GSA Awards $70M+ IT Contract to General Dynamics for Computer Systems Design Services

Contract Overview

Contract Amount: $70,191,302 ($70.2M)

Contractor: General Dynamics Information Technology, Inc

Awarding Agency: General Services Administration

Start Date: 2009-09-26

End Date: 2014-09-25

Contract Duration: 1,825 days

Daily Burn Rate: $38.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: INCREMENTAL FUNDING. POP 9/26/09 THRU 9/25/10 (ALL OPTIONS THRU 9/25/14)

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $70.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC for work described as: INCREMENTAL FUNDING. POP 9/26/09 THRU 9/25/10 (ALL OPTIONS THRU 9/25/14) Key points: 1. Contract awarded under full and open competition, indicating a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes contractor performance. 3. This award falls within the IT sector, specifically computer systems design. 4. The contract duration is 5 years, suggesting a long-term need for these services.

Value Assessment

Rating: good

The contract value of $70M+ over 5 years for IT services appears reasonable given the scope. Benchmarking against similar GSA IT contracts would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing.

Taxpayer Impact: The competitive award process is expected to yield fair pricing, maximizing taxpayer value for the IT services procured.

Public Impact

Federal agencies can leverage these computer systems design services to improve IT infrastructure. The contract supports the modernization and efficiency of government IT operations. Citizens may benefit from improved government services enabled by enhanced IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to cost overruns if not managed carefully.
The specific award fee structure and metrics are not detailed, making performance assessment difficult without further information.

Positive Signals

Awarded under full and open competition.
Long-term contract duration provides stability for IT service delivery.
Contractor has a history of providing IT services to the government.

Sector Analysis

This contract is within the Information Technology sector, specifically focusing on computer systems design services. IT spending benchmarks for similar GSA contracts would be useful for a detailed comparison.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the awardee is a large business. There is no indication of subcontracting opportunities for small businesses within this data.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Standard GSA oversight mechanisms should be in place to ensure performance and cost control.

Related Government Programs

Computer Systems Design Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Potential for cost overruns with CPAF contract type.
Lack of detailed performance metrics in provided data.
No explicit small business subcontracting goals mentioned.
Contract duration of 5 years requires ongoing monitoring.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $70.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. INCREMENTAL FUNDING. POP 9/26/09 THRU 9/25/10 (ALL OPTIONS THRU 9/25/14)

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 $70.2 million.

What is the period of performance?

Start: 2009-09-26. End: 2014-09-25.

What are the specific performance metrics and award fee criteria tied to this Cost Plus Award Fee contract, and how do they ensure optimal value for the government?

The specific performance metrics and award fee criteria are not detailed in the provided data. A thorough review of the contract's Performance Work Statement (PWS) and the award fee plan is necessary to understand how contractor performance is measured and incentivized. Effective metrics should align with agency goals and ensure the contractor delivers high-quality services efficiently, thereby maximizing taxpayer value.

What is the potential risk associated with the Cost Plus Award Fee contract type, and what mitigation strategies are in place?

Cost Plus Award Fee (CPAF) contracts carry a risk of cost overruns if the 'cost' component is not tightly controlled and the 'award fee' becomes a de facto guaranteed bonus. Mitigation strategies typically involve robust government oversight, clearly defined performance standards, and a well-structured award fee determination process that genuinely rewards exceptional performance rather than routine delivery. Regular audits and performance reviews are crucial.

How does the pricing structure of this contract compare to industry benchmarks for similar computer systems design services, considering the full and open competition award?

While awarded under full and open competition, which generally promotes competitive pricing, the 'Cost Plus Award Fee' structure requires detailed analysis. A direct comparison to industry benchmarks for similar services, factoring in the specific scope of work and the potential for award fees, is essential. Without access to the negotiated rates and the award fee evaluation process, a definitive assessment of pricing effectiveness is challenging.

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: 2

Pricing Type: COST PLUS AWARD FEE (R)

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: $161,875,253

Exercised Options: $70,540,509

Current Obligation: $70,191,302

Parent Contract

Parent Award PIID: GS00T99ALD0203

IDV Type: GWAC

Timeline