HHS awarded $39M for IT services to General Dynamics, with a 5-year performance period

Contract Overview

Contract Amount: $39,084,867 ($39.1M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2006-09-15

End Date: 2011-12-31

Contract Duration: 1,933 days

Daily Burn Rate: $20.2K/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: TAS::75 4554::TAS OTHER ADP&TELECOMMUNICATIONS SVCS

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $39.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: TAS::75 4554::TAS OTHER ADP&TELECOMMUNICATIONS SVCS Key points: 1. The contract value represents a significant investment in IT services for NIH. 2. Competition dynamics for this contract type are crucial for ensuring fair pricing. 3. Performance duration of over 5 years suggests a need for long-term IT support. 4. The specific IT services procured are essential for supporting NIH's research mission. 5. Sector positioning indicates a substantial government reliance on established IT providers.

Value Assessment

Rating: good

The contract value of approximately $39 million over five years suggests a moderate annual spend for IT services. Benchmarking against similar large-scale IT support contracts within federal agencies would provide a clearer picture of value for money. Without specific performance metrics or comparison data, it's challenging to definitively assess if this represents excellent value, but the duration and scope imply a negotiated rate for a substantial service commitment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that it was competed under a broader indefinite-delivery/indefinite-quantity (IDIQ) contract. The 'full-and-open' competition suggests multiple bidders were likely considered, which generally promotes competitive pricing and a wider range of technical solutions. The specific number of bidders and the evaluation process would offer more insight into the intensity of the competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring the government receives the best possible services at a competitive price.

Public Impact

The National Institutes of Health (NIH) benefits from enhanced IT infrastructure and support services. Essential IT services, including computer systems design, are delivered to support biomedical research. The primary geographic impact is within Maryland, where NIH facilities are located. The contract supports a workforce of IT professionals, likely including both government and contractor personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if contract terms are not carefully managed.
Ensuring continued innovation and adaptation to evolving IT needs over the contract's lifespan.
Managing the transition of services if future contracts are awarded to different vendors.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Long-term contract duration allows for stable IT support and planning.
General Dynamics is a well-established IT provider with a track record in government contracting.

Sector Analysis

The IT services sector within the federal government is vast, with agencies consistently investing in computer systems design and telecommunications. This contract falls within the broader IT services market, which is characterized by a mix of large prime contractors and specialized subcontractors. Federal spending in this area is driven by the need to maintain and upgrade complex IT infrastructures to support agency missions, with significant annual outlays across various departments.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While General Dynamics Information Technology, Inc. is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on the specific terms of the contract and the prime contractor's subcontracting plan.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the National Institutes of Health. Accountability measures are usually embedded in the contract's performance work statement, with regular reviews and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Services
Computer Systems Design
ADP and Telecommunications Services
Department of Health and Human Services Contracts
National Institutes of Health IT Procurement

Risk Flags

Long contract duration may lead to technology obsolescence.
Potential for vendor lock-in.
Performance monitoring is critical to ensure service quality.
Cybersecurity risks associated with IT service provision.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $39.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. TAS::75 4554::TAS 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 $39.1 million.

What is the period of performance?

Start: 2006-09-15. End: 2011-12-31.

What specific IT services were procured under this contract, and how do they align with NIH's mission?

This contract, awarded under the TAS OTHER ADP & TELECOMMUNICATIONS SVCS category, primarily covers computer systems design services (NAICS code 541512). These services are fundamental to supporting the vast IT infrastructure required for NIH's mission of advancing biomedical research. This includes designing, developing, and maintaining the complex systems that manage research data, facilitate collaboration among scientists, and enable the operation of critical research facilities. The specific nature of these services ensures that NIH has the technological backbone necessary to conduct its cutting-edge scientific endeavors.

How does the $39 million contract value compare to other similar IT service contracts awarded by NIH or HHS?

The $39 million contract value over approximately five years translates to an average annual spend of roughly $7.8 million. This figure is moderate for large-scale IT service contracts within major federal health agencies like HHS and NIH. NIH, being a significant research institution, often awards larger contracts for enterprise-wide IT solutions, cloud migration, or major system overhauls that can reach tens or hundreds of millions of dollars. This particular contract likely addresses a specific set of IT system design needs rather than a comprehensive IT outsourcing agreement, making direct comparison challenging without more granular data on the scope of services.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

While the provided data does not detail specific KPIs or SLAs, contracts for computer systems design services typically include metrics related to system uptime, response times for technical support, project completion rates within defined timelines, and adherence to security protocols. For NIH, critical performance indicators would likely focus on the reliability and availability of research systems, the efficiency of data processing and storage, and the successful implementation of system upgrades or new designs that enhance research capabilities. These metrics are crucial for ensuring the contractor meets the demanding operational needs of a leading biomedical research agency.

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

General Dynamics Information Technology, Inc. (GDIT) is a major federal IT contractor with a substantial history of serving various government agencies, including HHS. They have a broad portfolio encompassing IT modernization, cybersecurity, data analytics, and mission support services. GDIT has held numerous prime contracts with HHS and its various operating divisions, including NIH, often in areas related to health IT, research support, and administrative systems. Their extensive experience suggests a deep understanding of the federal procurement landscape and the specific requirements of health and science agencies, though performance can vary across individual contracts.

What are the potential risks associated with a 5-year IT services contract of this magnitude?

A significant risk with a multi-year IT services contract is technological obsolescence; the IT landscape evolves rapidly, and systems designed today might be outdated by the end of the contract. Another risk is vendor lock-in, where the agency becomes overly reliant on a single provider, making future transitions difficult and potentially costly. Performance degradation over time, scope creep leading to cost overruns, and cybersecurity vulnerabilities are also inherent risks. For NIH, disruptions to critical research systems due to contractor performance issues could have severe consequences for ongoing scientific projects.

How has federal spending on IT services like computer systems design evolved over the past decade, and where does this contract fit?

Federal spending on IT services, including computer systems design, has generally trended upwards over the past decade, driven by digital transformation initiatives, modernization efforts, and increasing reliance on technology across all government functions. Agencies like HHS and NIH are significant spenders in this category, allocating substantial funds to maintain and upgrade their complex IT infrastructures. This $39 million contract represents a portion of that broader federal investment, focusing on specific system design needs within NIH. While overall IT spending fluctuates based on budget appropriations and strategic priorities, the demand for sophisticated IT support services remains consistently high.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

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: 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: $45,590,395

Exercised Options: $45,590,395

Current Obligation: $39,084,867

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 263010050

IDV Type: IDC

Timeline