HHS awards $62M IT services contract to General Dynamics Information Technology, Inc

Contract Overview

Contract Amount: $61,979,205 ($62.0M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2008-09-29

End Date: 2014-12-31

Contract Duration: 2,284 days

Daily Burn Rate: $27.1K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 7

Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY)

Sector: IT

Official Description: BUCCANEER AWARD OF TASK ORDER 2

Place of Performance

Location: WARRENTON, FAUQUIER County, VIRGINIA, 20187

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $62.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: BUCCANEER AWARD OF TASK ORDER 2 Key points: 1. Contract awarded through a competitive process, suggesting potential for price discovery. 2. Duration of over 6 years indicates a long-term need for these IT services. 3. The contract falls under 'Computer Facilities Management Services,' a common IT support category. 4. Awarded by the Food and Drug Administration, highlighting a specific agency need. 5. The value of the contract is substantial, requiring careful performance monitoring. 6. No small business set-aside was indicated, suggesting a focus on large prime contractors.

Value Assessment

Rating: good

The contract value of approximately $62 million over six years for IT facilities management services appears reasonable when benchmarked against similar large-scale IT support contracts. While specific per-unit cost data is not provided, the competitive nature of the award suggests that pricing was evaluated against market rates. The duration and scope indicate a significant investment by the FDA, implying a need for robust service delivery and cost-effectiveness over the contract's life.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. The presence of 7 bids suggests a healthy level of competition for this requirement. A competitive award process generally leads to better price discovery and ensures that the government receives services at a fair market value, as vendors vie to offer the most attractive terms.

Taxpayer Impact: Taxpayers benefit from a competitive award as it drives down costs through vendor competition, ensuring that federal funds are used efficiently for essential IT services.

Public Impact

The Food and Drug Administration (FDA) benefits from enhanced IT facilities management services. Ensures the continued operation and maintenance of critical IT infrastructure supporting FDA's mission. Services likely impact FDA personnel across various locations where IT facilities are managed. Supports the technology backbone necessary for regulatory functions and public health initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the long duration of the contract.
Ensuring continued alignment with evolving FDA IT modernization strategies.
Monitoring contractor performance to ensure service level agreements are consistently met.

Positive Signals

Awarded through a competitive process, indicating potential for value.
General Dynamics Information Technology is a large, established contractor with significant experience.
The contract duration suggests a stable, long-term need for these services.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT facilities management. The market for IT services, including managed services and infrastructure support, is substantial and highly competitive. This award represents a significant portion of spending within this niche for the FDA, reflecting the agency's reliance on external expertise for maintaining its complex IT environment. Comparable spending benchmarks for similar IT support contracts often range in the tens to hundreds of millions of dollars annually.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the requirement was likely geared towards large prime contractors capable of handling the scope and complexity of IT facilities management for a federal agency like the FDA. While there's no direct subcontracting information provided, large prime contracts often include provisions for small business participation, which would need to be verified through the contract details.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the FDA's program officials responsible for IT facilities management. Performance metrics and service level agreements (SLAs) outlined in the contract would be key to monitoring performance. Transparency is generally maintained through contract databases and reporting requirements. The Department of Health and Human Services also has an Office of Inspector General that could provide oversight if performance issues or potential fraud were identified.

Related Government Programs

IT Infrastructure Management
IT Facilities Operations
Computer Systems Management
Information Technology Services
Federal IT Procurement

Risk Flags

Long contract duration may lead to technology obsolescence.
Potential for vendor lock-in.
Performance monitoring is critical due to contract size and duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $62.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. BUCCANEER AWARD OF TASK ORDER 2

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 Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $62.0 million.

What is the period of performance?

Start: 2008-09-29. End: 2014-12-31.

What is the track record of General Dynamics Information Technology, Inc. in delivering similar IT facilities management services to federal agencies?

General Dynamics Information Technology, Inc. (GDIT) is a major federal contractor with extensive experience in providing a wide array of IT services, including facilities management, to various government agencies. They have a long history of supporting complex IT infrastructures for defense, civilian, and intelligence communities. Their past performance often includes managing data centers, network operations, cybersecurity, and end-user support. While specific performance metrics for this particular contract are not detailed here, GDIT's general track record suggests they possess the resources and expertise to handle large-scale IT operations. However, as with any large contractor, performance can vary, and a review of past performance evaluations and any reported issues for this specific contract would provide a more granular understanding of their success.

How does the awarded value of $61.98 million compare to other IT facilities management contracts of similar scope and duration?

The awarded value of approximately $62 million over a duration of roughly six years (2284 days) for IT facilities management services places this contract in the mid-to-large tier for such procurements. Benchmarking requires comparing it to contracts with similar service requirements (e.g., data center operations, network management, help desk support) and client agencies of comparable size and complexity. For instance, other large federal agencies like the Department of Defense or the General Services Administration often award IT support contracts in the tens to hundreds of millions of dollars annually. Given the competitive nature of this award and the duration, the per-year average of around $10.3 million appears to be within a reasonable range for comprehensive IT facilities management, assuming the scope of services is broad and includes significant infrastructure support.

What are the primary risks associated with a long-term IT facilities management contract like this one?

Long-term IT facilities management contracts, such as this six-year award, carry several inherent risks. One significant risk is technological obsolescence; the IT landscape evolves rapidly, and the services defined at the outset may become outdated or insufficient over the contract's lifespan. Another risk is vendor lock-in, where the agency becomes heavily reliant on the incumbent contractor, making transitions difficult and potentially costly. Performance degradation over time is also a concern, as contractor motivation or resource allocation might shift. Furthermore, changes in agency requirements or budget constraints could necessitate contract modifications, leading to potential disputes or inefficiencies. Finally, cybersecurity threats are a constant risk, requiring continuous vigilance and adaptation from both the contractor and the agency.

How effective is the competitive delivery order mechanism in ensuring value for money for IT services?

The competitive delivery order mechanism is generally considered an effective method for ensuring value for money, particularly for IT services. By allowing multiple vendors to bid on specific task orders or delivery orders under a larger contract vehicle (like a Multiple Award Indefinite Delivery/Indefinite Quantity contract), it fosters competition. This competition drives down prices and encourages vendors to offer innovative solutions and high-quality services to win the business. The fact that this contract received 7 bids indicates a robust competitive environment. Effective value for money is realized when the competition leads to prices that are fair and reasonable, and when the selected vendor consistently meets or exceeds performance expectations throughout the contract period.

What are the potential implications of this contract on the broader IT services market, particularly for small and medium-sized businesses?

This contract, awarded to a large prime contractor (General Dynamics Information Technology, Inc.), has several implications for the broader IT services market. For large businesses, it represents a significant revenue stream and a testament to their capabilities in securing major federal contracts. For small and medium-sized businesses (SMBs), the implications are mixed. If GDIT actively engages in subcontracting, it can create opportunities for SMBs to participate in delivering specialized services. However, if the contract is largely performed in-house by the prime, it means fewer direct opportunities for SMBs to compete for this specific piece of federal spending. The lack of a small business set-aside suggests that the primary focus was on large-scale capabilities, potentially limiting direct entry for smaller players unless they are part of a larger team or subcontractor.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 7

Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY) (3)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 6799 KENNEDY RD STE J, WARRENTON, VA, 20187

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

Financial Breakdown

Contract Ceiling: $61,979,205

Exercised Options: $61,979,205

Current Obligation: $61,979,205

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSF223200850017I

IDV Type: IDC

Timeline