DHS awards $75M for IT O&M, with General Dynamics IT securing a significant portion

Contract Overview

Contract Amount: $74,884,536 ($74.9M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2011-09-29

End Date: 2016-07-30

Contract Duration: 1,766 days

Daily Burn Rate: $42.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: IT

Official Description: VERIFICATION INFORMATION SYSTEM (O&M SERVICES)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20529

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $74.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: VERIFICATION INFORMATION SYSTEM (O&M SERVICES) Key points: 1. Contract value represents a substantial investment in maintaining critical IT infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. Cost-plus incentive fee contract type introduces performance-based financial incentives. 4. The contract duration of nearly five years indicates a long-term need for these services. 5. Focus on Computer Facilities Management Services highlights the importance of operational IT support. 6. Geographic concentration in DC may indicate a focus on headquarters-related IT operations.

Value Assessment

Rating: good

The contract's value of approximately $75 million over its period of performance is significant for IT operations and maintenance. Benchmarking against similar large-scale IT service contracts for federal agencies is necessary for a precise value-for-money assessment. However, the cost-plus incentive fee structure suggests an attempt to align contractor performance with government objectives, which can be a positive indicator if managed effectively. The absence of specific performance metrics in the provided data makes a definitive value assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The number of bidders is not specified, but the competitive nature of the award process is a positive sign for price discovery and ensuring the government receives a fair market price.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it maximizes the potential for cost savings through robust bidding and encourages a wider pool of contractors to offer their services, potentially driving down overall costs.

Public Impact

The U.S. Citizenship and Immigration Services (USCIS) benefits from reliable IT operations and maintenance. Essential IT services are delivered to support the agency's mission. The primary geographic impact is within the District of Columbia, likely supporting headquarters functions. The contract supports a workforce involved in IT operations and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus incentive fee contracts can lead to cost overruns if not closely monitored.
The long duration of the contract may reduce flexibility to adapt to changing technological needs.
Reliance on a single large contractor for critical IT services could pose a risk if performance falters.

Positive Signals

Full and open competition suggests a robust market engagement.
The incentive fee structure can drive contractor performance and efficiency.
The contract addresses a fundamental need for IT operational support.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT facilities management and maintenance. The IT services market for the federal government is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract represents a typical expenditure for a large federal agency like DHS, aiming to ensure the continuity and efficiency of its IT operations. Comparable spending benchmarks would involve looking at other large IT O&M contracts awarded to similar agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct prime contractors on this award. However, there may be opportunities for small businesses to participate as subcontractors, depending on the prime contractor's subcontracting plan and the specific services required. The overall impact on the small business ecosystem would be minimal unless significant subcontracting opportunities are created.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Homeland Security, specifically U.S. Citizenship and Immigration Services. Accountability measures are typically embedded within the contract's terms, including performance standards and reporting requirements tied to the cost-plus incentive fee structure. Transparency is facilitated through federal contract databases, though detailed operational oversight information may not be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

IT Operations and Maintenance Services
Federal IT Infrastructure Support
Department of Homeland Security IT Contracts
Computer Facilities Management

Risk Flags

Potential for cost overruns in CPIF contracts.
Risk of technological obsolescence due to long contract duration.
Dependence on a single large contractor for critical IT services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $74.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. VERIFICATION INFORMATION SYSTEM (O&M 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 (U.S. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $74.9 million.

What is the period of performance?

Start: 2011-09-29. End: 2016-07-30.

What is the track record of General Dynamics Information Technology, Inc. with similar federal IT O&M contracts?

General Dynamics Information Technology, Inc. (GDIT) has a long and extensive history of performing IT operations and maintenance services for various federal agencies. They are a major federal IT contractor with a broad portfolio that includes managing complex IT infrastructures, providing cybersecurity solutions, and supporting mission-critical systems. GDIT has held numerous large-scale contracts with departments such as Defense, Homeland Security, and Health and Human Services. Their track record generally indicates a capacity to handle large, complex IT service delivery requirements. However, like any large contractor, they have also faced scrutiny and performance reviews on specific contracts. A detailed analysis would require examining their performance on comparable contracts, including any past performance issues or commendations, to fully assess their suitability and reliability for this specific DHS contract.

How does the awarded amount compare to similar IT O&M contracts for federal agencies of similar size and scope?

The awarded amount of approximately $75 million over a period of nearly five years for IT Operations and Maintenance (O&M) services for U.S. Citizenship and Immigration Services (USCIS) is substantial but falls within the expected range for large federal IT contracts. To benchmark effectively, one would compare this contract's total value and annual spending against similar O&M contracts awarded by agencies like the Social Security Administration, the Department of Justice, or other components within DHS that manage significant IT infrastructure. Factors such as the specific services included (e.g., data center management, network operations, help desk support, application maintenance), the complexity of the systems supported, and the geographic scope (in this case, primarily DC) influence the cost. Without specific details on the scope of services and comparable contract data, it's difficult to definitively state if this represents superior or inferior value, but the full and open competition suggests an effort to achieve market-based pricing.

What are the primary risks associated with a Cost Plus Incentive Fee (CPIF) contract type for IT O&M services?

Cost Plus Incentive Fee (CPIF) contracts, while designed to incentivize performance and cost control, carry inherent risks. For IT O&M services, a primary risk is that the contractor may focus on achieving the incentive targets rather than on the overall quality or long-term maintainability of the IT systems, especially if the incentive metrics are not perfectly aligned with mission needs. There's also a risk of cost growth if the target costs are set too high or if unforeseen technical challenges arise that are not adequately addressed by the incentive structure. Effective government oversight is crucial to ensure that the incentive goals are realistic, achievable, and truly beneficial to the government, and that the contractor is not manipulating costs to maximize profit. Without robust monitoring and clear performance metrics, CPIF contracts can sometimes lead to higher-than-expected costs without commensurate improvements in service delivery.

How does the duration of this contract potentially impact the government's ability to adopt new technologies?

The contract duration of 1,766 days (approximately 4.8 years) presents a potential challenge for the government's agility in adopting new technologies. While long-term contracts provide stability and predictability for IT operations and maintenance, they can also create inertia. If the contract is heavily focused on maintaining existing systems and infrastructure, it might limit the flexibility to pivot towards newer, more innovative solutions without incurring significant change order costs or contract modifications. The government must ensure that the contract language includes provisions for incorporating technological advancements or that separate, more agile contracts are used for innovation initiatives. The CPIF structure could potentially incentivize the contractor to propose cost-effective upgrades, but the primary focus might remain on the defined scope of services for the existing infrastructure.

What are the implications of this contract being concentrated in the District of Columbia?

The contract's stated location (ST: DC, SN: DISTRICT OF COLUMBIA) suggests that the primary delivery of these IT Operations and Maintenance (O&M) services will occur within the Washington D.C. metropolitan area. This concentration typically implies that the services are supporting headquarters functions, data centers located in the region, or critical IT infrastructure directly linked to the agency's central operations. For the government, this can mean easier oversight and direct communication with the contractor's local management. For the contractor, it requires a strong presence and workforce in the D.C. area. The geographic focus might limit the direct impact on IT operations in other regions where USCIS may have facilities, potentially requiring separate contracts or arrangements for those locations.

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: COST PLUS INCENTIVE FEE (V)

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: $77,708,448

Exercised Options: $74,884,536

Current Obligation: $74,884,536

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $16,978,900

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSHQDC06D00021

IDV Type: IDC

Timeline