HHS awards $13.7M for IT services to General Dynamics, raising concerns about competition

Contract Overview

Contract Amount: $13,725,886 ($13.7M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2007-11-09

End Date: 2008-12-31

Contract Duration: 418 days

Daily Burn Rate: $32.8K/day

Number of Offers Received: 1

Pricing Type: OTHER (NONE OF THE ABOVE)

Sector: IT

Official Description: OTHER ADP & TELECOMMUNICATIONS SVCS

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $13.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: OTHER ADP & TELECOMMUNICATIONS SVCS Key points: 1. Spending on IT services is substantial, with this contract representing a moderate portion. 2. General Dynamics is a major player in the IT sector, indicating significant competition. 3. The award method and lack of small business participation raise potential value and risk concerns. 4. The IT sector is dynamic, requiring continuous evaluation of service costs and effectiveness.

Value Assessment

Rating: questionable

The contract value of $13.7M for computer systems design services is difficult to benchmark without specific details on the services provided. However, the lack of clear competition and the nature of the award may have led to a suboptimal price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded using a limited competition method, suggesting that not all qualified vendors were solicited. This limits price discovery and potentially increases costs for taxpayers.

Taxpayer Impact: The limited competition may have resulted in higher costs than a full and open competition, impacting taxpayer value.

Public Impact

Taxpayers may have paid more than necessary due to limited competition. The NIH's reliance on a single vendor for these services could create vendor lock-in. Small businesses were excluded from this significant contract opportunity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of small business participation
Potential for overpayment

Positive Signals

Award to a known, capable vendor

Sector Analysis

The IT services sector is highly competitive, but specific contract awards can vary. Benchmarking requires detailed service descriptions and pricing data, which are not fully available here.

Small Business Impact

This contract did not appear to involve small businesses, missing an opportunity to support smaller entities within the IT services sector. Future contracts should explore avenues for small business inclusion.

Oversight & Accountability

The limited competition raises questions about the oversight of the procurement process. Further review is needed to ensure fair and effective use of taxpayer funds.

Related Government Programs

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

Risk Flags

Limited competition raises value concerns.
Potential for higher costs due to lack of full competition.
No small business participation.
Lack of performance data makes effectiveness assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13.7 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 $13.7 million.

What is the period of performance?

Start: 2007-11-09. End: 2008-12-31.

Was the limited competition justified by specific circumstances or requirements that precluded a broader solicitation?

The justification for limited competition is not provided in the data. Typically, such awards are made when only one or a few sources possess the required capabilities, or in urgent situations. Without further documentation, it's unclear if these conditions were met, potentially impacting the government's ability to secure the best value.

What is the potential cost impact of awarding this contract without full and open competition?

Limited competition often leads to higher prices compared to full and open competition due to reduced market pressure. While General Dynamics is a reputable firm, the absence of broader bidding could mean the government paid a premium. Quantifying this requires comparing the awarded price to what might have been achieved in a competitive scenario.

How effectively were the IT services delivered under this contract, and did they meet NIH's needs?

The provided data does not include performance metrics or user feedback on the effectiveness of the services rendered by General Dynamics. Assessing the actual value delivered requires evaluating the quality, timeliness, and impact of the computer systems design services against the contract's objectives and NIH's requirements.

Industry Classification

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

Product/Service Code: MISCELLANEOUS

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: $23,168,604

Exercised Options: $17,009,139

Current Obligation: $13,725,886

Parent Contract

Parent Award PIID: 263010050

IDV Type: IDC

Timeline