GSA awards $18.8M blueprint for USDA's MIDAS system to General Dynamics

Contract Overview

Contract Amount: $18,813,960 ($18.8M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2011-07-18

End Date: 2012-01-17

Contract Duration: 183 days

Daily Burn Rate: $102.8K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THE PURPOSE OF THIS TASK ORDER (TO) IS TO CREATE THE MIDAS RELEASE 1 BLUEPRINT INCLUDING THE BASELINE FUNCTIONAL AND PERFORMANCE REQUIREMENTS FOR RELEASE 1 OF THE MIDAS SYSTEM; CREATE THE SYSTEM DESIGN FOR MIDAS RELEASE 1; CONTINUE SAP PRODUCT DEMONSTRATION AND SHOWING MIDAS CAPABILITY TO KEY USDA SPONSORSHIP AND STAKEHOLDER COMMUNITIES; AND CREATE THE DRAFT PROJECT PLAN FOR TASK ORDER 3

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $18.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: THE PURPOSE OF THIS TASK ORDER (TO) IS TO CREATE THE MIDAS RELEASE 1 BLUEPRINT INCLUDING THE BASELINE FUNCTIONAL AND PERFORMANCE REQUIREMENTS FOR RELEASE 1 OF THE MIDAS SYSTEM; CREATE THE SYSTEM DESIGN FOR MIDAS RELEASE 1; CONTINUE SAP PRODUCT DEMONSTRATION AND SHOWING MIDAS CAPA… Key points: 1. Contract focuses on foundational blueprint and design for a new system, indicating early-stage development. 2. Sole-source award suggests potential lack of market research or specific contractor expertise required. 3. Short performance period (183 days) may limit comprehensive development and testing. 4. Time and Materials contract type can lead to cost overruns if not closely managed. 5. The contract is for 'Other Computer Related Services', a broad category. 6. Awarded under a BPA, which can streamline procurement but may reduce competition. 7. No small business set-aside, and the contractor is not a small business.

Value Assessment

Rating: questionable

The contract value of $18.8 million for a blueprint and system design phase appears high, especially given the short 183-day performance period. Without comparable data for similar system blueprinting efforts, it's difficult to definitively benchmark value. The Time and Materials pricing structure also introduces risk for cost control, potentially inflating the final expenditure compared to a fixed-price approach for defined deliverables.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under SAP and is listed as 'NOT COMPETED UNDER SAP'. The 'sole-source' nature of the award raises questions about the extent of market research conducted and whether alternative vendors with relevant expertise were considered. A sole-source award limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive bidding, as the government did not benefit from the price reductions typically achieved through a competitive process.

Public Impact

The primary beneficiary is the USDA, which will receive the foundational blueprint and system design for its MIDAS system. The services delivered include requirements definition, system design, and project planning for a critical IT system. The geographic impact is primarily within the federal government, specifically the USDA. Workforce implications are likely for IT professionals involved in system development and implementation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for a significant IT development contract.
Time and Materials contract type poses a risk of cost escalation.
Short performance period may not allow for thorough development and validation.
Potential for vendor lock-in due to sole-source award.

Positive Signals

Award to a large, established contractor (General Dynamics) may indicate access to significant resources and expertise.
Use of a BPA can indicate a pre-vetted vendor pool, potentially speeding up the acquisition process.
Focus on blueprint and design is a critical first step for system development.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on custom software development and IT consulting. The market for such services is vast and competitive, with numerous firms capable of undertaking system design and blueprinting. The value of this specific contract, while substantial, represents a small fraction of overall federal IT spending, which runs into the tens of billions annually. Benchmarking would require comparing it to other large-scale system design and blueprinting efforts within federal agencies.

Small Business Impact

The contract was not set aside for small businesses, and the awardee, General Dynamics Information Technology, Inc., is a large business. There is no indication of subcontracting plans for small businesses within the provided data. This award does not appear to directly benefit the small business ecosystem.

Oversight & Accountability

Oversight would typically be managed by the contracting officer and program managers within the General Services Administration (GSA) and the USDA. Transparency is limited by the sole-source nature of the award. Accountability would be tied to the delivery of the blueprint and design specifications within the agreed-upon timeframe and budget, though the Time and Materials structure offers less upfront accountability on final cost.

