DoD Awards $63M for Subject Matter Expert Support Services to General Dynamics IT

Contract Overview

Contract Amount: $63,002,873 ($63.0M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-09-29

End Date: 2026-09-28

Contract Duration: 1,825 days

Daily Burn Rate: $34.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: SUBJECT MATTER EXPERT SUPPORT SERVICES

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $63.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: SUBJECT MATTER EXPERT SUPPORT SERVICES Key points: 1. Significant contract value of $63 million over five years. 2. General Dynamics Information Technology, Inc. is the sole awardee. 3. Potential risks associated with single-vendor reliance. 4. Services fall under Computer Systems Design, a key IT sector.

Value Assessment

Rating: fair

The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed effectively. Benchmarking against similar IT support services contracts is difficult without more granular cost data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. However, this specific award is a delivery order, suggesting it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract where competition may have occurred previously.

Taxpayer Impact: Taxpayer funds are being used for expert support services, with the ultimate impact depending on the efficiency and effectiveness of the services provided and the competitive pricing achieved.

Public Impact

Ensures critical subject matter expertise for the Defense Threat Reduction Agency. Supports national security objectives by providing specialized IT and design services. Potential for job creation within the IT services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Award Fee structure
  • Single awardee for this delivery order
  • Long contract duration (5 years)

Positive Signals

  • Awarded under full and open competition
  • Supports a critical defense agency

Sector Analysis

This contract falls within the Computer Systems Design Services sector, which is a significant area of government IT spending. Benchmarks for similar services vary widely based on complexity and duration, but $63 million over five years represents a substantial investment.

Small Business Impact

The data indicates that small businesses were not directly awarded this specific contract, as General Dynamics Information Technology, Inc. is a large business. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

Oversight will be crucial to ensure the Cost Plus Award Fee structure incentivizes efficiency and that the services delivered meet the agency's needs effectively. The Defense Threat Reduction Agency is responsible for monitoring performance and costs.

Related Government Programs

  • Computer Systems Design Services
  • Department of Defense Contracting
  • Defense Threat Reduction Agency Programs

Risk Flags

  • Potential for cost overruns with Cost Plus Award Fee.
  • Lack of direct small business participation.
  • Reliance on a single contractor for this delivery order.
  • Long-term commitment may reduce future flexibility.

Tags

computer-systems-design-services, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $63.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. SUBJECT MATTER EXPERT 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 Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $63.0 million.

What is the period of performance?

Start: 2021-09-29. End: 2026-09-28.

What specific subject matter expertise is being procured, and how does it directly contribute to the Defense Threat Reduction Agency's mission?

The contract is for Computer Systems Design Services, implying expertise in IT infrastructure, software development, and system integration. This likely supports the agency's complex technological needs for threat reduction, intelligence analysis, and operational support, ensuring they have the advanced systems required for their critical national security mission.

What are the primary risks associated with a Cost Plus Award Fee contract for these services, and how are they being mitigated?

The primary risk is that the 'cost plus' nature could lead to higher overall expenditures if costs are not tightly controlled, and the 'award fee' component might incentivize meeting targets rather than achieving the absolute best value. Mitigation relies on robust oversight, clear performance metrics, and a well-defined award fee structure that rewards true efficiency and effectiveness.

How will the effectiveness of the subject matter expert support be measured to ensure optimal value for taxpayer dollars?

Effectiveness will be measured through the performance metrics outlined in the Cost Plus Award Fee structure. This includes adherence to delivery schedules, quality of system designs, successful integration of solutions, and overall contribution to the agency's mission objectives. Regular performance reviews and milestone assessments are key to ensuring value.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HDTRA118R0045

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3211 JERMANTOWN RD, FAIRFAX, VA, 22030

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $84,091,405

Exercised Options: $83,910,757

Current Obligation: $63,002,873

Actual Outlays: $21,109,455

Subaward Activity

Number of Subawards: 33

Total Subaward Amount: $18,436,902

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDTRA119D0003

IDV Type: IDC

Timeline

Start Date: 2021-09-29

Current End Date: 2026-09-28

Potential End Date: 2026-09-28 00:00:00

Last Modified: 2026-03-18

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