DoD's $18.5M legacy system support contract awarded to General Dynamics Information Technology, Inc. without competition

Contract Overview

Contract Amount: $18,533,772 ($18.5M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-06-01

End Date: 2016-05-31

Contract Duration: 1,826 days

Daily Burn Rate: $10.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LOGISTICAL SUPPORT OF THE LEGACY SYSTEM

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $18.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: LOGISTICAL SUPPORT OF THE LEGACY SYSTEM Key points: 1. The contract's value of $18.5 million over five years suggests a significant investment in maintaining an aging system. 2. Awarded on a sole-source basis, the lack of competition raises questions about potential overpricing and limited innovation. 3. The 'Other Computer Related Services' classification indicates a broad scope, potentially encompassing maintenance, upgrades, and technical support. 4. The contract duration of 1826 days (5 years) points to a long-term commitment to the legacy system. 5. The firm-fixed-price contract type shifts cost risk to the contractor, which can be beneficial if well-defined. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted to support small businesses.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without specific details on the services provided. However, a $18.5 million expenditure over five years for logistical support of a legacy system, especially when awarded without competition, warrants scrutiny. The lack of competitive bidding means there was no direct price comparison to market rates or other potential providers, making it difficult to ascertain if the price reflects fair market value. Without comparable contracts or detailed service breakdowns, it's hard to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This typically occurs when only one contractor is capable of performing the work, or in situations where competition is deemed not to be in the government's best interest. The lack of multiple bidders means the government did not benefit from the price discovery mechanisms inherent in a competitive bidding process, potentially leading to higher costs than if multiple firms had vied for the contract.

Taxpayer Impact: Taxpayers may have paid a premium for this service due to the absence of competitive pressure. The government missed an opportunity to leverage competition to drive down costs and potentially secure better terms.

Public Impact

The primary beneficiaries are the Department of Defense (DoD) and its personnel who rely on the operational continuity of the legacy system. The services delivered include logistical support, which likely encompasses maintenance, repair, and potentially minor upgrades to ensure the system's functionality. The geographic impact is centered in Maryland (ST: MD, SN: MARYLAND), indicating the primary operational or support location for this contract. Workforce implications could involve the retention of specialized technical personnel required to support the legacy system, potentially within General Dynamics Information Technology, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs for taxpayers.
Sole-source award limits opportunities for other vendors, including small businesses.
Reliance on a legacy system could indicate potential technical debt and future modernization challenges.
The broad 'Other Computer Related Services' category might obscure specific cost drivers.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
General Dynamics Information Technology, Inc. is a large, established contractor with significant experience.
The contract duration suggests a stable, long-term support arrangement for a critical system.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under 'Other Computer Related Services.' The IT services market is vast and highly competitive, with numerous companies offering support for various systems, including legacy ones. However, specialized support for older, proprietary systems can sometimes be concentrated among a few providers. The $18.5 million value over five years is a moderate-sized contract within the broader IT services landscape, but its significance is amplified by the sole-source award and the nature of supporting a legacy system, which often requires unique expertise.

Small Business Impact

This contract does not appear to have been set aside for small businesses, as indicated by 'sb: false'. The sole-source nature further precludes small business participation through direct award. There is no explicit information regarding subcontracting plans for small businesses. This means that opportunities for small businesses to participate in this specific contract are likely limited to potential subcontracting roles, if any, within the prime contractor's operations.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Information Systems Agency (DISA) and the Department of Defense. As a definitive contract, it is subject to standard government contract administration and oversight processes. Transparency is limited due to the sole-source award and the lack of publicly available detailed performance metrics. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency (DISA) IT Support Contracts
Legacy System Modernization Programs
Department of Defense Logistics and Maintenance Contracts
General Dynamics Information Technology, Inc. Government Contracts

Risk Flags

Sole-source award
Legacy system dependency
Lack of transparency in service scope

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. LOGISTICAL SUPPORT OF THE LEGACY SYSTEM

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 $18.5 million.

What is the period of performance?

Start: 2011-06-01. End: 2016-05-31.

What specific services are included under 'LOGISTICAL SUPPORT OF THE LEGACY SYSTEM'?

The term 'LOGISTICAL SUPPORT OF THE LEGACY SYSTEM' is broad and can encompass a range of activities. Based on typical government contracts for legacy systems, this likely includes maintenance, repair, troubleshooting, and potentially minor software updates or patches to ensure the system remains operational. It may also involve managing spare parts, providing technical documentation, and offering help desk support. Without the full contract details or statement of work, the precise scope remains undefined, but it centers on keeping the existing system functional and available for use by the Department of Defense.

What is the historical spending pattern for this legacy system?

The provided data indicates a single definitive contract valued at $18,533,772.21, awarded on June 1, 2011, and ending on May 31, 2016. This represents a five-year period of logistical support. To understand the historical spending pattern, one would need to examine prior contracts for the same or similar legacy systems, or subsequent contracts if the system's support continued beyond 2016. The current data point suggests a significant, but isolated, expenditure for this specific contract period. Further research into DISA's procurement history would be necessary to establish a comprehensive spending trend.

How does the $18.5 million contract value compare to similar legacy system support contracts?

Comparing the $18.5 million value requires context on the system's complexity, criticality, and the specific services rendered. Legacy system support can vary widely in cost. If this system is mission-critical and requires highly specialized, round-the-clock support, $18.5 million over five years ($3.7 million annually) might be reasonable, especially if awarded sole-source due to unique expertise requirements. However, if the system is less critical or the support scope is limited, this amount could be considered high, particularly given the lack of competition. Benchmarking against similar-sized DoD legacy system support contracts, especially those competed, would provide a clearer picture of value for money.

What are the risks associated with relying on a sole-source contractor for legacy system support?

Relying on a sole-source contractor for legacy system support presents several risks. Firstly, the lack of competition can lead to higher prices and reduced incentive for the contractor to innovate or improve service quality, as there are no alternative providers to pressure them. Secondly, it creates vendor lock-in, making it difficult and potentially costly to switch contractors in the future. Thirdly, the contractor might possess unique, proprietary knowledge about the system, giving them significant leverage. Finally, if the sole-source contractor experiences financial difficulties or decides to exit the market, the government could face significant disruption in support and a challenging transition to a new provider.

What is the track record of General Dynamics Information Technology, Inc. in supporting DoD legacy systems?

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record supporting the Department of Defense (DoD) across a wide range of IT services, including legacy system support. As a major federal contractor, GDIT has been involved in numerous large-scale IT programs for various military branches and agencies. Their experience often includes maintaining complex, long-standing systems that are critical to military operations. While specific performance details for this particular legacy system contract are not provided, GDIT's general profile suggests they possess the scale and technical capabilities to handle such requirements. However, the success of any specific contract also depends on the detailed execution and management by both the contractor and the government.

What are the potential performance issues or concerns with this contract?

Potential performance concerns with this contract stem primarily from its sole-source nature and the focus on a legacy system. Without competition, there's a reduced incentive for the contractor to proactively identify and resolve underlying issues or to optimize performance beyond the minimum required by the contract. The aging nature of the legacy system itself poses inherent risks, such as increased downtime, security vulnerabilities, and difficulty integrating with newer technologies. Furthermore, the broad classification of 'Other Computer Related Services' might lack specific performance metrics, making it harder to objectively assess the quality and effectiveness of the logistical support provided.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HC102811R0102

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,533,772

Exercised Options: $18,533,772

Current Obligation: $18,533,772

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline