DoD's $21.9M OIMS contract awarded to General Dynamics IT for computer systems design services

Contract Overview

Contract Amount: $21,920,676 ($21.9M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-01-11

End Date: 2027-01-10

Contract Duration: 1,460 days

Daily Burn Rate: $15.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: OPERATIONAL INFORMATION MANAGEMENT SYSTEM (OIMS)

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $21.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: OPERATIONAL INFORMATION MANAGEMENT SYSTEM (OIMS) Key points: 1. Contract value appears reasonable for a 4-year IT services engagement. 2. Full and open competition suggests a healthy market for these services. 3. Potential for cost overruns exists given the Cost Plus Fixed Fee structure. 4. Contract duration of 4 years allows for sustained support. 5. Services are critical for the Defense Threat Reduction Agency's operations. 6. No small business set-aside indicates a focus on large prime contractors.

Value Assessment

Rating: good

The contract value of approximately $21.9 million over four years for computer systems design services is within a reasonable range for a Department of Defense contract of this nature. Benchmarking against similar IT services contracts for defense agencies suggests that the pricing is competitive, especially considering the specialized nature of supporting the Defense Threat Reduction Agency. The Cost Plus Fixed Fee (CPFF) contract type, while offering flexibility, warrants close monitoring to ensure costs remain controlled and provide good value for the fixed fee component.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. The presence of 3 bidders suggests a competitive environment, which typically leads to better pricing and service offerings for the government. The level of competition is sufficient to provide a reasonable basis for price discovery and ensure that the selected contractor offers a strong value proposition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and encouraging innovation from a wider pool of potential providers.

Public Impact

The Department of Defense, specifically the Defense Threat Reduction Agency, benefits from enhanced operational information management. Services delivered include computer systems design, crucial for maintaining and improving IT infrastructure. The geographic impact is primarily within the agency's operational areas, likely supporting national security missions. Workforce implications include employment for IT professionals within General Dynamics Information Technology and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
Reliance on a single large contractor may limit agility in adopting new technologies.
The specific performance metrics and their impact on contractor incentives need careful review.

Positive Signals

Awarded through full and open competition, indicating a robust market.
Contract duration of four years allows for stable support and knowledge retention.
General Dynamics Information Technology is a large, established contractor with significant experience in government IT services.

Sector Analysis

The IT services sector for the federal government is a substantial market, with significant spending allocated to computer systems design and related services. This contract falls within the broader category of IT support for defense agencies, a segment characterized by complex requirements and high security needs. Comparable spending benchmarks for similar IT modernization and support contracts within the DoD often range in the tens to hundreds of millions of dollars over several years, making this $21.9M award a moderate-sized engagement.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of specific small business subcontracting goals in the provided data. This suggests that the primary focus was on securing the best solution from the broader market, likely favoring larger, established prime contractors. The absence of set-aside requirements means that opportunities for small businesses would primarily come through subcontracting, if General Dynamics Information Technology chooses to engage them.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Threat Reduction Agency's contracting officers and program managers. Accountability measures are typically embedded within the Cost Plus Fixed Fee structure, requiring the contractor to justify costs and meet performance standards. Transparency is facilitated through contract reporting requirements, though specific details on public accessibility of performance data are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
Department of Defense Enterprise IT Services
Computer Systems Design Services Contracts
IT Support for National Security Agencies

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
Long-term IT contracts can sometimes lead to vendor lock-in if not managed with flexibility.
Dependence on a single contractor for critical systems warrants robust performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. OPERATIONAL INFORMATION MANAGEMENT SYSTEM (OIMS)

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 $21.9 million.

What is the period of performance?

Start: 2023-01-11. End: 2027-01-10.

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

General Dynamics Information Technology (GDIT) has a long and extensive history of performing IT services for the Department of Defense and other federal agencies. They are a major contractor known for handling large-scale, complex IT infrastructure, systems integration, and modernization projects. Their track record includes numerous contracts for various branches of the military and defense organizations, often involving sensitive data and critical operational support. While specific performance metrics for past contracts are not detailed here, GDIT's sustained presence and significant contract awards suggest a generally positive performance history, though like any large contractor, they may have faced challenges or scrutiny on specific engagements. A deeper dive into contract performance reports and past performance evaluations would provide a more granular understanding of their specific successes and any areas of concern.

