DHS awards $40M non-competitive IT services contract to General Dynamics Information Technology

Contract Overview

Contract Amount: $40,029,397 ($40.0M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2006-07-12

End Date: 2010-12-31

Contract Duration: 1,633 days

Daily Burn Rate: $24.5K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: OIC PMO RECOMPETE1 9 MONTH BASE3 12 MONTH OPTIONS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $40.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: OIC PMO RECOMPETE1 9 MONTH BASE3 12 MONTH OPTIONS Key points: 1. Contract awarded on a non-competitive basis, raising questions about potential cost savings through competition. 2. Significant contract duration of over 4 years suggests a long-term need for these services. 3. The contract type is Time and Materials, which can lead to cost overruns if not closely managed. 4. The awarded amount of $40M over the contract's life indicates substantial investment in administrative and management consulting. 5. The contractor, General Dynamics Information Technology, is a large, established entity in the federal IT space. 6. The contract is for Administrative Management and General Management Consulting Services, a broad category. 7. The contract was awarded by the Department of Homeland Security, a major federal agency.

Value Assessment

Rating: questionable

The contract's Time and Materials (T&M) pricing structure, coupled with its non-competitive award, raises concerns about value for money. Without competitive bidding, it's difficult to benchmark the pricing against market rates or alternative solutions. The significant duration and total value suggest that a more cost-effective approach, such as a fixed-price contract or a competitively awarded T&M contract, might have yielded better value for taxpayers. Further analysis would be needed to determine if the specific services rendered justified the expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a non-competitive delivery order, indicating that a full and open competition was not conducted. This could be due to various reasons, such as a sole-source justification or a specific exception to full and open competition. The lack of multiple bidders means there was no direct price discovery through a competitive process, potentially leading to higher costs than if multiple vendors had vied for the contract.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the absence of competitive pressure to lower prices. The government did not benefit from the cost-saving mechanisms inherent in a competitive bidding process.

Public Impact

The Department of Homeland Security benefits from administrative and management consulting services to support its operations. These services likely contribute to the efficiency and effectiveness of various DHS programs and administrative functions. The contract's impact is primarily within the federal government, supporting internal management and operational improvements. The workforce implications are likely related to the personnel employed by General Dynamics Information Technology to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award limits price discovery and potential cost savings for taxpayers.
Time and Materials contract type carries inherent risks of cost overruns if not meticulously managed.
Lack of transparency in the procurement process due to sole-source nature.
Broad service category (Administrative Management and General Management Consulting) could obscure specific performance metrics and value.
Long contract duration may indicate a lack of agile procurement or market exploration for more efficient solutions.

Positive Signals

Award to an established contractor with a known track record in federal IT services.
Contract supports a critical federal agency (DHS), suggesting a need for reliable service provision.
Clear contract end date provides a defined period for service delivery and future re-evaluation.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector (NAICS 541611). This is a broad category encompassing a wide range of professional services aimed at improving organizational efficiency and management. The federal government is a significant consumer of these services, often seeking external expertise for strategic planning, process improvement, and operational support. Comparable spending benchmarks for this category are difficult to establish precisely due to the varied nature of services, but large, multi-year contracts like this represent substantial investments in organizational capacity.

Small Business Impact

The data indicates that small business participation was not a factor in this contract, as the 'ss' (small business set-aside) and 'sb' (small business) fields are false. This suggests that the contract was not specifically targeted towards small businesses, nor does it appear to have included explicit subcontracting goals for small businesses. Consequently, the direct impact on the small business ecosystem is likely minimal, and the benefits of this contract would primarily accrue to the large prime contractor.

Oversight & Accountability

Oversight for this contract would primarily reside within the Department of Homeland Security's contracting and program management offices. As a delivery order under a larger contract, specific oversight mechanisms would depend on the underlying contract's structure. Transparency is limited due to the non-competitive nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

DHS IT Modernization Programs
Federal Management Consulting Services
Administrative Support Contracts
General Dynamics IT Federal Contracts

Risk Flags

Non-competitive award
Time and Materials pricing
Long contract duration
Lack of specific service details

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $40.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. OIC PMO RECOMPETE1 9 MONTH BASE3 12 MONTH OPTIONS

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 (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $40.0 million.

