General Dynamics IT awarded $34.2M for Coast Guard IT infrastructure, a significant portion of enterprise information systems

Contract Overview

Contract Amount: $34,230,699 ($34.2M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2016-02-16

End Date: 2021-10-13

Contract Duration: 2,066 days

Daily Burn Rate: $16.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF-OTHER BPA CALL #01, ENTERPRISE INFORMATION SYSTEMS INFRASTRUCTURE EISI) IMPLEMENTATION AND SUSTAINMENT; POP 16FEB16 -15AUG16. TECHNICAL ENTERPRISE SUPPORT SERVICES (TESS) BPA AP# HSCG79-14-006 APFS# P2014012788 BPA KO: CYNTHIA VALDES BPA COR: KEVIN SHEEHAN

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $34.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF-OTHER BPA CALL #01, ENTERPRISE INFORMATION SYSTEMS INFRASTRUCTURE EISI) IMPLEMENTATION AND SUSTAINMENT; POP 16FEB16 -15AUG16. TECHNICAL ENTERPRISE SUPPORT SERVICES (TESS) BPA AP# HSCG79-14-006 APFS# P2014012788 BPA KO: CYNTHIA VALDES BPA COR: KEVIN SHEEHAN Key points: 1. The contract represents a substantial investment in the Coast Guard's IT infrastructure, focusing on implementation and sustainment. 2. Competition dynamics for this contract are noted as 'Full and Open,' suggesting a broad market approach. 3. Performance is tied to the Enterprise Information Systems Infrastructure (EISI) program, indicating alignment with strategic IT goals. 4. The contract duration of over 2000 days highlights a long-term commitment to IT support services. 5. The firm-fixed-price structure aims to control costs by establishing a set price for services. 6. This award falls under the Computer Systems Design Services NAICS code, a common category for IT support.

Value Assessment

Rating: fair

The contract value of $34.2 million over approximately five years for IT infrastructure implementation and sustainment appears within a reasonable range for enterprise-level support. Benchmarking against similar large-scale IT infrastructure contracts within federal agencies is necessary for a definitive value assessment. However, the duration and scope suggest a significant undertaking. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a 'Full and Open Competition' designation, indicating that all responsible sources were permitted to submit bids. This approach typically fosters a competitive environment, potentially leading to better pricing and innovative solutions. The number of bidders is not specified, but the open competition suggests a robust process was intended.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging a wider range of vendors to compete, which can drive down costs and improve service quality through market forces.

Public Impact

The U.S. Coast Guard benefits from enhanced and sustained enterprise information systems infrastructure. Services delivered include the implementation and ongoing support of critical IT systems. The geographic impact is likely nationwide, supporting Coast Guard operations across various locations. Workforce implications include the need for skilled IT professionals to manage and maintain these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to long-term sustainment requirements.
Complexity of enterprise IT infrastructure can lead to unforeseen technical challenges and cost overruns.
Dependence on a single contractor for critical IT functions poses a risk if performance degrades.

Positive Signals

Full and open competition suggests a competitive bidding process, potentially leading to better value.
Firm-fixed-price contract type helps manage cost certainty for the government.
The contract aligns with the Enterprise Information Systems Infrastructure (EISI) program, indicating strategic IT alignment.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design and related services. The federal IT market is vast, with agencies consistently investing in infrastructure, cybersecurity, and modernization. This contract for enterprise IT implementation and sustainment is a typical component of large federal IT spending, aiming to ensure operational efficiency and data integrity for a critical agency like the U.S. Coast Guard.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting goals for this contract. As a large enterprise IT services contract, it is possible that subcontracting opportunities may exist for specialized IT services, but this is not explicitly detailed. Further analysis would be required to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and contract administration team within the Department of Homeland Security, specifically the U.S. Coast Guard. The firm-fixed-price nature of the award provides a degree of cost control. Transparency is facilitated by the contract's public availability, and performance would be monitored against the established Statement of Work. Inspector General oversight may be involved in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Homeland Security IT Modernization Efforts
Enterprise Information Systems Infrastructure (EISI) Program
U.S. Coast Guard Technology Modernization
Federal Civilian IT Services Contracts
Computer Systems Design and Related Services

Risk Flags

Long contract duration may increase risk of technological obsolescence.
Potential for vendor lock-in during sustainment phase.
Complexity of enterprise IT infrastructure can lead to unforeseen issues.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $34.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF-OTHER BPA CALL #01, ENTERPRISE INFORMATION SYSTEMS INFRASTRUCTURE EISI) IMPLEMENTATION AND SUSTAINMENT; POP 16FEB16 -15AUG16. TECHNICAL ENTERPRISE SUPPORT SERVICES (TESS) BPA AP# HSCG79-14-006 APFS# P2014012788 BPA KO: CYNTHIA VALDES BPA COR: KEVIN SHEEHAN

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: 2016-02-16. End: 2021-10-13.

