DoD's $52.9M IT transition support contract awarded to General Dynamics Information Technology, Inc

Contract Overview

Contract Amount: $52,938,259 ($52.9M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-10-01

End Date: 2022-06-08

Contract Duration: 250 days

Daily Burn Rate: $211.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TRANSITION SUPPORT OY2

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $52.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: TRANSITION SUPPORT OY2 Key points: 1. Contract awarded for IT transition support services, indicating a need for specialized technical assistance. 2. The contract was awarded under full and open competition, suggesting a robust bidding process. 3. The fixed-price contract type aims to control costs by establishing a set price for services. 4. The duration of the contract is 250 days, suggesting a focused, short-term project. 5. The small business set-aside flag is false, meaning large businesses were eligible and likely competed. 6. The contract falls under the 'Other Computer Related Services' category, highlighting a specific IT niche.

Value Assessment

Rating: fair

The contract value of $52.9 million for 250 days of IT transition support appears high on a daily basis. Benchmarking against similar IT support contracts is difficult without more specific service details. However, the firm fixed-price structure suggests an attempt to manage this cost effectively. Further analysis would require comparing the scope of work and deliverables to industry standards for transition support services.

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 number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the agency sought the best value proposition from the market.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for cost savings through competitive bidding and encourages a wider range of innovative solutions.

Public Impact

The Department of Defense benefits from enhanced IT transition support, ensuring smoother operational changes. Services delivered likely include technical planning, system integration, and user support during IT transitions. The geographic impact is primarily within the Department of Defense's operational areas, likely concentrated in Virginia where the contractor is based. Workforce implications may involve the deployment of specialized IT personnel by General Dynamics Information Technology, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of 'transition support' is broader than anticipated.
Risk of vendor lock-in if the transition is not managed to allow for future flexibility.
Dependence on a single contractor for critical IT transition phases.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm fixed-price contract type helps control costs.
Contract awarded to a large, established IT services provider with a track record.

Sector Analysis

The IT services sector is a significant component of federal spending, with a substantial portion allocated to computer systems design and related services (NAICS 541519). This contract fits within the broader category of IT support and modernization efforts within the Department of Defense. Comparable spending benchmarks for IT transition support can vary widely based on complexity, duration, and specific technologies involved. The $52.9 million value for a 250-day period suggests a high-demand, specialized service.

Small Business Impact

This contract was not set aside for small businesses, as indicated by the 'sb' flag being false. This means that large businesses, such as General Dynamics Information Technology, Inc., were eligible to compete and were likely the primary participants. There is no explicit information on subcontracting plans for small businesses within this data, which could represent missed opportunities for the small business IT ecosystem.

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 incentivizes the contractor to meet defined deliverables within budget. Transparency is facilitated through contract award databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency IT Modernization Programs
Department of Defense Cloud Computing Initiatives
Federal IT Services and Support Contracts
IT Transition and Migration Services

Risk Flags

High daily cost suggests potential for budget overruns if not carefully managed.
Lack of specific performance metrics makes objective assessment difficult.
Potential for vendor lock-in if transition is not managed for future flexibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. TRANSITION SUPPORT OY2

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 $52.9 million.

What is the period of performance?

Start: 2021-10-01. End: 2022-06-08.

What is the specific nature of the 'transition support' being provided under this contract?

The provided data indicates the contract is for 'TRANSITION SUPPORT OY2' and falls under NAICS code 541519 (Other Computer Related Services). While the exact nature of the transition is not detailed, it likely involves the migration, integration, or modernization of IT systems or infrastructure within the Department of Defense, managed by the Defense Information Systems Agency. This could encompass activities such as data migration, system decommissioning, new system deployment, cybersecurity enhancements during the transition, and user training. The 'OY2' designation might refer to a specific phase or objective within a larger IT program.

How does the $52.9 million value compare to similar IT transition support contracts awarded by the DoD?

Direct comparison of the $52.9 million value for a 250-day period is challenging without granular data on similar contracts. However, for context, large-scale IT modernization and transition projects within the DoD can range from tens to hundreds of millions of dollars. The daily burn rate implied by this contract ($52.9M / 250 days ≈ $211,754 per day) suggests a significant scope or complexity. Contracts for enterprise resource planning (ERP) system transitions, cloud migrations, or major network infrastructure upgrades often fall into this spending bracket. Further benchmarking would require analyzing contracts with identical or highly similar scopes of work and service level agreements.

What are the key performance indicators (KPIs) or deliverables expected under this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or specific deliverables for this contract. However, for an IT transition support contract, typical KPIs might include system uptime during migration, data integrity post-transition, successful deployment of new functionalities, adherence to project timelines, and user satisfaction rates. Deliverables would likely encompass project management plans, technical documentation, system architecture designs, migration reports, security assessment reports, and training materials. The firm fixed-price nature of the contract implies that these deliverables and their associated performance standards are clearly defined in the contract's statement of work.

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

General Dynamics Information Technology, Inc. (GDIT) is a major federal contractor with extensive experience in providing IT services to the Department of Defense and other government agencies. They have a well-established track record in areas such as cloud computing, cybersecurity, enterprise IT modernization, and system integration. While specific details on past 'transition support' contracts are not in this dataset, GDIT's overall portfolio suggests they possess the capabilities and experience necessary to handle complex IT transitions. Their history includes numerous large-scale contracts involving significant IT infrastructure and application support for defense clients.

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

Potential risks include scope creep, where the definition of 'transition support' expands beyond the original intent, leading to cost overruns despite the fixed-price nature. Technical challenges during migration, cybersecurity vulnerabilities introduced during the transition, and delays impacting critical defense operations are also risks. Mitigation strategies likely involve robust project management, clearly defined milestones and deliverables in the contract, stringent cybersecurity protocols, and regular performance reviews between DISA and GDIT. The firm fixed-price contract itself acts as a primary risk mitigation tool for the government by capping the financial exposure.

How has spending on IT transition support services by the DoD evolved over the past five years?

Analyzing the evolution of DoD spending on IT transition support requires access to historical contract data beyond this single award. Generally, federal IT spending, including transition and modernization efforts, has been substantial and increasing, driven by the need to update legacy systems, adopt cloud technologies, and enhance cybersecurity. The DoD, in particular, has prioritized digital modernization to maintain technological superiority. Spending on transition support services is often tied to larger modernization programs, making it fluctuate based on the lifecycle of these initiatives. Trends indicate a move towards agile methodologies and cloud-native solutions, influencing the nature and cost of transition support.

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 - COMPUTE

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: $52,938,259

Exercised Options: $52,938,259

Current Obligation: $52,938,259

Subaward Activity

Number of Subawards: 39

Total Subaward Amount: $38,193,978

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102817D0004

IDV Type: IDC

Timeline