GSA awards $30.7M IT support contract to General Dynamics Information Technology via non-competitive order

Contract Overview

Contract Amount: $30,704,550 ($30.7M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2008-07-17

End Date: 2012-07-17

Contract Duration: 1,461 days

Daily Burn Rate: $21.0K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IT SUPPORT FOR ACQUSITION EXECUTIVE SUPPORT AGENCY

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $30.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IT SUPPORT FOR ACQUSITION EXECUTIVE SUPPORT AGENCY Key points: 1. Contract awarded to a single vendor, raising questions about competition. 2. Significant contract value of over $30 million over four years. 3. The use of Time and Materials pricing may lead to cost overruns. 4. The contract falls under the IT sector, specifically acquisition support.

Value Assessment

Rating: questionable

The contract's Time and Materials pricing structure, without a clear ceiling, makes a direct pricing assessment difficult. Benchmarking against similar IT support contracts is challenging due to the non-competitive nature and lack of detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a non-competitive delivery order, indicating a lack of market research and competition. This method limits price discovery and may result in higher costs for taxpayers.

Taxpayer Impact: The absence of competition likely means taxpayers are not receiving the best possible price for these IT support services.

Public Impact

Taxpayers may be overpaying due to the lack of competitive bidding. The long duration of the contract (4 years) limits opportunities for future cost savings through competition. Reliance on a single vendor for critical acquisition support could pose a risk if performance issues arise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award
Time and Materials pricing
Lack of small business participation

Positive Signals

Supports acquisition executive functions

Sector Analysis

This contract is within the Information Technology sector, specifically providing support services for acquisition executives. Spending benchmarks for IT support can vary widely, but non-competitive awards often exceed market rates.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award, as the 'sb' field is false. This represents a missed opportunity to support small businesses.

Oversight & Accountability

The non-competitive nature of this award warrants further oversight to ensure the government received fair value. Accountability for the decision to bypass competitive procedures should be examined.

Related Government Programs

General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Lack of competition
Time and Materials pricing
No small business participation
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $30.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IT SUPPORT FOR ACQUSITION EXECUTIVE SUPPORT AGENCY

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 $30.7 million.

What is the period of performance?

Start: 2008-07-17. End: 2012-07-17.

What was the justification for awarding this contract non-competitively?

The justification for a non-competitive award typically stems from specific circumstances such as urgent needs, unique capabilities of a single vendor, or prior contract vehicles. Without further documentation, it is difficult to ascertain the precise rationale, but such decisions require rigorous justification to ensure taxpayer funds are used appropriately and competitively where possible.

What are the potential risks associated with a Time and Materials contract awarded non-competitively?

Time and Materials (T&M) contracts, especially when awarded non-competitively, carry significant risks. They can incentivize longer project durations and higher labor costs, as the contractor is paid for time and materials used rather than a fixed outcome. This lack of a defined ceiling and competitive pressure can lead to cost overruns and reduced efficiency, potentially costing taxpayers more than a fixed-price or competitively bid contract.

How does this contract's structure impact the agency's ability to adapt to changing IT needs?

A non-competitive Time and Materials contract may hinder adaptability. While T&M allows for flexibility in scope, the lack of competition means the agency is tied to a single vendor's capabilities and pricing structure. If the agency's IT needs evolve significantly, renegotiating terms or switching vendors could be more complex and costly than if a more competitive or performance-based contract had been initially established.

Competition & Pricing

Extent Competed: NON-COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sterling Parent Inc. (UEI: 968838909)

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $31,306,192

Exercised Options: $31,154,537

Current Obligation: $30,704,550

Parent Contract

Parent Award PIID: GS07T00BGD0064

IDV Type: GWAC

Timeline