DoD's $19M contract for administrative management services awarded to General Dynamics IT shows limited competition

Contract Overview

Contract Amount: $19,045,456 ($19.0M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2007-10-01

End Date: 2011-09-28

Contract Duration: 1,458 days

Daily Burn Rate: $13.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: VISUAL INFO PRODUCTION CENTER (VIPC)

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $19.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: VISUAL INFO PRODUCTION CENTER (VIPC) Key points: 1. The contract's value of approximately $19 million over its duration suggests a significant investment in management consulting services. 2. Awarded as a sole-source contract, the lack of competition raises questions about potential price efficiencies and market responsiveness. 3. The contract's duration of nearly four years indicates a long-term need for these administrative management services. 4. The 'Administrative Management and General Management Consulting Services' NAICS code points to a focus on operational efficiency and strategic guidance. 5. The use of a Cost Plus Fixed Fee (CPFF) contract type can incentivize cost control but requires careful oversight to ensure value. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted to support small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this $19 million contract is challenging without specific deliverables or performance metrics. However, for administrative management and general management consulting services, this amount falls within a moderate range for long-term engagements. The CPFF structure, while common, can lead to higher costs if not managed diligently, making direct value-for-money assessment difficult without further details on the services rendered and their impact.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when a specific contractor is deemed uniquely qualified or when circumstances prevent full and open competition. The lack of competition limits the government's ability to leverage market forces to achieve the best possible pricing and service terms.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other capable firms to secure government contracts.

Public Impact

The Department of Defense benefits from specialized administrative management and general management consulting services aimed at improving operational efficiency. The services delivered likely support strategic planning, organizational structure, and process improvement within the DoD. The geographic impact is primarily within Virginia, where the Defense Contract Management Agency is located, suggesting a focus on supporting agency operations. Workforce implications may include the utilization of skilled consultants to enhance government management practices, potentially leading to improved service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source awards can reduce transparency and accountability.
CPFF contract type requires robust oversight to prevent cost overruns.
Limited insight into specific performance metrics and achieved value.

Positive Signals

Award to a large, established contractor like General Dynamics IT suggests a degree of reliability and experience.
Long-term contract duration indicates a sustained need and potential for stable support.
Focus on administrative management services addresses critical operational needs within the agency.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is crucial for government operations, providing expertise to enhance efficiency and effectiveness. Spending in this area can range widely, but a $19 million contract over several years for a major agency like the Department of Defense is a substantial engagement, reflecting the complexity of managing large federal organizations.

Small Business Impact

The contract details indicate that this was not a small business set-aside, nor does it appear to have specific provisions for small business subcontracting. This suggests that the primary focus was on securing the required services from a large, capable contractor, rather than specifically fostering small business participation through this particular award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA). The CPFF structure necessitates rigorous monitoring of costs and performance to ensure that the fixed fee is earned and that expenditures remain reasonable. Transparency is limited due to the sole-source nature, but contract modifications and performance reports would be subject to internal DoD review and potentially audits by the Inspector General.

Related Government Programs

Department of Defense Management Consulting Services
Federal Administrative Support Contracts
General Dynamics IT Contracts
Sole-Source Defense Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Sole-source award
Lack of competition
Cost Plus Fixed Fee contract type requires significant oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. VISUAL INFO PRODUCTION CENTER (VIPC)

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 $19.0 million.

What is the period of performance?

Start: 2007-10-01. End: 2011-09-28.

What specific administrative management and general management consulting services were provided under this contract?

While the NAICS code 541611 covers 'Administrative Management and General Management Consulting Services,' the specific deliverables for this $19 million contract with General Dynamics Information Technology Inc. for the Department of Defense are not detailed in the provided data. Typically, such services can encompass strategic planning, organizational analysis, process improvement, policy development, and operational efficiency enhancements. The Cost Plus Fixed Fee (CPFF) contract type suggests that the contractor was reimbursed for allowable costs plus a negotiated fixed fee representing profit. Without access to the contract's statement of work or performance reports, it's impossible to list the exact services rendered, but they would have been aimed at supporting the administrative and management functions of the contracting agency, likely the Defense Contract Management Agency given the data context.

How does the $19 million contract value compare to similar administrative management consulting contracts within the DoD?

Comparing the $19 million value of this contract, awarded to General Dynamics Information Technology Inc. (GDIT) and spanning nearly four years (1458 days), requires context on the scope and duration of similar engagements. For large federal agencies like the Department of Defense, multi-million dollar contracts for management consulting are not uncommon, especially for long-term strategic or operational support. However, the 'sole-source' nature of this award means it wasn't subject to competitive bidding, which can influence pricing. Without specific details on the services provided and the number of bidders in comparable competitive contracts, a precise benchmark is difficult. Generally, competitive bids tend to drive down costs, so a sole-source award might represent a higher unit cost compared to a similarly scoped, competed contract. GDIT is a major federal contractor, and their pricing would reflect their overhead and expertise.

What are the primary risks associated with a sole-source award of this magnitude?

The primary risks associated with a sole-source award of this magnitude ($19 million) include potential overpayment due to the lack of competitive pressure, reduced innovation from a single provider, and a lack of transparency in the procurement process. Taxpayers may not be receiving the best value for their money if alternative, more cost-effective solutions were available but not explored. Furthermore, sole-source awards can create a perception of favoritism or an unhealthy reliance on a single contractor, potentially hindering future competition. Robust oversight and justification for the sole-source determination are critical to mitigate these risks, ensuring that the chosen contractor is indeed the only viable option and that the pricing is fair and reasonable.

What does the Cost Plus Fixed Fee (CPFF) contract type imply about contractor incentives and government oversight?

The Cost Plus Fixed Fee (CPFF) contract type implies that the contractor, General Dynamics Information Technology Inc., is reimbursed for all allowable costs incurred in performing the work, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to complete the work efficiently to maximize their profit margin, as the fee is fixed regardless of the final cost. However, it also places a significant burden on the government to meticulously monitor and audit the contractor's costs to ensure they are reasonable, allocable, and allowable. Without stringent oversight, there is a risk that costs could escalate, leading to a higher overall expenditure than anticipated, even with a fixed fee. The government must actively manage the scope and ensure adherence to the contract terms.

What is the historical spending pattern for 'Administrative Management and General Management Consulting Services' within the Department of Defense?

Historical spending on 'Administrative Management and General Management Consulting Services' (NAICS 541611) by the Department of Defense (DoD) is substantial, reflecting the vast scale and complexity of military operations and administration. While this specific $19 million contract is a single data point, the DoD consistently procures a wide array of management and consulting services to improve efficiency, strategy, and operations across its branches. Annual spending in this category can reach billions of dollars, distributed among numerous contracts awarded through various procurement methods, including competitive bids and sole-source actions. Factors influencing spending include evolving defense strategies, technological advancements, and the need for specialized expertise in areas like logistics, human resources, and organizational reform. This contract represents a portion of that broader, ongoing investment in professional services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Csra LLC (UEI: 080011988)

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: $26,617,202

Exercised Options: $26,617,202

Current Obligation: $19,045,456

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline