DoD Spends $27.6M on Software Maintenance, Awarded to General Dynamics IT Under Full and Open Competition
Contract Overview
Contract Amount: $27,575,245 ($27.6M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-11-06
End Date: 2019-03-31
Contract Duration: 510 days
Daily Burn Rate: $54.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SOFTWARE MAINTENANCE SERVICE
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $27.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: SOFTWARE MAINTENANCE SERVICE Key points: 1. Significant contract value of $27.6 million for software maintenance. 2. Awarded to a large, established contractor, General Dynamics Information Technology. 3. Procured under full and open competition, suggesting a competitive bidding process. 4. The contract duration spans over 1.5 years, indicating ongoing service needs.
Value Assessment
Rating: good
The contract value of $27.6 million for software maintenance appears reasonable given the duration and the nature of IT services. Benchmarking against similar large-scale software maintenance contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically leads to more competitive pricing and better value for the government. The existence of multiple bids and the selection process would further clarify the price discovery effectiveness.
Taxpayer Impact: Full and open competition generally maximizes taxpayer value by ensuring the government receives the best possible price and service through a competitive process.
Public Impact
Ensures continued operation of critical software systems for the Defense Health Agency. Supports the technological infrastructure of a major government health program. The investment in maintenance signifies a commitment to the longevity and reliability of existing IT assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if maintenance is highly specialized.
- Risk of cost escalation in future contract renewals.
- Dependence on a single contractor for critical software support.
Positive Signals
- Awarded through a competitive process.
- Supports a vital government health agency.
- Clear contract duration and defined scope.
Sector Analysis
This contract falls within the IT services sector, specifically computer related services. Spending benchmarks for software maintenance can vary widely based on the complexity and criticality of the software, but $27.6 million over 1.5 years suggests a substantial system or suite of applications.
Small Business Impact
The contract was awarded to General Dynamics Information Technology, a large prime contractor. There is no indication that small businesses were involved as subcontractors on this specific award, which is common for large IT service contracts.
Oversight & Accountability
The contract was awarded under full and open competition, which implies a structured procurement process with oversight. Further review of the specific solicitation and award documentation would detail the oversight mechanisms employed.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Contract duration is relatively short (1.5 years), potentially leading to frequent re-competition costs.
- Lack of detail on specific software systems supported.
- No explicit mention of small business participation.
- Contract ended in 2019, requiring assessment of subsequent actions.
Tags
other-computer-related-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. SOFTWARE MAINTENANCE SERVICE
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 $27.6 million.
What is the period of performance?
Start: 2017-11-06. End: 2019-03-31.
What specific software systems are covered under this maintenance contract, and what is their criticality to the Defense Health Agency's operations?
The contract covers software maintenance services for unspecified systems critical to the Defense Health Agency. Understanding the specific applications, such as electronic health records or logistical support systems, is crucial to assessing the true value and risk associated with this $27.6 million expenditure. Without this detail, it's difficult to gauge the impact of potential disruptions or the necessity of the maintenance provided.
How did the competitive bidding process ensure the best possible price for these software maintenance services, given the $27.6 million award?
The contract was awarded under 'full and open competition,' suggesting that multiple vendors were invited to bid. The effectiveness of this process in securing the best price depends on the number of bids received, the evaluation criteria used, and the negotiation strategies employed by the agency. A detailed analysis of the bid submissions and award justification would reveal the extent to which competition drove down costs.
What is the plan for ensuring the continued effectiveness and security of the software systems beyond the current contract's end date in March 2019?
The contract ended in March 2019, so the current effectiveness and security depend on subsequent actions. The Defense Health Agency would need to have either re-competed the contract, extended it, or transitioned to new systems. The lack of information on post-2019 activities raises questions about long-term planning and potential gaps in support or modernization efforts.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: 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: $27,575,245
Exercised Options: $27,575,245
Current Obligation: $27,575,245
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS35F080CA
IDV Type: FSS
Timeline
Start Date: 2017-11-06
Current End Date: 2019-03-31
Potential End Date: 2019-03-31 00:00:00
Last Modified: 2019-01-31
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 Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)