DoD's $61M Brain Injury Center Services Contract Awarded to General Dynamics Faces Scrutiny
Contract Overview
Contract Amount: $61,154,519 ($61.2M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-03-26
End Date: 2021-09-16
Contract Duration: 905 days
Daily Burn Rate: $67.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Healthcare
Official Description: DEFENSE AND VETERANS BRAIN INJURY CENTER SUPPORT SERVICES
Place of Performance
Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $61.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: DEFENSE AND VETERANS BRAIN INJURY CENTER SUPPORT SERVICES Key points: 1. The contract awarded to General Dynamics Information Technology, Inc. for brain injury center support services represents a significant investment. 2. Competition was limited, raising questions about price discovery and potential value for taxpayers. 3. The 'All Other Professional, Scientific, and Technical Services' NAICS code is broad, making direct sector benchmarks challenging. 4. The Cost Plus Fixed Fee contract type can incentivize cost overruns if not closely monitored.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure, coupled with a lack of competitive bidding, makes a direct pricing assessment difficult. The award amount of $61.15M over 905 days suggests a substantial per-diem or per-service cost that warrants further investigation against industry standards for similar specialized medical support services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a sole-source or limited competition award. This lack of competition limits the government's ability to leverage market forces to achieve the best possible price and potentially impacts the innovation and efficiency that could arise from a more open bidding process.
Taxpayer Impact: The absence of competition raises concerns about whether taxpayers received the best value for the $61.15M spent on these critical brain injury support services.
Public Impact
Veterans and service members suffering from brain injuries rely on these services, making continuity of care a high priority. The significant contract value highlights the substantial resources dedicated to addressing traumatic brain injuries within the military. Lack of transparency in the procurement process could erode public trust in defense spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Broad NAICS code limits benchmarking
Positive Signals
- Addresses critical veteran and military health need
- Long-term contract provides stability
Sector Analysis
This contract falls under professional, scientific, and technical services, specifically supporting medical research and treatment for brain injuries within the defense sector. Benchmarking is difficult due to the specialized nature and broad NAICS code, but spending in defense health services is generally substantial.
Small Business Impact
The contract was awarded to General Dynamics Information Technology, Inc., a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, suggesting a missed opportunity for small business participation.
Oversight & Accountability
The 'NOT COMPETED' status necessitates robust oversight to ensure the contractor is delivering services effectively and efficiently within the agreed-upon cost parameters. Accountability for performance and cost control is crucial given the lack of competitive pressure.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for cost overruns with CPFF contract
- Broad NAICS code obscures specific service costs
- Limited transparency in pricing justification
- No clear indication of small business participation
Tags
all-other-professional-scientific-and-te, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $61.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. DEFENSE AND VETERANS BRAIN INJURY CENTER SUPPORT 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 Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $61.2 million.
What is the period of performance?
Start: 2019-03-26. End: 2021-09-16.
What specific services are included under 'All Other Professional, Scientific, and Technical Services' for brain injury support, and how were these services priced to ensure value?
The broad NAICS code '541990' encompasses a wide range of non-classifiable services. For this contract, it likely includes specialized clinical support, research assistance, data analysis, and program management related to traumatic brain injuries. Pricing under a Cost Plus Fixed Fee contract requires detailed justification of direct costs and a fair fixed fee, which should be scrutinized to ensure it aligns with the scope and complexity of the services provided and reflects a reasonable profit margin.
Given the sole-source nature of this award, what measures were taken to mitigate the risk of inflated costs and ensure the government received fair market value?
Without competitive bidding, the government must rely on robust internal cost analysis, historical pricing data, and potentially independent government cost estimates to validate the proposed costs and fee. Negotiation strategies should focus on challenging assumptions, scrutinizing labor rates and indirect costs, and ensuring the fixed fee is commensurate with the risk and effort involved. Regular performance reviews and audits are also critical to monitor cost efficiency.
How effectively are these services contributing to the treatment and rehabilitation outcomes for service members and veterans with brain injuries, and is there a mechanism to measure this impact?
Measuring the effectiveness of these support services is paramount. Key performance indicators (KPIs) should be established and tracked, focusing on patient outcomes, rehabilitation success rates, patient satisfaction, and the efficiency of care delivery. The contracting officer should regularly assess contractor performance against these KPIs and use this data to inform future contract decisions and ensure the services are meeting their intended therapeutic goals.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HT001419R0003
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 3211 JERMANTOWN RD, FAIRFAX, VA, 22030
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $63,335,592
Exercised Options: $63,335,592
Current Obligation: $61,154,519
Actual Outlays: $371
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-03-26
Current End Date: 2021-09-16
Potential End Date: 2021-09-16 00:00:00
Last Modified: 2024-08-29
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