DHS Spends $107M on Priority Telecom Services with General Dynamics
Contract Overview
Contract Amount: $106,681,277 ($106.7M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2011-06-03
End Date: 2019-09-16
Contract Duration: 3,027 days
Daily Burn Rate: $35.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PRIORITY TELECOMMUNICATIONS SERVICES
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $106.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: PRIORITY TELECOMMUNICATIONS SERVICES Key points: 1. General Dynamics secured a significant contract for priority telecommunications services. 2. The contract value is substantial at over $106 million. 3. Competition was full and open, suggesting potential for competitive pricing. 4. The sector is IT, specifically Computer Facilities Management Services.
Value Assessment
Rating: fair
The contract value of $106.7M over 8 years for telecommunications services appears high. Benchmarking against similar large-scale telecom contracts is needed to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing. However, the duration and specific nature of 'priority' services may influence the final price discovery.
Taxpayer Impact: Taxpayers are impacted by the $106.7M expenditure, with the value for money dependent on the necessity and efficiency of these priority services.
Public Impact
Ensures critical communication infrastructure for DHS. Supports national security and emergency response capabilities. Potential for cost savings if services are efficiently managed and priced competitively.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value over an extended period.
- Lack of specific per-unit cost data for benchmarking.
- Potential for scope creep in telecommunications services.
Positive Signals
- Awarded under full and open competition.
- Supports critical government functions.
Sector Analysis
This contract falls within the IT sector, specifically Computer Facilities Management Services. Spending benchmarks for similar large-scale telecommunications contracts are essential for a comprehensive value assessment.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.
Oversight & Accountability
The Office of Procurement Operations managed this award. Oversight should focus on contract performance, adherence to terms, and ongoing cost-effectiveness throughout the contract's duration.
Related Government Programs
- Computer Facilities Management Services
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- High dollar value over extended period.
- Lack of detailed service description.
- Potential for price increases over contract life.
- No indication of small business participation.
- Need for ongoing performance and cost validation.
Tags
computer-facilities-management-services, department-of-homeland-security, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $106.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. PRIORITY TELECOMMUNICATIONS SERVICES
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 $106.7 million.
What is the period of performance?
Start: 2011-06-03. End: 2019-09-16.
What specific 'priority' telecommunications services are included, and how do they differ from standard services to justify the cost?
The contract details do not specify the exact nature of 'priority' telecommunications services. These typically involve guaranteed bandwidth, reduced latency, and enhanced reliability for critical government operations, especially during emergencies. Understanding the specific service level agreements and technical requirements is crucial to assess if the premium cost is justified compared to standard commercial offerings.
What mechanisms are in place to ensure the $106.7M expenditure represents good value over the contract's 8-year duration?
While awarded under full and open competition, the long duration necessitates ongoing oversight. Mechanisms should include regular performance reviews, benchmarking against evolving market prices for similar services, and potential for contract modifications if needs or technologies change. Ensuring efficient service delivery and avoiding unnecessary upgrades are key to long-term value.
How effectively does this contract support DHS's mission-critical functions, and are there alternative solutions that could offer similar capabilities at a lower cost?
The contract is intended to support DHS's mission-critical functions by providing reliable telecommunications. Effectiveness is measured by uptime, performance metrics, and successful communication during operational demands. Continuous market research and technology assessments are vital to identify potential alternative solutions or optimizations that could maintain or improve capability while reducing taxpayer burden.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management 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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 4151 LAFAYETTE CENTER DR STE 700, CHANTILLY, VA, 20151
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $114,217,909
Exercised Options: $106,757,912
Current Obligation: $106,681,277
Subaward Activity
Number of Subawards: 96
Total Subaward Amount: $199,097,415
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSHQDC06D00021
IDV Type: IDC
Timeline
Start Date: 2011-06-03
Current End Date: 2019-09-16
Potential End Date: 2019-09-16 00:00:00
Last Modified: 2019-09-24
More Contracts from General Dynamics Information Technology, Inc.
- Global Security Engineering&supply Chain Services — $1.5B (Department of State)
- THE Purpose of This Action IS to Establish a NEW Contract With General Dynamics Information Technology for Global Supply Chain Management, Logistics and Technology Development Services to Support the Department of State. the Initial Funding Associated With This Contract IS $22,304,578.00. the Overall Contract Value IS $2,200,000,000.00 — $1.2B (Department of State)
- Cloud Products&tools (CPT) — $902.0M (Department of Health and Human Services)
- Beneficiary Contact Center Operations — $879.1M (Department of Health and Human Services)
- Award of Task Order 47qfca210051-Nawcad Wolf Ship and AIR C5isr Systems Support — $832.3M (General Services Administration)
View all General Dynamics Information Technology, Inc. federal contracts →
Other Department of Homeland Security Contracts
- THE United States Coast Guard HAS a Requirement to Procure UP to Twenty-Six (26) Fast Response Cutters (frcs) on a Firm Fixed Price (FFP) Basis With an Economic Price Adjustment (EPA). Phase II of the FRC Program Will Complete the Fleet for a Total of 58 Cutters — $2.1B (Bollinger Shipyards Lockport, L.L.C.)
- Design and Construct NEW Vertical Barrier and Power Distribution, Lighting, Cameras, Equipment Shelters and Linear Ground Detection System (lgds) in Hildago County, NM — $1.8B (Fisher Sand & Gravel CO)
- Production&delivery of National Security Cutter (NSC) 6 — $1.7B (Huntington Ingalls Incorporated)
- YUM-2 Vertical Border and Waterborne Barrier Construction — $1.7B (Fisher Sand & Gravel CO)
- Construct Vertical Border Barrier — $1.6B (Fisher Sand & Gravel CO)