What is the period of performance?

Start: 2006-07-12. End: 2010-12-31.

What specific administrative and management consulting services were provided under this contract?

The contract, identified by the description 'OIC PMO RECOMPETE1 9 MONTH BASE3 12 MONTH OPTIONS', falls under the NAICS code 541611 for Administrative Management and General Management Consulting Services. While the specific details of the services rendered are not provided in the abbreviated data, this category typically includes activities such as strategic planning, organizational analysis, process improvement, program management support, and general management consulting. Given the awarding agency is the Department of Homeland Security (DHS), these services likely supported internal operations, policy development, or program execution within the Office of the Chief Procurement Officer (OIC) or related Program Management Offices (PMO).

How does the $40 million contract value compare to similar DHS IT consulting contracts?

Comparing the $40 million value of this specific contract to other DHS IT consulting contracts requires access to a broader dataset of federal procurements. However, $40 million over a period of approximately 4 years (base plus options) represents a significant investment. For context, large federal IT and management consulting contracts can range from a few million to hundreds of millions of dollars, depending on the scope, duration, and criticality of the services. Given that this was a non-competitive award, it is difficult to assess if this represents a market-competitive price point without comparative data from similar, competitively awarded contracts for comparable services within DHS or other agencies.

What are the risks associated with a Time and Materials (T&M) contract of this magnitude?

Time and Materials (T&M) contracts, like the one awarded to General Dynamics Information Technology, carry inherent risks, particularly for large-value, long-duration procurements. The primary risk is cost escalation, as the government pays for the actual labor hours and material costs incurred by the contractor, plus a fixed fee or fixed hourly rates. Without stringent oversight and well-defined task orders, contractors may have less incentive to control costs or improve efficiency, potentially leading to expenditures exceeding initial estimates. For a $40 million contract spanning over four years, robust monitoring mechanisms are crucial to ensure that the T&M approach remains cost-effective and delivers the intended value.

What is the track record of General Dynamics Information Technology with the Department of Homeland Security?

General Dynamics Information Technology (GDIT), now part of General Dynamics, has a substantial history of contracting with the Department of Homeland Security (DHS) and other federal agencies. They are a major provider of IT and professional services to the federal government. While the abbreviated data does not detail their specific performance on this particular contract, GDIT's extensive experience suggests they possess the capabilities to fulfill complex requirements. However, as with any large contractor, past performance reviews and specific contract metrics would be necessary for a comprehensive assessment of their track record with DHS on this and other engagements.

How does the non-competitive nature of this award impact accountability and transparency?

A non-competitive award, also known as a sole-source or limited competition award, inherently reduces transparency and can complicate accountability. When a contract is awarded without a competitive bidding process, the justification for selecting a specific contractor and the reasonableness of the price are not subjected to market scrutiny. This can make it more challenging for external stakeholders, including the public and oversight bodies, to assess whether the government obtained the best value. While internal DHS oversight mechanisms are in place, the lack of competition limits the ability to independently verify the fairness and efficiency of the procurement process, potentially impacting overall accountability.

What is the historical spending pattern for Administrative Management and General Management Consulting Services at DHS?

The provided data focuses on a single contract award and does not offer historical spending patterns for Administrative Management and General Management Consulting Services at DHS. To analyze historical spending, one would need access to comprehensive federal procurement databases that track contract awards over multiple fiscal years. Such analysis would involve identifying all contracts under NAICS code 541611 awarded by DHS, their values, durations, and whether they were competitively or non-competitively sourced. This would help determine if this $40 million contract is an anomaly, a continuation of a trend, or part of a larger strategic investment in these types of services by DHS.

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: NON-COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

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

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

Financial Breakdown

Contract Ceiling: $62,750,386

Exercised Options: $40,029,397

Current Obligation: $40,029,397

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F9806H

IDV Type: FSS

Timeline