DoD's $43.4M IT contract for USTRANSCOM's AT21 program awarded to General Dynamics IT

Contract Overview

Contract Amount: $43,356,177 ($43.4M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-02-06

End Date: 2019-09-30

Contract Duration: 1,697 days

Daily Burn Rate: $25.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF AGILE TRANSPORTATION FOR THE 21ST CENTURY (AT21) ENTERPRISE CAPABILITY DEVELOPMENT, INTEGRATION AND SUSTAINMENT

Place of Performance

Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $43.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF AGILE TRANSPORTATION FOR THE 21ST CENTURY (AT21) ENTERPRISE CAPABILITY DEVELOPMENT, INTEGRATION AND SUSTAINMENT Key points: 1. Contract awarded via full and open competition, suggesting a robust market for these services. 2. The contract's duration of nearly 1700 days indicates a long-term need for sustained IT support. 3. Firm Fixed Price (FFP) contract type helps mitigate cost overrun risks for the government. 4. The award value of over $43 million signifies a substantial investment in enterprise capability development. 5. The specific NAICS code (541512) points to a focus on computer systems design services. 6. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract's value of approximately $43.4 million over its 1697-day duration averages to roughly $25,575 per day. Without specific benchmarks for similar enterprise capability development and sustainment contracts within the DoD or USTRANSCOM, a precise value-for-money assessment is challenging. However, the firm fixed-price nature of the contract provides cost certainty. The number of bids received (3) suggests a competitive environment that likely influenced pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit bids. Three bids were received, indicating a moderate level of competition for this specific requirement. While three bidders suggest some market interest, a higher number could potentially drive prices lower.

Taxpayer Impact: A full and open competition with multiple bidders generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better service offerings.

Public Impact

The primary beneficiary is the U.S. Transportation Command (USTRANSCOM), which receives enhanced IT capabilities. Services delivered include enterprise capability development, integration, and sustainment for the AT21 program. The geographic impact is likely focused on USTRANSCOM's operational centers and personnel, primarily within Illinois where the contractor is located. Workforce implications include IT professionals employed by General Dynamics Information Technology, Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the developed capabilities are highly proprietary.
Risk of scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
Dependence on a single contractor for critical IT infrastructure sustainment could pose a risk if performance falters.

Positive Signals

Firm Fixed Price contract type provides cost predictability.
Full and open competition suggests a healthy market and potential for competitive pricing.
Long contract duration indicates a stable, ongoing need and potential for contractor expertise development.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The IT services market for the federal government is vast, with significant spending allocated to software development, system integration, and IT sustainment. USTRANSCOM's need for enterprise capability development and sustainment is critical for its logistical operations, aligning with broader government efforts to modernize IT infrastructure and enhance operational efficiency.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. Large prime contractors like General Dynamics Information Technology, Inc. may still engage small businesses as subcontractors, but this is not mandated by the contract's set-aside status.

Oversight & Accountability

Oversight for this contract would typically be managed by contracting officers and program managers within USTRANSCOM. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver services within the agreed-upon budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and oversight reports may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

USTRANSCOM IT Modernization Programs
DoD Enterprise IT Services Contracts
Defense Logistics Agency IT Support
Federal Civilian IT Modernization Initiatives

Risk Flags

Contract Duration
Competition Level
Contract Type
Award Value

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF AGILE TRANSPORTATION FOR THE 21ST CENTURY (AT21) ENTERPRISE CAPABILITY DEVELOPMENT, INTEGRATION AND SUSTAINMENT

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 (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $43.4 million.

What is the period of performance?

Start: 2015-02-06. End: 2019-09-30.

What is the track record of General Dynamics Information Technology, Inc. with USTRANSCOM and similar IT contracts?

General Dynamics Information Technology, Inc. (GDIT) is a major federal IT contractor with a long history of serving various government agencies, including the Department of Defense and USTRANSCOM. Their track record typically involves large-scale IT services, including systems integration, software development, cloud migration, and cybersecurity. For USTRANSCOM specifically, GDIT has likely been involved in supporting the command's complex logistical and operational IT requirements. While this specific contract (AT21) represents a significant award, GDIT's broader experience suggests a capacity to handle such complex enterprise development and sustainment tasks. Performance on past contracts, including any past performance evaluations or contract disputes, would provide a more granular view of their reliability and effectiveness in delivering similar services.

How does the $43.4 million award value compare to similar IT sustainment contracts within the DoD?

Assessing the $43.4 million value requires context regarding the scope and duration. This contract spans nearly five years (1697 days), making the annual value approximately $8.7 million. This figure is moderate for large-scale enterprise IT sustainment and development within the DoD, which often sees contracts ranging from tens to hundreds of millions of dollars annually for similar services. For instance, broader enterprise resource planning (ERP) system sustainment or large-scale network infrastructure management contracts can far exceed this amount. However, for a specific program like AT21 focused on capability development and integration, $8.7 million per year could represent a significant investment, especially if it involves specialized technologies or complex integration efforts. Benchmarking against contracts with similar technical requirements and service levels within USTRANSCOM or other combatant commands would provide a more precise comparison.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential technical obsolescence if the developed capabilities are not adaptable to future technologies, performance degradation over the long sustainment period, and contractor personnel turnover impacting knowledge continuity. Mitigation strategies are embedded in the contract structure and management. The Firm Fixed Price (FFP) nature inherently shifts cost overrun risk to the contractor. The full and open competition with three bidders suggests a market that could provide alternatives if performance issues arise. USTRANSCOM's program management and contracting officers are responsible for ongoing oversight, performance monitoring, and enforcing contract terms. Requirements for regular reporting and potential contract modifications for necessary upgrades also serve as risk mitigation tools, ensuring the capabilities remain relevant and effective.

How effective is the 'full and open competition' approach for a contract of this nature?

The 'full and open competition' approach is generally considered the most effective method for ensuring fair and transparent procurement, maximizing opportunities for qualified vendors, and achieving competitive pricing. For a contract like AT21, which involves complex IT services, this approach allows a broad range of companies, including large integrators and potentially specialized firms, to bid. The fact that three bids were received indicates that the market was sufficiently engaged. While more bidders could potentially drive prices lower, three bids suggest a reasonable level of competition. The effectiveness is further enhanced by clear performance work statements and evaluation criteria, ensuring that the contract is awarded not just on price but also on technical merit and past performance, ultimately serving the government's best interest.

What are the historical spending patterns for USTRANSCOM IT services, and how does this contract fit?

USTRANSCOM, as a major component of the DoD responsible for global mobility, relies heavily on robust IT infrastructure. Historical spending patterns for USTRANSCOM IT services likely show consistent investment in areas such as command and control systems, logistics information systems, network infrastructure, and cybersecurity. These investments are crucial for maintaining operational readiness and efficiency. This $43.4 million contract for the AT21 program fits within this pattern by focusing on the development, integration, and sustainment of enterprise capabilities. It represents a specific, significant investment aimed at modernizing or enhancing a particular set of IT functions critical to USTRANSCOM's mission, rather than broad, general IT support. Understanding the specific goals of AT21 would clarify its precise role within the broader IT spending landscape of the command.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: HTC71114RD001

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corporation

Address: 3150 FAIRVIEW PARK DR STE 100, 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: $49,294,231

Exercised Options: $43,356,177

Current Obligation: $43,356,177

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $1,686,694

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q09BGD0025

IDV Type: GWAC

Timeline