DoD Awards $23M for IT Support to General Dynamics, Raising Value Concerns
Contract Overview
Contract Amount: $22,975,981 ($23.0M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2015-09-03
End Date: 2021-07-28
Contract Duration: 2,155 days
Daily Burn Rate: $10.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CT::IGF WHCA COMMS EQUIPMENT MAINTENANCE AND LOGISTICS SUPPORT SERVICES
Place of Performance
Location: NAVAL ANACOST ANNEX, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20373
Plain-Language Summary
Department of Defense obligated $23.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::CT::IGF WHCA COMMS EQUIPMENT MAINTENANCE AND LOGISTICS SUPPORT SERVICES Key points: 1. Contract value of $22.98M for IT support services. 2. General Dynamics Information Technology, Inc. is the sole awardee. 3. Potential value concerns due to lack of competition. 4. IT sector spending benchmark analysis needed for context.
Value Assessment
Rating: questionable
The contract value of $22.98M for Computer Systems Design Services appears high given the lack of demonstrated competition. Benchmarking against similar IT support contracts is crucial to assess if this price reflects fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although listed as 'FULL AND OPEN COMPETITION', the award to a single contractor, General Dynamics Information Technology, Inc., suggests limited actual competition or a specific delivery order scenario. This limits price discovery and potentially increases costs.
Taxpayer Impact: The lack of robust competition may lead to taxpayers paying more than necessary for these IT support services.
Public Impact
Citizens may question the value received for $23M in IT support services. Transparency in the procurement process is essential for public trust. Ensuring efficient use of taxpayer funds for defense IT is a priority.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition despite 'full and open' designation
- Potential for overpayment due to lack of price discovery
- Long contract duration (2015-2021)
Positive Signals
- Contract awarded to a known IT services provider
- Services support critical defense information systems
Sector Analysis
This contract falls within the IT sector, specifically Computer Systems Design Services. Spending in this area is substantial across government, and competitive bidding is typically expected to drive efficiency and cost savings.
Small Business Impact
The data does not indicate any specific provisions or awards made to small businesses under this contract, suggesting a missed opportunity for small business participation.
Oversight & Accountability
Oversight is needed to ensure the services provided meet the requirements and that the pricing remains competitive throughout the contract's life, especially given the limited competition observed.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Lack of demonstrated competition
- Potential for inflated pricing
- Limited small business participation
- Long contract duration without clear re-competition
Tags
computer-systems-design-services, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::CT::IGF WHCA COMMS EQUIPMENT MAINTENANCE AND LOGISTICS SUPPORT SERVICES
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 $23.0 million.
What is the period of performance?
Start: 2015-09-03. End: 2021-07-28.
What specific factors led to General Dynamics Information Technology, Inc. being the sole awardee despite the 'full and open competition' designation?
The designation 'full and open competition' typically means all responsible sources were permitted to compete. However, the award to a single entity suggests that either only one bid was received, or specific requirements within the solicitation (like technical qualifications or past performance) narrowed the field significantly. Further investigation into the solicitation details and evaluation process would clarify why only one contractor ultimately received the award.
How does the $22.98M contract value compare to industry benchmarks for similar IT support and logistics services?
Benchmarking this contract's value requires detailed comparison with similar contracts for Computer Systems Design Services (NAICS 541512) within the Department of Defense and across government agencies. Factors like service scope, duration, and specific technologies supported are critical. Without this comparative data, assessing whether $22.98M represents fair and reasonable pricing is difficult, especially given the limited competitive landscape observed.
What is the potential risk of cost overruns or reduced service quality given the limited competition and long contract duration?
Limited competition inherently increases the risk of cost overruns, as the contractor may face less pressure to offer competitive pricing. A long duration (2015-2021) can exacerbate this, especially if contract modifications or price adjustments occur without rigorous re-evaluation. Reduced service quality is also a risk if performance incentives are weak or oversight is insufficient, as the contractor may have less motivation to exceed basic requirements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HC104715R4002
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 3150 FAIRVIEW PARK DR STE 100, 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: $23,245,601
Exercised Options: $23,245,601
Current Obligation: $22,975,981
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $59,858
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F088AA
IDV Type: FSS
Timeline
Start Date: 2015-09-03
Current End Date: 2021-07-28
Potential End Date: 2021-07-28 00:00:00
Last Modified: 2024-08-12
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