General Dynamics IT awarded $154.5M for IT Support Services for DC3, a 5-year contract

Contract Overview

Contract Amount: $154,530,789 ($154.5M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2007-03-29

End Date: 2012-05-23

Contract Duration: 1,882 days

Daily Burn Rate: $82.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IT SUPPORT SERVICES FOR DC3

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20816

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $154.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IT SUPPORT SERVICES FOR DC3 Key points: 1. Contract value represents a significant investment in IT infrastructure support. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Contract duration of 5 years indicates a long-term need for these services. 4. The specific nature of 'DC3' requires specialized IT support capabilities. 5. Performance context is crucial to assess the effectiveness of IT support over the contract period. 6. Sector positioning within IT services highlights the demand for system design and integration.

Value Assessment

Rating: fair

The contract value of $154.5 million over five years averages to approximately $30.9 million annually. Benchmarking this against similar large-scale IT support contracts is difficult without more specific service details. However, the duration and scope suggest a substantial, but not necessarily excessive, investment for comprehensive IT support. Further analysis would require comparing the specific deliverables and service levels to industry standards and other government IT support contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it was competed suggests that multiple vendors likely vied for the opportunity. The level of competition is not explicitly stated by the number of bidders, but the 'full and open' designation generally promotes price discovery and potentially more favorable pricing for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality, as multiple companies strive to win the contract.

Public Impact

The primary beneficiaries are likely government agencies relying on the 'DC3' system for their operations. Services delivered include computer systems design and related support, ensuring operational continuity. Geographic impact is concentrated in Maryland, where the contract is managed. Workforce implications include the potential for employment opportunities within General Dynamics IT and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if 'DC3' requirements are not clearly defined.
Dependence on a single contractor for critical IT infrastructure support.
Risk of cost overruns if not managed tightly under a Time and Materials contract type.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Long contract duration implies a stable and ongoing need for these services.
Contractor has a significant presence in the federal IT services market.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and related services. The market for federal IT support is substantial, with agencies increasingly relying on external contractors for specialized expertise. Comparable spending benchmarks would involve looking at other large-scale IT support contracts awarded by agencies like GSA for system integration, maintenance, and operational support.

Small Business Impact

The contract indicates that small business participation was not a primary set-aside consideration, as the 'sb' field is false. There is no explicit mention of subcontracting goals for small businesses. This suggests that the primary contractor, General Dynamics Information Technology, Inc., will likely handle the majority of the work, with potential for small business involvement being dependent on their subcontracting strategy rather than a contractual requirement.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the General Services Administration (GSA), specifically the Federal Acquisition Service. Accountability measures would be defined in the contract's performance work statement (PWS). Transparency is generally facilitated through contract award databases, though detailed performance metrics and oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Services
Computer Systems Design
Federal IT Support
General Services Administration Contracts
Large-Scale IT Procurements

Risk Flags

Potential cost overruns due to Time and Materials contract type.
Lack of specific performance metrics (KPIs/SLAs) in summary data.
Unclear definition of 'DC3' system and its criticality.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $154.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IT SUPPORT SERVICES FOR DC3

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 $154.5 million.

What is the period of performance?

Start: 2007-03-29. End: 2012-05-23.

What is the specific nature and function of 'DC3' that necessitates this IT support contract?

The provided data abbreviates 'DC3' as 'IT SUPPORT SERVICES FOR DC3'. Without further context, 'DC3' likely refers to a specific government system, database, or network critical to agency operations. Its exact function is not detailed in the provided data. Understanding DC3's role is crucial for assessing the criticality of the IT support services and the potential impact of any service disruptions. This could range from a data center consolidation effort to a specific application suite or a secure communication network. Further investigation into GSA or agency-specific documentation would be required to fully define DC3.

How does the $154.5 million contract value compare to similar IT support contracts awarded by GSA or other agencies?

The $154.5 million contract value over five years equates to an average annual value of approximately $30.9 million. This figure places it within the range of significant IT support contracts. To provide a precise comparison, one would need to analyze contracts with similar scopes (e.g., system design, integration, maintenance, help desk support) awarded by agencies like GSA, DoD, or DHS over comparable timeframes. Factors such as the number of users supported, the complexity of the systems, and the specific services included (e.g., cybersecurity, cloud migration) heavily influence contract values. Without these granular details, it's challenging to definitively benchmark this contract's value against peers.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. These are critical components that define the expected performance standards for the IT support services. Typically, KPIs and SLAs would cover aspects such as system uptime, response times for help desk tickets, resolution rates, security compliance, and data integrity. The absence of this information in the summary data makes it difficult to objectively assess the contractor's performance and the overall value delivered. A thorough review of the contract's Performance Work Statement (PWS) would be necessary to identify these metrics.

What is General Dynamics Information Technology, Inc.'s track record with similar large-scale IT support contracts for the federal government?

General Dynamics Information Technology, Inc. (GDIT) is a major federal contractor with extensive experience in providing IT support services across various government agencies. They have a well-documented history of managing large, complex IT programs, including system integration, cybersecurity, cloud services, and operational support. Their track record includes significant contracts with the Department of Defense, Health and Human Services, and other civilian agencies. While specific performance details for this particular 'DC3' contract are not provided, GDIT's overall profile suggests they possess the capacity and experience to handle such requirements. A deeper dive into their past performance evaluations and contract history would offer more specific insights.

Given the Time and Materials (T&M) contract type, what measures are in place to control costs and prevent overruns?

The contract is noted as 'TIME AND MATERIALS' (PT: TIME AND MATERIALS). Time and Materials contracts can pose a higher risk of cost overruns if not managed diligently. To mitigate this, the government typically includes 'level of effort' clauses, not-to-exceed (NTE) ceilings, and requires detailed tracking and reporting of labor hours and material costs. The contracting officer's representative (COR) plays a crucial role in monitoring the contractor's effort, approving invoices, and ensuring that work aligns with the contract's objectives and budget. Regular audits and performance reviews are also essential to ensure cost control and prevent unauthorized expenditures.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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, Federally Funded Research and Development Corp, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $172,842,363

Exercised Options: $171,086,330

Current Obligation: $154,530,789

Parent Contract

Parent Award PIID: GS09K99BHD0001

IDV Type: GWAC

Timeline