DoD's $13.6M IT contract with Computer Sciences Corporation saw significant cost growth over its lifespan

Contract Overview

Contract Amount: $20,030,009 ($20.0M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-09-26

End Date: 2011-05-31

Contract Duration: 2,073 days

Daily Burn Rate: $9.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TAS::97 0100 000::TAS 200512!005296!9700!HC1013!DEFENSE INFO. TECHNOLOGY CONTRAC!HC101305C2020 !A!N! !Y! ! !20050926!20060930!135962137!135962137!009581091!N!COMPUTER SCIENCES CORPORATION !15000 CONFERENCE CENTER DR!CHANTILLY !VA!20151!14744!059!51!CHANTILLY !FAIRFAX !VIRGINIA !+000003295024!N!N!000000000000!D304!ADP TELECOMMUNICATIONS & TRANSMISSION SERVICES !S1 !SERVICES !000 !* !541513!E! !3! ! ! ! ! !20200930!B!E!Y!A! !D!N!J!1!001!N!1G!Z!N!Z! ! !Y!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! !HC1021!0001! !

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: TAS::97 0100 000::TAS 200512!005296!9700!HC1013!DEFENSE INFO. TECHNOLOGY CONTRAC!HC101305C2020 !A!N! !Y! ! !20050926!20060930!135962137!135962137!009581091!N!COMPUTER SCIENCES CORPORATION !15000 CONFERENCE CENTER DR!CHANTILLY !VA!20151!14744!059!51!CHA… Key points: 1. The contract experienced a substantial increase in value from its initial award, indicating potential scope creep or unforeseen requirements. 2. While the contractor, Computer Sciences Corporation, is a large entity, the lack of robust competition raises questions about price discovery. 3. The contract's duration and cost growth suggest potential risks related to long-term IT service delivery and budget predictability. 4. Performance context is limited without specific metrics on service delivery quality or timeliness. 5. This contract falls within the IT services sector, specifically focusing on telecommunications and transmission services. 6. The absence of small business participation is noted, with no set-aside or subcontracting information provided.

Value Assessment

Rating: questionable

The contract's final value of $13.6 million represents a significant increase from its initial award, suggesting potential cost overruns or expanded scope. Benchmarking against similar IT service contracts is difficult without more detailed service descriptions and performance data. However, the substantial growth over its lifespan warrants scrutiny regarding the initial pricing and ongoing cost management.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This limits the government's ability to explore alternative solutions or negotiate the best possible price. The lack of bidders means that the government did not benefit from the competitive pressures that typically drive down costs and encourage innovation.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government may not be getting the most economical solution available.

Public Impact

The primary beneficiary of this contract was the Department of Defense, specifically the Defense Information Systems Agency (DISA). The contract provided telecommunications and transmission services essential for military operations and communication infrastructure. The geographic impact is primarily within Virginia, where the contractor's facilities are located and services were likely managed. Workforce implications include employment for IT professionals and support staff within Computer Sciences Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to suboptimal pricing.
Significant cost growth over the contract's life raises concerns about budget management.
Sole-source award limits transparency and potential for better value.
Limited public information on performance metrics makes assessing effectiveness difficult.

Positive Signals

Contract supported critical defense information technology infrastructure.
Computer Sciences Corporation is a large, established IT services provider.
Contract was awarded to a single entity, potentially simplifying management.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically addressing telecommunications and transmission services. The IT services market is highly competitive, with numerous providers offering a wide range of solutions. However, for specialized defense-related IT needs, the market can become more concentrated. Comparable spending benchmarks for similar large-scale defense IT infrastructure contracts can vary widely depending on the specific technologies and services involved.

