General Dynamics IT contract for WBSCM support services valued at over $108 million

Contract Overview

Contract Amount: $108,250,958 ($108.3M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2011-09-29

End Date: 2016-06-03

Contract Duration: 1,709 days

Daily Burn Rate: $63.3K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THIS REQUIREMENT IS FOR WBSCM COVERS ROLES AND RESPONSIBILITIES, SUPPORT SERVICES, CORRECTIVE MAINTENANCE (INCLUDED CONTINUOUS IMPROVEMENTS, SOFTWARE AND HARDWARE UPGRADE), TRAINING AND KNOWLEDGE TRANSFER ACTIVITIES, COMMUNICATION PROCESSES AND DELIVERABLES FOR USER SUPPORT, SYSTEM SUPPORT, PERFORMANCE MONITORING, PROJECT MANAGEMENT AND OTHER O&M SUPPORT.

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22302

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $108.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: THIS REQUIREMENT IS FOR WBSCM COVERS ROLES AND RESPONSIBILITIES, SUPPORT SERVICES, CORRECTIVE MAINTENANCE (INCLUDED CONTINUOUS IMPROVEMENTS, SOFTWARE AND HARDWARE UPGRADE), TRAINING AND KNOWLEDGE TRANSFER ACTIVITIES, COMMUNICATION PROCESSES AND DELIVERABLES FOR USER SUPPORT, SYST… Key points: 1. Contract provides comprehensive support for the Warehouse Management System, including maintenance, upgrades, and training. 2. The contract was awarded as a BPA Call, indicating a pre-negotiated agreement. 3. Performance spanned nearly five years, suggesting a need for sustained operational support. 4. The contract type is Time and Materials, which can pose cost control challenges. 5. The vendor, General Dynamics Information Technology, is a large, established IT services provider. 6. The contract was not competed under SAP, raising questions about the procurement process. 7. The value of the contract is substantial, reflecting the complexity of the WBSCM system.

Value Assessment

Rating: fair

The contract's Time and Materials pricing structure may not be the most cost-effective for long-term operational support, as it can lead to cost overruns if not closely managed. Benchmarking against similar IT support contracts for large-scale systems is difficult without more detailed service delivery metrics. However, the duration and scope suggest a significant investment in maintaining a critical federal system.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was awarded as a BPA Call and noted as 'NOT COMPETED UNDER SAP.' This suggests it may have been a call against an existing Blanket Purchase Agreement, but the initial competition for that BPA is not detailed here. The lack of explicit competition for this specific call raises concerns about whether the government secured the best possible pricing and terms.

Taxpayer Impact: When a contract is not openly competed, taxpayers may not benefit from the competitive pricing that drives down costs for similar services in the market.

Public Impact

Federal agencies utilizing the Warehouse Management System (WBSCM) benefit from continuous operational support and system improvements. The contract ensures the availability and functionality of a critical supply chain management tool. Support services likely impact federal logistics and inventory management across various departments. The contract supports IT professionals and potentially other roles involved in system operation and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to unpredictable costs.
Lack of clear competition details for this BPA Call raises concerns about value for money.
The contract's duration and value indicate a significant reliance on a single vendor for critical system support.

Positive Signals

General Dynamics Information Technology is a reputable contractor with extensive experience in government IT services.
The contract duration suggests a stable and reliable support structure for the WBSCM.
The comprehensive nature of the support (maintenance, upgrades, training) indicates a holistic approach to system lifecycle management.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on IT operations and maintenance (O&M) for a large-scale enterprise resource planning (ERP) system. The market for such services is competitive, with many large and small businesses offering specialized support. Federal spending on IT O&M is substantial, as agencies rely on these systems for critical functions. Comparable spending benchmarks would typically involve analyzing IT support contracts for similar government systems, considering factors like user base, system complexity, and service level agreements.

Small Business Impact

The provided data indicates that small business participation (sb) was false, and there was no indication of a small business set-aside. This suggests the contract was not specifically targeted towards small businesses. While General Dynamics Information Technology is a large prime contractor, the lack of small business set-aside or subcontracting information means the direct impact on the small business ecosystem for this specific award is not evident from the data.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the General Services Administration (GSA), the awarding agency. Specific oversight mechanisms would include contract performance reviews, financial audits, and adherence to Service Level Agreements (SLAs). Transparency is generally facilitated through contract databases like FPDS, where basic award information is published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal IT Operations and Maintenance
Enterprise Resource Planning (ERP) Systems Support
Supply Chain Management Systems
General Services Administration (GSA) Contracts
BPA Calls

Risk Flags

Potential for cost overruns due to T&M contract type.
Lack of transparency regarding the initial competition for the BPA.
Reliance on a single vendor for critical system support over an extended period.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $108.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. THIS REQUIREMENT IS FOR WBSCM COVERS ROLES AND RESPONSIBILITIES, SUPPORT SERVICES, CORRECTIVE MAINTENANCE (INCLUDED CONTINUOUS IMPROVEMENTS, SOFTWARE AND HARDWARE UPGRADE), TRAINING AND KNOWLEDGE TRANSFER ACTIVITIES, COMMUNICATION PROCESSES AND DELIVERABLES FOR USER SUPPORT, SYSTEM SUPPORT, PERFORMANCE MONITORING, PROJECT MANAGEMENT AND OTHER O&M 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 $108.3 million.

