General Dynamics IT awarded $46M for custom computer programming, exceeding initial estimates

Contract Overview

Contract Amount: $46,010,044 ($46.0M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2006-04-26

End Date: 2012-08-31

Contract Duration: 2,319 days

Daily Burn Rate: $19.8K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AEF INFORMATION TECHNOLOGY SUPPORT

Place of Performance

Location: RANDOLPH AFB, BEXAR County, TEXAS, 78150

State: Texas Government Spending

Plain-Language Summary

General Services Administration obligated $46.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: AEF INFORMATION TECHNOLOGY SUPPORT Key points: 1. Value for money appears fair given the duration and scope of services. 2. Competition dynamics suggest a potentially competitive environment for IT services. 3. Risk indicators are moderate, with a long contract duration presenting potential for scope creep. 4. Performance context is tied to custom programming, a critical but complex service area. 5. Sector positioning is within the established IT services market for federal agencies.

Value Assessment

Rating: fair

The total award of $46 million over approximately six years represents an average annual spend of roughly $7.6 million. Benchmarking against similar custom computer programming contracts is challenging without more granular data on service specifics. However, the firm fixed-price structure suggests a degree of cost control, though the long duration could lead to price escalations if not managed carefully. The contract's value seems aligned with the complexity and duration of custom IT development.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a competitive delivery order, indicating that multiple vendors likely competed for the task. With two bidders identified, the competition level suggests a reasonably contested procurement, which typically aids in price discovery and achieving fair market value. The competitive nature of the award is a positive sign for efficient use of federal funds.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are not overspent on IT services, fostering a market where contractors offer competitive pricing to win government business.

Public Impact

Federal agencies requiring custom computer programming services benefit from this contract. The services delivered likely support critical IT infrastructure and application development. The geographic impact is primarily in Texas, where the contractor is located. Workforce implications include employment for IT professionals involved in custom software development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (2319 days) increases the risk of cost overruns and scope creep.
Firm Fixed Price (FFP) contracts can be less flexible if requirements change significantly.
Reliance on a single contractor for custom programming could lead to vendor lock-in.

Positive Signals

Competitive award process suggests potential for good value and fair pricing.
The contract is for custom computer programming, a vital service for agency operations.
The contractor, General Dynamics Information Technology, Inc., is a large, established entity with significant federal contracting experience.

Sector Analysis

The IT services sector, particularly custom computer programming, is a significant area of federal spending. This contract falls within the broader category of professional, scientific, and technical services. Comparable spending benchmarks for custom programming can vary widely based on complexity, but federal agencies consistently invest billions annually in IT solutions to modernize operations and enhance capabilities.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information on subcontracting plans for small businesses. The award to a large prime contractor like General Dynamics Information Technology, Inc. may limit direct opportunities for small businesses unless they are part of the prime's subcontracting team.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) and the agency's program management office. Accountability is established through the firm fixed-price contract terms and performance metrics. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Custom Computer Programming Services
IT Professional Services
Federal Civilian IT Contracts
General Services Administration IT Procurement

Risk Flags

Long contract duration may increase risk of scope creep and cost overruns.
Firm Fixed Price contracts can be inflexible if requirements change.
Potential for vendor lock-in if custom solutions are highly proprietary.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $46.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. AEF INFORMATION TECHNOLOGY SUPPORT

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 $46.0 million.

What is the period of performance?

Start: 2006-04-26. End: 2012-08-31.

What is the historical spending trend for custom computer programming services by the General Services Administration?

The General Services Administration (GSA) has consistently allocated significant funding towards custom computer programming services over the years. While specific year-over-year trends for this exact contract are not detailed, GSA's overall IT spending has generally increased to support agency modernization efforts. This includes investments in software development, system integration, and application maintenance. Analyzing broader GSA IT procurement data reveals a sustained demand for these services, driven by the need for tailored solutions that off-the-shelf software cannot provide. The agency's role as a central procurement entity means its spending patterns often reflect government-wide needs for specialized IT development.

How does the awarded amount compare to the initial estimated value or ceiling of the contract?

The provided data indicates a total award of $46,010,044.21. Without explicit information on the contract's initial estimated value or ceiling, a direct comparison is not possible. However, the fact that it is a 'COMPETITIVE DELIVERY ORDER' suggests it was awarded against a pre-existing contract or agreement, which would have had its own ceiling. The final awarded amount represents the actual value obligated for the services rendered. If this was a task order under a larger IDIQ, the ceiling of the parent contract would be the relevant benchmark, and this award would be a portion of it. Further details on the parent contract would be needed for a precise comparison.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance on this contract?

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided summary data. However, for custom computer programming services, typical KPIs would likely include adherence to project timelines, delivery of functional and bug-free code, meeting specified technical requirements, user satisfaction with the developed software, and effective project management. The firm fixed-price nature of the contract implies that meeting these performance standards is crucial for the contractor to achieve profitability. The contracting officer's representative (COR) would be responsible for monitoring these metrics and ensuring the contractor meets contractual obligations.

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

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record in delivering a wide array of IT services, including custom computer programming, to the federal government. As a major federal contractor, GDIT has been involved in numerous large-scale IT projects across various agencies. Their experience typically encompasses software development lifecycle management, system integration, cybersecurity, and cloud solutions. While specific performance details for every contract are not publicly available, GDIT's continued success in winning and executing federal contracts suggests a generally positive performance history. Agencies often select contractors like GDIT based on their demonstrated capabilities, past performance, and ability to handle complex IT requirements.

Are there any known risks or challenges associated with custom computer programming contracts of this magnitude and duration?

Yes, custom computer programming contracts, especially those with a significant value and long duration like this one (2319 days), carry inherent risks. Key challenges include evolving technological landscapes, where requirements can become outdated before development is complete. Scope creep is a major concern, where project requirements expand beyond the original agreement, leading to cost overruns and delays. Ensuring effective communication and collaboration between the government and the contractor is critical. Furthermore, managing the complexity of custom software development, ensuring quality assurance, and maintaining security throughout the development process are significant undertakings. The firm fixed-price nature, while aiming for cost certainty, can also strain the relationship if unforeseen issues arise that necessitate changes.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: R3060584

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

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, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $49,687,601

Exercised Options: $49,144,298

Current Obligation: $46,010,044

Parent Contract

Parent Award PIID: GS07T00BGD0063

IDV Type: GWAC

Timeline