?

Time-and-materials contracts can make cost control challenging as the final price is dependent on the actual hours worked and materials used. This structure can incentivize longer task durations or higher material costs if not strictly monitored. Measuring effectiveness requires clear performance metrics and diligent oversight to ensure the services delivered are necessary and efficient.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 3160 FAIRVIEW PARK DRIVE, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $68,276,149

Exercised Options: $68,276,149

Current Obligation: $44,365,121

Parent Contract

Parent Award PIID: W91QUZ06D0018

IDV Type: IDC

Timeline