USDA IT Systems Development Contract Awarded to General Dynamics for $133M
Contract Overview
Contract Amount: $133,145,429 ($133.1M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: General Services Administration
Start Date: 2006-10-30
End Date: 2010-10-29
Contract Duration: 1,460 days
Daily Burn Rate: $91.2K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 4
Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)
Sector: IT
Official Description: IT SYSTEMS DEVELOPMENT SERVICES FOR USDA WBSCM
Place of Performance
Location: KANSAS CITY, JACKSON County, MISSOURI, 64133, UNITED STATES OF AMERICA
State: Missouri Government Spending
Plain-Language Summary
General Services Administration obligated $133.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IT SYSTEMS DEVELOPMENT SERVICES FOR USDA WBSCM Key points: 1. Significant contract value of $133M for IT systems development. 2. General Dynamics Information Technology, Inc. is the sole awardee. 3. Potential risk associated with a single vendor for a large IT project. 4. The contract falls under Computer Systems Design Services (NAICS 541512).
Value Assessment
Rating: fair
The award amount of $133M for a 4-year IT systems development contract appears substantial. Benchmarking against similar large-scale IT projects would be necessary to definitively assess its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
This was awarded as a competitive delivery order, indicating that multiple vendors likely had an opportunity to bid. The competitive nature should have aided in price discovery, though the specific competition details are not provided.
Taxpayer Impact: The competitive award process suggests an effort to secure fair pricing for taxpayers, but the overall value needs further scrutiny.
Public Impact
Impacts USDA's ability to develop and maintain critical IT systems. Ensures continued operation and potential upgrades of essential agricultural data management. Supports jobs within the IT services sector, specifically General Dynamics.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed competition information
- Potential for vendor lock-in on a large IT project
Positive Signals
- Competitive award process initiated
- Long-term contract duration provides stability
Sector Analysis
This contract is within the IT sector, specifically focusing on computer systems design. The $133M value is significant for a single IT development project, and benchmarks for similar government IT contracts would provide further context.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to a large corporation, General Dynamics Information Technology, Inc. There is no direct benefit to small businesses from this specific award.
Oversight & Accountability
The contract was awarded by the General Services Administration (GSA), a primary agency for federal procurement. Oversight would typically involve GSA's Federal Acquisition Service and the contracting officer at USDA.
Related Government Programs
- Computer Systems Design Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Potential for cost overruns on a large, multi-year IT project.
- Risk of vendor lock-in and limited flexibility for future technology adoption.
- Dependence on a single contractor for critical system development.
- Lack of transparency regarding the competitive bidding process and evaluation criteria.
Tags
computer-systems-design-services, general-services-administration, mo, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $133.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IT SYSTEMS DEVELOPMENT SERVICES FOR USDA WBSCM
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 $133.1 million.
What is the period of performance?
Start: 2006-10-30. End: 2010-10-29.
What specific IT systems are being developed or enhanced under this contract, and what is their criticality to USDA's mission?
The contract is for 'IT SYSTEMS DEVELOPMENT SERVICES FOR USDA WBSCM'. WBSCM likely refers to the USDA's Warehouse-Based Commodity Management system. The criticality lies in managing agricultural commodities, supply chains, and related financial data, which are fundamental to USDA's operations and national food security.
How was the $133M price determined to be fair and reasonable given the competitive delivery order nature of the award?
While awarded competitively, the specific details of the price discovery mechanism are not provided. Typically, agencies compare proposed prices against independent government cost estimates, historical pricing for similar services, and market research. The contracting officer must have documented a determination of fair and reasonable pricing based on available data.
What are the key performance indicators (KPIs) and metrics used to measure the success and effectiveness of General Dynamics' IT systems development services?
Effectiveness would be measured against predefined KPIs outlined in the contract's Statement of Work (SOW). These likely include project milestones met, system performance benchmarks achieved, defect rates, user satisfaction, and adherence to budget and schedule. Regular performance reviews would assess contractor performance against these metrics.
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: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: GSCTFMG06M080
Offers Received: 4
Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)
Evaluated Preference: NONE
Contractor Details
Parent Company: Sterling Parent Inc. (UEI: 968838909)
Address: 4300 FAIR LAKES CT, FAIRFAX, VA, 22033
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $134,055,608
Exercised Options: $133,680,550
Current Obligation: $133,145,429
Parent Contract
Parent Award PIID: GS00T99ALD0211
IDV Type: GWAC
Timeline
Start Date: 2006-10-30
Current End Date: 2010-10-29
Potential End Date: 2011-09-29 00:00:00
Last Modified: 2015-07-11
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