What is the period of performance?

Start: 2011-09-29. End: 2016-06-03.

What is the track record of General Dynamics Information Technology with federal IT support contracts?

General Dynamics Information Technology (GDIT) has a long and extensive track record of providing IT support services to various federal agencies. They are a major government contractor known for handling large-scale IT infrastructure, software development, cybersecurity, and modernization projects. Their experience spans across defense, civilian, and intelligence communities. GDIT often manages complex systems similar to WBSCM, involving operations, maintenance, and upgrades. While their overall track record is strong, specific performance on individual contracts can vary, and it's always prudent to examine performance metrics and user feedback for particular engagements. Their size and experience generally position them as a capable provider for significant federal IT requirements.

How does the $108 million value compare to similar federal IT support contracts?

A contract value of over $108 million for nearly five years of IT support for a critical system like WBSCM is substantial but not uncommon within the federal IT landscape. Large-scale enterprise resource planning (ERP) systems, supply chain management tools, and core infrastructure support contracts often reach or exceed this value. For instance, similar contracts supporting systems like the Defense Department's ERP or civilian agency financial systems can range from tens to hundreds of millions of dollars over their lifecycle. The key comparison points would be the scope of services (O&M, upgrades, training), the number of users supported, the criticality of the system, and the specific technologies involved. Without more granular data on comparable contracts, it's difficult to definitively state if this represents over or under-spending, but it aligns with the upper-middle range for complex federal IT O&M.

What are the primary risks associated with this contract?

The primary risks associated with this contract include: 1. Cost Overruns: The Time and Materials (T&M) pricing structure inherently carries a risk of cost escalation if not meticulously managed and monitored against defined ceilings and performance metrics. 2. Vendor Lock-in: Given the long duration and critical nature of the WBSCM system, there's a risk of becoming overly reliant on GDIT, potentially limiting future flexibility or competitive sourcing options. 3. Performance Issues: Despite GDIT's experience, there's always a risk of performance shortfalls, system outages, or delays in critical updates that could impact federal operations. 4. Lack of Competition: The 'NOT COMPETED UNDER SAP' notation suggests a potential lack of robust competition for this specific award, which could mean the government did not achieve the best possible value or pricing. 5. Scope Creep: Without clear change control processes, the scope of work could expand beyond initial estimates, further increasing costs and complexity.

How effective is the WBSCM system likely to be with this level of support?

The effectiveness of the WBSCM system is highly dependent on the quality and comprehensiveness of the support provided under this contract. With over $108 million allocated for nearly five years of support, including corrective maintenance, continuous improvements, software/hardware upgrades, and training, the system should theoretically remain operational, secure, and reasonably up-to-date. The contract's focus on O&M and upgrades suggests an intent to maintain system integrity and adapt to evolving needs. However, true effectiveness also hinges on the government's internal management of the contract, the clarity of requirements, and the vendor's execution against Service Level Agreements (SLAs). If GDIT delivers as expected, the WBSCM should function effectively to support federal supply chain operations.

What are the historical spending patterns for WBSCM support?

Historical spending patterns for WBSCM support prior to this $108 million contract are not detailed in the provided data. However, the duration of this contract (nearly 5 years) and its substantial value suggest that WBSCM is a critical and long-standing system within the federal government, likely requiring continuous investment. Federal agencies typically budget for IT operations and maintenance (O&M) annually. A contract of this magnitude often represents a significant portion of the system's lifecycle costs. To understand historical patterns, one would need to examine prior contracts for WBSCM support, potentially looking at spending trends over the last decade or more, and compare the annual average spend to identify any significant increases or decreases in investment.

What does the 'NOT COMPETED UNDER SAP' designation imply for this contract?

The designation 'NOT COMPETED UNDER SAP' implies that this contract was not awarded through the standard competitive bidding process typically used for procurements exceeding the Simplified Acquisition Procedures (SAP) threshold. SAP generally applies to procurements valued below $250,000 (though this threshold can vary). If this contract exceeded that threshold and was not competed, it suggests it might have been awarded under specific exceptions to full and open competition, such as sole-source justifications, other than full and open competition (e.g., urgent need, unique capabilities), or potentially as a call against an existing Blanket Purchase Agreement (BPA) where the initial BPA competition might have occurred previously. This lack of direct competition for this specific award raises questions about whether the government obtained the best possible value and pricing compared to a fully competed scenario.

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: Csra LLC (UEI: 080011988)

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: $115,204,258

Exercised Options: $115,204,258

Current Obligation: $108,250,958

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GSTFMGBPA100001

IDV Type: BPA

Timeline