General Dynamics IT awarded $290M for IT support to USEUCOM & USAFRICOM, spanning 5 years

Contract Overview

Contract Amount: $289,799,312 ($289.8M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2009-01-30

End Date: 2014-01-31

Contract Duration: 1,827 days

Daily Burn Rate: $158.6K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: USEUCOM & USAFRICOM COMMUNICATIONS AND INFORMATION TECHNOLOGY SUPPORT

Plain-Language Summary

General Services Administration obligated $289.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: USEUCOM & USAFRICOM COMMUNICATIONS AND INFORMATION TECHNOLOGY SUPPORT Key points: 1. Contract value of $290M over five years suggests significant investment in IT infrastructure and support. 2. The competitive nature of this delivery order indicates potential for favorable pricing and service quality. 3. A Cost Plus Award Fee (CPA) contract type introduces performance incentives but requires careful monitoring of costs. 4. The duration of 1827 days (approx. 5 years) points to a long-term need for these services. 5. This contract falls under Computer Systems Design Services, a critical area for military operations. 6. The award to General Dynamics Information Technology, Inc. places it as a key IT service provider for these combatant commands.

Value Assessment

Rating: good

The total award of approximately $290 million over five years for IT support to USEUCOM and USAFRICOM appears reasonable given the scope and duration. While specific per-unit cost benchmarks are not readily available without more granular data, the competitive nature of the award suggests that pricing was vetted against market alternatives. The Cost Plus Award Fee (CPA) structure, if managed effectively with clear performance metrics, can drive value by incentivizing contractor performance beyond minimum requirements. However, the 'cost-plus' element necessitates robust oversight to ensure costs remain controlled and justified.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that it was competed under full and open competition. The presence of 3 bidders suggests a healthy level of competition for this significant IT support requirement. A competitive process generally leads to better price discovery and encourages contractors to offer competitive terms and innovative solutions to win the award.

Taxpayer Impact: Taxpayers benefit from a competitive award process through potentially lower prices and higher quality services due to the pressure on contractors to be the most attractive bidder.

Public Impact

Service members and civilian personnel within the U.S. European Command (USEUCOM) and U.S. Africa Command (USAFRICOM) benefit from reliable and advanced IT systems. Essential communication and information technology support services are delivered, crucial for command and control, intelligence sharing, and operational effectiveness. The geographic impact is significant, covering operations across Europe, Africa, and potentially other regions where these commands have responsibilities. The contract supports a workforce of IT professionals, likely including both contractor personnel and potentially impacting government IT staff through collaboration and oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus award fee contracts require diligent oversight to prevent cost overruns and ensure fair pricing.
The long duration of the contract could lead to vendor lock-in if not managed with flexibility for future technological changes.
Reliance on a single large contractor for critical IT infrastructure carries inherent risks related to service disruptions or security breaches.

Positive Signals

The competitive award process suggests that multiple vendors were evaluated, likely leading to a selection based on best value.
The Cost Plus Award Fee structure incentivizes the contractor to meet and exceed performance expectations, potentially leading to higher quality service delivery.
The contract's focus on IT support for critical combatant commands highlights its strategic importance and likely adherence to high operational standards.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically Computer Systems Design Services. The IT services market for defense and government clients is substantial, characterized by large prime contractors and a complex ecosystem of subcontractors. Spending in this area is driven by the need for secure, reliable, and advanced technological capabilities to support military operations globally. Benchmarks for similar large-scale IT support contracts often range in the hundreds of millions of dollars over multi-year periods, reflecting the complexity and criticality of the services provided.

Small Business Impact

While this contract was awarded competitively and does not appear to have a specific small business set-aside, large prime contracts like this often have subcontracting requirements. General Dynamics Information Technology, Inc. may be required to subcontract a portion of the work to small businesses, contributing to the small business ecosystem. The extent of small business participation would depend on the specific subcontracting plan negotiated as part of the award.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA) and the respective contracting officers for USEUCOM and USAFRICOM. The Cost Plus Award Fee (CPA) structure necessitates rigorous performance monitoring and financial auditing to ensure that costs are reasonable and that award fees are justified based on achieved performance metrics. Transparency is typically managed through contract reporting mechanisms and potentially through Inspector General reviews if specific concerns arise.

