GSA Awards $17.5M IT Services Contract to General Dynamics for Computer Systems Design

Contract Overview

Contract Amount: $17,466,058 ($17.5M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2007-09-25

End Date: 2009-03-26

Contract Duration: 548 days

Daily Burn Rate: $31.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: CLIENT SEEKS PROFESSIONAL ASSISTANCE TO PROVIDE SOPHISTICATED SERVICES AND MATERIALS TO ACCOMPLISH A VARIETY OF IT AND TELECOMMUNICATIONS RELATED TASKS.

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $17.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: CLIENT SEEKS PROFESSIONAL ASSISTANCE TO PROVIDE SOPHISTICATED SERVICES AND MATERIALS TO ACCOMPLISH A VARIETY OF IT AND TELECOMMUNICATIONS RELATED TASKS. Key points: 1. Contract awarded to a large, established IT provider. 2. Focus on IT and telecommunications services indicates a common government need. 3. Potential for cost overruns with Time and Materials pricing. 4. Limited small business participation noted.

Value Assessment

Rating: fair

The contract's Time and Materials pricing structure raises concerns about cost control. Without fixed price elements, the final cost can fluctuate significantly based on labor hours and material usage, potentially exceeding initial estimates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the Time and Materials (T&M) contract type may limit price discovery and incentivize longer project durations.

Taxpayer Impact: The T&M pricing structure could lead to higher taxpayer costs if not closely monitored and managed. The lack of a small business set-aside also means potential benefits for smaller enterprises are not realized.

Public Impact

Citizens rely on IT and telecommunications infrastructure for government services. Taxpayer funds are allocated to support these essential technological functions. The contract's duration and value suggest a significant investment in IT capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing
Lack of small business participation

Positive Signals

Full and open competition
Established contractor

Sector Analysis

This contract falls within the IT and Telecommunications sector, a significant area of government spending. Benchmarks for similar Computer Systems Design Services contracts vary widely based on scope and duration, but $17.5M over approximately 1.5 years is substantial.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no small business participation. This represents a missed opportunity to support smaller IT firms and foster competition within the sector.

Oversight & Accountability

Oversight of Time and Materials contracts is crucial to ensure cost-effectiveness and prevent scope creep. The Federal Acquisition Service's role in managing this contract is key to accountability.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to T&M pricing.
Lack of small business participation.
Limited visibility into specific task orders and their necessity.
Contract duration and value warrant close monitoring.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $17.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. CLIENT SEEKS PROFESSIONAL ASSISTANCE TO PROVIDE SOPHISTICATED SERVICES AND MATERIALS TO ACCOMPLISH A VARIETY OF IT AND TELECOMMUNICATIONS RELATED TASKS.

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 $17.5 million.

What is the period of performance?

Start: 2007-09-25. End: 2009-03-26.

What specific IT and telecommunications tasks are covered under this contract, and how are they aligned with agency needs?

The contract covers a variety of IT and telecommunications tasks, including computer systems design services. While the data specifies the NAICS code (541512), detailed task orders would reveal the precise alignment with agency needs. Effective oversight would ensure these services directly support mission objectives and avoid unnecessary expenditures.

How will the government ensure cost control and prevent overruns with the Time and Materials pricing structure?

Cost control under T&M contracts relies heavily on robust government oversight, including detailed monitoring of labor hours, material costs, and task progress. Establishing clear ceilings, requiring detailed justifications for hours worked, and conducting regular performance reviews are essential to mitigate overrun risks and ensure value for taxpayer money.

What is the long-term strategy for IT and telecommunications services, and how does this contract fit into that plan?

This contract likely supports immediate or near-term IT and telecommunications needs. A comprehensive long-term strategy would outline future technology roadmaps, potential contract renewals or replacements, and how this investment contributes to modernization goals. Without this context, it's difficult to assess the strategic effectiveness of this specific award.

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 4QBB17073300

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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: $17,466,058

Exercised Options: $17,466,058

Current Obligation: $17,466,058

Parent Contract

Parent Award PIID: GS09K99BHD0001

IDV Type: GWAC

Timeline