DoD's $343.5M Enterprise Transport Management contract awarded to General Dynamics IT
Contract Overview
Contract Amount: $343,549,912 ($343.5M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-01-24
End Date: 2026-02-08
Contract Duration: 2,572 days
Daily Burn Rate: $133.6K/day
Competition Type: COMPETED UNDER SAP
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ENTERPRISE TRANSPORT MANAGEMENT (ETM) - NEXT GENERATION - CORE SUPPORT
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $343.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: ENTERPRISE TRANSPORT MANAGEMENT (ETM) - NEXT GENERATION - CORE SUPPORT Key points: 1. Contract value of $343.5M over 7 years. 2. General Dynamics IT is the sole awardee. 3. Risk of limited competition and potential price inflation. 4. Spending falls within IT services sector.
Value Assessment
Rating: fair
The contract value of $343.5M for Enterprise Transport Management (ETM) over approximately 7 years appears substantial. Benchmarking against similar large-scale IT support contracts is necessary to determine if the pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
Awarded under SAP (Simplified Acquisition Procedures) and as a BPA Call, this suggests limited competition. While SAP can be efficient for smaller procurements, its use for a contract of this magnitude may limit price discovery and potentially lead to higher costs.
Taxpayer Impact: The limited competition raises concerns about taxpayer value, as a more open process could have yielded better pricing.
Public Impact
Ensures critical transport management services for the Department of Defense. Supports military operations through reliable IT infrastructure. Potential for cost overruns due to limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for price inflation
- Sole awardee
Positive Signals
- Supports critical DoD functions
- Long-term contract provides stability
Sector Analysis
This contract falls under Other Computer Related Services within the IT sector. Spending benchmarks for similar enterprise-level IT support and management services are crucial for assessing value.
Small Business Impact
The data indicates this contract was not awarded to small businesses, suggesting a lack of opportunity for SMBs in this procurement.
Oversight & Accountability
Oversight is needed to ensure General Dynamics IT meets performance requirements and that pricing remains fair throughout the contract duration, especially given the limited competition.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Limited competition
- Potential for price inflation
- Sole awardee
- Use of SAP for large contract
Tags
other-computer-related-services, department-of-defense, va, bpa-call, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $343.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. ENTERPRISE TRANSPORT MANAGEMENT (ETM) - NEXT GENERATION - CORE SUPPORT
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 $343.5 million.
What is the period of performance?
Start: 2019-01-24. End: 2026-02-08.
What specific ETM services are included, and how do they align with current DoD needs?
The contract covers core support for Enterprise Transport Management (ETM). Specific services likely include network management, data transport, and related IT infrastructure support crucial for DoD operations. Detailed service level agreements and performance metrics would clarify alignment with evolving mission requirements and technological advancements.
What is the justification for using SAP and a BPA Call for a contract of this value?
Using Simplified Acquisition Procedures (SAP) and a Blanket Purchase Agreement (BPA) Call for a $343.5M contract is unusual and warrants scrutiny. Typically, SAP is for procurements under $250,000. The justification likely stems from specific agency policies or pre-existing BPA agreements, but it significantly limits competitive opportunities and raises questions about best value.
How will the agency ensure cost-effectiveness and prevent price creep over the contract's 7-year duration?
Given the limited competition, robust cost-control mechanisms are essential. This includes regular price reviews, benchmarking against market rates for similar services, and strict adherence to the firm-fixed-price structure. The agency should also explore options for increasing competition in future contract phases or modifications.
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: COMPETED UNDER SAP
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 3150 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $389,466,409
Exercised Options: $350,125,711
Current Obligation: $343,549,912
Subaward Activity
Number of Subawards: 376
Total Subaward Amount: $297,336,263
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102819A0001
IDV Type: BPA
Timeline
Start Date: 2019-01-24
Current End Date: 2026-02-08
Potential End Date: 2026-08-08 00:00:00
Last Modified: 2026-01-30
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