DoD's $57.9M Armed Forces Billing Services Contract Awarded to General Dynamics
Contract Overview
Contract Amount: $57,936,275 ($57.9M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-01-31
End Date: 2024-07-31
Contract Duration: 2,008 days
Daily Burn Rate: $28.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ARMED FORCES BILLING SERVICES
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $57.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: ARMED FORCES BILLING SERVICES Key points: 1. Contract value of $57.9M over its period of performance. 2. General Dynamics Information Technology, Inc. is the sole awardee. 3. Risk is moderate due to long contract duration and sole awardee. 4. Spending falls within the 'Other Computer Related Services' NAICS code.
Value Assessment
Rating: good
The contract value of $57.9M over approximately 5.5 years suggests a reasonable annual spend. Benchmarking against similar IT service contracts is necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential billing services.
Public Impact
Ensures continuity of billing services for armed forces personnel. Supports the operational efficiency of the Defense Health Agency. Potential impact on service availability if performance issues arise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 5 years) can lead to price increases.
- Sole awardee may limit future competition and innovation.
- Reliance on a single vendor for critical billing services.
Positive Signals
- Awarded through full and open competition.
- Supports a critical defense health function.
- Firm Fixed Price contract type provides cost certainty.
Sector Analysis
This contract falls under IT services, specifically 'Other Computer Related Services'. Spending benchmarks for similar IT support contracts within the DoD can vary widely based on scope and complexity.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the awardee is General Dynamics Information Technology, Inc. Further analysis would be needed to determine if small business subcontracting opportunities were included.
Oversight & Accountability
The contract was awarded under full and open competition, suggesting a structured procurement process. Ongoing oversight by the Defense Health Agency is crucial to ensure performance and value.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Long contract duration.
- Sole awardee.
- Potential for cost escalation over time.
- Reliance on a single vendor for critical services.
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 $57.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. ARMED FORCES BILLING 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 $57.9 million.
What is the period of performance?
Start: 2019-01-31. End: 2024-07-31.
What is the specific scope of 'Armed Forces Billing Services' and how does it align with the 'Other Computer Related Services' NAICS code?
The 'Armed Forces Billing Services' likely encompass the processing, management, and reporting of medical billing for military personnel and their dependents. The NAICS code 541519, 'Other Computer Related Services,' is broad and can include services like IT consulting, systems integration, and custom programming, which may not directly map to billing operations. A more specific NAICS code might be expected for such a specialized service.
Given the long duration and sole awardee, what are the potential risks to service continuity and cost escalation?
A long contract duration (over 5 years) increases the risk of cost escalation due to inflation and evolving market conditions, even with a Firm Fixed Price. A sole awardee limits competitive pressure, potentially reducing incentives for efficiency and innovation. This also creates a single point of failure; if the contractor experiences significant issues, service continuity could be severely impacted.
How effectively does this contract leverage competition to ensure optimal value for taxpayer dollars over its lifespan?
While the initial award was through full and open competition, the long duration and lack of subsequent competitive actions (like re-competition or task order competitions if applicable) may diminish ongoing competitive pressure. The government must actively manage the contract, potentially through performance metrics and negotiation, to ensure continued value and prevent complacency from the sole awardee.
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
Solicitation ID: HT001519R0007
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 3150 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $58,769,390
Exercised Options: $57,936,275
Current Obligation: $57,936,275
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $5,513,218
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F080CA
IDV Type: FSS
Timeline
Start Date: 2019-01-31
Current End Date: 2024-07-31
Potential End Date: 2024-07-31 00:00:00
Last Modified: 2024-10-09
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