Related Government Programs

Defense Information Systems Agency (DISA) IT Support Contracts
Combatant Command IT Infrastructure Modernization Programs
Global Command and Control System (GCCS) Support
Theater Battle Management Systems Support
DoD Enterprise IT Services Contracts

Risk Flags

Cost-Plus contract type requires robust oversight
Potential for cost overruns
Performance metrics for award fee need clear definition

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $289.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. USEUCOM & USAFRICOM COMMUNICATIONS AND 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 $289.8 million.

What is the period of performance?

Start: 2009-01-30. End: 2014-01-31.

What is the historical spending trend for IT support services for USEUCOM and USAFRICOM prior to this contract?

Analyzing historical spending for IT support for USEUCOM and USAFRICOM prior to this $290 million contract would involve examining contract databases for previous awards to General Dynamics Information Technology, Inc. and other potential IT service providers supporting these commands. Trends might show increasing investment in IT capabilities driven by evolving threats and operational requirements, or shifts in technology focus (e.g., cloud migration, cybersecurity). Without specific historical data, it's difficult to provide precise figures, but the scale of this award suggests a sustained and significant requirement for IT services within these critical operational theaters.

How does the per-unit cost of this contract compare to similar IT support contracts awarded by other combatant commands?

A direct per-unit cost comparison for this $290 million contract is challenging without detailed breakdowns of services and labor categories. However, the contract's value of approximately $58 million per year ($290M / 5 years) for comprehensive IT support to two major combatant commands (USEUCOM and USAFRICOM) appears to be within a reasonable range for large-scale defense IT services. Similar contracts supporting commands like INDOPACOM or CENTCOM often involve comparable multi-year, multi-million dollar awards. Factors influencing cost include geographic scope, specific system complexity, security requirements, and the mix of labor provided. The competitive nature of this award suggests pricing was vetted against market rates.

What are the key performance indicators (KPIs) used to determine award fees under this Cost Plus Award Fee (CPA) contract?

Under a Cost Plus Award Fee (CPA) contract, Key Performance Indicators (KPIs) are crucial for determining the 'award fee' portion. While the specific KPIs for this $290 million contract are not publicly detailed, they typically align with critical aspects of IT service delivery. Common KPIs include system uptime and availability, response times for technical support, cybersecurity incident response effectiveness, successful implementation of system upgrades or new capabilities, user satisfaction ratings, and adherence to project timelines and budgets for specific tasks. The contracting officer and technical monitors regularly assess performance against these KPIs, and the contractor receives a fee based on the level of performance achieved, ranging from a minimum to a maximum potential award.

What is General Dynamics Information Technology, Inc.'s track record in supporting military IT infrastructure, particularly in overseas commands?

General Dynamics Information Technology, Inc. (GDIT) has a substantial and long-standing track record in providing IT support services to the U.S. military and government agencies, including extensive experience with overseas commands. They have historically held numerous large contracts for network operations, system integration, cybersecurity, and end-user support for various branches of the armed forces and combatant commands. Their experience likely includes managing complex IT environments in geographically dispersed and challenging operational theaters, similar to those covered by USEUCOM and USAFRICOM. This extensive background suggests a high degree of familiarity with military IT requirements, security protocols, and operational demands.

What are the potential risks associated with the 'Cost Plus Award Fee' contract type for this specific IT support requirement?

The primary risk with a Cost Plus Award Fee (CPA) contract, like this $290 million award, is the potential for cost growth if not managed diligently. Since the contractor is reimbursed for allowable costs plus a fee that can vary based on performance, there's an inherent incentive to incur costs. Effective oversight is critical to ensure that all costs are reasonable, allocable, and allowable. Another risk is the subjectivity in assessing performance for the award fee; unclear or poorly defined performance metrics could lead to disputes or dissatisfaction. For IT support, ensuring the contractor maintains focus on efficiency and innovation, rather than just cost accumulation, is paramount.

How does this contract contribute to the overall IT modernization efforts of USEUCOM and USAFRICOM?

This $290 million contract is likely a cornerstone of the IT modernization efforts for USEUCOM and USAFRICOM. By providing comprehensive IT support, it enables the commands to maintain, upgrade, and potentially deploy new technologies essential for modern warfare and intelligence operations. This could include enhancing network infrastructure, improving cybersecurity postures, supporting advanced communication systems, and enabling data analytics capabilities. The long-term nature of the contract suggests a strategic commitment to ensuring these commands have the robust and evolving IT capabilities needed to execute their missions effectively across their vast operational areas.

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: R3083750

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $293,434,189

Exercised Options: $289,799,312

Current Obligation: $289,799,312

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00T99ALD0211

IDV Type: GWAC

Timeline