DHS awards $31.1M task order for administrative management consulting to General Dynamics IT

Contract Overview

Contract Amount: $31,103,853 ($31.1M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2016-06-30

End Date: 2019-06-30

Contract Duration: 1,095 days

Daily Burn Rate: $28.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF. TASK ORDER AWARD.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $31.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: IGF::OT::IGF. TASK ORDER AWARD. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1095 days (3 years) indicates a medium-term need for services. 3. Fixed-price contract type may offer cost certainty for the government. 4. The award falls under Administrative Management and General Management Consulting Services. 5. The agency is the Department of Homeland Security, with U.S. Customs and Border Protection as the specific office. 6. The contractor, General Dynamics Information Technology Inc., is a large, established entity in the federal contracting space.

Value Assessment

Rating: fair

Benchmarking the value of this specific task order against similar contracts is challenging without more granular data on the scope of services provided. However, the total award amount of $31.1 million over three years suggests a significant investment in consulting services. The firm fixed-price nature of the contract provides a degree of cost predictability. Further analysis would require comparing the specific deliverables and hourly rates (if applicable) to industry standards for administrative management consulting.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit an offer. The presence of 7 bidders suggests a healthy level of competition for this task order. A competitive process generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies competed to offer the best value. This process helps prevent inflated pricing that might occur in less competitive scenarios.

Public Impact

The primary beneficiary is the U.S. Customs and Border Protection, which will receive administrative management and general management consulting services. These services are expected to support the operational efficiency and management functions of CBP. The geographic impact is likely concentrated within the areas of operation for U.S. Customs and Border Protection, potentially nationwide. The contract may have implications for the workforce by potentially requiring support staff or influencing management practices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the consulting services are not clearly defined.
Reliance on a single large contractor may limit flexibility in future service adjustments.
Ensuring the quality and effectiveness of the consulting services delivered will require diligent oversight.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm fixed-price contract provides cost certainty for the government.
Contractor has a significant presence and experience in federal IT and management services.

Sector Analysis

Administrative Management and General Management Consulting Services represent a broad category within the professional services sector. This contract likely supports the government's need for expertise in optimizing organizational structures, improving operational processes, and enhancing overall management effectiveness. The federal market for such services is substantial, with agencies frequently outsourcing specialized consulting to augment internal capabilities. This award to General Dynamics Information Technology Inc. aligns with the trend of large, established firms winning significant federal contracts in this domain.

Small Business Impact

This contract was awarded to a large business (General Dynamics Information Technology Inc.) and does not appear to have a small business set-aside component. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though the prime contractor's subcontracting practices would determine broader implications.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within U.S. Customs and Border Protection. Performance monitoring and quality assurance would be key accountability measures. Transparency is generally facilitated through contract award databases like FPDS. The Inspector General for the Department of Homeland Security would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Homeland Security IT Services
Management and Consulting Services
U.S. Customs and Border Protection Operations Support
Federal Administrative Support Contracts

Risk Flags

Potential for undefined scope impacting service delivery.
Reliance on large prime contractor may limit future flexibility.
Need for diligent oversight to ensure quality and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $31.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. IGF::OT::IGF. TASK ORDER AWARD.

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 Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $31.1 million.

What is the period of performance?

Start: 2016-06-30. End: 2019-06-30.

What specific types of administrative management and general management consulting services were procured under this task order?

The provided data indicates the contract falls under NAICS code 541611 (Administrative Management and General Management Consulting Services). However, the specific deliverables and scope of work for this task order are not detailed. Typically, such services can encompass a wide range of activities including organizational analysis, process improvement, strategic planning support, human capital management consulting, and operational efficiency studies. Without access to the Performance Work Statement (PWS) or Statement of Work (SOW) for this specific task order, it is impossible to ascertain the precise nature of the consulting services rendered. These services are crucial for agencies like CBP to optimize their complex operations and administrative functions.

How does the $31.1 million award compare to historical spending on similar consulting services by DHS or CBP?

Comparing this $31.1 million task order to historical spending requires a broader analysis of DHS and CBP's procurement history for management consulting services. Agencies of this size and scope often award multiple contracts in this category annually, ranging from small, specialized engagements to large, multi-year programs. To provide a meaningful comparison, one would need to aggregate spending on NAICS code 541611 and related codes over several fiscal years for both DHS and CBP. This $31.1 million represents a significant, but not necessarily outlier, investment for a three-year period, reflecting the ongoing need for external expertise in managing large federal agencies. A detailed trend analysis would reveal if spending in this category is increasing, decreasing, or remaining stable.

What is General Dynamics Information Technology Inc.'s track record with federal contracts, particularly within DHS?

General Dynamics Information Technology Inc. (GDIT) is a major federal contractor with a substantial history of performance across numerous government agencies, including the Department of Homeland Security. GDIT has a broad portfolio encompassing IT services, systems engineering, cybersecurity, and management consulting. Their track record with DHS is extensive, often involving large-scale IT modernization, infrastructure support, and mission-critical system development. While specific performance ratings for individual contracts are not publicly detailed here, GDIT's continued success in winning competitive bids suggests a generally positive performance history. However, like any large contractor, they may have faced past performance challenges on specific projects, which would be documented in government past performance databases.

What are the potential risks associated with a firm fixed-price contract for consulting services?

Firm fixed-price (FFP) contracts aim to provide cost certainty for the government. However, for consulting services, there are inherent risks. If the scope of work is not precisely defined, the contractor may face challenges in delivering the required outcomes within the fixed price, potentially leading to reduced quality or incomplete services. Conversely, if the contractor significantly underestimates the effort required, they may cut corners. For the government, the risk lies in potentially overpaying if the contractor is highly efficient and the initial price was set too high, or under-receiving if the contractor struggles to meet the fixed price without compromising quality. Effective contract management and clear SOWs are crucial to mitigate these risks.

How does the level of competition (7 bidders) impact the value received by the government?

A competition involving seven bidders, as indicated for this task order, is generally considered robust and is likely to have a positive impact on the value received by the government. Higher levels of competition typically drive down prices as contractors strive to offer the most competitive bid to win the contract. It also encourages innovation and better service offerings as companies differentiate themselves. For taxpayers, this means that the $31.1 million awarded is more likely to represent a fair market price for the services rendered, rather than an inflated cost that might result from a sole-source or limited-competition scenario. The government benefits from a wider range of potential solutions and a stronger negotiating position.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corporation

Address: 3160 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: $41,850,335

Exercised Options: $31,103,853

Current Obligation: $31,103,853

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $3,492,349

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCG2313DATB043

IDV Type: IDC

Timeline