HHS awarded $45.9M to General Dynamics for IT support of refugee processing system

Contract Overview

Contract Amount: $45,889,452 ($45.9M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2008-08-18

End Date: 2011-12-17

Contract Duration: 1,216 days

Daily Burn Rate: $37.7K/day

Number of Offers Received: 2

Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY)

Sector: IT

Official Description: IT SERVICE SUPPORT FOR TASK ORDER C-2594 FOR DEVELOPMENT AND MAINTENANCE OF THE WORLDWIDE REFUGEE ADMISSION PROCESSING SYSTEM (Y3-OD-8720) FY 08 FUNDING

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $45.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IT SERVICE SUPPORT FOR TASK ORDER C-2594 FOR DEVELOPMENT AND MAINTENANCE OF THE WORLDWIDE REFUGEE ADMISSION PROCESSING SYSTEM (Y3-OD-8720) FY 08 FUNDING Key points: 1. Contract value represents a significant investment in critical IT infrastructure for refugee services. 2. The duration of the contract suggests a long-term need for system maintenance and development. 3. Awarded to a large, established IT contractor, indicating a focus on proven capabilities. 4. The specific system supported (WRAPS) is vital for national security and humanitarian efforts. 5. Funding from FY08 indicates the contract's historical context and potential for follow-on work.

Value Assessment

Rating: fair

The contract value of $45.9 million over approximately three years for IT service support of a complex system like WRAPS appears within a reasonable range for such specialized services. Benchmarking against similar large-scale IT development and maintenance contracts for government systems would provide a clearer picture of value for money. However, without specific details on the scope of work, deliverables, and performance metrics, a definitive assessment of cost-effectiveness is challenging. The contract's duration and funding level suggest a substantial commitment, implying that the services were deemed necessary and potentially cost-effective at the time of award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition level for this contract is not specified in the provided data. Typically, large IT service contracts for critical systems may be competed through various mechanisms, including full and open competition, or set-asides. The number of bidders and the specific procurement method would significantly influence price discovery and the potential for achieving the best value for the government. If competed broadly, multiple bids would likely drive down costs. If limited or sole-source, the government may have paid a premium.

Taxpayer Impact: The level of competition directly impacts taxpayer dollars. Robust competition generally leads to lower prices and better service quality, maximizing the value of public funds. Limited competition could result in higher costs for taxpayers.

Public Impact

Refugee resettlement agencies and personnel benefit from the efficient operation of the WRAPS system. The system facilitates the processing and tracking of individuals admitted to the U.S. as refugees. Geographic impact is nationwide, supporting the federal government's refugee admission policies. Workforce implications include IT professionals employed by General Dynamics and potentially government personnel managing the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs without adequate oversight.
Risk of vendor lock-in due to the specialized nature of the system.
Dependence on a single contractor for critical IT infrastructure.

Positive Signals

Award to an established contractor with a track record in government IT services.
Long contract duration suggests stability and commitment to system support.
Focus on a critical system vital for national and humanitarian functions.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on software development, maintenance, and support for a specialized government application. The market for government IT services is substantial, with agencies consistently investing in maintaining and modernizing their systems. Comparable spending benchmarks would involve looking at other large IT support contracts awarded by HHS or other federal agencies for similar mission-critical systems, considering factors like system complexity, user base, and security requirements.

Small Business Impact

The provided data does not indicate whether this contract included small business set-asides or subcontracting requirements. General Dynamics Information Technology, as a large prime contractor, may engage small businesses for subcontracting opportunities. However, without specific details on the contract's small business participation plan, its direct impact on the small business ecosystem remains unclear. Analysis would require reviewing the subcontracting reports associated with this award.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Institutes of Health (NIH) contracting officers and program managers. Accountability measures would be defined in the contract's statement of work, including performance standards and reporting requirements. Transparency is often facilitated through contract databases like FPDS-NG. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Refugee Assistance Programs
Federal Information Technology Modernization
Department of Health and Human Services IT Contracts
General Dynamics IT Contracts

Risk Flags

Potential for scope creep
Vendor lock-in risk
System obsolescence
Data security vulnerabilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $45.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IT SERVICE SUPPORT FOR TASK ORDER C-2594 FOR DEVELOPMENT AND MAINTENANCE OF THE WORLDWIDE REFUGEE ADMISSION PROCESSING SYSTEM (Y3-OD-8720) FY 08 FUNDING

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 $45.9 million.

