FEMA's emergency management system contract awarded to General Dynamics for over $84M, spanning 5 years

Contract Overview

Contract Amount: $84,765,247 ($84.8M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2004-03-04

End Date: 2009-03-04

Contract Duration: 1,826 days

Daily Burn Rate: $46.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: LABOR HOURS

Sector: IT

Official Description: DHS FEMA NATIONAL EMERGENCY MANAGEMENT INFORMATION SYSTEM SERVICES

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $84.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: DHS FEMA NATIONAL EMERGENCY MANAGEMENT INFORMATION SYSTEM SERVICES Key points: 1. The contract value represents a significant investment in critical national infrastructure for emergency response. 2. Competition dynamics for this large IT services contract are crucial for ensuring cost-effectiveness. 3. Performance history and contractor reliability are key risk indicators for this essential system. 4. The duration of the contract suggests a long-term need for these services. 5. This contract positions General Dynamics as a key provider in the federal IT services sector.

Value Assessment

Rating: fair

The total award of $84.7 million over five years averages to approximately $16.9 million annually. Benchmarking this against similar large-scale IT system development and maintenance contracts within federal agencies is challenging without more granular data on scope and service levels. However, the duration and nature of the services suggest a substantial investment. Further analysis would require comparing specific labor categories, overhead rates, and project milestones against industry standards and historical government IT spending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of five bids suggests a reasonably competitive environment for this significant IT services contract. A higher number of bidders typically leads to better price discovery and potentially lower costs for the government. The specific details of the solicitation and evaluation process would further clarify the extent of competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a marketplace where contractors are incentivized to offer competitive pricing and innovative solutions to win the contract.

Public Impact

The primary beneficiaries are FEMA and other federal agencies relying on the National Emergency Management Information System (NEMIS) for disaster preparedness, response, and recovery. The services delivered include the development, maintenance, and support of a critical IT system essential for managing emergency information. The geographic impact is national, supporting disaster management efforts across all states and territories. Workforce implications include the potential for IT professionals employed by the contractor and potentially government personnel managing the system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns on a large, long-term IT project.
Risk of vendor lock-in if system becomes highly specialized.
Dependence on a single contractor for a critical national system.
Ensuring continued technological relevance and system modernization over the contract life.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Contractor has a significant presence in federal IT services.
Long-term contract indicates a stable need and potential for efficient service delivery.
System supports a vital national function (emergency management).

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on custom software development and IT support. The federal IT market is substantial, with agencies consistently investing in systems to manage operations and critical functions. Comparable spending benchmarks would involve looking at other large-scale system integration and maintenance contracts awarded by agencies like DHS, GSA, and DoD. The market is characterized by a mix of large prime contractors and specialized subcontractors.

Small Business Impact

This contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses in the provided data. As a large prime contract awarded to General Dynamics, it is likely that a portion of the work may be subcontracted. However, without specific subcontracting plans or goals, the direct impact on the small business ecosystem is unclear. Further investigation into the contractor's subcontracting practices would be necessary to assess this.

Oversight & Accountability

Oversight for this contract would primarily reside with the General Services Administration (GSA) Federal Acquisition Service, which awarded the contract. FEMA, as the end-user agency, would also have significant oversight responsibilities for system performance and requirements. Accountability measures would be embedded in the contract's performance work statement, service level agreements, and reporting requirements. Transparency is generally facilitated through contract award databases and public reporting, though detailed operational oversight is internal.

Related Government Programs

FEMA Disaster Relief Fund
DHS IT Modernization Initiatives
Federal Civilian IT Services Contracts
Emergency Management Systems
National Infrastructure Protection

Risk Flags

Long-term IT contract dependency
Potential for scope creep
System modernization challenges
Data security and integrity risks

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $84.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. DHS FEMA NATIONAL EMERGENCY MANAGEMENT INFORMATION SYSTEM SERVICES

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 $84.8 million.

What is the period of performance?

Start: 2004-03-04. End: 2009-03-04.

