HHS Awards $45.1M Network Systems Support Contract to General Dynamics

Contract Overview

Contract Amount: $45,128,762 ($45.1M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2007-10-01

End Date: 2011-12-31

Contract Duration: 1,552 days

Daily Burn Rate: $29.1K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: CIT: SRA - NETWORK SYSTEMS SUPPORT - RFQ-07-237-MJK

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $45.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: CIT: SRA - NETWORK SYSTEMS SUPPORT - RFQ-07-237-MJK Key points: 1. Contract awarded to a single large business, General Dynamics Information Technology, Inc. 2. The contract falls under Computer Systems Design Services (NAICS 541512). 3. Spending of $45.1M over 4 years represents a significant investment in IT infrastructure. 4. The contract was awarded via a competitive delivery order, suggesting some price discovery.

Value Assessment

Rating: fair

The contract is a Time and Materials type, which can lead to cost overruns if not managed carefully. Benchmarking against similar contracts for network systems support is difficult without more granular data on services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was awarded through a competitive delivery order process. While competitive, the specific pricing mechanisms and the extent of price discovery are not detailed, making a full assessment challenging.

Taxpayer Impact: Taxpayers are funding a significant IT support contract. The value for money depends on the effective delivery of services and cost control over the contract's duration.

Public Impact

Ensures continued operation and support for critical health information systems. Supports jobs within the IT sector, particularly at General Dynamics. Potential for improved healthcare delivery through robust network infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost uncertainty.
Lack of detailed service breakdown makes value assessment difficult.

Positive Signals

Competitive award process.
Supports critical health agency operations.

Sector Analysis

This contract is within the IT sector, specifically focusing on computer systems design and support. Spending benchmarks for similar network systems support contracts can vary widely based on scope and duration, but $45.1M over four years indicates a substantial, ongoing requirement.

Small Business Impact

The contract was awarded to a large business (General Dynamics Information Technology, Inc.) and does not indicate any specific set-asides or subcontracting requirements for small businesses.

Oversight & Accountability

The contract was awarded by the Department of Health and Human Services (National Institutes of Health). Oversight would typically involve program managers ensuring service delivery and adherence to contract terms.

Related Government Programs

Computer Systems Design Services
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Time and Materials contract type.
Lack of detailed service scope.
Awarded to a large business, potentially limiting small business participation.
Contract duration of over 4 years.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $45.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. CIT: SRA - NETWORK SYSTEMS SUPPORT - RFQ-07-237-MJK

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 $45.1 million.

What is the period of performance?

Start: 2007-10-01. End: 2011-12-31.

What specific network systems and support services are included in this $45.1M contract to ensure it represents good value?

The provided data identifies the contract as 'NETWORK SYSTEMS SUPPORT' under NAICS code 541512 (Computer Systems Design Services). However, a detailed breakdown of the specific systems, hardware, software, and labor hours covered by the $45.1M award is not available. This lack of specificity makes it difficult to ascertain the precise scope of work and therefore to definitively assess whether the contract represents good value for the taxpayer.

What are the primary risks associated with a Time and Materials contract of this magnitude for network systems support?

The primary risk with a Time and Materials (T&M) contract of this size is the potential for cost escalation. Without fixed labor rates or a cap on total hours, the contractor could incur significant costs if the project scope expands or if inefficiencies arise. Effective oversight and clear task definitions are crucial to mitigate these risks and ensure the $45.1M award remains within budget.

How does the competitive delivery order process impact the overall effectiveness and cost-efficiency of this contract?

A competitive delivery order implies that multiple vendors were considered, which generally enhances cost-efficiency compared to a sole-source award. This process likely allowed for some level of price comparison and negotiation, contributing to the effectiveness of the procurement. However, the ultimate effectiveness hinges on the quality of services delivered and whether the chosen vendor meets the NIH's performance expectations over the contract's lifespan.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sterling Parent Inc. (UEI: 968838909)

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

Business Categories: Category Business, Hospital, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $45,128,762

Exercised Options: $45,128,762

Current Obligation: $45,128,762

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4594G

IDV Type: FSS

Timeline