General Dynamics IT received $14.45M for IT support services from GSA over 3 years

Contract Overview

Contract Amount: $14,450,476 ($14.5M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2005-05-01

End Date: 2009-01-31

Contract Duration: 1,371 days

Daily Burn Rate: $10.5K/day

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PROVIDE TECHNICAL SERVICE SUPPORT

Place of Performance

Location: ATLANTA, GEORGIA, 30330

State: Georgia Government Spending

Plain-Language Summary

General Services Administration obligated $14.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: PROVIDE TECHNICAL SERVICE SUPPORT Key points: 1. The contract provided essential IT support, aligning with the agency's need for stable technical services. 2. Competition dynamics appear limited, with a single awardee suggesting potential for less aggressive pricing. 3. The fixed-price contract structure offers some cost certainty for the government. 4. Performance was within the expected timeframe, indicating a degree of reliability in service delivery. 5. This contract falls within the broader IT services sector, a significant area of federal spending. 6. The duration of the contract suggests a long-term need for these specific technical capabilities.

Value Assessment

Rating: fair

The contract value of $14.45 million over approximately three years for IT support services is moderate. Benchmarking against similar IT support contracts is challenging without more specific service details. However, the fixed-price nature suggests the government aimed for cost predictability. The absence of multiple bids raises questions about whether the best possible value was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source action. This means that only one vendor was solicited and awarded the contract. While sole-source awards can be justified for specific reasons, such as unique capabilities or urgent needs, they typically result in less competitive pricing compared to full and open competition. The lack of multiple bidders limits the government's ability to leverage market forces to drive down costs.

Taxpayer Impact: A sole-source award means taxpayers may have paid a premium compared to what could have been achieved through a competitive bidding process. This limits the potential for cost savings and efficient allocation of federal funds.

Public Impact

Federal agencies requiring IT systems design and support services benefited from this contract. The services delivered ensured the continuity and functionality of critical IT infrastructure. The contract's impact was primarily felt within the federal IT landscape, supporting agency operations. Workforce implications include the employment of IT professionals by General Dynamics Information Technology to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs for taxpayers.
Lack of transparency in the sole-source justification process could mask inefficiencies.
Contract duration might indicate a lack of proactive market research for more cost-effective solutions.
Fixed-price contracts can sometimes lead to scope creep if not managed tightly, increasing overall expenditure.

Positive Signals

General Dynamics Information Technology is a large, established contractor with a history of federal service.
The fixed-price contract provides budget certainty for the procuring agency.
The contract supported essential IT functions, contributing to agency operational stability.
The award was made under the General Services Administration, a common and efficient procurement channel.

Sector Analysis

This contract falls under the Computer Systems Design Services category (NAICS 541512), a significant segment of the federal IT market. This sector encompasses a wide range of services, from custom software development to IT consulting and support. Federal spending in this area is consistently high as agencies rely on technology to perform their missions. Comparable spending benchmarks would typically involve analyzing the average cost of similar IT support contracts awarded by agencies like GSA, considering factors like contract duration, scope of work, and contractor size.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a large prime contractor like General Dynamics Information Technology suggests that opportunities for small businesses may have been limited, either as direct awardees or as subcontractors on this specific contract. This could potentially reduce the flow of federal dollars into the small business IT ecosystem for this particular procurement.

Oversight & Accountability

Oversight for this contract would have been managed by the General Services Administration (GSA), likely through its Federal Acquisition Service. GSA has established procurement regulations and oversight mechanisms to ensure contract compliance. Accountability measures would include performance reviews and adherence to the terms of the firm-fixed-price agreement. Transparency is generally facilitated through contract databases like FPDS, though the specifics of sole-source justifications might have limited public visibility.

Related Government Programs

IT Services
Computer Systems Design
General Services Administration Contracts
IT Support Services

Risk Flags

Sole-source award may indicate reduced competition and potentially higher costs.
Lack of detailed service scope makes precise value benchmarking difficult.
No small business subcontracting noted, potentially limiting small business participation.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $14.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. PROVIDE TECHNICAL SERVICE 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 $14.5 million.

What is the period of performance?

Start: 2005-05-01. End: 2009-01-31.

What was the specific technical service support provided under this contract?

The data indicates the contract was for 'PROVIDE TECHNICAL SERVICE SUPPORT' under NAICS code 541512 (Computer Systems Design Services). While the specific details are not fully elaborated in the provided data, this typically encompasses a range of IT-related services such as system administration, network support, help desk operations, hardware and software maintenance, and potentially IT consulting. The duration of over three years suggests a need for ongoing, operational support rather than a one-time project. The firm-fixed-price nature implies that the scope of services was defined upfront, and the contractor was obligated to deliver those services for the agreed-upon price.

How does the contract value compare to similar IT support contracts awarded by GSA?

The contract value of approximately $14.45 million over 1371 days (roughly 3.75 years) equates to an average annual value of about $3.85 million. Comparing this to similar IT support contracts requires access to a broader dataset of GSA procurements within the Computer Systems Design Services category. However, for a large, established contractor like General Dynamics Information Technology, this value is within a common range for significant IT support engagements. Without more granular data on the specific services rendered (e.g., number of users supported, complexity of systems), a precise benchmark is difficult. The sole-source nature, however, suggests that the price might not be as competitive as it could be in a multi-bid scenario.

What are the primary risks associated with this sole-source contract?

The primary risk associated with this sole-source contract is the potential for a lack of price competition, which could lead to the government paying a premium. Sole-source awards bypass the competitive bidding process, meaning the government did not have the opportunity to solicit offers from multiple vendors and select the one offering the best value. This can result in higher costs than if the contract had been competed. Additionally, there's a risk that the government may not have explored all available innovative solutions or the most cost-effective approaches that might have been presented by other potential bidders. Ensuring the justification for the sole-source award was robust and documented is crucial for mitigating risks related to fairness and efficiency.

What was the historical spending pattern for this type of service under GSA?

The provided data represents a single contract award from 2005 to 2009. To understand historical spending patterns for IT support services under GSA, a broader analysis of multiple contracts over a longer period would be necessary. GSA is a major procurer of IT services, and spending in this category has generally increased over time due to the growing reliance on technology within federal agencies. Analyzing trends would involve looking at the total dollar volume awarded for NAICS 541512, the average contract values, the number of competitive versus sole-source awards, and the dominant contractors over several fiscal years. This specific contract, being from the mid-2000s, reflects spending patterns of that era.

How effective was General Dynamics Information Technology in fulfilling this contract?

The provided data indicates the contract was awarded on May 1, 2005, and expired on January 31, 2009, with a duration of 1371 days. This suggests the contract was completed as awarded, implying a level of successful performance. Without access to performance reviews, customer satisfaction surveys, or any contract termination data, it's difficult to definitively assess the 'effectiveness' beyond the contract's completion. However, the fact that it ran its full course suggests that the services were delivered to a degree that met the agency's requirements, at least to the extent that termination was not necessary. Further assessment would require qualitative performance data.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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, Federally Funded Research and Development Corp, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $21,481,652

Exercised Options: $14,450,476

Current Obligation: $14,450,476

Parent Contract

Parent Award PIID: GS09K99BHD0001

IDV Type: GWAC

Timeline