HHS awarded $41.6M for IT services to General Dynamics, with a 1591-day duration

Contract Overview

Contract Amount: $41,617,640 ($41.6M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2007-08-23

End Date: 2011-12-31

Contract Duration: 1,591 days

Daily Burn Rate: $26.2K/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: MISCELLANEOUS ITEMS

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $41.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: MISCELLANEOUS ITEMS Key points: 1. The contract value of $41.6 million over approximately 4.3 years suggests a moderate annual spend. 2. Competition dynamics for this delivery order are not fully detailed, but it was awarded under a competitive contract. 3. The duration of 1591 days indicates a long-term need for these services. 4. Performance context is limited without specific task orders or deliverables. 5. The sector positioning is within IT services, specifically computer systems design. 6. The award was made to a large, established contractor, General Dynamics Information Technology Inc.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific task order details or comparable contract data. The total award of $41.6 million over 1591 days averages to approximately $26,158 per day. This daily rate needs to be compared against industry standards for similar IT services to assess value for money. Given the contractor's size and the nature of the services, the pricing is likely within a reasonable range, but a definitive assessment requires more granular data on the specific services rendered and their market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This award was a delivery order under a larger contract. While the parent contract may have been competitively awarded, the specifics of the competition for this particular delivery order are not fully detailed in the provided data. The data indicates it was a 'COMPETITIVE DELIVERY ORDER', suggesting some level of competition, but the number of bidders or the specific solicitation process for this order is not specified. This limits the ability to fully assess the competitive landscape for this specific award.

Taxpayer Impact: The competitive nature of the parent contract likely provided some taxpayer benefit through price discovery. However, the limited detail on the competition for this specific delivery order makes it difficult to quantify the precise savings or value achieved for taxpayers.

Public Impact

The primary beneficiaries are likely the National Institutes of Health (NIH) within the Department of Health and Human Services (HHS), receiving essential IT support. The services delivered fall under 'Computer Systems Design Services', crucial for maintaining and developing IT infrastructure. The geographic impact is centered around the agency's operations, primarily within the United States. The workforce implications involve IT professionals employed by General Dynamics Information Technology Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the contractor's effectiveness.
Limited transparency on the specific services procured under this delivery order.
The long duration of the contract could lead to potential cost overruns if not managed effectively.

Positive Signals

Awarded to a large, experienced contractor with a significant presence in government IT services.
The contract was issued under a competitive framework, suggesting some level of market vetting.
The services provided are critical for the operational needs of a major federal health agency.

Sector Analysis

The contract falls within the Information Technology (IT) sector, specifically Computer Systems Design Services. This is a broad category encompassing a wide range of IT support, from software development to network management. The federal IT services market is substantial, with agencies like HHS being major consumers. Comparable spending benchmarks would involve analyzing other large IT service contracts awarded to system integrators and IT service providers by federal agencies for similar types of support.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular award. The prime contractor is a large business, suggesting that any subcontracting would likely be with other large or mid-tier firms, or potentially small businesses if deemed necessary for specific components of the work.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within the National Institutes of Health (NIH) and the Department of Health and Human Services (HHS). Accountability measures would be tied to the performance requirements outlined in the contract and any subsequent task orders. Transparency is generally facilitated through contract databases like FPDS, although detailed operational transparency depends on agency policies and the specific nature of the services provided. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

HHS IT Services Contracts
NIH IT Support
General Dynamics IT Contracts
Computer Systems Design Services
Federal IT Modernization Programs

Risk Flags

Lack of detailed performance metrics.
Limited transparency on specific services procured.
Potential for technological obsolescence over contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $41.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. MISCELLANEOUS ITEMS

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 $41.6 million.

What is the period of performance?

Start: 2007-08-23. End: 2011-12-31.

What was the specific nature of the 'Computer Systems Design Services' procured under this contract?

The provided data categorizes this award under 'Computer Systems Design Services' (NAICS code 541512). This broad category typically includes services such as designing computer systems that integrate hardware, software, and communication technologies. It can encompass activities like analyzing user needs, designing system architecture, developing software, implementing and testing systems, and providing ongoing maintenance and support. Without access to the specific contract statement of work or task orders, the precise services rendered remain unspecified. However, given the awarding agency (NIH), these services likely supported critical health research IT infrastructure, data management systems, or administrative IT platforms.

How does the $41.6 million award compare to other IT service contracts awarded by NIH or HHS?

Comparing the $41.6 million award requires context regarding the typical scale of IT contracts at NIH and HHS. NIH, being a massive research institution, often engages in large, complex IT procurements for data analysis, high-performance computing, electronic health records, and research support systems. A $41.6 million contract over approximately 4.3 years (1591 days) represents an average annual spend of roughly $9.7 million. This figure is substantial but not extraordinary within the context of major federal health agencies. Larger, multi-year IT modernization efforts or enterprise-wide system implementations at NIH or HHS could easily exceed this amount, while smaller, specialized IT support contracts would be significantly less. A comprehensive comparison would involve analyzing the average contract values, durations, and scopes for similar IT service categories within these agencies over recent fiscal years.

What is the track record of General Dynamics Information Technology Inc. with federal IT contracts, particularly with HHS?

General Dynamics Information Technology Inc. (GDIT) is a major federal contractor with a long and extensive history of providing IT services across numerous government agencies, including a significant presence within the Department of Health and Human Services (HHS). GDIT has historically secured large, complex contracts for IT modernization, cybersecurity, cloud migration, data analytics, and mission support. Their track record with HHS and its sub-agencies like NIH is generally characterized by the ability to manage large-scale projects and provide a wide range of technical expertise. While specific performance metrics for individual contracts are not publicly detailed in summary data, GDIT's continued success in winning significant federal contracts suggests a generally positive performance history and strong past performance evaluations from agencies.

What are the potential risks associated with a long-duration contract like this (1591 days)?

Long-duration contracts, such as this 1591-day (approximately 4.3 years) award, carry several potential risks. One primary risk is technological obsolescence; IT environments can change rapidly, and a contract designed for a specific set of technologies might become outdated before its completion. Another risk is cost escalation; if not structured with appropriate price adjustment clauses or fixed-price elements, long-term contracts can be susceptible to inflation or unforeseen cost increases. Performance degradation over time is also a concern, as contractor motivation or capability might wane. Furthermore, the agency's needs might evolve, making the original scope of work less relevant, which can lead to inefficiencies or the need for costly contract modifications. Effective contract management, regular performance reviews, and built-in flexibility are crucial to mitigate these risks.

How does this contract fit into the broader landscape of federal IT spending?

This $41.6 million contract for computer systems design services at NIH represents a segment of the vast federal IT spending. Federal agencies collectively spend billions of dollars annually on IT, encompassing everything from hardware and software procurement to complex system design, development, integration, and maintenance. Contracts like this one are essential for agencies to maintain and modernize their IT infrastructure, support critical missions, and improve operational efficiency. The trend in federal IT spending often involves a shift towards cloud computing, cybersecurity enhancements, data analytics, and agile development methodologies. This contract, while specific to NIH's needs, reflects the ongoing demand for skilled IT service providers to manage and evolve the government's technological capabilities.

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: 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: Csra LLC (UEI: 080011988)

Address: 3170 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $72,006,839

Exercised Options: $61,969,635

Current Obligation: $41,617,640

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 263010049

IDV Type: IDC

Timeline