DoD's $61.5M IT support contract awarded to General Dynamics Information Technology, Inc. shows fair value

Contract Overview

Contract Amount: $61,505,666 ($61.5M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-10-13

End Date: 2014-04-30

Contract Duration: 2,025 days

Daily Burn Rate: $30.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LSSN SYS ADMIN&INFRASTRUCTURE SPT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $61.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: LSSN SYS ADMIN&INFRASTRUCTURE SPT Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. The contract duration of 2025 days (approx. 5.5 years) is substantial for IT infrastructure support. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The services provided fall under Computer Systems Design, a critical area for defense operations. 5. Awarded to a single contractor, indicating a focus on specialized IT infrastructure support. 6. The contract's value is spread over a significant period, implying consistent service delivery.

Value Assessment

Rating: fair

The contract's total value of $61.5 million over approximately 5.5 years suggests a moderate annual spend for IT infrastructure support. Benchmarking against similar large-scale IT support contracts within the Department of Defense is challenging without more granular data on specific services rendered. However, the firm fixed-price structure generally indicates that the contractor assumed the risk for cost overruns, which can be a positive indicator of value if performance was satisfactory. The absence of detailed performance metrics makes a definitive value assessment difficult, but the duration and scope suggest a standard market rate for such services.

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 it resulted in a single award suggests that General Dynamics Information Technology, Inc. was the most advantageous offer based on the evaluation criteria. While the number of bidders isn't specified, full and open competition generally fosters price discovery and encourages competitive pricing among potential offerors.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and promoting the selection of the best value solution.

Public Impact

The Department of Defense benefits from consistent and specialized IT infrastructure support, ensuring operational readiness. Services include computer systems design and infrastructure maintenance, crucial for secure and efficient military operations. The contract's impact is primarily within the Washington D.C. metropolitan area, supporting federal agencies. This contract likely supports a workforce of IT professionals employed by General Dynamics Information Technology, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to long-term contract and specialized services.
Lack of detailed performance metrics makes it difficult to assess ongoing value and efficiency.
Reliance on a single contractor for critical IT infrastructure could pose risks if performance degrades.

Positive Signals

Firm fixed-price contract type helps control costs and manage budget predictability.
Awarded through full and open competition, suggesting a robust and fair selection process.
Long contract duration implies a stable and reliable IT support solution for the agency.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the IT services market. This sector encompasses a wide range of activities, from custom software development to IT infrastructure management and support. The federal government is a major consumer of these services, particularly the Department of Defense, which relies heavily on robust IT systems for its operations. Spending in this category is often driven by the need for modernization, cybersecurity, and operational efficiency. Comparable spending benchmarks would typically involve analyzing the average cost of similar IT support contracts awarded to large system integrators within the federal government.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major defense contractor, it is unlikely that significant subcontracting opportunities for small businesses were mandated or a primary focus. The primary beneficiaries of this contract are likely larger IT service providers, with potential for smaller specialized firms to be engaged as subcontractors if their specific expertise is required by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Defense's Washington Headquarters Services. Accountability measures are inherent in the firm fixed-price contract type, which incentivizes the contractor to meet performance standards within the agreed-upon budget. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

IT Infrastructure Support Services
Computer Systems Design Services
Department of Defense IT Contracts
Washington Headquarters Services Contracts
Large-Scale IT Service Contracts

Risk Flags

Contract duration is substantial, requiring ongoing performance monitoring.
Lack of detailed performance metrics hinders comprehensive value assessment.
Potential for vendor lock-in with long-term specialized IT services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $61.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. LSSN SYS ADMIN&INFRASTRUCTURE SPT

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 (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $61.5 million.

What is the period of performance?

Start: 2008-10-13. End: 2014-04-30.

What was the specific scope of 'Computer Systems Design Services' covered under this contract?

The contract, identified by NAICS code 541512, specifies 'Computer Systems Design Services.' This typically encompasses a broad range of IT support activities including the design, development, integration, and maintenance of computer systems and related hardware and software. For this specific Department of Defense contract, it likely involved managing and supporting the IT infrastructure at the Washington Headquarters Services, which could include network administration, server maintenance, cybersecurity implementation, system upgrades, and potentially the design of new IT solutions to meet evolving operational requirements. The exact deliverables would be detailed in the contract's Statement of Work (SOW), which outlines specific tasks, performance standards, and expected outcomes.

How does the $61.5 million contract value compare to similar IT support contracts awarded by the DoD?

The $61.5 million contract value for IT support over approximately 5.5 years represents an average annual spend of roughly $11.2 million. This figure is substantial but falls within the typical range for large-scale IT infrastructure support contracts awarded by major federal agencies like the Department of Defense. Many DoD IT contracts can range from tens of millions to hundreds of millions of dollars, depending on the complexity, scope, and duration. To provide a precise comparison, one would need to analyze contracts with similar NAICS codes (541512), contract types (firm fixed-price), and agencies (DoD) awarded within a comparable timeframe. However, based on general market knowledge, this contract appears to be a significant but not exceptionally large award for comprehensive IT infrastructure support.

What were the key evaluation criteria used in the full and open competition for this contract?

While the specific evaluation criteria are not detailed in the provided data, federal procurement regulations for full and open competition typically require agencies to establish clear criteria before soliciting bids. For IT services contracts, these criteria often include factors such as technical approach, past performance, management capability, and price. The agency would have weighed these factors to determine the 'most advantageous offer' to the government. Given the firm fixed-price nature, price would likely be a significant consideration, balanced against the contractor's ability to deliver the required technical services effectively and reliably over the contract's duration.

What are the potential risks associated with a long-term (2025 days) firm fixed-price IT support contract?

A significant risk with long-term, firm fixed-price IT contracts is the potential for the contractor to become complacent or for the government to be locked into outdated technology or services if the contract is not actively managed and reviewed. While the fixed-price nature protects against cost overruns, it can also limit flexibility if requirements change significantly. The contractor might prioritize cost-cutting over innovation or service quality if not properly monitored. Furthermore, if the initial pricing was based on assumptions that prove inaccurate over time, the government might end up overpaying for services that have become commoditized or less valuable. Active contract management, performance monitoring, and potential for contract modifications are crucial to mitigate these risks.

How has spending on Computer Systems Design Services (NAICS 541512) by the Department of Defense evolved over time?

Spending on Computer Systems Design Services (NAICS 541512) by the Department of Defense has generally trended upwards over the past two decades, driven by the increasing reliance on sophisticated IT systems for command, control, intelligence, and logistics. This growth reflects the continuous need for modernization, cybersecurity enhancements, data management, and the integration of new technologies like cloud computing and artificial intelligence. While specific year-over-year data for DoD spending under this NAICS code isn't provided, the overall trajectory indicates a sustained and significant investment in IT infrastructure and design services to maintain technological superiority and operational effectiveness in a complex global security environment.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Sterling Parent Inc. (UEI: 968838909)

Address: 4300 FAIR LAKES CT, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $70,541,741

Exercised Options: $61,638,671

Current Obligation: $61,505,666

Parent Contract

Parent Award PIID: GS00T99ALD0211

IDV Type: GWAC

Timeline