DoD Awards $45M for Communications Tech Support to General Dynamics, Facing Potential Cost Overruns
Contract Overview
Contract Amount: $45,136,432 ($45.1M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-09-30
End Date: 2026-03-09
Contract Duration: 2,352 days
Daily Burn Rate: $19.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST NO FEE
Sector: IT
Official Description: COMMUNICATIONS TECHNICAL SUPPORT SVCS
Plain-Language Summary
Department of Defense obligated $45.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: COMMUNICATIONS TECHNICAL SUPPORT SVCS Key points: 1. Significant contract value of $45.1M for specialized technical support. 2. General Dynamics Information Technology, Inc. is the sole awardee. 3. Potential for cost overruns indicated by a high benchmark ratio. 4. The sector is Information Technology, specifically engineering services.
Value Assessment
Rating: questionable
The contract's benchmark ratio of 1.92 suggests potential cost inefficiencies compared to similar contracts. While the award type is 'COST NO FEE', the high benchmark warrants scrutiny to ensure value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the specific award type and the subsequent performance may have influenced the final cost discovery.
Taxpayer Impact: Taxpayers may be impacted if the contract's cost efficiency is lower than anticipated due to the high benchmark ratio.
Public Impact
Ensures critical communications infrastructure support for the Department of Defense. Supports advanced technological capabilities within the defense sector. Potential for long-term reliance on a single vendor for specialized services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High benchmark ratio indicates potential cost inefficiencies.
- No small business participation noted.
- Long contract duration (2352 days).
Positive Signals
- Awarded under full and open competition.
- Provides essential technical support services.
Sector Analysis
This contract falls within the IT sector, specifically engineering services (NAICS 541330). Spending in this area is critical for maintaining advanced technological capabilities, with benchmarks varying widely based on service complexity and duration.
Small Business Impact
This contract does not appear to include any provisions for small business participation. This is a missed opportunity to leverage small business innovation and support economic diversity within the federal contracting landscape.
Oversight & Accountability
The contract's duration and value necessitate robust oversight to ensure performance standards are met and costs remain controlled. Regular reviews of the benchmark ratio are crucial for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- High benchmark ratio suggests potential cost inefficiencies.
- No small business participation.
- Long contract duration increases risk of scope creep or obsolescence.
- Sole awardee may limit future competitive options.
Tags
engineering-services, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $45.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. COMMUNICATIONS TECHNICAL SUPPORT SVCS
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 $45.1 million.
What is the period of performance?
Start: 2019-09-30. End: 2026-03-09.
What specific factors contributed to the high benchmark ratio, and are there plans to mitigate potential cost overruns?
The high benchmark ratio (1.92) suggests that the awarded cost is significantly higher than the benchmark for similar services. Further analysis is needed to determine if this is due to unique service requirements, market conditions, or potential inefficiencies. Mitigation strategies should focus on performance monitoring and cost control measures throughout the contract lifecycle.
Given the full and open competition, why did General Dynamics Information Technology, Inc. receive the award, and what was the competitive landscape?
While awarded under full and open competition, the specific details of the bidding process, including the number of bidders and the nature of their proposals, are not provided. General Dynamics Information Technology, Inc. likely offered the best value proposition based on technical merit, past performance, and price, as determined by the contracting agency.
What is the potential impact on national security if communications technical support services are not effectively delivered under this contract?
Effective delivery of communications technical support is critical for maintaining secure and reliable command and control systems for the Department of Defense. Any disruption or degradation in these services could significantly impair operational readiness, intelligence gathering, and overall mission effectiveness, posing a direct risk to national security.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HC102814R0006
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 3211 JERMANTOWN RD, FAIRFAX, VA, 22030
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $50,842,930
Exercised Options: $45,136,432
Current Obligation: $45,136,432
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $5,512,961
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102815D0007
IDV Type: IDC
Timeline
Start Date: 2019-09-30
Current End Date: 2026-03-09
Potential End Date: 2026-09-07 00:00:00
Last Modified: 2025-11-25
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