What is the track record of General Dynamics Information Technology, Inc. in delivering large-scale federal IT systems, particularly those related to emergency management or critical infrastructure?

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record as a major federal IT contractor, holding numerous large-scale contracts across various agencies including the Department of Defense, Health and Human Services, and Homeland Security. They are known for providing a wide range of IT services, including system development, integration, cybersecurity, and cloud solutions. While specific details on their performance for the FEMA NEMIS contract require deeper analysis of past performance reviews and contract modifications, GDIT's overall experience suggests a capacity to manage complex projects. Their history includes significant work on systems requiring high availability and robust data management, which are critical for emergency management functions. However, like any large contractor, they may have faced challenges on specific projects, necessitating careful review of their performance metrics and any associated corrective actions on similar contracts.

How does the annual cost of this contract compare to similar federal IT system development and maintenance contracts?

The annual cost for this contract averages approximately $16.9 million ($84.7M / 5 years). Comparing this figure directly to 'similar' contracts is complex due to variations in scope, complexity, service level agreements, and the specific technologies involved. However, for large-scale, mission-critical IT systems requiring ongoing development, maintenance, and support for a federal agency like FEMA, this annual expenditure is within a plausible range. For context, other federal agencies award contracts in the tens to hundreds of millions of dollars annually for comparable IT services, such as enterprise resource planning (ERP) systems, large database management, or national security-related IT infrastructure. To provide a precise benchmark, one would need to identify contracts with highly comparable characteristics, such as the number of users supported, the criticality of the system, the specific IT services required (e.g., custom development vs. COTS integration), and the geographic scope of support.

What are the primary risks associated with a sole contractor managing a critical national emergency management information system?

The primary risks associated with a sole contractor managing a critical national emergency management information system like NEMIS include vendor lock-in, where the government becomes heavily reliant on the contractor's proprietary technology or expertise, making transitions difficult and potentially costly. There's also the risk of reduced innovation if the contractor faces less competitive pressure to improve services. Furthermore, a single point of failure exists; if the contractor experiences financial instability, operational issues, or significant performance degradation, the government's ability to manage emergencies could be severely impacted. Dependence on one entity also raises concerns about data security and the contractor's ability to adapt quickly to evolving threats or technological advancements without the impetus of competitive bidding.

What is the historical spending trend for FEMA's NEMIS or similar emergency management IT systems over the past decade?

Analyzing the historical spending trend for FEMA's NEMIS or similar emergency management IT systems over the past decade would require access to detailed historical contract data. Generally, federal spending on IT, particularly for critical infrastructure and national security-related systems, has seen consistent investment, often increasing due to modernization needs, cybersecurity enhancements, and the growing reliance on digital platforms for operations. For FEMA, the need to manage disaster response and recovery effectively necessitates robust and up-to-date information systems. Therefore, it's plausible that spending on NEMIS or its predecessors has been substantial and potentially increasing, reflecting the evolving nature of disaster management and the associated technological requirements. Without specific data, it's difficult to quantify the trend, but the criticality of FEMA's mission suggests sustained and potentially growing IT investment.

How has the scope of services for NEMIS evolved since its inception, and how does this impact the current contract value?

The scope of services for the National Emergency Management Information System (NEMIS) has likely evolved significantly since its inception, driven by changes in technology, FEMA's operational needs, and the increasing complexity of disaster management. Initially, systems might have focused on basic data collection and reporting. Over time, the scope likely expanded to include real-time data integration, advanced analytics, mobile accessibility, enhanced security features, and interoperability with other federal, state, and local systems. These expansions in functionality and complexity naturally lead to increased development, maintenance, and support requirements, thereby impacting the contract value. The current $84.7 million award over five years reflects the contemporary, comprehensive nature of the system and its ongoing need for updates, security patches, and user support, which are far more extensive than initial requirements might have been.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: LABOR HOURS (Z)

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: $85,499,530

Exercised Options: $85,445,616

Current Obligation: $84,765,247

Parent Contract

Parent Award PIID: GS07T00BGD0056

IDV Type: GWAC

Timeline