DoD's $18.3M contract for IT support to the On-Site Inspection Directorate awarded to General Dynamics IT

Contract Overview

Contract Amount: $18,287,702 ($18.3M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-09-29

End Date: 2010-09-29

Contract Duration: 730 days

Daily Burn Rate: $25.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: NONPERSONAL SERVICES IN SUPPORT OF THE ON-SITE INSPECTION DIRECTORATE (OP-OS).

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22310

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: NONPERSONAL SERVICES IN SUPPORT OF THE ON-SITE INSPECTION DIRECTORATE (OP-OS). Key points: 1. Contract awarded for administrative management and general management consulting services. 2. General Dynamics Information Technology, Inc. secured this definitive contract. 3. The contract duration was 730 days, ending in September 2010. 4. This was a sole-source award, raising questions about competition. 5. The contract type was Cost Plus Fixed Fee, which can shift risk to the government. 6. The contract was managed by the Defense Contract Management Agency. 7. The North American Industry Classification System code is 541611.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without specific deliverables or performance metrics. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D or uncertain scope, can lead to higher costs for the government if not closely managed, as contractor costs are reimbursed plus a fixed fee. Without comparative data on similar IT support contracts for inspection directorates, assessing whether $18.3 million over two years represents fair value is difficult. The lack of competition further complicates a value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when only one vendor possesses the unique capabilities or qualifications required for the service, or in cases of urgent need. The lack of a competitive bidding process means potential savings from market competition were not realized, and the government did not benefit from a range of proposals and pricing strategies.

Taxpayer Impact: Sole-source awards can result in higher prices for taxpayers as there is no competitive pressure to drive down costs. It also limits opportunities for other qualified businesses to secure government contracts.

Public Impact

The primary beneficiary is the Department of Defense's On-Site Inspection Directorate, receiving essential IT support. Services provided include administrative management and general management consulting. The contract supports the operational functions of a key defense directorate. The geographic impact is likely concentrated around the directorate's operational base, primarily in Virginia. The contract supports the workforce within General Dynamics Information Technology, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings.
Cost Plus Fixed Fee structure may incentivize higher spending by the contractor.
Lack of detailed performance metrics makes value assessment difficult.
Contract duration of two years without clear performance reviews could lead to complacency.

Positive Signals

Awarded to a known entity, General Dynamics Information Technology, Inc., suggesting established capabilities.
Contract supports a critical function within the Department of Defense.
Definitive contract provides a clear framework for the service period.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is crucial for government operations, providing expertise in areas ranging from IT support to strategic planning. The market for these services is large and competitive, though specific niche support like that for specialized directorates can sometimes lead to less open competition. Benchmarking requires comparison to similar IT and management consulting contracts within the defense sector.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). General Dynamics Information Technology, Inc. is a large corporation. There is no information provided regarding subcontracting plans or actual performance with small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, and there's no indication of specific efforts to engage small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to monitor costs and the reasonableness of the fixed fee. Transparency is limited by the sole-source nature and the lack of publicly available detailed performance reports. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense IT Services Contracts
Management and Consulting Services Contracts
On-Site Inspection Directorate Support
General Dynamics Information Technology Contracts

Risk Flags

Sole-source award
Cost-reimbursable contract type
Lack of public performance data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. NONPERSONAL SERVICES IN SUPPORT OF THE ON-SITE INSPECTION DIRECTORATE (OP-OS).

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 Contract Management Agency).

What is the total obligated amount?

The obligated amount is $18.3 million.

What is the period of performance?

Start: 2008-09-29. End: 2010-09-29.

What was the specific scope of work for "NONPERSONAL SERVICES IN SUPPORT OF THE ON-SITE INSPECTION DIRECTORATE (OP-OS)?"

The contract description "NONPERSONAL SERVICES IN SUPPORT OF THE ON-SITE INSPECTION DIRECTORATE (OP-OS)" combined with the NAICS code 541611 (Administrative Management and General Management Consulting Services) suggests the work involved providing expertise and support to the directorate's administrative and management functions. This could encompass a range of activities such as strategic planning, organizational analysis, process improvement, IT system management, and general administrative support necessary for the directorate's operations. However, without the full contract details or performance work statement, the precise deliverables and tasks remain unspecified, making it difficult to fully assess the contract's impact or value.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar IT support services?

Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or involves research and development where costs are uncertain. Compared to Firm-Fixed-Price (FFP) contracts, CPFF shifts more cost risk to the government, as the contractor is incentivized to incur costs to cover their fixed fee, and cost overruns are borne by the government. However, FFP contracts can be problematic if the scope is not well-defined, leading to change orders. For IT support with a relatively stable scope, FFP or Fixed-Price Incentive (FPI) contracts might offer better cost control for the government, provided the requirements are clearly articulated.

What are the implications of a sole-source award for IT services within the Department of Defense?

Sole-source awards for IT services within the Department of Defense can stem from unique technological requirements, proprietary systems, or specialized expertise that only one contractor possesses. While potentially ensuring the right capabilities are secured, it significantly reduces competitive pressure, which typically drives down prices and fosters innovation. This can lead to higher costs for the government and taxpayers. Furthermore, it limits opportunities for other capable small and large businesses to compete and demonstrate their value. Agencies must justify sole-source awards rigorously, demonstrating that competition is not feasible or would not be in the government's best interest, often requiring extensive market research.

What is the typical spending range for administrative and management consulting services within the DoD?

Spending on administrative and management consulting services within the Department of Defense (DoD) can vary significantly based on agency needs, project scope, and duration. While this specific $18.3 million contract for IT support to a directorate over two years provides one data point, broader spending encompasses a wide array of services. Annual spending across the DoD for management and consulting services often runs into the billions of dollars, covering areas like strategic planning, organizational efficiency, IT modernization, cybersecurity consulting, and program management support. Benchmarking requires comparing contracts with similar scope, duration, and complexity, ideally competed to ensure fair market pricing.

What is the track record of General Dynamics Information Technology, Inc. in supporting defense directorates?

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record supporting various components of the Department of Defense and other federal agencies with IT and professional services. They are a major contractor known for handling complex IT infrastructure, mission support, and modernization programs. Their experience spans a wide range of defense needs, including command and control systems, intelligence support, and administrative functions. While this specific contract was sole-source, GDIT's broader portfolio indicates a capacity to fulfill diverse requirements. Assessing their performance on this particular contract would require access to specific performance evaluations and delivery data, which are not publicly detailed here.

Were there any specific performance metrics or KPIs associated with this contract?

The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) for this contract. For a Cost Plus Fixed Fee contract, performance is typically monitored through adherence to the scope of work, cost control, and timely delivery of services. However, the absence of explicit, measurable KPIs makes objective assessment of the contractor's success and the overall value delivered challenging. Effective government contracting relies on clearly defined metrics to ensure accountability and measure success against stated objectives, which appear to be missing or not publicly disclosed for this award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

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: $18,825,370

Exercised Options: $18,825,370

Current Obligation: $18,287,702

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline