HHS awarded $26.4M for IT services, with General Dynamics Information Technology Inc. securing the contract

Contract Overview

Contract Amount: $26,358,572 ($26.4M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2013-09-24

End Date: 2018-07-23

Contract Duration: 1,763 days

Daily Burn Rate: $15.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $26.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF Key points: 1. The contract value of $26.4 million over approximately 4.8 years suggests a moderate annual spend. 2. Competition dynamics for this contract were full and open, indicating a potentially competitive bidding process. 3. The fixed-price contract type may offer cost certainty for the government, but could limit flexibility. 4. Performance is situated within the IT services sector, specifically computer systems design. 5. The award was a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The contract was awarded to a single vendor, General Dynamics Information Technology, Inc.

Value Assessment

Rating: fair

Benchmarking the value of this $26.4 million contract requires more context on the specific services rendered and the duration. Without comparable contract data for similar IT system design services within HHS or other agencies, a precise value-for-money assessment is difficult. However, the firm fixed-price structure suggests an attempt to control costs. The annual spend averages around $5.5 million, which is within a typical range for complex IT projects, but the true value depends on the scope and quality of deliverables.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The agency sought proposals from a wide range of potential contractors, aiming to secure the best value.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and ensures that government funds are used efficiently by leveraging market forces.

Public Impact

Beneficiaries include the Centers for Medicare and Medicaid Services (CMS) and potentially healthcare providers and beneficiaries who rely on the IT systems supported by these services. Services delivered likely involve the design, development, integration, and maintenance of computer systems critical to healthcare administration. The geographic impact is primarily focused on the operations of CMS, likely within Maryland where the contractor is based. Workforce implications may include employment opportunities for IT professionals within General Dynamics Information Technology and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or outcome data makes it difficult to assess the effectiveness of the IT services provided.
The duration of the contract (over 4.5 years) could lead to vendor lock-in if not managed carefully.
Reliance on a single vendor for critical IT systems design services may pose a risk if the vendor's performance degrades or if they face financial instability.

Positive Signals

The use of full and open competition suggests a commitment to leveraging market competition for best value.
The firm fixed-price contract type provides cost predictability for the government.
General Dynamics Information Technology is a large, established contractor with a significant presence in the federal IT market.

Sector Analysis

This contract falls within the broader IT services sector, specifically computer systems design. This sector is characterized by rapid technological advancements and a high demand for specialized skills. The market size for federal IT services is substantial, with agencies like HHS being major spenders. This contract represents a portion of that spending, focused on supporting the complex IT infrastructure required for healthcare administration and regulation.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and was awarded to a large prime contractor. There is no explicit information on subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless General Dynamics Information Technology actively pursues small business subcontractors for specific components of the work.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within CMS. Performance reviews, milestone tracking, and invoice approvals are standard accountability measures. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Services
Computer Systems Design
Healthcare IT
CMS IT Modernization
Federal IT Procurement

Risk Flags

Contract Duration
Performance Metrics Unclear
Vendor Lock-in Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $26.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF

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 (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $26.4 million.

What is the period of performance?

Start: 2013-09-24. End: 2018-07-23.

What specific IT systems or programs did this contract support for CMS?

The provided data does not specify the exact IT systems or programs supported by this contract. However, given the contractor's designation (NA: 541512 - Computer Systems Design Services) and the awarding agency (Centers for Medicare and Medicaid Services), it is highly probable that the services related to the design, development, integration, or maintenance of IT infrastructure critical to CMS operations. This could include systems for managing Medicare and Medicaid benefits, provider enrollment, claims processing, data analytics, or public-facing portals. Further investigation into the specific contract award details or related documentation would be necessary to identify the precise systems.

How does the $26.4 million contract value compare to similar IT services contracts awarded by CMS or other federal agencies?

Without specific details on the scope of work, duration, and deliverables, a direct comparison of the $26.4 million contract value is challenging. However, for IT services, particularly computer systems design, this represents a moderate-sized award. Large federal agencies like HHS and CMS often award multi-million dollar contracts for IT modernization, system development, and ongoing support. Annual spending for such contracts can range from a few million to tens or even hundreds of millions of dollars, depending on complexity and scale. To provide a more precise benchmark, one would need to compare it against contracts with similar North American Industry Classification System (NAICS) codes, contract types (firm fixed-price), and service requirements within the federal government.

What is the track record of General Dynamics Information Technology, Inc. in performing similar federal IT contracts?

General Dynamics Information Technology, Inc. (GDIT) is a major federal contractor with a long history of providing IT services across various government agencies, including the Department of Health and Human Services. They have a broad portfolio encompassing IT modernization, cybersecurity, cloud computing, data analytics, and mission support. While specific performance details for this particular $26.4 million contract are not detailed here, GDIT generally has a substantial track record. Assessing their performance would involve reviewing past performance evaluations, contract award histories, and any reported issues or successes on similar large-scale federal IT projects. Their extensive experience suggests a capacity to handle complex IT system design services.

What were the key performance indicators (KPIs) or success metrics for this contract?

The provided data does not include information on the key performance indicators (KPIs) or success metrics established for this contract. Typically, for IT services contracts, KPIs would be defined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These might include metrics related to system uptime, response times, bug resolution rates, project completion milestones, adherence to security protocols, and user satisfaction. Without access to the full contract documentation, it is impossible to ascertain the specific measures used to evaluate the contractor's performance and the success of the IT services delivered.

How has federal spending on computer systems design services (NAICS 541512) evolved over the past decade, and where does this contract fit in?

Federal spending on computer systems design services (NAICS 541512) has generally seen a steady increase over the past decade, driven by the ongoing need for digital transformation, modernization of legacy systems, and the expansion of IT capabilities across government agencies. Agencies are increasingly relying on external expertise for designing and implementing complex IT solutions. This $26.4 million contract awarded to General Dynamics Information Technology fits within this trend as a component of the broader federal investment in IT infrastructure and services. It reflects the government's continued outsourcing of specialized IT design and development work to private sector firms to meet evolving technological demands and agency missions.

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

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: $26,358,572

Exercised Options: $26,358,572

Current Obligation: $26,358,572

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSM500200700021I

IDV Type: IDC

Timeline