HHS awarded $92.7M for IT services to General Dynamics Information Technology, Inc. over 5 years

Contract Overview

Contract Amount: $92,752,824 ($92.8M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2007-06-25

End Date: 2012-06-20

Contract Duration: 1,822 days

Daily Burn Rate: $50.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)

Sector: IT

Official Description: TAS::75 0350::TAS NATIONAL PRACTITIONER DATA BANK-HIPDB 4TH GENERATION

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $92.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: TAS::75 0350::TAS NATIONAL PRACTITIONER DATA BANK-HIPDB 4TH GENERATION Key points: 1. The contract value represents a significant investment in IT support for health resources. 2. Competition dynamics for this contract are crucial for assessing value for money. 3. Performance history and contractor's track record are key risk indicators. 4. The duration of the contract (5 years) suggests a need for sustained IT services. 5. This contract falls within the broader IT services sector for federal health agencies.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific service details. However, a $92.7 million award over five years averages to approximately $18.5 million annually. This figure needs to be compared against similar IT support contracts within the Department of Health and Human Services (HHS) and other federal agencies to determine if it represents a fair market price. The absence of detailed performance metrics or cost breakdowns makes a definitive value assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but full and open competition generally fosters a competitive environment, which can lead to better pricing and service offerings. The agency's decision to use this procurement method suggests confidence in achieving a competitive outcome.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and potentially lower prices.

Public Impact

Beneficiaries include the Health Resources and Services Administration (HRSA) and potentially the broader healthcare community relying on HRSA's services. Services delivered likely encompass a range of IT support, including system maintenance, development, and operational assistance. Geographic impact is likely national, supporting HRSA's nationwide mission. Workforce implications may include the direct employment of IT professionals by the contractor and potential indirect impacts on federal IT staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the long contract duration.
Reliance on a single contractor for critical IT infrastructure could pose risks.
Ensuring continued alignment with evolving technological needs over five years.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Contractor has a significant presence in federal IT services.
Long-term contract provides stability for service delivery.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on IT support for health-related government functions. The federal IT services market is substantial, with agencies across all branches investing heavily in maintaining and upgrading their technological infrastructure. Comparable spending benchmarks would involve analyzing other large-scale IT support contracts awarded to system integrators and service providers within the federal government, particularly those serving health and human services agencies.

Small Business Impact

While this contract was awarded under full and open competition and does not explicitly mention small business set-asides, it is important to assess if there are subcontracting opportunities for small businesses. Large prime contractors are often required to meet small business subcontracting goals. The extent to which General Dynamics Information Technology, Inc. utilizes small businesses for specialized IT services could have a notable impact on the small business IT ecosystem supporting federal contracts.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) at HRSA, who monitors performance and ensures compliance with contract terms. Accountability measures are embedded in the contract's performance standards and deliverables. Transparency is facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

HRSA IT Modernization Efforts
Federal Health IT Services Contracts
General IT Support Services for Federal Agencies
Large-Scale IT Service Contracts

Risk Flags

Long contract duration may lead to technological obsolescence.
Potential for vendor lock-in.
Performance monitoring is critical over the contract's lifespan.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $92.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. TAS::75 0350::TAS NATIONAL PRACTITIONER DATA BANK-HIPDB 4TH GENERATION

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 (Health Resources and Services Administration).

What is the total obligated amount?

The obligated amount is $92.8 million.

What is the period of performance?

Start: 2007-06-25. End: 2012-06-20.

What specific IT services were included in this $92.7 million contract, and how do they align with HRSA's mission?

The provided data indicates the contract number is 541519, which corresponds to 'Other Computer Related Services.' While specific service details are not itemized in the summary data, contracts of this nature typically encompass a broad range of IT support functions. These can include help desk support, network management, system administration, software development and maintenance, cybersecurity services, and IT infrastructure support. For HRSA, these services would be critical for maintaining the operational integrity of systems that manage health resources, track grants, support public health initiatives, and facilitate data exchange. The alignment with HRSA's mission would be direct, ensuring the technological backbone supporting their vital public health functions remains robust and efficient.

How does the $18.5 million average annual cost compare to similar IT support contracts within HHS or other federal health agencies?

A precise comparison requires access to a detailed database of similar contracts, including their scope, duration, and specific services rendered. However, an average annual cost of $18.5 million for comprehensive IT support for a major federal agency like HRSA is within a plausible range, given the complexity and scale of federal IT operations. For context, other large federal health IT contracts, such as those supporting the Centers for Medicare & Medicaid Services (CMS) or the Food and Drug Administration (FDA), can range from tens to hundreds of millions of dollars annually, depending on the breadth of services and the criticality of the systems supported. Factors like the number of users, the sensitivity of the data handled, and the required uptime percentages significantly influence pricing. Without more granular data on the specific services provided under this General Dynamics contract, a definitive benchmark is difficult, but it appears to be a substantial investment consistent with large-scale federal IT support needs.

What is General Dynamics Information Technology, Inc.'s track record with federal IT contracts, particularly within the health sector?

General Dynamics Information Technology, Inc. (GDIT) has a long and extensive history as a major contractor for the U.S. federal government, including significant work within the Department of Defense, civilian agencies, and the intelligence community. Within the health sector, GDIT has been a key player, providing IT services to agencies such as the Department of Veterans Affairs (VA), the National Institutes of Health (NIH), and HHS itself. Their portfolio often includes electronic health records (EHR) implementation and support, health data analytics, IT infrastructure modernization, and cybersecurity solutions for health-related systems. Their substantial presence and numerous awards suggest a proven capability to manage large, complex IT contracts. However, as with any large contractor, a thorough review of past performance, including any past performance issues or contract disputes, would be necessary for a complete assessment.

What are the potential risks associated with a five-year IT support contract of this magnitude?

A five-year IT support contract of this magnitude carries several potential risks. Firstly, technological obsolescence is a significant concern; IT landscapes evolve rapidly, and a five-year commitment could lock the government into outdated systems or services if not managed proactively. Secondly, vendor lock-in can occur, making it difficult and costly to switch providers or adopt new technologies. Thirdly, there's the risk of performance degradation over time, especially if contract management or oversight weakens. Cost overruns are also a possibility, particularly if the scope of work expands beyond initial projections or if unforeseen technical challenges arise. Finally, reliance on a single large contractor for critical IT functions can create a single point of failure, impacting service continuity if the contractor experiences financial difficulties or operational issues.

How does the 'full and open competition' award method influence the overall value and taxpayer cost for this contract?

The 'full and open competition' award method is designed to maximize the number of potential bidders, thereby increasing competition. This increased competition generally drives down prices as contractors vie for the award by offering their best value proposals. For taxpayers, this method is typically advantageous because it promotes a more efficient marketplace, encouraging innovation and cost-effectiveness. It reduces the likelihood of contractors facing limited competition and thus being able to charge premium prices. While the ultimate value depends on the specific services and the effectiveness of the chosen contractor, the procurement method itself signals an intent to secure the best possible outcome for the government and, by extension, the taxpayer, through a robust and transparent bidding process.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 4300 FAIR LAKES COURT, FAIRFAX, VA, 22033

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $92,752,824

Exercised Options: $92,752,824

Current Obligation: $92,752,824

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 26301D0050

IDV Type: IDC

Timeline