DoD's $56.8M NIPR contract awarded to General Dynamics IT shows strong competition and fair pricing

Contract Overview

Contract Amount: $56,833,582 ($56.8M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-10-01

End Date: 2021-09-30

Contract Duration: 364 days

Daily Burn Rate: $156.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NIPR CAPACITY AND SERVICES OY1

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $56.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: NIPR CAPACITY AND SERVICES OY1 Key points: 1. Value for money appears favorable given the competitive award and fixed-price structure. 2. Full and open competition suggests a robust market for these services. 3. No immediate risk indicators are apparent from the contract details. 4. Performance context is within the Defense Information Systems Agency's IT support domain. 5. Sector positioning is within IT services for defense agencies. 6. The contract duration of one year is standard for this type of service. 7. The firm fixed-price contract type helps mitigate cost overrun risks.

Value Assessment

Rating: good

The contract value of $56.8 million for a one-year period for NIPR capacity and services appears reasonable, especially considering it was awarded under full and open competition. Without specific benchmarks for NIPR capacity and services, a direct comparison is difficult. However, the firm fixed-price contract type suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. The award to General Dynamics Information Technology, Inc. indicates a selection from a pool of qualified bidders, implying a competitive pricing environment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the designation implies a competitive process that likely resulted in a fair market price. This approach is generally preferred as it maximizes the opportunity for diverse solutions and competitive pricing, benefiting the government.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages innovation.

Public Impact

The primary beneficiary is the Department of Defense, specifically users of the Non-classified Internet Protocol Router Network (NIPR). The services delivered include capacity and support for the NIPR network, crucial for military communications. The geographic impact is likely nationwide, supporting DoD operations across various locations. Workforce implications may include IT support personnel employed by General Dynamics Information Technology, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the quality of services delivered.
The contract value, while appearing reasonable, could be benchmarked against similar NIPR support contracts for a more precise value assessment.
Potential for vendor lock-in if this is a recurring contract for essential NIPR services.

Positive Signals

Awarded under full and open competition, suggesting a competitive market and potentially fair pricing.
Firm fixed-price contract type shifts cost overrun risk to the contractor.
Contract awarded to a well-established IT services provider with a track record in the defense sector.
The contract supports critical IT infrastructure for the Department of Defense.

Sector Analysis

The IT services sector for the federal government is vast, with significant spending allocated to network infrastructure, cybersecurity, and IT support. This contract falls within the IT services sub-sector, specifically focusing on network capacity and services for a major defense agency. Comparable spending benchmarks would involve analyzing other large-scale network support contracts awarded by the DoD or other federal agencies to understand typical pricing and service levels for similar requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, as a large prime contract awarded to General Dynamics Information Technology, Inc., there may be opportunities for small businesses to participate as subcontractors, depending on the prime contractor's subcontracting plan and the specific nature of the services required.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, which requires the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD Network Modernization Programs
Defense Information Systems Agency (DISA) IT Support Contracts
Federal Civilian IT Infrastructure Support
Government-wide IT Services Contracts

Risk Flags

Potential for performance issues if not adequately managed.
Reliance on a single contractor for critical network capacity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $56.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. NIPR CAPACITY AND SERVICES OY1

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 $56.8 million.

What is the period of performance?

Start: 2020-10-01. End: 2021-09-30.

What is the historical spending pattern for NIPR capacity and services by the Department of Defense?

Analyzing historical spending for NIPR capacity and services by the Department of Defense (DoD) requires access to detailed federal procurement databases. Generally, the DoD consistently invests significant resources in maintaining and expanding its network infrastructure, including NIPR. Spending patterns are influenced by factors such as technological advancements, evolving security threats, user demand, and strategic defense priorities. Contracts for network capacity and services are often awarded on a multi-year basis, with varying contract types (e.g., firm-fixed-price, cost-plus) depending on the scope and risk. The total annual spending can fluctuate based on specific upgrade cycles, new deployments, or changes in service requirements. Without specific historical data for this exact service category, it's challenging to provide precise figures, but it is safe to assume consistent and substantial investment in maintaining robust and secure communication networks like NIPR.

How does the awarded price of $56.8 million compare to similar NIPR capacity and services contracts?

Comparing the awarded price of $56.8 million for NIPR capacity and services requires access to a database of comparable contracts, including their scope, duration, and specific services. As this contract is for one year, a direct comparison would ideally be with other one-year contracts for similar NIPR support. Factors such as the specific capacity levels, service level agreements (SLAs), geographic coverage, and the technological components included would significantly influence pricing. Given that this contract was awarded under full and open competition to General Dynamics Information Technology, Inc., it suggests that the price is likely competitive within the market for such services. However, without detailed benchmark data, it's difficult to definitively state if it represents excellent or merely fair value. A deeper analysis would involve examining the number of bids received and the price range of those bids.

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

General Dynamics Information Technology, Inc. (GDIT) has a substantial and well-documented track record of performing large-scale IT services contracts for the Department of Defense (DoD) and other federal agencies. They are a major federal contractor with extensive experience in areas such as network engineering, cybersecurity, cloud computing, and IT support services. GDIT has historically secured and successfully executed numerous contracts involving complex IT infrastructure management, including those for critical defense networks. Their past performance often includes managing large teams, adhering to stringent security protocols, and delivering services across diverse operational environments. Reviews of their contract history would likely reveal a pattern of winning significant awards and fulfilling contractual obligations, though like any large contractor, specific contract performance can vary. Their established presence suggests a capacity to handle contracts of this magnitude and complexity.

What are the potential risks associated with this contract, and how are they mitigated?

Potential risks associated with this contract include performance issues, such as service disruptions or failure to meet service level agreements (SLAs), and cost overruns if the contract type were not firm fixed-price. However, the firm fixed-price (FFP) nature of this contract significantly mitigates cost overrun risks for the government, as the contractor assumes responsibility for any cost increases. Performance risks are mitigated through the competitive bidding process, which ideally selects a capable contractor, and through ongoing oversight by the Defense Information Systems Agency (DISA). Contractual clauses regarding performance standards, reporting requirements, and potential penalties for non-performance also serve as mitigation strategies. Furthermore, the contractor's established track record and the competitive landscape can incentivize good performance to secure future contracts.

How does the competition level (full and open) impact the value for taxpayers?

A full and open competition process generally maximizes value for taxpayers. By allowing all responsible sources to bid, the government creates a competitive environment that encourages multiple companies to offer their best pricing and innovative solutions to win the contract. This competition typically drives down prices compared to sole-source or limited competition awards, as contractors vie for the business. It also provides greater transparency into market rates for the services being procured. For taxpayers, this means their money is more likely to be spent efficiently, obtaining the required services at a fair market price. The process also reduces the risk of the government overpaying for goods or services due to a lack of competitive pressure.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HC102816R0020

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corporation

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: $56,833,582

Exercised Options: $56,833,582

Current Obligation: $56,833,582

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $244,261

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102817D0004

IDV Type: IDC

Timeline