DHS awarded $17.6M for IT services to General Dynamics, with a fixed-price incentive contract type

Contract Overview

Contract Amount: $17,579,681 ($17.6M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2010-08-27

End Date: 2011-08-31

Contract Duration: 369 days

Daily Burn Rate: $47.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE INCENTIVE

Sector: IT

Official Description: OY4 09/01/2010 TO 08/31/2011

Place of Performance

Location: RICHARDSON, DALLAS County, TEXAS, 75080

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $17.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: OY4 09/01/2010 TO 08/31/2011 Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The fixed-price incentive contract type aims to balance cost control with performance incentives. 3. The contract duration was 369 days, indicating a relatively short-term engagement. 4. The award was made by U.S. Citizenship and Immigration Services within the Department of Homeland Security. 5. The North American Industry Classification System (NAICS) code 519190 points to 'All Other Information Services'. 6. The contractor, General Dynamics Information Technology, Inc., is a significant player in the federal IT services market.

Value Assessment

Rating: fair

The total award amount of $17.6 million for a one-year IT services contract appears within a reasonable range for large federal IT procurements. However, without specific details on the services rendered or performance metrics, a precise value-for-money assessment is challenging. The fixed-price incentive structure suggests an attempt to manage costs while encouraging contractor performance, but the ultimate cost-effectiveness depends on the achieved performance targets and the negotiated incentive levels. Benchmarking against similar 'All Other Information Services' contracts would provide a clearer picture of its competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 2 bids suggests a moderate level of competition for this specific requirement. While two bidders participated, the extent of the competition and the nature of the proposals received are not detailed, making it difficult to definitively assess if the competition drove optimal pricing. A higher number of bidders typically correlates with more robust price discovery.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of offers. However, with only two bids, the potential for significant cost savings might have been limited compared to a more crowded field.

Public Impact

The primary beneficiary of this contract is the U.S. Citizenship and Immigration Services (USCIS), which receives IT support services. These services likely contribute to the operational efficiency and data management capabilities of USCIS. The contract's geographic impact is centered around the contractor's performance location, likely within Texas where the award was registered. The workforce implications involve employment opportunities within General Dynamics Information Technology, Inc., particularly in IT-related roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bids) may have reduced price pressure.
Fixed-price incentive contracts can sometimes lead to cost overruns if performance targets are not met or are poorly defined.
The short contract duration (369 days) might indicate a need for ongoing re-competition or potential instability for the contractor.

Positive Signals

Awarded through full and open competition, maximizing potential bidder pool.
Fixed-price incentive contract type aligns contractor and government interests in performance.
Contract awarded to a large, established IT services provider with federal experience.

Sector Analysis

The IT services sector is a vast and critical component of federal spending, encompassing a wide array of support, development, and maintenance activities. This contract falls under the 'All Other Information Services' category, which can include a broad range of IT-related functions not specifically classified elsewhere. Federal spending in IT services is consistently high, driven by the need to modernize systems, enhance cybersecurity, and support agency missions. Comparable contracts in this space can range from millions to billions of dollars, depending on the scope and duration.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a large prime contractor like General Dynamics Information Technology, Inc. suggests that small businesses are unlikely to be direct beneficiaries of this specific award, though they might participate as subcontractors if opportunities arise and are mandated.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security and the U.S. Citizenship and Immigration Services. As a fixed-price incentive contract, performance monitoring and adherence to incentive clauses would be key oversight areas. Transparency is facilitated by contract award databases, but detailed performance reports and cost breakdowns are often not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Professional Services
Information Technology Support Services
Cloud Computing Services
Cybersecurity Services
Software Development Services

Risk Flags

Limited Competition
Potential for Cost Overruns (FPI)
Ambiguous Service Scope (NAICS 519190)

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $17.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. OY4 09/01/2010 TO 08/31/2011

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. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $17.6 million.

What is the period of performance?

Start: 2010-08-27. End: 2011-08-31.

What specific IT services were provided under this contract?

The contract falls under NAICS code 519190, 'All Other Information Services.' This broad classification suggests a range of potential IT services, which could include IT support, help desk operations, network management, data processing, system maintenance, or other information technology-related functions not specifically categorized under more specialized NAICS codes. Without further details from the contract award or associated documentation, the precise nature of the services remains general. However, given the agency (USCIS), it likely supported the agency's mission-critical IT infrastructure and operations, ensuring the smooth functioning of systems used for processing immigration applications and managing related data.

How does the $17.6 million award compare to similar IT services contracts awarded by DHS or USCIS?

The $17.6 million award for a 369-day contract is a substantial amount, typical for IT services procured by large federal agencies like DHS. To benchmark effectively, one would need to compare it against contracts with similar scope, duration, and service types (e.g., IT support, system integration) awarded by USCIS or other DHS components. Contracts for enterprise-wide IT solutions or major system overhauls can easily reach tens or hundreds of millions of dollars. Shorter-term, specialized support contracts might be in the single-digit millions. This award appears to be in the mid-to-upper range for a contract of its duration, suggesting a significant scope of services or a high level of expertise required.

What are the potential risks associated with a Fixed Price Incentive (FPI) contract type for IT services?

Fixed Price Incentive (FPI) contracts aim to share the risk and reward between the government and the contractor. For IT services, potential risks include: 1) Target Cost/Price Overruns: If the contractor's actual costs exceed the target cost, and the final price is negotiated above the target price due to performance incentives, the government may end up paying more than initially planned. 2) Incentive Gaming: Contractors might focus excessively on meeting incentive targets at the expense of other critical, non-incentivized aspects of service quality or long-term system stability. 3) Difficulty in Defining Metrics: Establishing clear, measurable, and achievable performance metrics for IT services that accurately reflect value can be challenging, leading to disputes or ineffective incentives. 4) Administrative Burden: FPI contracts require more complex administration and negotiation than simpler fixed-price contracts.

What is the track record of General Dynamics Information Technology, Inc. in performing federal IT contracts?

General Dynamics Information Technology, Inc. (GDIT) is a major federal contractor with a long history of providing a wide range of IT services to various government agencies, including defense, civilian, and intelligence communities. They have experience in areas such as IT infrastructure, cloud migration, cybersecurity, data analytics, and mission-critical systems support. GDIT typically handles large, complex contracts. Their track record generally includes successful delivery on many significant programs, though like any large contractor, they may have faced challenges or controversies on specific projects. Federal procurement databases often show a high volume of awards and contract modifications for GDIT, indicating substantial ongoing activity and experience across the federal landscape.

How has federal spending on 'All Other Information Services' (NAICS 519190) evolved over recent years?

Federal spending on NAICS code 519190, 'All Other Information Services,' has generally seen fluctuations but represents a consistent area of expenditure. This category often captures IT services that don't fit neatly into more specialized classifications, such as general IT support, data processing, and miscellaneous information services. Over recent years, there has been a trend towards modernizing IT infrastructure, increasing cybersecurity investments, and adopting cloud-based solutions across federal agencies. Consequently, spending within this category may reflect shifts towards these modern IT needs. Analyzing historical spending data would reveal specific trends, such as increases driven by digital transformation initiatives or decreases due to consolidation of services or shifts to different NAICS codes as agency needs evolve.

Industry Classification

NAICS: Information › Other Information Services › All Other Information Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 15000 CONFERENCE CENTER DR, CHANTILLY, VA, 90

Business Categories: American Indian Owned Business, Category Business, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $17,579,681

Exercised Options: $17,579,681

Current Obligation: $17,579,681

Parent Contract

Parent Award PIID: HSSCCG06D00003

IDV Type: IDC

Timeline