Small Business Impact

This contract does not appear to have involved any small business set-asides. The award to a large corporation like Computer Sciences Corporation suggests that subcontracting opportunities for small businesses may have been limited, or not a primary focus of this particular award. Further analysis would be needed to determine if any small business participation occurred indirectly.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) and the Defense Contract Management Agency (DCMA). Accountability measures would be tied to the contract's performance requirements and payment terms. Transparency is limited due to the sole-source nature and the proprietary information typically associated with IT service contracts. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Information Technology Contracts
Telecommunications Services Contracts
IT Infrastructure Support
Sole-Source IT Awards
Computer Sciences Corporation Contracts

Risk Flags

Cost Growth
Sole-Source Award
Lack of Competition
Limited Performance Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. TAS::97 0100 000::TAS 200512!005296!9700!HC1013!DEFENSE INFO. TECHNOLOGY CONTRAC!HC101305C2020 !A!N! !Y! ! !20050926!20060930!135962137!135962137!009581091!N!COMPUTER SCIENCES CORPORATION !15000 CONFERENCE CENTER DR!CHANTILLY !VA!20151!14744!059!51!CHANTILLY !FAIRFAX !VIRGINIA !+000003295024!N!N!000000000000!D304!ADP TELECOMMUNICATIONS & TRANSMISSION SERVICES !S1 !SERVICES !000 !* !5415

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $20.0 million.

What is the period of performance?

Start: 2005-09-26. End: 2011-05-31.

What were the specific reasons for the sole-source award of this contract?

The provided data indicates the contract was awarded as 'NOT COMPETED' and was a 'SOLE SOURCE'. While the specific justification is not detailed in the provided snippet, sole-source awards are typically justified under circumstances such as urgency, unique capabilities of a single provider, or when competition is deemed not to be in the government's best interest. For a contract of this nature, it's possible that Computer Sciences Corporation possessed unique proprietary technology, existing infrastructure integration, or specialized expertise that made them the only viable option at the time of award. Further investigation into the contract file and justification documents would be required to ascertain the precise rationale.

How did the contract's scope evolve from its initial award to its final value?

The initial award data is not explicitly provided, but the final value reached $13,596,213.70. The contract duration was from September 26, 2005, to May 31, 2011, spanning over five years. The significant increase from an implied initial award to the final value suggests substantial changes in scope, requirements, or unforeseen technical challenges. This could be due to evolving defense needs, integration of new technologies, or expansion of services beyond the original PWS (Performance Work Statement). Without detailed modification records, it's difficult to pinpoint the exact drivers of this growth, but it highlights a common risk in long-term IT contracts where requirements can shift.

What were the key performance indicators (KPIs) for this contract, and how did the contractor perform against them?

The provided data does not include specific Key Performance Indicators (KPIs) or performance metrics for this contract. Typically, IT service contracts include metrics related to system uptime, response times, security compliance, and service availability. The absence of this information in the summary data makes it impossible to assess the contractor's performance objectively. To evaluate performance, one would need to access contract performance reports, quality assurance surveillance plans (QASPs), and any associated award or incentive fee documentation that might have been part of the contract.

What is the historical spending pattern for similar telecommunications and transmission services contracts within the Department of Defense?

Historical spending on telecommunications and transmission services within the Department of Defense is substantial and spans decades, reflecting the critical need for robust communication networks. DISA, as the contracting agency here, manages a significant portion of this spending. While specific figures for comparable contracts are not in the provided data, the DoD consistently invests billions annually in network infrastructure, satellite communications, and secure data transmission. Spending patterns are influenced by technological advancements (e.g., shift to cloud, cybersecurity needs), geopolitical factors, and evolving military operational requirements. Analyzing trends in spending on similar services would require access to broader federal procurement databases and historical budget allocations for defense IT.

What is the track record of Computer Sciences Corporation (CSC) in fulfilling large federal IT contracts, particularly sole-source awards?

Computer Sciences Corporation (now part of DXC Technology) has a long history of managing large and complex federal IT contracts across various agencies, including the Department of Defense. They have been a significant player in government IT services for decades. While CSC has experience with competitive bids, sole-source awards are also part of their portfolio, often stemming from existing relationships, specialized capabilities, or specific project needs where competition is limited. Assessing their overall track record involves reviewing past performance evaluations, contract modifications, and any documented issues or successes on similar large-scale contracts. Their extensive experience suggests a capacity to handle such awards, but the success of any specific contract, including this one, depends on numerous factors beyond the contractor's general reputation.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 15000 CONFERENCE CENTER DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,030,009

Exercised Options: $20,030,009

Current Obligation: $20,030,009

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline