HHS awarded $79.7M for critical IT functions, with General Dynamics Information Technology as prime

Contract Overview

Contract Amount: $79,668,632 ($79.7M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2015-08-09

End Date: 2021-02-10

Contract Duration: 2,012 days

Daily Burn Rate: $39.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::CT::IGF FOR CRITICAL FUNCTIONS

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $79.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::CT::IGF FOR CRITICAL FUNCTIONS Key points: 1. Contract value of $79.7M over 5 years suggests significant investment in IT infrastructure. 2. Full and open competition indicates a potentially competitive bidding process. 3. Delivery order under a larger IDIQ contract may offer some flexibility but could also obscure true competition. 4. The contract's duration and value point to a long-term need for these IT services. 5. Focus on computer systems design services highlights the importance of robust IT for administrative functions. 6. The contract was awarded as a delivery order, suggesting it's part of a broader framework agreement.

Value Assessment

Rating: good

The contract value of $79.7 million over approximately five years for computer systems design services appears reasonable given the scope. Benchmarking against similar large-scale IT service contracts for federal agencies suggests this falls within expected ranges for comprehensive support. The pricing structure, likely based on time and materials, requires careful monitoring to ensure efficiency and prevent cost overruns, but it allows for flexibility in addressing evolving IT needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. While the specific number of bidders is not provided, this approach generally fosters a competitive environment, which can lead to better pricing and service quality. As a delivery order under a larger IDIQ, the initial competition might have occurred at the IDIQ level, with this specific order being awarded based on pre-established terms.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at competitive market rates, maximizing the value of federal dollars spent.

Public Impact

Federal employees within the Department of Health and Human Services (HHS) benefit from reliable and efficient IT systems. The contract supports critical administrative functions, ensuring the smooth operation of the agency. Geographic impact is likely nationwide, as HHS operates across the United States. Workforce implications include the potential for IT professionals employed by General Dynamics Information Technology to support this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and materials contract type can lead to cost overruns if not closely managed.
Reliance on a single prime contractor for critical functions may pose a risk if performance issues arise.
The specific details of the IDIQ from which this delivery order was issued are not fully transparent here.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Long contract duration indicates a stable and ongoing need for these essential IT services.
General Dynamics Information Technology is a large, established federal contractor with a track record in IT services.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract represents a significant portion of spending within this sub-sector for HHS, likely supporting core operational systems and administrative platforms. Comparable spending benchmarks for similar IT support contracts at agencies of HHS's size would typically range in the tens to hundreds of millions of dollars over several years.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. As a large contract awarded to a major prime contractor, there may be opportunities for small businesses to participate as subcontractors. However, without specific subcontracting plans or set-aside provisions, the direct impact on the small business ecosystem is unclear and likely dependent on the prime contractor's procurement practices.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Office of the Assistant Secretary for Administration at HHS. The contract's performance would be monitored against established milestones and service level agreements. Transparency is facilitated through contract databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

HHS IT Modernization Initiatives
Federal Civilian IT Services Contracts
Large-Scale IT Infrastructure Support
Computer Systems Design Services Contracts

Risk Flags

Potential for cost overruns due to T&M contract type.
Over-reliance on a single prime contractor for critical functions.
Lack of specific small business subcontracting goals mentioned.
Delivery order under IDIQ may obscure full competition details.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $79.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::CT::IGF FOR CRITICAL FUNCTIONS

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 (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $79.7 million.

What is the period of performance?

Start: 2015-08-09. End: 2021-02-10.

What is the track record of General Dynamics Information Technology with HHS and other federal agencies for similar IT services?

General Dynamics Information Technology (GDIT) has a substantial track record as a federal contractor, including significant work with the Department of Health and Human Services (HHS) and other large civilian and defense agencies. They are known for providing a wide range of IT services, including systems integration, cloud computing, cybersecurity, and IT support. Their experience often involves managing large, complex contracts similar to this one, supporting critical mission functions. GDIT's performance history with HHS would be detailed in past performance evaluations during the bidding process for contracts like this. While specific contract performance metrics are often proprietary, their continued success in winning large federal contracts suggests a generally positive performance record and capability to meet government requirements.

How does the awarded amount of $79.7 million compare to other federal contracts for computer systems design services?

The awarded amount of $79.7 million for computer systems design services over approximately five years places this contract in the mid-to-large tier for federal IT procurements. Federal agencies, particularly large departments like HHS, frequently award contracts in this range for comprehensive IT support, system development, and integration. For context, major IT modernization efforts or large-scale infrastructure overhauls can easily reach hundreds of millions or even billions of dollars. Conversely, smaller, more specialized IT support tasks might be awarded for amounts under $10 million. Therefore, $79.7 million is a significant but not extraordinary sum for the scope of services described, reflecting a substantial, multi-year commitment to critical IT functions.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude?

Time and Materials (T&M) contracts, like the one awarded here, carry inherent risks, primarily related to cost control. The primary risk is that costs can escalate beyond initial projections if the scope of work is not well-defined or if inefficiencies arise. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual time spent by labor and the cost of materials used. This can lead to cost overruns if the project takes longer than anticipated or if labor rates are higher than expected. For a contract of $79.7 million, effective oversight, detailed tracking of hours and materials, and strong performance management are crucial to mitigate the risk of uncontrolled spending and ensure value for taxpayer money. Regular reviews and clear task orders are essential.

What is the potential impact of this contract on the overall IT modernization efforts within HHS?

This contract plays a crucial role in supporting the ongoing IT modernization efforts within HHS by ensuring the stability and functionality of critical systems. By providing essential computer systems design services, it likely underpins the infrastructure necessary for newer, modernized applications and platforms to operate effectively. While this specific contract may focus on maintaining and enhancing existing systems, it frees up resources and provides a stable foundation that allows HHS to pursue more advanced modernization projects. The reliability of the services procured here is fundamental to the success of broader digital transformation initiatives, ensuring that the agency's core IT operations are robust and capable of supporting future technological advancements.

How has HHS's spending on computer systems design services evolved over the past five years?

Analyzing HHS's spending on computer systems design services over the past five years would reveal trends in their IT investment strategy. Generally, federal agencies have seen increasing IT expenditures driven by the need for modernization, cybersecurity, and digital transformation. For HHS, this likely means a sustained or growing investment in services like those provided under this contract. Spending patterns might show a shift towards cloud services, data analytics, and AI-driven solutions, alongside traditional system design and integration. Understanding historical spending provides context for the current contract's value and duration, indicating whether it represents a continuation of established investment levels or a strategic increase/decrease in this service area.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: NIHJT2010001

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Qbase-Mcneil Integrated Solutions Rllp

Address: 15036 CONFERENCE CENTER DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $80,151,718

Exercised Options: $79,668,632

Current Obligation: $79,668,632

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200050W

IDV Type: GWAC

Timeline