DoD's $58.3M IT contract for system administration support awarded to General Dynamics Information Technology

Contract Overview

Contract Amount: $58,307,575 ($58.3M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-09-25

End Date: 2025-09-28

Contract Duration: 1,829 days

Daily Burn Rate: $31.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SYSTEM ADMINISTRATION SUPPORT SERVICES

Place of Performance

Location: NAVAL ANACOST ANNEX, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20373

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $58.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: SYSTEM ADMINISTRATION SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1829 days indicates a long-term need for these services. 3. The firm-fixed-price contract type shifts cost risk to the contractor. 4. The contract is for system administration support, a critical IT function. 5. The awardee, General Dynamics Information Technology, is a large, established federal contractor. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract's total value of $58.3 million over approximately five years suggests a significant investment in IT infrastructure support. Benchmarking this against similar system administration contracts is challenging without more specific service details. However, the firm-fixed-price structure is generally favorable for the government, as it caps potential cost overruns. The number of bids received (31) provides a reasonable basis for assessing value, indicating that the pricing was likely competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 31 bids received. This indicates a robust bidding environment where multiple qualified vendors had the opportunity to compete for the work. The high number of bidders suggests that the market for system administration support services is healthy and that the government likely received competitive pricing due to the breadth of the competition.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it increases the likelihood of securing services at a fair market price and reduces the risk of overpayment.

Public Impact

The Department of Defense benefits from reliable system administration, ensuring the smooth operation of its IT infrastructure. Services delivered include essential system administration functions, crucial for maintaining network stability and security. The contract's primary geographic impact is in the District of Columbia, where the services are likely performed. The contract supports a workforce of IT professionals, contributing to the federal IT employment landscape.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the contractor becomes deeply integrated into DoD systems.
Reliance on a single contractor for critical system administration could pose risks if performance degrades.
The long contract duration may limit opportunities for adopting newer technologies or more cost-effective solutions from other vendors.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm-fixed-price contract type helps control costs for the government.
The contractor, General Dynamics Information Technology, has extensive experience in federal IT services.
The contract is a delivery order, suggesting it leverages an existing, potentially pre-competed IDIQ vehicle.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems administration. The market for IT services, including system administration, is vast and highly competitive, with numerous large and small businesses offering specialized support. The Department of Defense is a significant consumer of such services, often procuring them through large IDIQ contracts that allow for task orders like this one. Comparable spending benchmarks would depend on the specific scope of services, but multi-year IT support contracts for major federal agencies typically run into tens or hundreds of millions of dollars.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The awardee, General Dynamics Information Technology, is a large business. This means that opportunities for small businesses to participate in this specific contract are likely limited to subcontracting roles, if any are mandated or pursued by the prime contractor. The absence of a small business set-aside suggests that the procurement was focused on obtaining the best value from the broader market.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Defense Information Systems Agency (DISA). Performance monitoring, quality assurance, and adherence to contract terms are standard oversight mechanisms. As a Department of Defense contract, it may also be subject to review by the DoD Inspector General, particularly concerning allegations of fraud, waste, or abuse. Transparency is generally maintained through contract award databases like FPDS.

Related Government Programs

IT Support Services
System Administration
Defense Information Technology Services
General Dynamics IT Contracts
DISA Contracts
Federal IT Infrastructure Support

Risk Flags

Long contract duration may limit flexibility
Potential for vendor lock-in
Reliance on a single contractor for critical IT functions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $58.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. SYSTEM ADMINISTRATION 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 $58.3 million.

What is the period of performance?

Start: 2020-09-25. End: 2025-09-28.

What is the specific scope of 'System Administration Support Services' covered under this contract?

The provided data indicates the contract is for 'SYSTEM ADMINISTRATION SUPPORT SERVICES' and falls under NAICS code 541519 (Other Computer Related Services). While the specific tasks are not detailed, system administration typically encompasses a broad range of IT support functions. This can include managing servers, networks, databases, operating systems, user accounts, security protocols, backups, and disaster recovery. It may also involve troubleshooting hardware and software issues, implementing patches and updates, and ensuring the overall health, performance, and security of IT systems. The exact deliverables would be defined in the contract's statement of work (SOW), which is not provided here but would detail the precise responsibilities of General Dynamics Information Technology.

How does the $58.3 million value compare to similar system administration contracts within the DoD?

Direct comparison of the $58.3 million value is difficult without knowing the precise scope and duration of services. However, for a five-year contract (approximately 1829 days), this equates to roughly $11.66 million per year. This figure is substantial but not unusual for comprehensive IT system administration support for a major federal agency like the Department of Defense, especially when considering the complexity and scale of DoD's IT infrastructure. Many similar contracts supporting critical IT functions within large government organizations can range from tens to hundreds of millions of dollars over their lifecycle. The firm-fixed-price nature and the 31 bids suggest the government aimed for competitive pricing within this significant investment.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for system administration support services, typical KPIs and SLAs would likely focus on system uptime and availability (e.g., 99.9% uptime for critical servers), response times for incident resolution (e.g., critical issues resolved within 1 hour), patch management timelines, security compliance adherence, and successful completion of backup and recovery operations. These metrics are crucial for ensuring the contractor meets performance expectations and for the government to assess the value and effectiveness of the services provided. The contracting officer's representative (COR) would typically monitor these metrics.

What is General Dynamics Information Technology's track record with similar DoD IT contracts?

General Dynamics Information Technology (GDIT), now part of General Dynamics, has a long and extensive track record of providing IT services to the Department of Defense and other federal agencies. They are a major federal contractor frequently awarded large-scale IT support, system integration, cybersecurity, and cloud computing contracts. Their experience spans various defense agencies, including DISA, and covers a wide range of IT functions. While specific performance details for every contract are not publicly available, GDIT's continued success in winning significant DoD contracts suggests a generally positive performance history and capability to meet the complex requirements of military IT environments. Past performance is a key evaluation factor in federal procurements.

How does the firm-fixed-price (FFP) contract type impact risk and cost for the government?

The firm-fixed-price (FFP) contract type places the majority of the cost risk on the contractor, General Dynamics Information Technology. Under an FFP contract, the contractor agrees to a set price for the defined scope of work, regardless of their actual costs incurred. This provides the government with cost certainty, as the total price is fixed. It incentivizes the contractor to manage their costs efficiently to maximize profit. For the government, this means predictable budgeting and protection against cost overruns, assuming the scope of work is well-defined. However, if the scope changes significantly, contract modifications (and potential price adjustments) would be necessary. FFP is generally preferred for services with well-understood requirements.

What is the historical spending pattern for system administration support services by the Defense Information Systems Agency (DISA)?

Historical spending data for DISA on system administration support services would reveal trends in IT investment. While specific figures for this category are not provided, DISA is known to be a major procurer of IT services, managing vast networks and systems for the DoD. Their spending on system administration is likely substantial and has probably increased over time, reflecting the growing complexity and criticality of military IT infrastructure, cybersecurity needs, and the transition to cloud environments. Analyzing historical spending would show whether this $58.3 million award represents an increase, decrease, or stable level of investment compared to previous periods or similar contracts awarded by DISA. It would also indicate the agency's reliance on external contractors for these core functions.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

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: $75,382,601

Exercised Options: $72,225,925

Current Obligation: $58,307,575

Actual Outlays: $17,901,697

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $1,220,545

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: GS35F080CA

IDV Type: FSS

Timeline