HHS awarded $15.6M for IT services to General Dynamics, a contract with a 3-year duration

Contract Overview

Contract Amount: $15,615,397 ($15.6M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2007-07-07

End Date: 2010-07-06

Contract Duration: 1,095 days

Daily Burn Rate: $14.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: OTHER (NONE OF THE ABOVE)

Sector: IT

Official Description: C-2475

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: C-2475 Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The duration of 1095 days (3 years) is typical for IT service contracts of this nature. 3. The contract's value of $15.6 million falls within a moderate spending range for IT services. 4. Performance is benchmarked against similar IT service contracts to assess value for money. 5. Risk indicators are monitored through performance metrics and contractor reporting. 6. The contract's sector positioning is within the broader IT services market for government agencies.

Value Assessment

Rating: good

The contract value of $15.6 million over three years averages approximately $5.2 million annually. This is a moderate amount for IT systems design services, especially for a large agency like NIH. Benchmarking against similar contracts for computer systems design services indicates that this pricing is within the expected range, suggesting reasonable value for money. The absence of significant cost overruns or change orders, if applicable, would further support a 'good' rating.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, meaning all responsible sources were permitted to submit a bid. The fact that it was competed openly suggests that multiple bidders likely participated, fostering price discovery and potentially leading to a more competitive price. The specific number of bidders is not provided, but the method of competition indicates a robust process.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value by allowing multiple companies to vie for the contract, driving down costs and improving service quality.

Public Impact

The National Institutes of Health (NIH) benefits from enhanced computer systems design services. These services are crucial for supporting the vast research and administrative functions of the NIH. The contract likely supports IT infrastructure and operations within the Washington D.C. metropolitan area. The contract supports jobs within the IT services sector, contributing to the federal workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific technologies are mandated.
Dependence on contractor performance for critical IT functions.
Risk of scope creep if requirements are not clearly defined and managed.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Contract duration of three years allows for stable service delivery.
General Dynamics is a large, established contractor with a significant federal presence.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically in computer systems design services. The federal government is a major consumer of IT services, with spending in this category often exceeding billions of dollars annually across various agencies. Contracts like this are essential for maintaining and upgrading the complex IT infrastructures that support government operations, research, and public services. Benchmarks for similar IT services contracts within the federal government typically range from millions to tens of millions of dollars, depending on scope and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses like General Dynamics were eligible to bid and were awarded the contract. This means that subcontracting opportunities for small businesses would depend on the prime contractor's strategy and any specific subcontracting goals set by the agency, which are not detailed here. The absence of a small business set-aside suggests the primary focus was on obtaining services from a capable, potentially larger, provider.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the National Institutes of Health (NIH). Performance monitoring, adherence to contract terms, and quality assurance are key oversight mechanisms. Transparency is generally maintained through contract databases like FPDS-NG, which provide public access to contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Services
Computer Systems Design
Department of Health and Human Services Contracts
National Institutes of Health IT Procurement
General Services Administration Schedules (if applicable)

Risk Flags

Potential for vendor lock-in
Dependence on contractor performance
Cybersecurity vulnerabilities
Risk of scope creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. C-2475

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 $15.6 million.

What is the period of performance?

Start: 2007-07-07. End: 2010-07-06.

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

General Dynamics Information Technology, Inc. (GDIT) has a substantial history of contracting with the Department of Health and Human Services (HHS) and its various agencies, including the National Institutes of Health (NIH). Their engagements typically span a wide range of IT services, from systems design and integration to cybersecurity, cloud computing, and data management. Reviewing past performance evaluations and contract histories within FPDS-NG would provide a detailed picture of their success rates, any past issues, and their overall reliability in fulfilling HHS requirements. Their extensive experience suggests a strong understanding of the agency's mission and operational needs.

How does the $15.6 million contract value compare to other IT services contracts awarded by NIH?

The $15.6 million contract value for computer systems design services awarded to General Dynamics Information Technology, Inc. by NIH is a moderate-sized award. NIH, being a large and complex agency, procures a significant volume of IT services annually, with contract values ranging from smaller, specialized task orders to multi-year, multi-million dollar prime contracts. A $15.6 million award over three years averages about $5.2 million per year. This figure is well within the typical spending range for IT support and development at NIH, especially for services supporting research infrastructure or administrative systems. Larger contracts for enterprise-wide solutions or major system overhauls could easily exceed this amount, while smaller contracts might focus on specific software development or hardware maintenance.

What are the primary risks associated with this type of IT services contract?

Primary risks associated with this IT services contract include potential scope creep, where project requirements expand beyond the initial agreement, leading to cost overruns and schedule delays. Another significant risk is vendor lock-in, particularly if the contractor implements proprietary systems or processes that make it difficult or costly to switch providers later. Performance risk is also a concern; failure to deliver services as specified could disrupt critical NIH operations. Cybersecurity risks are inherent in any IT contract, requiring robust security measures to protect sensitive health and research data. Finally, there's the risk of key personnel departing, which could impact service continuity and institutional knowledge.

How effective are full and open competitions in ensuring value for money for IT services?

Full and open competitions are generally considered the most effective method for ensuring value for money in IT services contracts. By allowing all responsible sources to compete, the government maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive bids. This competitive pressure encourages contractors to offer their best pricing and technical solutions to win the contract. Furthermore, the transparency inherent in this process allows for a more thorough evaluation of proposals based on defined criteria, ensuring that the award is made not just on price, but on the best overall value. While it requires more upfront effort in solicitation and evaluation, the long-term benefits in terms of cost savings and service quality are substantial.

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

Historical spending trends for computer systems design services at the National Institutes of Health (NIH) generally show a consistent and significant investment in IT infrastructure and support. Over the years, NIH has increasingly relied on sophisticated IT systems to manage its vast research data, facilitate collaboration, and support administrative functions. Spending in this category has likely seen a steady increase, mirroring the broader trend of digital transformation within government and the growing complexity of scientific research. Factors such as the expansion of data analytics, the need for secure research environments, and the adoption of new technologies would contribute to sustained or growing expenditures in computer systems design and related IT services.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: OTHER (NONE OF THE ABOVE) (3)

Evaluated Preference: NONE

Contractor Details

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

Address: 4300 FAIR LAKES CT, FAIRFAX, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,105,892

Exercised Options: $20,105,892

Current Obligation: $15,615,397

Contract Characteristics

Multi-Year Contract: Yes

Parent Contract

Parent Award PIID: 263010050

IDV Type: IDC

Timeline