DoD's $14.4M Enterprise Transport Management contract awarded to General Dynamics IT for IT services

Contract Overview

Contract Amount: $14,434,368 ($14.4M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-23

End Date: 2026-09-22

Contract Duration: 729 days

Daily Burn Rate: $19.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE TRANSPORT MANAGEMENT - NEXT GENERATION (ETM-NG)

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $14.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: ENTERPRISE TRANSPORT MANAGEMENT - NEXT GENERATION (ETM-NG) Key points: 1. Contract value appears reasonable given the scope of enterprise-wide IT management. 2. Full and open competition suggests a healthy market for these services. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of two years provides stability for service delivery. 5. This contract supports critical IT infrastructure for the Department of Defense. 6. General Dynamics IT has a significant presence in the federal IT services market.

Value Assessment

Rating: good

The contract value of $14.4 million over two years for enterprise transport management services is within a reasonable range for a large federal agency like the Department of Defense. Benchmarking against similar large-scale IT service contracts, this figure suggests a competitive pricing strategy was likely employed during the procurement process. The firm fixed-price nature of the award further supports value for money by transferring some cost risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. This approach generally fosters a competitive environment, encouraging bidders to offer their best pricing and technical solutions to secure the award. The specific number of bidders is not provided, but the competition type suggests a robust market for these services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices and encourages innovation, leading to better value for the government's investment.

Public Impact

The Department of Defense benefits from improved and managed transportation logistics and IT systems. Services delivered likely include network management, system integration, and IT support for transport operations. The geographic impact is likely nationwide, supporting DoD operations across various locations. Workforce implications may include the need for skilled IT professionals to manage and maintain these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively procured.
Reliance on a single large contractor for critical IT infrastructure could pose a risk.
Scope creep could become an issue if not managed tightly, despite the fixed-price nature.

Positive Signals

Firm fixed-price contract type limits the government's exposure to cost increases.
Full and open competition suggests a competitive market, likely leading to better pricing.
Award to a well-established contractor like General Dynamics IT suggests a degree of reliability.
Contract duration provides a stable period for service delivery and planning.

Sector Analysis

This contract falls within the broader Information Technology services sector, specifically focusing on IT management and support for complex logistical operations. The federal IT services market is substantial, with agencies continually investing in modernizing and managing their digital infrastructure. This contract for Enterprise Transport Management aligns with the government's ongoing efforts to enhance operational efficiency through technology, comparable to spending on other large-scale enterprise resource planning or network management systems.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale IT services contract awarded to a major prime contractor, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specifically mandated or pursued by the prime. The focus is on a large, established IT provider rather than fostering small business participation through set-asides.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA) or equivalent within the Department of Defense. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services within the agreed budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Defense Logistics Agency IT Support Contracts
General Services Administration IT Schedule Contracts
Department of Defense Enterprise IT Modernization Programs
Information Technology Professional Services

Risk Flags

Potential for vendor lock-in
Reliance on a single large IT provider
Contract duration may limit long-term strategic flexibility

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. ENTERPRISE TRANSPORT MANAGEMENT - NEXT GENERATION (ETM-NG)

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 $14.4 million.

What is the period of performance?

Start: 2024-09-23. End: 2026-09-22.

What is the historical spending pattern for Enterprise Transport Management (ETM) services within the Department of Defense?

Analyzing historical spending on ETM services within the DoD requires access to detailed procurement data over several fiscal years. Typically, such services involve managing complex logistics and IT systems that support the movement of personnel and materiel. Spending can fluctuate based on modernization initiatives, changes in operational tempo, and the consolidation or expansion of transportation networks. Without specific historical data for ETM-NG or its predecessors, it's difficult to provide precise figures. However, large federal agencies like the DoD often allocate hundreds of millions, if not billions, to IT and logistics management annually, with specific programs like ETM representing a significant portion of that investment. Trends often show an increasing reliance on integrated IT solutions to improve efficiency and visibility.

How does the awarded price compare to similar IT management contracts for other federal agencies?

Comparing the $14.4 million award for Enterprise Transport Management (ETM-NG) to similar IT management contracts requires identifying comparable procurements based on scope, duration, and agency size. Contracts for enterprise-wide IT infrastructure management, system integration, and network operations for large federal departments can range from tens to hundreds of millions of dollars over multiple years. Given that this is a two-year contract for a major agency like the DoD, the price appears to be in a reasonable mid-tier range for specialized IT services. However, a precise benchmark would necessitate a detailed analysis of contracts with similar service level agreements (SLAs), technical requirements, and contractor overhead structures.

What are the key performance indicators (KPIs) used to evaluate General Dynamics Information Technology's performance under this contract?

While the specific Key Performance Indicators (KPIs) for this Enterprise Transport Management - Next Generation (ETM-NG) contract are not publicly detailed in the award notice, typical KPIs for such IT management services would likely include system uptime and availability, network performance metrics (e.g., latency, throughput), incident response and resolution times, data security compliance, user satisfaction, and adherence to project timelines and budget. The firm fixed-price nature of the contract implies that meeting these KPIs is crucial for the contractor to achieve profitability. Performance would be monitored by the government's technical points of contact and contracting officer's representatives (CORs).

What is the track record of General Dynamics Information Technology (GDIT) in delivering similar large-scale IT management services to the federal government?

General Dynamics Information Technology (GDIT), now part of General Dynamics, has a long and extensive track record of delivering large-scale IT management and support services to various federal agencies, including the Department of Defense. They have historically managed complex IT infrastructures, cybersecurity solutions, cloud services, and enterprise resource planning systems for numerous government clients. GDIT has been a significant player in the federal IT contracting space for decades, often winning major multi-year contracts. Their performance history is generally characterized by the ability to handle complex technical requirements and large program scopes, though like any large contractor, they have experienced both successes and challenges on specific contracts over the years.

What are the potential risks associated with relying on a single contractor for enterprise-wide transport management IT systems?

Relying on a single contractor for enterprise-wide transport management IT systems presents several potential risks. Firstly, there's the risk of vendor lock-in, where the government becomes heavily dependent on the contractor's proprietary systems and expertise, making it difficult and costly to switch providers in the future. Secondly, a lack of ongoing competition could lead to complacency from the contractor, potentially resulting in reduced innovation or less competitive pricing in future contract renewals. Thirdly, if the contractor experiences financial instability, significant operational issues, or a major security breach, it could severely disrupt critical transportation management functions across the DoD. Finally, the government's leverage in negotiations might be diminished if the contractor is seen as indispensable.

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 › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

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: $14,434,368

Exercised Options: $14,434,368

Current Obligation: $14,434,368

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $93,305

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