DoD's $32.4M DJC2 Operations Support contract awarded to General Dynamics IT shows a 6-year performance period

Contract Overview

Contract Amount: $32,376,939 ($32.4M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-09-30

End Date: 2016-03-29

Contract Duration: 2,007 days

Daily Burn Rate: $16.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: DJC2 OPERATIONS SUPPORT

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $32.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: DJC2 OPERATIONS SUPPORT Key points: 1. Contract value of $32.4M over 6 years suggests a moderate annual spend. 2. Awarded under full and open competition, indicating a potentially competitive bidding process. 3. Engineering services (NAICS 541330) are critical for defense operations support. 4. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 5. Performance period spans from 2010 to 2016, providing historical context for current spending. 6. The contract was awarded by the Defense Contract Management Agency, a key DoD oversight body.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific service details. However, a $32.4M spend over six years averages approximately $5.4M annually. This figure appears moderate for complex engineering support services within the Department of Defense. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, often carries a higher risk of cost escalation compared to fixed-price contracts. Without detailed performance metrics or comparison to similar contracts for DJC2 operations, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that all responsible sources were permitted to submit bids. The presence of 4 bids (no: 4) indicates a degree of competition, though the exact number of bidders does not always correlate directly with the intensity of competition. A competitive process generally helps in achieving better pricing and service terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and encourages a wider range of innovative solutions, potentially leading to better value.

Public Impact

The primary beneficiaries are the Department of Defense, specifically units relying on DJC2 operations support. Services delivered likely include engineering, technical, and operational support crucial for command and control systems. The geographic impact is likely concentrated within areas where DJC2 operations are critical, potentially global. Workforce implications may involve specialized engineers, technicians, and support staff employed by General Dynamics Information Technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type introduces inherent risk of cost overruns if not rigorously managed.
Limited public information on specific performance metrics makes it difficult to assess the true value delivered.
The 6-year duration could lead to vendor lock-in or reduced agility in adapting to evolving technological needs.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
General Dynamics Information Technology is a large, established contractor with significant experience in defense IT.
The contract duration indicates a stable, long-term need for these critical support services.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the federal IT and defense contracting market. The market for defense operations support is substantial, driven by the continuous need for advanced command, control, and communication systems. General Dynamics Information Technology is a major player in this space, competing with other large defense contractors. Spending benchmarks for similar engineering support contracts can vary widely based on scope and complexity, but this $32.4M award represents a notable investment in maintaining critical defense infrastructure.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). General Dynamics Information Technology is a large prime contractor. There is no explicit information provided regarding subcontracting plans or performance related to small businesses. Therefore, the direct impact on the small business ecosystem from this specific prime contract award is likely minimal, though the prime contractor may engage small businesses for subcontracting opportunities.

Oversight & Accountability

The Department of Defense Contract Management Agency (DCMA) is responsible for overseeing this contract, ensuring compliance with terms and conditions. Oversight mechanisms would typically include regular performance reviews, audits, and financial monitoring, especially given the CPFF contract type. Transparency is facilitated through contract award databases, but detailed operational performance data may be considered sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD Command and Control Systems
Defense Engineering Services
IT Support Services
Operations and Maintenance Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Limited public data on specific performance metrics hinders comprehensive value assessment.
Potential for vendor lock-in due to long contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. DJC2 OPERATIONS SUPPORT

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 $32.4 million.

What is the period of performance?

Start: 2010-09-30. End: 2016-03-29.

What specific DJC2 operations does this contract support, and what are the key performance indicators (KPIs)?

The specific DJC2 (likely referring to Joint Command and Control) operations supported by this contract are not detailed in the provided data. However, based on the NAICS code (541330 - Engineering Services) and the contractor (General Dynamics Information Technology), it is reasonable to infer that the contract involves providing engineering, technical, and potentially operational support for command and control systems. Key Performance Indicators (KPIs) are also not specified, but typical metrics for such contracts could include system uptime, response times for technical issues, successful implementation of upgrades, and adherence to security protocols. Without more granular information, a precise understanding of the services and their effectiveness remains limited.

How does the $32.4M contract value compare to similar DoD engineering support contracts awarded during the 2010-2016 period?

Comparing the $32.4M contract value requires context regarding the scope and duration of 'similar' contracts. This contract spanned approximately six years (September 2010 to March 2016), with an average annual value of roughly $5.4M. During that period, the DoD awarded numerous engineering support contracts, many of which were significantly larger, especially those involving major weapon systems development or large-scale IT infrastructure. However, for specialized operational support of specific command and control systems, an average annual spend of $5.4M could be considered moderate to substantial, depending on the complexity and criticality of the DJC2 systems involved. Without specific details on the services rendered and the number of personnel or systems supported, a direct comparison remains qualitative.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services, and how were they mitigated?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. The government agrees to pay the contractor's actual costs plus a predetermined fixed fee. If the contractor's costs exceed estimates, the government bears the burden, while the contractor's profit (the fixed fee) remains constant. This can incentivize less cost-conscious behavior from the contractor. Mitigation strategies typically involve robust government oversight, detailed cost tracking, regular audits, clearly defined scope of work, and strong negotiation of indirect cost rates. The Defense Contract Management Agency (DCMA) would have been responsible for monitoring these aspects to ensure the government received fair value and controlled expenditures within the contract's framework.

What was General Dynamics Information Technology's track record with the DoD prior to and during this contract's performance period?

General Dynamics Information Technology (GDIT), prior to and during the 2010-2016 performance period of this contract, had a well-established and extensive track record as a major contractor for the Department of Defense and other federal agencies. They are known for providing a wide range of IT, systems engineering, and support services. Their history includes numerous large-scale contracts supporting military networks, C4ISR systems, and various defense modernization efforts. While specific performance ratings for individual contracts are often not publicly disclosed in detail, GDIT's continued success in winning significant DoD contracts during this era suggests a generally positive performance history and strong capabilities in meeting the government's requirements.

How did the competition level (4 bidders) influence the final pricing and terms of this contract?

Having four bidders for this 'full and open' competition suggests a moderately competitive environment. While more bidders can sometimes lead to more aggressive pricing, four offers generally provide enough market visibility for the government to assess reasonableness. The influence on final pricing and terms would depend on the specific proposals submitted, the government's evaluation criteria, and the negotiation process. A competitive field typically pushes contractors to offer more favorable terms and pricing to win the award. However, without access to the bid details and evaluation results, it's difficult to quantify the exact impact of these four bids on the final negotiated price and contract terms.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: N0002410R3004

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

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: $41,645,626

Exercised Options: $41,645,626

Current Obligation: $32,376,939

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4012

IDV Type: IDC

Timeline