HHS awards $56M for IT services to General Dynamics, raising questions about competition and value
Contract Overview
Contract Amount: $56,163,118 ($56.2M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2007-06-29
End Date: 2011-09-26
Contract Duration: 1,550 days
Daily Burn Rate: $36.2K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY)
Sector: IT
Official Description: OTHER ADP & TELECOMMUNICATIONS SVCS
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $56.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: OTHER ADP & TELECOMMUNICATIONS SVCS Key points: 1. Spending of $56.16M on IT services by NIH. 2. General Dynamics Information Technology, Inc. is the sole awardee. 3. The contract was awarded as a competitive delivery order, but the specific competition details are unclear. 4. The sector is IT services, specifically Computer Systems Design.
Value Assessment
Rating: fair
The award amount of $56.16M for Computer Systems Design Services is substantial. Without more detailed performance metrics and comparison to similar contracts, assessing the value for money is difficult. The duration of the contract (1550 days) suggests a significant scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
Awarded as a 'COMPETITIVE DELIVERY ORDER' under a larger contract, but the specifics of the competition are not detailed. This limited competition may have restricted price discovery and potentially led to a higher cost than a fully open competition.
Taxpayer Impact: Taxpayer funds totaling $56.16M were allocated. The effectiveness of the competition method in securing the best price for taxpayers is uncertain.
Public Impact
Significant federal spending on IT services by a major health agency. Potential for limited competition impacting cost-effectiveness. The contract supports critical health research infrastructure. General Dynamics is a major government contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition details
- Lack of clear value assessment metrics
- No small business participation indicated
Positive Signals
- Awarded to a known IT services provider
- Supports critical NIH mission
Sector Analysis
The IT services sector, particularly Computer Systems Design, is crucial for government operations. Benchmarks for similar contracts are highly variable based on scope and complexity, making direct comparison challenging without more data.
Small Business Impact
The data indicates no small business participation in this specific award (sb: false). This suggests that opportunities for small businesses were either not pursued or not included in this particular contract vehicle.
Oversight & Accountability
The contract was awarded as a delivery order, implying it falls under a larger, potentially pre-vetted contract. Oversight would focus on the execution of this delivery order and adherence to its terms by both NIH and General Dynamics.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- National Institutes of Health Programs
Risk Flags
- Lack of transparency in competitive bidding process.
- Potential for inflated costs due to limited competition.
- No indication of small business subcontracting.
- Absence of clear performance metrics for value assessment.
Tags
computer-systems-design-services, department-of-health-and-human-services, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $56.2 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 $56.2 million.
What is the period of performance?
Start: 2007-06-29. End: 2011-09-26.
What was the specific competitive process for this delivery order, and how did it ensure fair pricing?
The award is listed as a 'COMPETITIVE DELIVERY ORDER,' but the data lacks details on the number of bidders, the evaluation criteria, or the specific mechanism used to ensure fair price discovery. Further investigation into the contract file would be needed to understand the competitive landscape and pricing justification.
What are the key performance indicators (KPIs) for this contract, and how has General Dynamics performed against them?
The provided data does not include specific KPIs or performance metrics for this contract. Assessing the value and effectiveness requires access to performance reports, user feedback, and potentially independent reviews of the services delivered by General Dynamics Information Technology.
How does the per-unit cost of these computer systems design services compare to industry benchmarks or similar government contracts?
A direct per-unit cost benchmark is not available without detailed service descriptions and pricing breakdowns. The total award of $56.16M over 1550 days for Computer Systems Design Services needs to be evaluated against the specific deliverables and complexity of the tasks performed.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: MISCELLANEOUS
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY) (3)
Evaluated Preference: NONE
Contractor Details
Parent Company: Sterling Parent Inc. (UEI: 968838909)
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: $66,246,697
Exercised Options: $56,438,012
Current Obligation: $56,163,118
Parent Contract
Parent Award PIID: 263010050
IDV Type: IDC
Timeline
Start Date: 2007-06-29
Current End Date: 2011-09-26
Potential End Date: 2011-09-26 00:00:00
Last Modified: 2016-06-28
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