HHS Awards $80M+ for Software Engineering & Support Services to General Dynamics IT

Contract Overview

Contract Amount: $80,315,987 ($80.3M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2016-08-12

End Date: 2022-08-19

Contract Duration: 2,198 days

Daily Burn Rate: $36.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: IGF::OT::IGF SOFTWARE ENGINEERING AND SUPPORT SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $80.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF SOFTWARE ENGINEERING AND SUPPORT SERVICES Key points: 1. Contract awarded to General Dynamics Information Technology, Inc. for $80.3M. 2. Services fall under Computer Systems Design Services (NAICS 541512). 3. Full and open competition was utilized. 4. Contract duration spans from August 2016 to August 2022. 5. This is a Cost Plus Award Fee contract type.

Value Assessment

Rating: good

The contract is a Cost Plus Award Fee type, which allows for flexibility in pricing based on performance. The total award value of $80.3M over six years suggests a moderate annual spend.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value.

Public Impact

Ensures continued operation and development of critical health IT systems for the Indian Health Service. Supports the mission of the Department of Health and Human Services. General Dynamics IT's role in providing these services impacts healthcare delivery and data management. The long-term nature of the contract suggests a significant ongoing need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to higher costs if not managed carefully.
The contract duration is quite long (6 years), potentially leading to vendor lock-in or missed opportunities for better pricing.
No small business participation noted.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
The contract supports essential healthcare IT services for a major federal agency.
General Dynamics IT is a well-established contractor in the federal space.

Sector Analysis

The IT services sector, particularly for government contracts, is highly competitive. Benchmarks for similar Computer Systems Design Services contracts vary widely based on scope and complexity, but an $80M award over six years for a specific agency's needs is substantial.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award (ss=false, sb=false). This suggests the prime contractor is a large business, and there's no explicit mention of subcontracting goals for small businesses.

Oversight & Accountability

The contract type (Cost Plus Award Fee) requires diligent oversight from the agency to ensure performance targets are met and costs are controlled. The number of modifications (no=4) is relatively low for a contract of this duration, which could indicate stable execution or limited scope changes.

Related Government Programs

Computer Systems Design Services
Department of Health and Human Services Contracting
Indian Health Service Programs

Risk Flags

Potential for cost overruns inherent in Cost Plus Award Fee contracts.
Lack of small business participation.
Long contract duration may limit flexibility and competition over time.
Dependence on a single large contractor for critical IT services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $80.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF SOFTWARE ENGINEERING AND 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 Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $80.3 million.

What is the period of performance?

Start: 2016-08-12. End: 2022-08-19.

What specific software engineering and support services were provided under this contract, and how did they contribute to the Indian Health Service's mission?

The contract likely encompassed a range of services including software development, system maintenance, technical support, and potentially cybersecurity for the Indian Health Service's IT infrastructure. These services are crucial for managing patient data, facilitating healthcare delivery, and ensuring the operational efficiency of the agency's critical health IT systems, directly supporting the IHS's mission to improve health outcomes for American Indians and Alaska Natives.

Given the Cost Plus Award Fee structure, what were the key performance metrics and award fee criteria used to determine the final cost and contractor performance?

While specific award fee criteria are not detailed in the provided data, Cost Plus Award Fee contracts typically tie contractor compensation to achieving predefined performance objectives. These could include system uptime, user satisfaction, successful project completion, adherence to security protocols, and innovation. The agency's contracting officer would evaluate performance against these metrics to determine the award fee, influencing the total amount paid to General Dynamics IT.

How does the $80.3M contract value compare to typical spending for similar IT support services within the Department of Health and Human Services?

An $80.3M contract over six years equates to roughly $13.4M annually. This figure is substantial but may be within the expected range for comprehensive IT engineering and support services for a major operating division like the Indian Health Service, considering the complexity and criticality of healthcare IT systems. Benchmarking against other HHS contracts for similar services would provide a clearer picture of its relative value.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 16236SOL0001

Offers Received: 4

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: $100,130,269

Exercised Options: $93,460,296

Current Obligation: $80,315,987

Actual Outlays: $18,816,848

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $13,756,888

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline