HHS awarded $16.9M for IT services to General Dynamics, with a significant portion for computer systems design

Contract Overview

Contract Amount: $16,897,013 ($16.9M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2008-09-13

End Date: 2011-12-20

Contract Duration: 1,193 days

Daily Burn Rate: $14.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: OTHER ADP & TELECOMMUNICATIONS SVCS

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $16.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: OTHER ADP & TELECOMMUNICATIONS SVCS Key points: 1. The contract value of $16.9 million for computer systems design services represents a moderate investment in IT infrastructure. 2. Full and open competition was utilized, suggesting a potentially competitive pricing environment. 3. The contract duration of 1193 days indicates a long-term need for these services. 4. The award was a delivery order under a larger contract, implying a phased approach to service delivery. 5. The primary service category is computer systems design, a critical component of modern IT operations. 6. The contractor, General Dynamics Information Technology, Inc., is a large, established entity in the federal IT space.

Value Assessment

Rating: good

The contract value of $16.9 million for computer systems design services appears reasonable given the 1193-day duration. Benchmarking against similar contracts for IT systems design services awarded by NIH or other agencies would provide a clearer picture of value for money. The time and materials pricing structure, while flexible, can sometimes lead to cost overruns if not managed closely. However, the full and open competition suggests that pricing was likely scrutinized.

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 fact that it was a delivery order suggests it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle. 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 for the government.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and a wider pool of qualified vendors vying for the contract, which can drive down costs and improve service quality.

Public Impact

The primary beneficiaries are the National Institutes of Health (NIH) and its various research and administrative arms, which rely on robust IT systems. The services delivered include computer systems design, crucial for maintaining and upgrading the complex IT infrastructure supporting biomedical research. The geographic impact is primarily within Maryland, where NIH facilities are located, but the IT services likely support a nationwide network. Workforce implications include the potential for IT professionals employed by General Dynamics Information Technology, Inc. to be engaged in this project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and materials contract type can lead to cost uncertainty if not closely monitored.
The long duration of the contract requires sustained oversight to ensure continued value.
Dependence on a single large contractor for critical IT systems design.

Positive Signals

Awarded under full and open competition, suggesting a robust vetting process.
Contractor is a well-established entity with a track record in federal IT.
The contract addresses a clear need for computer systems design services within a major health research agency.

Sector Analysis

The federal IT services market is vast and highly competitive, with significant spending allocated to computer systems design and related services. Agencies like the National Institutes of Health (NIH) rely heavily on these services to support their mission-critical operations, including cutting-edge biomedical research. Spending in this sector is driven by the need for modernization, cybersecurity, data management, and advanced computing capabilities. Comparable contracts often involve large, complex system integrations and ongoing support, with values ranging from millions to billions of dollars.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a large prime contractor like General Dynamics Information Technology, Inc. suggests that the focus was on leveraging established capabilities rather than specifically promoting small business participation through set-asides. This could limit opportunities for smaller firms to directly engage in this specific contract, though they may participate in the broader federal IT ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the National Institutes of Health. As a delivery order under a larger contract, oversight mechanisms would likely be tied to the parent contract's structure. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Systems Modernization
Computer Systems Design Services
Health IT Services
Federal IT Infrastructure Support
General Dynamics IT Contracts

Risk Flags

Potential for cost overruns due to T&M contract type.
Need for sustained oversight given the contract duration.
Reliance on a single large contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $16.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. OTHER ADP & TELECOMMUNICATIONS SVCS

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 (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $16.9 million.

What is the period of performance?

Start: 2008-09-13. End: 2011-12-20.

What is the track record of General Dynamics Information Technology, Inc. with the Department of Health and Human Services and the National Institutes of Health?

General Dynamics Information Technology, Inc. (GDIT) has a substantial history of contracting with federal agencies, including HHS and NIH. They are a major provider of IT services, including systems design, integration, and support. Reviewing past performance evaluations and contract histories within FPDS would reveal specific details about their performance on similar projects for NIH. Generally, GDIT is considered a large, capable contractor with extensive experience in the federal space. Their track record often includes large-scale IT modernization efforts, cloud migration, and cybersecurity solutions. Specific details on past performance metrics, such as on-time delivery, adherence to budget, and technical execution for NIH, would require a deeper dive into contract-specific award documents and performance reports.

How does the $16.9 million contract value compare to other computer systems design services contracts awarded by NIH?

The $16.9 million contract value for computer systems design services awarded to General Dynamics Information Technology, Inc. by NIH falls within a moderate range for such services. NIH, being a large agency with extensive IT needs, frequently awards contracts for systems design and integration. Smaller, more focused projects might range from a few hundred thousand to a few million dollars, while major enterprise-wide system overhauls or large research computing infrastructure projects can easily exceed tens or even hundreds of millions. This $16.9 million award, spread over approximately three years (1193 days), suggests a significant but not necessarily enterprise-defining project. A comprehensive comparison would involve analyzing the scope, duration, and specific technical requirements of other NIH computer systems design contracts awarded over a similar period.

What are the key risks associated with a Time and Materials (T&M) contract for computer systems design?

The primary risk with a Time and Materials (T&M) contract for computer systems design is the potential for cost escalation. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If project scope creeps, inefficiencies arise, or labor hours are not diligently managed, costs can significantly exceed initial estimates. For the government, this necessitates robust oversight to ensure that labor hours are reasonable and necessary, and that the contractor is not incentivized to prolong tasks. For computer systems design, where requirements can evolve, T&M offers flexibility but demands vigilant monitoring by the government to control expenditures and ensure the project remains within budget expectations.

How effective is full and open competition in ensuring value for money for IT services like computer systems design?

Full and open competition is generally considered the most effective method for ensuring value for money in federal IT services. By allowing all responsible sources to compete, the government maximizes the potential for receiving the best combination of price, technical approach, and past performance. This broad competition drives down prices as contractors vie for the award. It also encourages innovation and efficiency, as companies strive to differentiate themselves. For computer systems design, where technical expertise and innovative solutions are crucial, a competitive environment ensures that NIH can select a vendor that not only meets technical requirements but does so at a competitive price point. The alternative, limited or sole-source procurements, often result in higher prices due to reduced market pressure.

What is the historical spending trend for computer systems design services at NIH?

Historical spending trends for computer systems design services at NIH are likely characterized by consistent and significant investment, reflecting the agency's reliance on advanced IT infrastructure to support its vast research endeavors. NIH's mission necessitates continuous upgrades and development of complex systems for data management, analysis, collaboration, and research platforms. Spending in this category would fluctuate based on major modernization initiatives, the introduction of new research technologies, and the lifecycle of existing systems. While specific annual figures require detailed analysis of historical procurement data (e.g., from FPDS), it's reasonable to assume that NIH consistently allocates substantial funds to computer systems design, often through multiple contracts of varying sizes and durations, awarded via competitive processes.

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: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 15000 CONFERENCE CENTER DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $30,116,724

Exercised Options: $18,112,744

Current Obligation: $16,897,013

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 263010049

IDV Type: IDC

Timeline