Coast Guard's $34M IT support contract awarded to General Dynamics Information Technology, Inc

Contract Overview

Contract Amount: $34,195,009 ($34.2M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2009-03-31

End Date: 2014-09-29

Contract Duration: 2,008 days

Daily Burn Rate: $17.0K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: DIRECT ACCESS SYSTEM SUPPORT AND MAINTENANCE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20593

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $34.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: DIRECT ACCESS SYSTEM SUPPORT AND MAINTENANCE Key points: 1. Contract awarded for IT support and maintenance services, indicating a need for ongoing system reliability. 2. The contract duration spans over five years, suggesting a long-term requirement for these services. 3. Awarded as a competitive delivery order, implying multiple vendors were considered. 4. The use of Time and Materials pricing may lead to cost variability based on actual effort. 5. The contract falls under Computer Systems Design Services, a common category for IT support. 6. The geographic location of the contractor is Washington D.C.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The Time and Materials (T&M) pricing structure, while flexible, can sometimes lead to higher costs if not managed closely. Without details on the scope of work and the specific systems supported, it's difficult to definitively assess value for money. However, the competitive nature of the award suggests some level of price negotiation occurred.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that the U.S. Coast Guard sought proposals from multiple sources. The fact that it was competed suggests a deliberate effort to leverage market competition to obtain favorable terms and pricing. The number of bidders is not specified, but the competitive nature is a positive sign for price discovery.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering a more efficient marketplace, potentially leading to lower prices and better service quality compared to sole-source procurements.

Public Impact

The U.S. Coast Guard benefits from reliable IT support, ensuring the operational readiness of its systems. Services delivered include computer systems design and maintenance, crucial for modern maritime operations. The primary geographic impact is within the District of Columbia, where the contractor is based. The contract supports the IT infrastructure necessary for the Coast Guard's diverse missions, including search and rescue, maritime law enforcement, and port security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing if not closely monitored.
Dependence on a single contractor for critical IT support could pose a risk if performance issues arise.
Scope creep could increase costs without corresponding adjustments to the contract's value proposition.

Positive Signals

Awarded through a competitive process, suggesting a baseline of market-driven value.
Contract duration indicates a stable, long-term need, allowing for specialized expertise development.
Focus on IT support and maintenance is essential for maintaining operational continuity.

Sector Analysis

The IT services sector is a significant area of federal spending, encompassing a wide range of needs from software development to system maintenance. This contract for computer systems design services falls within the broader IT support and outsourcing market. Federal agencies increasingly rely on external contractors for specialized IT expertise to manage complex systems and adapt to evolving technological landscapes. Comparable spending benchmarks would typically involve analyzing other IT support contracts awarded by agencies of similar size and mission.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. General Dynamics Information Technology, Inc. is a large business. The absence of small business considerations in the award details suggests that the primary focus was on best value from a competitive field, rather than specific small business utilization goals for this particular contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Coast Guard contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement and delivery schedules. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

IT Support Services
Computer Systems Design
Information Technology Maintenance
Federal IT Contracts
Department of Homeland Security Contracts

Risk Flags

Time and Materials Pricing
Long Contract Duration
Potential for Vendor Lock-in
Technological Obsolescence Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $34.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. DIRECT ACCESS SYSTEM SUPPORT AND MAINTENANCE

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 $34.2 million.

What is the period of performance?

Start: 2009-03-31. End: 2014-09-29.

What specific IT systems or infrastructure does this contract support for the U.S. Coast Guard?

The provided data indicates the contract is for 'DIRECT ACCESS SYSTEM SUPPORT AND MAINTENANCE' under the NAICS code 541512 (Computer Systems Design Services). While the specific systems are not detailed, this generally implies support for the Coast Guard's internal IT infrastructure, including networks, servers, software applications, and potentially specialized operational systems. Direct Access Systems often refer to critical databases or platforms that personnel need to access for daily operations, such as personnel management, logistics, or mission-critical data repositories. The maintenance aspect would cover troubleshooting, updates, patches, and ensuring the overall health and availability of these systems.

How does the Time and Materials (T&M) pricing structure compare to other IT support contracts?

Time and Materials (T&M) contracts are common for IT support and services where the scope of work is not clearly defined at the outset or is expected to evolve. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual labor hours (at agreed-upon rates) and the cost of materials used. While offering flexibility, T&M contracts carry a higher risk of cost overruns for the government if not managed diligently. Compared to fixed-price contracts, T&M can be less predictable in terms of final cost. Many agencies prefer firm-fixed-price or cost-plus-fixed-fee contracts for projects with well-defined scopes to ensure better cost control. However, for emergent needs or undefined maintenance tasks, T&M can be a suitable, albeit closely monitored, option.

What is General Dynamics Information Technology's track record with similar federal IT contracts?

General Dynamics Information Technology (GDIT) is a major federal IT contractor with a substantial history of supporting various government agencies, including the Department of Defense, Homeland Security, and others. They have consistently been awarded large contracts for IT services, systems integration, cybersecurity, and cloud computing. Their track record generally includes experience with large-scale system modernization, maintenance, and operational support. While specific performance details for individual contracts are often not public, GDIT's continued success in winning competitive bids suggests a generally positive performance history and capability to meet government requirements across a broad spectrum of IT needs.

What are the potential risks associated with a five-year IT support contract?

A significant risk with a multi-year IT support contract is technological obsolescence. Over a five-year period, technology can evolve rapidly, potentially making the systems or support methods outlined in the contract outdated. Another risk is vendor lock-in, where the government becomes heavily reliant on the contractor's proprietary systems or processes, making it difficult and costly to switch providers. Performance degradation over time is also a concern; the contractor's ability to maintain service levels may decline without strong oversight. Finally, changes in agency priorities or budget constraints could lead to contract modifications or terminations, introducing uncertainty.

How does the $34 million total award value compare to other IT support contracts for similar agencies?

The $34.2 million total award value over approximately five years (from March 2009 to September 2014) places this contract in the mid-to-large range for IT support services. For an agency like the U.S. Coast Guard, which manages complex maritime operations and requires robust IT infrastructure, this level of spending is not unusual. Larger agencies like the Department of Defense or the IRS might award IT support contracts in the hundreds of millions or even billions. However, when compared to IT support contracts for agencies of similar size and scope within the Department of Homeland Security or other civilian agencies, $34 million over five years represents a significant but not exceptionally large investment, averaging around $6.8 million per year.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 15036 CONFERENCE CENTER DR, CHANTILLY, VA, 20151

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

Financial Breakdown

Contract Ceiling: $34,195,009

Exercised Options: $34,195,009

Current Obligation: $34,195,009

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4594G

IDV Type: FSS

Timeline