HHS awards $68.5M for IT/Telecom Data Centers & Storage to General Dynamics

Contract Overview

Contract Amount: $68,507,622 ($68.5M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2011-12-14

End Date: 2017-06-30

Contract Duration: 2,025 days

Daily Burn Rate: $33.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE INCENTIVE

Sector: IT

Official Description: CLOSELY ASSOCIATED IT AND TELECOM DATA CENTERS AND STORAGE

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $68.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: CLOSELY ASSOCIATED IT AND TELECOM DATA CENTERS AND STORAGE Key points: 1. Significant contract value for IT infrastructure services. 2. General Dynamics Information Technology, Inc. is the incumbent. 3. Potential for cost overruns with Fixed Price Incentive contract type. 4. Services fall under Computer Systems Design, a competitive sector.

Value Assessment

Rating: good

The award value of $68.5M over approximately 5.7 years suggests a reasonable annual spend. Benchmarking against similar large-scale data center and storage contracts would provide a clearer picture of value.

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. This method generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The competitive award process likely resulted in a fair price, maximizing taxpayer value for these critical IT services.

Public Impact

Ensures continued operation and modernization of essential health data infrastructure. Supports the Health Resources and Services Administration's mission delivery. Potential impact on data security and accessibility of health information.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Fixed Price Incentive contract type can lead to cost overruns if not managed carefully.
Reliance on a single vendor for critical infrastructure.
Potential for scope creep impacting final cost.

Positive Signals

Awarded through full and open competition.
Long-term contract provides stability for service delivery.
Supports critical health agency operations.

Sector Analysis

This contract falls within the IT and Telecommunications sector, specifically focusing on data centers and storage. Spending in this area is substantial across government, driven by increasing data needs and modernization efforts.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The prime contractor is General Dynamics Information Technology, Inc., a large business. Further analysis would be needed to determine small business subcontracting participation.

Oversight & Accountability

The contract was awarded by the Department of Health and Human Services, specifically the Health Resources and Services Administration. Oversight would involve monitoring performance, cost, and adherence to contract terms by the agency.

Related Government Programs

Computer Systems Design Services
Department of Health and Human Services Contracting
Health Resources and Services Administration Programs

Risk Flags

Fixed Price Incentive contract type carries inherent cost overrun risk.
Potential for vendor lock-in with long-term IT infrastructure contracts.
Dependence on a single large business prime contractor.
Cybersecurity risks associated with data center operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $68.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. CLOSELY ASSOCIATED IT AND TELECOM DATA CENTERS AND STORAGE

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 $68.5 million.

What is the period of performance?

Start: 2011-12-14. End: 2017-06-30.

What is the projected cost per unit for storage or data center services under this contract?

The provided data does not include specific per-unit cost breakdowns for storage or data center services. The total award value is $68.5M. A detailed analysis of the contract's CLIN structure and pricing would be required to determine unit costs and benchmark them against industry standards or similar government contracts.

What are the key performance indicators (KPIs) for this contract and how is performance being measured?

The provided data does not specify the key performance indicators (KPIs) or the measurement methods for this contract. Typically, for IT infrastructure contracts, KPIs would relate to uptime, response times, data integrity, security compliance, and service delivery timelines. The agency's contract management team would be responsible for monitoring these metrics.

How does the Fixed Price Incentive (FPI) contract type impact the government's risk and potential for cost savings?

An FPI contract establishes a target cost, target profit, and price ceiling. It incentivizes the contractor to control costs by sharing savings if the final cost is below the target, but also limits the government's exposure by setting a ceiling. However, it carries risk if the final cost exceeds the target, as the government's share of the overrun increases up to the ceiling.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

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

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

Financial Breakdown

Contract Ceiling: $68,507,622

Exercised Options: $68,507,622

Current Obligation: $68,507,622

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 263010050

IDV Type: IDC

Timeline