How does the value of this contract compare to other IT services contracts awarded by the Defense Threat Reduction Agency?

The $21.9 million contract value for the OPERATIONAL INFORMATION MANAGEMENT SYSTEM (OIMS) over four years represents a moderate investment for the Defense Threat Reduction Agency (DTRA). DTRA, like other defense organizations, procures a range of IT services, from basic help desk support to complex systems development and cybersecurity solutions. Contracts for major system overhauls, enterprise-wide IT infrastructure upgrades, or advanced research and development in IT can often reach significantly higher figures, sometimes hundreds of millions of dollars. Conversely, smaller, more focused IT support tasks or specific software development efforts might be awarded for less. Therefore, this $21.9M contract appears to be a substantial but not exceptionally large award, likely covering significant system design and management services critical to DTRA's mission, fitting within the typical range for such specialized IT support within a defense agency.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this service?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract type, like the one awarded for the OIMS, is the potential for cost overruns that are not fully borne by the contractor. In a CPFF structure, the government pays the contractor's allowable costs plus a predetermined fixed fee. While the fee is fixed, the total cost to the government can increase if the contractor's actual costs exceed initial estimates. This can occur due to unforeseen technical challenges, scope creep, inefficient performance, or inadequate cost controls by the contractor. For the government, the risk lies in paying more than initially anticipated for the services. Effective oversight, rigorous cost tracking, and clear definition of allowable costs are crucial to mitigate these risks and ensure the government receives good value. The fixed fee itself provides some incentive for the contractor to control costs, as they cannot increase their profit margin by exceeding cost estimates.

How does the 'full and open competition' impact price discovery and potential savings for taxpayers?

Full and open competition is designed to maximize price discovery and generate savings for taxpayers by leveraging market forces. When a contract is competed openly, it allows any responsible source to submit a bid, thereby increasing the number of potential offerors. A larger pool of bidders typically leads to more competitive pricing as companies vie for the contract award. This process encourages vendors to offer their best possible prices and innovative solutions to win the business. The government can then compare multiple proposals based on both technical merit and cost, selecting the offer that provides the best overall value. This competitive pressure helps prevent artificially inflated prices and ensures that the government is not overpaying for goods or services, ultimately benefiting the taxpayer through cost efficiencies and potentially higher quality outcomes.

What are the implications of the 4-year duration (1460 days) for IT service continuity and contractor performance?

A contract duration of four years (1460 days) provides significant benefits for IT service continuity and allows for sustained contractor performance. For the government, this extended period ensures stability in the delivery of critical IT services, reducing the disruption and costs associated with frequent contract transitions. It allows the contractor, General Dynamics Information Technology in this case, to develop deep expertise in the OIMS system and the Defense Threat Reduction Agency's specific needs. This familiarity can lead to more efficient operations, better problem-solving, and proactive system improvements. Furthermore, a longer contract term can incentivize the contractor to invest in their team and processes to ensure successful long-term delivery, as their performance is evaluated over an extended period. It also allows for the implementation and maturation of complex IT projects that require time to yield full benefits.

Given the 'Defense Threat Reduction Agency' as the customer, what specific IT needs might the OIMS contract address?

The OPERATIONAL INFORMATION MANAGEMENT SYSTEM (OIMS) contract for the Defense Threat Reduction Agency (DTRA) likely addresses critical needs related to managing information vital for DTRA's unique mission. DTRA is responsible for countering weapons of mass destruction (WMD) threats, which involves complex data analysis, intelligence gathering, operational planning, and coordination across various government entities and international partners. The OIMS could therefore be a system designed to store, process, analyze, and disseminate vast amounts of data related to WMD proliferation, threat assessments, counter-terrorism efforts, and operational mission support. This might include managing databases of chemical, biological, radiological, nuclear, and explosive (CBRNE) materials, tracking international treaties, supporting field operations with real-time information, and facilitating secure communication among personnel involved in high-stakes threat reduction activities. The computer systems design services would ensure this system remains robust, secure, and capable of evolving with emerging threats and technological advancements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT 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 FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

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: $46,736,246

Exercised Options: $35,108,893

Current Obligation: $21,920,676

Actual Outlays: $4,626,862

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,000,000

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