DoD awards $91.7M engineering services contract to General Dynamics Information Technology Inc

Contract Overview

Contract Amount: $91,721,206 ($91.7M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2005-06-17

End Date: 2010-12-14

Contract Duration: 2,006 days

Daily Burn Rate: $45.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $91.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: Key points: 1. Contract awarded to a large, established defense contractor. 2. Significant contract value over a 5-year period. 3. Competition method was full and open, suggesting potential for competitive pricing. 4. Engineering services sector is critical for defense operations.

Value Assessment

Rating: good

The contract value of $91.7M over approximately 5 years suggests a substantial investment. Without specific unit cost data or comparison points, it's difficult to definitively assess pricing, but the duration and scope imply a significant but potentially reasonable cost for engineering services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and can drive competitive pricing. This method is generally preferred for maximizing value for taxpayers.

Taxpayer Impact: Full and open competition aims to ensure the government receives the best value, potentially saving taxpayer money through competitive bidding.

Public Impact

Supports critical defense engineering functions, impacting national security. General Dynamics is a major player in the defense industry, influencing market dynamics. Long-term contract provides stability for the contractor and ensures continuity of services. Potential for technological advancements stemming from engineering services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration could lead to cost overruns if not managed effectively.
Reliance on a single large contractor may limit future flexibility.

Positive Signals

Full and open competition promotes market fairness.
Contract supports essential defense capabilities.
Established contractor likely possesses necessary expertise.

Sector Analysis

This contract falls within the engineering services sector, which is vital for the Department of Defense's research, development, and maintenance of complex systems. Spending in this sector is often substantial due to the technical nature and critical importance of defense projects.

Small Business Impact

The contract was awarded to General Dynamics Information Technology Inc., a large business. There is no explicit indication of small business participation or subcontracting goals within the provided data, which could be an area for further review.

Oversight & Accountability

The contract was awarded by the Department of Defense through the Defense Contract Management Agency, suggesting established oversight processes. However, the effectiveness of oversight depends on ongoing monitoring of performance, cost, and adherence to contract terms.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Potential for cost overruns due to contract type and duration.
Lack of specific performance metrics or outcome-based measures.
Limited visibility into small business participation.
Long-term reliance on a single large contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $91.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. See the official description on USAspending.

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 Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $91.7 million.

What is the period of performance?

Start: 2005-06-17. End: 2010-12-14.

What specific engineering services were procured under this contract, and how do they align with current defense priorities?

The provided data indicates 'Engineering Services' broadly. To assess value, a detailed breakdown of the specific services (e.g., systems engineering, software development, mechanical design) and their direct contribution to current defense modernization efforts or operational readiness would be necessary. This would clarify if the $91.7M investment is strategically allocated.

Given the 5-year duration, what mechanisms were in place to manage potential cost growth and ensure continued competitive pricing throughout the contract term?

Contracts of this length, especially cost-plus types, carry inherent risks of cost escalation. Effective oversight would involve robust cost tracking, performance metrics, and potentially incentive structures tied to efficiency. Regular reviews and potential re-competition or renegotiation points could also mitigate risks and ensure value.

How did the 'full and open competition' process ensure the best possible technical solutions and pricing for these critical engineering services?

Full and open competition theoretically maximizes the pool of potential offerors, leading to better technical proposals and pricing. Evaluating the success would require examining the number and quality of bids received, the evaluation criteria used, and whether the chosen solution demonstrably outperformed alternatives in terms of capability and cost-effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 3170 FAIRVIEW PARK DR, 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: $108,474,185

Exercised Options: $108,474,185

Current Obligation: $91,721,206

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline