General Dynamics IT awarded $21.5M for Infrastructure Support Services, highlighting long-term IT needs

Contract Overview

Contract Amount: $21,528,682 ($21.5M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2012-09-01

End Date: 2018-02-28

Contract Duration: 2,006 days

Daily Burn Rate: $10.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: INFRASTRUCTURE SUPPORT SERVICES ISS

Place of Performance

Location: FORT LEE, PRINCE GEORGE County, VIRGINIA, 23801

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $21.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: INFRASTRUCTURE SUPPORT SERVICES ISS Key points: 1. Contract value suggests significant, ongoing IT infrastructure requirements. 2. Long contract duration indicates a need for stable, long-term support. 3. Sole contractor suggests potential for limited competition and price negotiation. 4. Delivery order under a larger IDIQ points to a structured procurement process. 5. Focus on IT infrastructure implies a critical role in agency operations. 6. The contract's value is substantial, requiring careful performance monitoring.

Value Assessment

Rating: fair

The contract value of $21.5 million over approximately 5.5 years for Infrastructure Support Services (ISS) appears moderate for a large federal IT contract. Benchmarking against similar IT support contracts is challenging without more specific service details. However, the duration and scope suggest a need for consistent, reliable service delivery. The pricing structure (Time and Materials) can sometimes lead to cost overruns if not managed tightly, warranting close oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that it resulted in a delivery order under a larger IDIQ (Indefinite Delivery, Indefinite Quantity) contract suggests a competitive process at the IDIQ level, with this order being placed based on pre-negotiated terms. The presence of 8 bidders at the IDIQ level (implied by 'no': 8) suggests a healthy competitive environment initially.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. It ensures that the government is not locked into a single provider, allowing for better value for money.

Public Impact

Federal agencies requiring robust IT infrastructure support benefit from the services delivered. The contract supports the operational continuity and efficiency of government IT systems. Geographic impact is likely nationwide, supporting distributed federal operations. Workforce implications include employment for IT professionals and support staff. Ensures the availability of essential IT services for government functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost escalation if not closely monitored.
Long-term contracts may reduce agility in adopting newer technologies if not managed proactively.
Dependence on a single awardee for this delivery order could pose risks if performance falters.

Positive Signals

Awarded under full and open competition, suggesting a competitive initial process.
The contract is part of a larger IDIQ, implying a structured and potentially efficient procurement vehicle.
General Dynamics Information Technology is a large, established federal contractor with significant experience.

Sector Analysis

The Information Technology sector is a critical component of federal operations, encompassing a vast array of services from software development to infrastructure management. Spending in this sector is consistently high, driven by the need to modernize systems, enhance cybersecurity, and support digital transformation initiatives. This contract for Infrastructure Support Services fits within the broader IT services market, which includes system integration, managed services, and IT consulting. Comparable spending benchmarks for IT support services can vary widely based on scope, duration, and specific technologies involved.

Small Business Impact

This contract does not appear to have a small business set-aside component (ss: false, sb: false). As a delivery order under a larger IDIQ, the primary contract vehicle may have had small business considerations, but this specific award to General Dynamics Information Technology, Inc. does not indicate a direct set-aside. This means that opportunities for small businesses would likely be through subcontracting, if General Dynamics chooses to engage them, rather than direct prime contracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the General Services Administration (GSA). Performance metrics and deliverables would be monitored to ensure compliance with the contract terms. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Infrastructure Modernization Programs
Cloud Computing Services Contracts
Cybersecurity Support Services
Enterprise Resource Planning (ERP) Systems Support
Network Operations and Maintenance Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Risk of technological obsolescence over the contract's long duration.
Dependence on a single contractor for critical infrastructure support.
Need for robust performance monitoring to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $21.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. INFRASTRUCTURE SUPPORT SERVICES ISS

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 $21.5 million.

What is the period of performance?

Start: 2012-09-01. End: 2018-02-28.

What is the historical spending pattern for Infrastructure Support Services (ISS) by the General Services Administration (GSA) over the last five fiscal years?

Analyzing historical spending for ISS by GSA requires accessing detailed procurement data. While this specific contract (awarded 2012, ending 2018) is a data point, a comprehensive view would involve aggregating all ISS-related contracts awarded by GSA during that period. Factors influencing spending include agency needs, budget allocations, and the competitive landscape. Significant fluctuations might indicate shifts in IT strategy, major system upgrades, or changes in contracting vehicles. Without access to a broader dataset, it's difficult to establish a definitive trend solely from this single award. However, the consistent need for such services suggests a baseline level of ongoing expenditure in this category.

How does the per-unit cost of services under this contract compare to industry benchmarks for similar IT infrastructure support?

Determining a precise per-unit cost comparison is challenging without granular data on the specific services rendered (e.g., per hour for different labor categories, per device managed, per server supported). The contract uses a Time and Materials (T&M) pricing structure, which is inherently variable. To benchmark, one would need to compare the loaded hourly rates for various labor categories against market data from sources like the Bureau of Labor Statistics or private IT consulting firms. Additionally, comparing the total contract value against the number of users supported or systems managed could provide a high-level benchmark. Given the federal context and the contractor's size, rates might be competitive but potentially higher than smaller, specialized firms due to overhead and compliance costs.

What are the key performance indicators (KPIs) used to measure the success of this Infrastructure Support Services contract?

Key Performance Indicators (KPIs) for an Infrastructure Support Services (ISS) contract typically focus on service availability, response times, resolution rates, and user satisfaction. For example, KPIs might include: uptime percentage for critical systems (e.g., 99.9% availability), average response time to support tickets (e.g., within 1 hour for critical issues), average resolution time for different ticket severities (e.g., 4 hours for critical, 24 hours for routine), and adherence to security protocols. User satisfaction surveys are also common. The specific KPIs would be detailed in the contract's Performance Work Statement (PWS) and are crucial for evaluating contractor performance and ensuring value for money.

What is General Dynamics Information Technology's track record with similar large-scale IT infrastructure support contracts for federal agencies?

General Dynamics Information Technology (GDIT) has a substantial track record in providing IT infrastructure support services to various federal agencies. They are a major player in the federal IT contracting space, often handling complex, large-scale projects. Their experience spans areas like network management, data center operations, cybersecurity, and end-user support. Past performance evaluations, available through federal procurement databases (though often redacted for public view), would provide specific insights into their success rates, any past issues, and client satisfaction levels. GDIT's size and market presence suggest they are accustomed to the demands and complexities of large federal IT contracts.

What risks are associated with a long-duration contract (over 5 years) for IT infrastructure support, and how are they typically mitigated?

Long-duration IT infrastructure support contracts (like this one, spanning over 5 years) carry risks such as technological obsolescence, potential for vendor complacency, and difficulty in adapting to evolving requirements. Technology can advance rapidly, making the initially contracted solutions outdated before the contract ends. Vendor complacency can arise from a lack of competitive pressure over time. Mitigation strategies include incorporating flexibility clauses in the contract, regular performance reviews, options for technology refresh, and clear exit strategies. The government can also use contract modifications judiciously to incorporate new technologies or adjust scope, provided it aligns with the original contract's intent and procurement regulations.

Industry Classification

NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID07120038

Offers Received: 8

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3211 JERMANTOWN RD, FAIRFAX, VA, 22030

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $21,528,682

Exercised Options: $21,528,682

Current Obligation: $21,528,682

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $2,160,632

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4357D

IDV Type: FSS

Timeline