DoD Awards $41M for IT Operations & Maintenance to General Dynamics Mission Systems

Contract Overview

Contract Amount: $41,077,234 ($41.1M)

Contractor: General Dynamics Mission Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-11-26

End Date: 2018-03-31

Contract Duration: 1,951 days

Daily Burn Rate: $21.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BASE YEAR - OPERATIONS AND MAINTENANCE

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $41.1 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: BASE YEAR - OPERATIONS AND MAINTENANCE Key points: 1. Significant contract value for IT services. 2. Sole-source award raises questions about competition. 3. Long contract duration (1951 days) may indicate evolving needs. 4. Focus on IT operations and maintenance within the defense sector.

Value Assessment

Rating: fair

The contract value of $41M over approximately 5 years for IT operations and maintenance is within a reasonable range for large-scale government IT support. Benchmarking against similar definitive contracts for O&M services is difficult without more granular data on scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, meaning there was no open competition. This approach can lead to higher prices as it limits market pressure and price discovery. The justification for sole-source is not provided.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these IT services compared to a competitively bid contract.

Public Impact

Ensures continued IT operations and maintenance for critical defense systems. Potential for reduced innovation and higher costs due to sole-source award. Impact on the broader IT services market by limiting opportunities for other vendors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Lack of competition
  • Long contract duration

Positive Signals

  • Ensures continuity of essential IT services
  • Established vendor relationship

Sector Analysis

This contract falls within the IT services sector, specifically focusing on operations and maintenance. Defense IT spending is substantial, and contracts of this nature are common for maintaining complex systems. Benchmarks for IT O&M can vary widely based on system complexity and criticality.

Small Business Impact

The contract was not awarded to a small business, and there is no indication of small business subcontracting requirements. This represents a missed opportunity for small businesses in the IT services sector to participate in a significant government contract.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the pricing is fair and reasonable and that the government's interests are protected. Accountability for the justification of the sole-source procurement is crucial.

Related Government Programs

  • Other Computer Related Services
  • Department of Defense Contracting
  • Defense Information Systems Agency Programs

Risk Flags

  • Sole-source award limits competition.
  • Potential for inflated pricing due to lack of competition.
  • Long contract duration may not reflect current needs.
  • No small business participation noted.

Tags

other-computer-related-services, department-of-defense, va, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.1 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. BASE YEAR - OPERATIONS AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS MISSION SYSTEMS, 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 $41.1 million.

What is the period of performance?

Start: 2012-11-26. End: 2018-03-31.

What was the justification for awarding this contract sole-source?

The provided data does not include the justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Understanding this justification is critical for assessing the necessity and fairness of the procurement process.

How does the pricing compare to similar sole-source IT O&M contracts?

Without access to a broader dataset of comparable sole-source IT Operations and Maintenance contracts, it is difficult to definitively benchmark the pricing. However, sole-source awards generally carry a higher risk of inflated costs due to the absence of competitive pressure. A detailed cost analysis would be needed for a precise comparison.

What is the long-term impact of relying on a single vendor for critical IT infrastructure?

Long-term reliance on a single vendor can lead to vendor lock-in, reduced flexibility, and potentially higher costs over time as competition is stifled. It can also create risks if the vendor experiences financial difficulties or changes its strategic direction. Diversifying vendors or ensuring strong contract management can mitigate these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesOther Computer Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

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: Wico Limited

Address: 8201 E MCDOWELL ROAD, SCOTTSDALE, AZ, 85257

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

Financial Breakdown

Contract Ceiling: $41,077,234

Exercised Options: $41,077,234

Current Obligation: $41,077,234

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2012-11-26

Current End Date: 2018-03-31

Potential End Date: 2018-03-31 00:00:00

Last Modified: 2024-10-09

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