What is the period of performance?

Start: 2008-08-18. End: 2011-12-17.

What was the specific scope of work for the WorldWide Refugee Admission Processing System (WRAPS) IT service support?

The WorldWide Refugee Admission Processing System (WRAPS) IT service support contract, awarded to General Dynamics Information Technology, Inc., likely encompassed a range of activities critical to the system's functionality and maintenance. This would typically include software development for enhancements and bug fixes, system administration, database management, user support, security patching, and potentially infrastructure upgrades. Given the system's role in processing refugee admissions, the scope would also involve ensuring compliance with evolving immigration policies and data privacy regulations. The contract's duration (over three years) suggests a comprehensive, long-term support agreement rather than a short-term project, implying ongoing development and maintenance responsibilities to ensure the system remains operational, secure, and aligned with the Department of Health and Human Services' mission.

How does the $45.9 million contract value compare to other IT support contracts for similar government systems?

The $45.9 million contract value for IT service support of the WRAPS system, awarded in 2008 and spanning over three years, represents a substantial investment. To benchmark this value, one would compare it to other large-scale IT support and development contracts for mission-critical government systems, particularly those managed by agencies like HHS or the Department of Homeland Security. Factors such as system complexity, the number of users, security requirements, and the specific services included (e.g., development, maintenance, cloud migration) heavily influence contract costs. Without detailed comparisons to contracts with similar scope and complexity, it's difficult to definitively state whether this represents excellent or fair value. However, for a system supporting national-level refugee processing, a significant budget is expected.

What are the potential risks associated with a long-term IT support contract for a critical system like WRAPS?

Long-term IT support contracts for critical systems like WRAPS carry several potential risks. One primary risk is vendor lock-in, where the government becomes heavily reliant on a single contractor's proprietary knowledge and technology, making it difficult and costly to switch providers. There's also the risk of cost overruns if the scope of work expands beyond initial projections (scope creep) without adequate change control mechanisms. Performance degradation or failure to adapt to new technological advancements or policy changes by the contractor can also pose a significant risk, potentially impacting the efficiency and effectiveness of refugee processing. Furthermore, security vulnerabilities could arise if the contractor does not maintain robust cybersecurity practices throughout the contract's lifecycle, jeopardizing sensitive data.

What was the historical spending trend for the WRAPS system prior to this contract?

The provided data focuses on a single contract awarded in 2008. To understand historical spending trends for the WRAPS system, one would need to examine contract awards for WRAPS or its predecessor systems in the years preceding 2008. This would involve searching federal procurement databases for relevant contracts awarded by the Department of Health and Human Services or its relevant sub-agencies. Analyzing these historical data points would reveal whether spending on WRAPS IT support has been consistent, increasing, or decreasing, and whether this $45.9 million award represented a significant shift in investment. Understanding past spending patterns is crucial for assessing the current contract's financial context and forecasting future needs.

Did General Dynamics Information Technology have a strong track record with HHS or similar agencies before this award?

General Dynamics Information Technology, Inc. (GDIT) is a major federal IT contractor with a long history of serving various government agencies, including the Department of Health and Human Services (HHS). Before this specific award in 2008, GDIT had likely secured numerous contracts for IT services, system development, and support across different federal departments. Their track record would be assessed based on past performance evaluations, contract completion success, and their ability to meet technical and programmatic requirements on previous engagements. A review of their contract history with HHS and other agencies would reveal their experience with similar complex systems and their overall reputation for delivering reliable IT solutions to the federal government.

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: $64,424,711

Exercised Options: $57,244,657

Current Obligation: $45,889,452

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 263010050

IDV Type: IDC

Timeline