What is the track record of General Dynamics Information Technology, Inc. with similar large-scale federal IT infrastructure contracts?

General Dynamics Information Technology, Inc. (GDIT) has a long history of performing large-scale IT services contracts for various federal agencies, including defense and civilian departments. They are known for their capabilities in areas such as cloud computing, cybersecurity, enterprise IT infrastructure management, and mission-critical systems support. Their experience often involves complex system integration, sustainment, and modernization projects. While specific performance details for this particular contract are not provided, GDIT's general profile suggests they possess the resources and expertise to handle significant federal IT infrastructure requirements. However, a deeper dive into past performance reviews, contract modifications, and any disputes or awards associated with their prior federal contracts would offer a more precise assessment of their reliability and effectiveness.

How does the $34.2 million value compare to other federal IT infrastructure contracts of similar scope and duration?

The $34.2 million award for Enterprise Information Systems Infrastructure (EISI) implementation and sustainment over approximately five years (February 2016 to October 2021) represents a significant but not extraordinary investment for federal IT infrastructure. Large-scale enterprise IT projects, especially those involving system-wide implementation and long-term sustainment, can easily run into tens or hundreds of millions of dollars. For instance, contracts for modernizing legacy systems, establishing new data centers, or deploying agency-wide software solutions often exceed this amount. The value is influenced by factors such as the number of users supported, the complexity of the systems, the criticality of the services, and the specific technologies employed. Without detailed scope and deliverables, direct comparison is difficult, but this figure aligns with substantial, multi-year IT support engagements within the federal government.

What are the primary risks associated with the sustainment phase of this IT infrastructure contract?

The primary risks associated with the sustainment phase of this IT infrastructure contract include technological obsolescence, where the implemented systems may become outdated before the contract ends, requiring costly upgrades or replacements. Another significant risk is vendor lock-in, where the reliance on General Dynamics Information Technology for sustainment makes it difficult and expensive to switch providers or bring services in-house. Performance degradation over time is also a concern, as the contractor's ability to maintain service levels might diminish without strong oversight. Furthermore, security vulnerabilities can emerge in sustained systems, posing risks to sensitive Coast Guard data and operations. Finally, unexpected increases in maintenance costs or the need for unforeseen support could strain the budget if not adequately managed through contract clauses and vigilant oversight.

How effective is the 'Full and Open Competition' strategy in ensuring value for money for IT infrastructure contracts of this magnitude?

The 'Full and Open Competition' strategy is generally considered effective in ensuring value for money for IT infrastructure contracts of this magnitude because it maximizes the pool of potential bidders, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. By allowing all responsible sources to participate, the government can leverage market forces to its advantage, driving down costs and improving the quality of services offered. This approach fosters a level playing field, encouraging vendors to offer their best proposals to win the contract. However, the effectiveness is contingent on the clarity of the solicitation requirements, the evaluation process, and the government's ability to manage the resulting contract. A well-executed full and open competition can lead to significant cost savings and superior outcomes for taxpayers compared to less competitive procurement methods.

What are the historical spending patterns for Computer Systems Design Services (NAICS 541512) by the Department of Homeland Security?

The Department of Homeland Security (DHS) consistently ranks as a major federal spender in the Computer Systems Design Services (NAICS 541512) category. Historical data indicates substantial and often increasing annual expenditures within this sector, reflecting the department's broad reliance on IT for its diverse missions, including border security, emergency management, and cybersecurity. Spending in this area typically covers a wide range of services, from system design and integration to software development, IT consulting, and infrastructure support. The U.S. Coast Guard, as a component of DHS, contributes significantly to this spending. Analyzing DHS's overall IT budget and specific contract awards within NAICS 541512 reveals a trend of continuous investment in modernizing and maintaining its complex technological infrastructure to meet evolving security and operational demands.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

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

Financial Breakdown

Contract Ceiling: $34,230,699

Exercised Options: $34,230,699

Current Obligation: $34,230,699

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: HSCG7916APTG002

IDV Type: BPA

Timeline