Related Government Programs

USDA IT Modernization Programs
Federal Enterprise Architecture
GSA IT Schedule Contracts
Custom Software Development Services

Risk Flags

Sole-source award
Time and Materials contract type
Lack of clear performance metrics for blueprint phase
Short contract duration

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $18.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. THE PURPOSE OF THIS TASK ORDER (TO) IS TO CREATE THE MIDAS RELEASE 1 BLUEPRINT INCLUDING THE BASELINE FUNCTIONAL AND PERFORMANCE REQUIREMENTS FOR RELEASE 1 OF THE MIDAS SYSTEM; CREATE THE SYSTEM DESIGN FOR MIDAS RELEASE 1; CONTINUE SAP PRODUCT DEMONSTRATION AND SHOWING MIDAS CAPABILITY TO KEY USDA SPONSORSHIP AND STAKEHOLDER COMMUNITIES; AND CREATE THE DRAFT PROJECT PLAN FOR TASK ORDER 3

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 $18.8 million.

What is the period of performance?

Start: 2011-07-18. End: 2012-01-17.

What is the track record of General Dynamics Information Technology, Inc. with the GSA and USDA for similar IT development contracts?

General Dynamics Information Technology, Inc. (GDIT) has a substantial history of contracting with various federal agencies, including the GSA and USDA. They are a major IT services provider with extensive experience in large-scale system development, integration, and modernization. While specific details on past performance for the MIDAS system or directly comparable blueprinting tasks are not provided in this data, GDIT's broad capabilities suggest they possess the technical and project management expertise to execute such a contract. Their track record generally includes managing complex IT projects, though like any large contractor, performance can vary across individual contracts. Further analysis would require reviewing specific past performance evaluations and contract histories for GDIT with these agencies.

How does the $18.8 million cost compare to similar IT blueprinting and design contracts within the federal government?

Benchmarking the $18.8 million cost for the MIDAS Release 1 blueprint and design is challenging without more specific details on the scope, complexity, and duration of comparable contracts. However, for large-scale federal IT systems, initial design and blueprinting phases can indeed represent significant investments, especially if they involve complex requirements gathering, extensive stakeholder engagement, and the development of detailed architectural specifications. Given the 183-day performance period, this suggests a high daily burn rate. If this contract is for a truly foundational and complex system, the cost might be within a reasonable range for a sole-source award to a large prime contractor. However, the lack of competition and the Time and Materials structure introduce uncertainty regarding whether this represents optimal value for taxpayers compared to a competitively bid, fixed-price effort.

What are the primary risks associated with a sole-source, Time and Materials contract for system design?

The primary risks associated with a sole-source, Time and Materials (T&M) contract for system design are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to inflated pricing and reduced incentive for the contractor to be highly efficient. The government does not benefit from the price discovery that competition provides. Secondly, the T&M structure means the government pays for the actual labor hours and materials used, rather than a fixed price for a defined outcome. This creates a risk of cost overruns if the project scope expands, if inefficiencies arise, or if the contractor does not manage resources effectively. Without strong oversight and well-defined ceilings, T&M contracts can become significantly more expensive than initially anticipated, especially for complex design work where estimating effort can be difficult.

What is the expected effectiveness of the MIDAS system based on this initial blueprinting contract?

The effectiveness of the MIDAS system cannot be determined solely from this initial blueprinting contract. This task order focuses on creating the 'blueprint,' 'baseline functional and performance requirements,' and 'system design' for Release 1. Its success is measured by the quality and completeness of these foundational documents and the project plan. The actual effectiveness of the MIDAS system in meeting USDA's needs will depend on the subsequent development, implementation, testing, and user adoption phases, which are not covered by this contract. A well-executed blueprint is a necessary precursor to an effective system, but it does not guarantee it. The clarity of the requirements and the robustness of the design laid out in this phase will significantly influence the potential effectiveness of the final product.

How has federal spending on 'Other Computer Related Services' (NAICS 541519) trended in recent years, and how does this contract fit?

Federal spending on 'Other Computer Related Services' (NAICS 541519) has generally trended upwards over the past decade, reflecting the increasing reliance of government agencies on specialized IT services beyond standard software development or IT management. This category often encompasses niche services like system integration, IT consulting, data analytics support, and specialized technical services. The $18.8 million contract for the MIDAS system blueprint fits within this trend, representing a significant investment in specialized IT consulting and design services for a critical agency system. While this single contract is a small part of the overall federal spend in this category, it highlights the continued demand for expert services to design and plan complex IT initiatives across the government.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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: $18,813,960

Exercised Options: $18,813,960

Current Obligation: $18,813,960

Parent Contract

Parent Award PIID: GSTFMGBPA100001

IDV Type: BPA

Timeline