General Dynamics IT awarded $40.8M for computer systems design services by HHS

Contract Overview

Contract Amount: $40,847,060 ($40.8M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2015-09-09

End Date: 2019-10-31

Contract Duration: 1,513 days

Daily Burn Rate: $27.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::CT::IGF

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70114

State: Louisiana Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $40.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::CT::IGF Key points: 1. Contract value represents a significant investment in IT infrastructure support. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The use of Time and Materials pricing may introduce cost variability. 4. The contract duration of over 1500 days indicates a long-term need for these services. 5. The award was made to a single contractor, General Dynamics Information Technology, Inc. 6. The contract falls under the 'Computer Systems Design Services' NAICS code.

Value Assessment

Rating: fair

The contract value of $40.8 million over approximately four years for computer systems design services is substantial. Benchmarking this against similar contracts is challenging without more specific service details. However, the Time and Materials (T&M) pricing structure, while common, can lead to costs exceeding initial estimates if not closely managed. The absence of a fixed price or ceiling on T&M could indicate a higher risk of cost overruns compared to firm-fixed-price contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that only one award was made suggests that General Dynamics Information Technology, Inc. was the most advantageous offer received by the agency. The level of competition prior to the award is not detailed, but the 'full and open' designation implies a robust process.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve service quality, leading to better value for public funds.

Public Impact

The Department of Health and Human Services (HHS) benefits from enhanced computer systems design and support. Services delivered likely include IT infrastructure management, system integration, and technical support. The contract's geographic impact is primarily within Louisiana, where the award was made. Workforce implications include the potential for skilled IT professionals to be employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not carefully monitored.
The long contract duration may reduce flexibility to adopt newer technologies if not managed proactively.
Reliance on a single contractor for critical IT services could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
General Dynamics Information Technology is an established contractor with a significant presence in the federal IT space.
The contract addresses a clear need for computer systems design services within HHS.

Sector Analysis

The computer systems design services sector is a critical component of the federal IT landscape, encompassing a wide range of activities from software development to infrastructure management. Federal spending in this area is consistently high, driven by the need to maintain and modernize complex government systems. This contract with HHS fits within the broader trend of agencies outsourcing IT functions to specialized firms to leverage expertise and potentially achieve cost efficiencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. The focus on a large, established contractor like General Dynamics Information Technology suggests that the primary award is not aimed at directly boosting the small business ecosystem, though subcontracting opportunities could still arise.

Oversight & Accountability

Oversight of this contract would typically be managed by the Office of the Assistant Secretary for Administration within HHS, with contract officers and program managers responsible for monitoring performance and expenditures. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse. Transparency is facilitated through contract databases, but detailed performance metrics and specific oversight activities are not publicly disclosed.

Related Government Programs

HHS IT Modernization Initiatives
Federal Civilian IT Services Contracts
General IT Support Services
Computer Systems Design and Related Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Risk of technological obsolescence over the contract's long duration.
Dependency on a single contractor for critical IT services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $40.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::CT::IGF

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 $40.8 million.

What is the period of performance?

Start: 2015-09-09. End: 2019-10-31.

What is the track record of General Dynamics Information Technology, Inc. with federal contracts, particularly within HHS?

General Dynamics Information Technology, Inc. (GDIT) is a major federal contractor with a long history of providing IT services across various government agencies, including the Department of Health and Human Services (HHS). GDIT has held numerous contracts for IT support, systems integration, cybersecurity, and cloud services. Their experience with HHS likely spans a range of administrative and program support functions. While specific performance details for this particular contract are not publicly detailed, GDIT's extensive portfolio suggests a significant capacity and established presence in serving federal clients. Reviewing past performance evaluations and contract award histories for GDIT can provide further insight into their reliability and effectiveness in delivering complex IT solutions to government entities.

How does the $40.8 million contract value compare to similar computer systems design services contracts awarded by HHS or other agencies?

The $40.8 million contract value for computer systems design services awarded to General Dynamics Information Technology, Inc. by HHS is a substantial sum, reflecting a significant scope of work over its duration. To benchmark this value, one would typically compare it to other contracts for similar services (NAICS 541512) awarded by HHS or other large federal agencies like the Department of Defense or the General Services Administration. Factors such as contract length, specific deliverables, labor categories, and geographic location influence pricing. Without more granular data on the specific services rendered under this contract, a precise comparison is difficult. However, contracts of this magnitude often involve complex system integration, modernization efforts, or long-term IT support for critical agency functions, suggesting it aligns with major IT investments common in the federal government.

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

The primary risks associated with a Time and Materials (T&M) contract of this $40.8 million value and multi-year duration revolve around cost control and scope creep. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and materials used. This structure can lead to cost overruns if the project scope expands beyond initial expectations or if labor hours are not efficiently managed. For taxpayers, the risk is paying more than anticipated if robust oversight and management controls are not in place. The long duration amplifies these risks, as market conditions, technological needs, and agency priorities can shift, potentially leading to inefficiencies or the need for contract modifications that could increase costs. Effective oversight, clear task orders, and regular performance reviews are crucial to mitigate these risks.

What does the 'full and open competition' designation imply about the potential for cost savings and service quality?

The designation of 'full and open competition' for this contract implies that the Department of Health and Human Services sought bids from all responsible sources, fostering a competitive environment. This process is generally expected to lead to cost savings for taxpayers because multiple companies vie to offer the best price and value. It also encourages higher service quality as contractors aim to differentiate themselves through performance. While only one award was made to General Dynamics Information Technology, Inc., the initial competitive bidding process should have driven down prices compared to a sole-source award. The effectiveness of this competition in achieving optimal value depends on the clarity of the solicitation, the evaluation criteria, and the agency's ability to select the most advantageous offer.

How might the long duration (1513 days) of this contract impact the agency's ability to adapt to technological advancements?

A contract duration of 1513 days (approximately 4 years) for computer systems design services presents a potential challenge for agencies seeking to remain agile in a rapidly evolving technological landscape. While long-term contracts can provide stability and ensure continuity of essential services, they may also create inertia. If the contract is not structured with flexibility for incorporating new technologies or adapting to changing requirements, the agency could find itself locked into older systems or processes. This could hinder innovation and potentially lead to the use of suboptimal solutions. Effective contract management, including provisions for technology refresh, regular reviews of emerging technologies, and clear modification clauses, is essential to mitigate this risk and ensure the contract remains aligned with the agency's long-term IT strategy.

What is the significance of the 'LA' (Louisiana) state code in relation to this contract?

The 'LA' state code indicates that the contract was awarded to a contractor located in or performing services within Louisiana. This could mean that the primary place of performance for General Dynamics Information Technology, Inc. under this contract is in Louisiana, or that the company has a significant operational presence there. For the state of Louisiana, this could translate to economic benefits through job creation, local spending, and tax revenue associated with the contractor's activities. Federal agencies sometimes consider geographic factors in their contracting strategies, although the primary driver for this award was likely the technical qualifications and price offered by the contractor through the competitive process.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

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: General Dynamics Corporation

Address: 3150 FAIRVIEW PARK DR STE 100, FALLS CHURCH, VA, 22042

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

Financial Breakdown

Contract Ceiling: $79,973,723

Exercised Options: $65,671,071

Current Obligation: $40,847,060

Actual Outlays: $839,778

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $156,058

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200050W

IDV Type: GWAC

Timeline