General Dynamics IT awarded $28.7M for open systems hosting, impacting federal IT infrastructure

Contract Overview

Contract Amount: $28,665,318 ($28.7M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2011-10-01

End Date: 2014-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $26.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OPEN SYSTEMS HOSTING AWARD

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $28.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: OPEN SYSTEMS HOSTING AWARD Key points: 1. Value for money appears reasonable given the scope of IT infrastructure support. 2. Full and open competition suggests a competitive pricing environment. 3. Contract duration of three years indicates a stable, long-term need. 4. The contract falls within the broad category of IT services, a significant federal spending area. 5. Performance is benchmarked against similar IT hosting and systems design contracts.

Value Assessment

Rating: good

The contract value of $28.7 million over three years for open systems hosting services is within the expected range for large-scale IT infrastructure support. Benchmarking against similar contracts for computer systems design and hosting services indicates that the pricing is competitive. The firm-fixed-price structure helps manage cost certainty for the government. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the overall award appears to be a fair market price for the services rendered.

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 offers. The presence of two bidders suggests a moderate level of competition for this specific award. While more bidders could potentially drive prices lower, full and open competition generally ensures a robust process that allows for price discovery and selection of the best value.

Taxpayer Impact: Taxpayers benefit from the competitive nature of the award, which aims to secure services at a fair market price and prevent overspending.

Public Impact

Federal agencies requiring secure and reliable open systems hosting services benefit from this contract. The contract supports the delivery of essential IT infrastructure, enabling various government operations. The geographic impact is primarily within Virginia, where the services are likely hosted or managed. The contract supports the IT workforce, including systems designers, administrators, and support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific proprietary technologies are heavily utilized.
Dependence on a single contractor for critical IT infrastructure could pose a risk.
Ensuring continuous service availability and disaster recovery capabilities is paramount.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a competitive market for these services.
Contract awarded to a well-established IT services provider with a track record.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design and related services. The federal IT services market is substantial, with agencies increasingly relying on external providers for specialized hosting and infrastructure management. This contract represents a typical investment in maintaining and operating critical IT systems, aligning with broader government efforts to modernize and secure its digital infrastructure. Comparable spending benchmarks in this area often involve multi-million dollar awards for similar hosting and managed services.

Small Business Impact

This contract was not set aside for small businesses and was awarded to a large prime contractor. There is no explicit indication of small business subcontracting requirements in the provided data. The impact on the small business ecosystem is likely indirect, as larger prime contractors may engage small businesses for specialized support, but this is not guaranteed without specific subcontracting plans.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the General Services Administration (GSA). Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services within budget. Transparency is facilitated through contract award databases, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

IT Infrastructure Services
Cloud Computing Services
Data Center Operations
Managed Services Contracts
Computer Systems Design

Risk Flags

Potential for vendor lock-in
Dependence on contractor for critical infrastructure
Ensuring continuous service availability
Data security and compliance risks

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $28.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. OPEN SYSTEMS HOSTING AWARD

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 $28.7 million.

What is the period of performance?

Start: 2011-10-01. End: 2014-09-30.

What is the track record of General Dynamics Information Technology, Inc. in delivering similar IT hosting services to the federal government?

General Dynamics Information Technology, Inc. (GDIT) has a long and extensive history of providing IT services to the federal government, including hosting, systems integration, cybersecurity, and IT support. They are a major federal contractor with numerous awards across various agencies. Their track record in delivering complex IT solutions, including large-scale hosting and infrastructure management, is generally well-established. However, like any large contractor, specific contract performance can vary, and a detailed review of their past performance on similar hosting contracts would be necessary for a comprehensive assessment. This includes examining past performance evaluations, any contract disputes, and their ability to meet delivery schedules and technical requirements.

How does the $28.7 million award compare to other federal contracts for open systems hosting services?

The $28.7 million award for open systems hosting services over three years is a significant but not exceptionally large contract within the federal IT landscape. Federal agencies frequently award contracts in the tens or hundreds of millions of dollars for comprehensive IT infrastructure, data center operations, and hosting solutions. The value is consistent with contracts for dedicated hosting or managed services that support a substantial number of users or critical applications. For instance, other agencies might award similar or larger sums for cloud migration, private cloud hosting, or secure enclave operations. The key comparison points would be the scope of services, duration, number of users supported, and the specific security and performance requirements mandated by the contract.

What are the primary risks associated with this type of IT hosting contract?

Primary risks associated with this IT hosting contract include potential vendor lock-in, where the government becomes heavily reliant on the contractor's specific technologies or processes, making future transitions difficult and costly. There's also the risk of service disruptions due to technical failures, cyberattacks, or inadequate disaster recovery planning, which could impact critical government operations. Performance degradation, failure to meet Service Level Agreements (SLAs), and cost overruns (though mitigated by firm-fixed-price) are also risks. Furthermore, ensuring data security and compliance with federal regulations (like FISMA) is paramount and carries inherent risks if not managed effectively by the contractor.

What does the 'Computer Systems Design Services' NAICS code imply about the services rendered?

The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' indicates that the contract likely involves the design, development, integration, and implementation of computer systems. This goes beyond simple hardware or software provision. It suggests that the contractor is responsible for analyzing the user's needs and designing a complete system solution, which may include hardware, software, networking, and the integration of these components. For an open systems hosting contract, this could mean designing the architecture for the hosting environment, ensuring compatibility between different systems, and potentially providing ongoing system management and optimization services to ensure the designed system operates efficiently and effectively.

What is the significance of the contract being a 'Delivery Order'?

The designation 'Delivery Order' (aw) typically signifies that this contract is part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar multiple-award contract vehicle. Instead of a single, large contract awarded upfront, an IDIQ contract establishes terms and conditions under which multiple orders (delivery orders or task orders) can be placed over a period. This allows the government to procure services or supplies as needed. A delivery order represents a specific instance of procurement under such a vehicle, detailing the quantity, price, and delivery schedule for a particular set of goods or services. This approach offers flexibility to the government in managing its requirements over time.

How does the duration of 1095 days (3 years) impact the nature of the services and the government's IT strategy?

A duration of 1095 days (3 years) for an IT hosting contract suggests a need for stable, ongoing support rather than a short-term project. This duration allows the contractor to establish and maintain the hosting environment effectively, implement necessary upgrades, and provide consistent service delivery. From the government's perspective, a three-year term provides a degree of predictability in IT spending and infrastructure management. It aligns with typical IT lifecycle planning, allowing for strategic implementation and operationalization of systems. However, it also means the government is committed to this particular solution and contractor for that period, necessitating careful consideration of future technological advancements and potential shifts in IT strategy beyond the contract's end.

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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 15000 CONFERENCE CENTER DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,776,429

Exercised Options: $30,440,295

Current Obligation: $28,665,318

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $39,976,648

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: GS00Q09BGD0025

IDV Type: GWAC

Timeline