General Dynamics IT awarded $40.5M task order for custom computer programming services to the U.S. Coast Guard

Contract Overview

Contract Amount: $40,560,274 ($40.6M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2004-03-15

End Date: 2008-09-30

Contract Duration: 1,660 days

Daily Burn Rate: $24.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: IT

Official Description: 1ST TASK ORDER AGAINST BPA DTCG23-04-A-EMOTSS

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22315

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $40.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: 1ST TASK ORDER AGAINST BPA DTCG23-04-A-EMOTSS Key points: 1. The contract represents a significant investment in IT services for the U.S. Coast Guard. 2. The duration of the task order suggests a long-term need for these programming services. 3. The award was made under a BPA, indicating a pre-existing relationship and potentially streamlined procurement. 4. The specific NAICS code points to a focus on custom software development. 5. The contract's value is substantial, requiring careful monitoring of performance and cost.

Value Assessment

Rating: fair

The total award amount of $40.5 million for custom computer programming services over a period of 1660 days (approximately 4.5 years) suggests a significant investment. Benchmarking this against similar custom programming contracts is challenging without more specific details on the scope of work. However, the per-diem cost can be estimated. Given the duration and total value, the average daily cost is approximately $24,434. This figure needs to be compared against industry standards for complex IT development projects to assess value for money. The absence of a specific PSC code makes direct comparison difficult.

Cost Per Unit: Approximately $24,434 per day (based on total award and duration).

Competition Analysis

Competition Level: sole-source

This task order was issued under a Blanket Purchase Agreement (BPA) and is noted as 'NOT AVAILABLE FOR COMPETITION'. This suggests that the procurement was likely conducted on a sole-source or limited competition basis, potentially due to the nature of the services required or a pre-existing strategic partnership. The lack of open competition means that price discovery through competitive bidding was not utilized for this specific task order, which can sometimes lead to higher costs compared to fully competed contracts.

Taxpayer Impact: For taxpayers, a sole-source award means there was no opportunity for multiple vendors to bid, potentially limiting the government's ability to secure the lowest possible price through competitive pressure.

Public Impact

The U.S. Coast Guard benefits from enhanced custom computer programming capabilities, likely supporting its operational and administrative functions. Services delivered include custom software development, crucial for modernizing and maintaining complex government systems. The geographic impact is primarily within the U.S. Coast Guard's operational areas, which are nationwide. Workforce implications may include the need for specialized IT personnel within the Coast Guard or its contractors to manage and utilize the developed software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced innovation.
The long duration of the task order could lead to scope creep or outdated technology if not managed effectively.
Reliance on a single vendor for critical custom programming may create vendor lock-in.

Positive Signals

The award to a known entity like General Dynamics Information Technology suggests a level of trust and established performance.
The use of a BPA can indicate efficiency in procurement for recurring needs.
The specific NAICS code indicates a focus on specialized, high-value IT services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically custom computer programming services. The IT services market is vast and highly competitive, with significant government spending. Custom programming is a critical component for agencies needing tailored solutions that off-the-shelf software cannot provide. Comparable spending benchmarks would involve analyzing other large-scale custom software development contracts awarded by federal agencies, particularly those in defense and homeland security, which often require highly specialized and secure IT systems.

Small Business Impact

The data indicates that this contract was not awarded to a small business (ss: false, sb: false). Therefore, there are no direct small business set-aside implications. However, the prime contractor, General Dynamics Information Technology, may engage small businesses as subcontractors. The extent of subcontracting to small businesses would depend on the contractor's internal policies and the specific requirements of the task order, which are not detailed here. Analysis of subcontracting plans would be necessary to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Coast Guard contracting officers and program managers. Transparency is facilitated through contract award databases like FPDS. Accountability measures are embedded in the contract terms, performance metrics, and payment schedules. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected or reported.

Related Government Programs

Department of Homeland Security IT Modernization Programs
U.S. Coast Guard Command and Control Systems
Federal Civilian IT Services Procurement
Custom Software Development Contracts

Risk Flags

Lack of Competition
Potential for Cost Overruns
Risk of Technological Obsolescence
Vendor Lock-in

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $40.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. 1ST TASK ORDER AGAINST BPA DTCG23-04-A-EMOTSS

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. Coast Guard).

What is the total obligated amount?

The obligated amount is $40.6 million.

What is the period of performance?

Start: 2004-03-15. End: 2008-09-30.

What specific custom computer programming services are being provided under this task order?

The provided data indicates the NAICS code is 541511 for Custom Computer Programming Services, and the contract is for the U.S. Coast Guard. However, the specific nature of the programming services is not detailed. These services could range from developing new software applications, modifying existing systems, integrating disparate software platforms, or providing specialized IT support for unique Coast Guard operations. Without further documentation, such as the Statement of Work (SOW) or Performance Work Statement (PWS), the precise services remain unspecified. This lack of detail makes it difficult to assess the technical requirements, the complexity of the development, and the potential risks associated with the project.

How does the $40.5 million award compare to other custom programming contracts awarded by the U.S. Coast Guard or DHS?

Comparing the $40.5 million award requires access to historical contract data for similar services within the U.S. Coast Guard and the broader Department of Homeland Security (DHS). General Dynamics Information Technology, as a large federal contractor, likely holds numerous IT contracts. To benchmark this specific task order, one would need to identify other task orders or contracts issued under the same or similar BPAs, or other competitive procurements for custom programming services with comparable durations and scopes. The fact that this is the '1ST TASK ORDER AGAINST BPA DTCG23-04-A-EMOTSS' suggests it's an initial significant commitment. Without a detailed breakdown of the services and the specific BPA's scope, a precise comparison is difficult, but $40.5 million over approximately 4.5 years represents a substantial, multi-million dollar IT investment.

What are the potential risks associated with a sole-source or limited competition award for custom programming services?

Sole-source or limited competition awards for custom programming services carry several inherent risks. Firstly, the absence of a competitive bidding process can lead to inflated prices, as the government may not benefit from the cost-saving pressures that multiple bidders typically introduce. Secondly, it can limit the pool of innovative solutions, as the government is restricted to the capabilities and approaches of the selected vendor. Thirdly, it can create vendor lock-in, making it difficult and costly to switch providers in the future, especially if the custom software is deeply integrated into the agency's operations. Finally, without the scrutiny of a competitive process, there's a potential for less rigorous performance standards or a reduced incentive for the contractor to deliver exceptional value.

What is the track record of General Dynamics Information Technology, Inc. in delivering custom computer programming services to the federal government?

General Dynamics Information Technology, Inc. (GDIT) is a major federal contractor with a long history of providing IT services, including custom computer programming, to various government agencies. Their track record is generally extensive, often involving large-scale, complex projects. GDIT has been involved in significant IT modernization efforts for defense, intelligence, and civilian agencies. While specific performance metrics for this particular task order are not yet available as it's the first task order against the BPA, GDIT's broader portfolio includes work on enterprise resource planning (ERP) systems, cloud migration, cybersecurity solutions, and data analytics. Past performance reviews and contract award data from sources like the Federal Procurement Data System (FPDS) would provide a more granular view of their success rates, past issues, and client satisfaction across similar projects.

How does the contract duration of 1660 days (approx. 4.5 years) impact the assessment of value for money for custom programming services?

A contract duration of approximately 4.5 years for custom programming services has significant implications for value for money. On one hand, a longer duration can provide stability and allow for the development and refinement of complex systems, potentially leading to better long-term solutions and reduced costs associated with frequent contract transitions. It also allows the contractor to build deep expertise in the agency's specific needs. On the other hand, a lengthy period increases the risk of technological obsolescence, changing requirements, and potential cost overruns if not managed proactively. Ensuring value for money over such a duration requires robust contract management, clear performance metrics, regular reviews, and mechanisms for adapting to evolving needs and technologies. The initial award amount of $40.5 million spread over this period suggests a substantial ongoing commitment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 3430 CAMINO DEL RIO NORTH, SAN DIEGO, CA, 90

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,560,274

Exercised Options: $40,560,274

Current Obligation: $40,560,274

Timeline