General Dynamics IT awarded $10.8M for technical services to support OUSD-AT&L, spanning over five years

Contract Overview

Contract Amount: $10,835,054 ($10.8M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of the Interior

Start Date: 2006-04-01

End Date: 2011-06-30

Contract Duration: 1,916 days

Daily Burn Rate: $5.7K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TECHNICAL SERVICES FOR OUSD-AT&L

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $10.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: TECHNICAL SERVICES FOR OUSD-AT&L Key points: 1. Contract value appears reasonable given the five-year duration and scope of technical services. 2. Competition dynamics indicate a competitive delivery order, suggesting potential for price discovery. 3. Risk indicators are moderate, with a time-and-materials contract type potentially leading to cost overruns if not managed closely. 4. Performance context is for technical services supporting OUSD-AT&L, a critical defense function. 5. Sector positioning is within engineering services, a common area for large federal IT contractors.

Value Assessment

Rating: good

The contract value of $10.8 million over approximately five years averages to about $2.16 million annually. This appears to be a fair valuation for comprehensive technical support services to a major Department of Defense entity like OUSD-AT&L. Benchmarking against similar large-scale technical support contracts for defense organizations suggests this pricing is within expected ranges, assuming the scope of work is comparable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. The presence of competition is a positive sign for achieving fair market prices. The specific number of bidders is not detailed, but the 'competitive' designation suggests more than one offer was received, contributing to a more robust price discovery process.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering a market that drives down costs and encourages innovation among contractors vying for the work.

Public Impact

The primary beneficiaries are the Office of the Under Secretary of Defense for Acquisition and Sustainment (OUSD-AT&L), receiving essential technical support. Services delivered include engineering and technical expertise crucial for defense acquisition and sustainment processes. The geographic impact is centered in the District of Columbia, where OUSD-AT&L is located. Workforce implications involve skilled technical professionals contributing to national defense initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored for scope creep and labor hour efficiency.
The long duration of over five years increases the potential for scope changes and evolving requirements that may impact the total cost.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's efficiency and effectiveness beyond contract completion.

Positive Signals

Awarded as a competitive delivery order, indicating a robust bidding process that likely secured a fair price.
The contract supports a critical defense function (OUSD-AT&L), suggesting alignment with national security priorities.
General Dynamics Information Technology is a large, established federal contractor with a significant track record, implying a degree of reliability.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the federal contracting market, particularly for defense and technology-related agencies. The market for such services is substantial, driven by the ongoing need for specialized technical expertise in areas like defense acquisition, research and development, and complex system integration. Comparable spending benchmarks would typically involve other large, multi-year technical support contracts awarded to major defense contractors for similar advisory and support functions.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major prime contractor, it may present subcontracting opportunities for small businesses, depending on the prime's subcontracting plan. However, the primary award did not directly benefit small businesses through a set-aside mechanism.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within the Department of the Interior and the OUSD-AT&L. Accountability measures would be embedded in the contract terms, including performance standards and reporting requirements. Transparency is generally facilitated through contract databases like FPDS, though detailed performance data may be less accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Technical Support Services
Acquisition and Logistics Support
Engineering Consulting Services
Federal IT Services Contracts
Department of Defense IT Spending

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Long contract duration increases risk of scope creep and evolving requirements.
Lack of specific performance metrics in provided data hinders detailed effectiveness assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $10.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. TECHNICAL SERVICES FOR OUSD-AT&L

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 the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $10.8 million.

What is the period of performance?

Start: 2006-04-01. End: 2011-06-30.

What is the track record of General Dynamics Information Technology, Inc. with federal contracts, particularly in engineering and technical services?

General Dynamics Information Technology, Inc. (GDIT) is a major federal contractor with a long history of providing a wide range of IT and technical services to various government agencies, including the Department of Defense. They have consistently secured large, complex contracts across numerous sectors. Their track record includes significant work in areas such as cloud computing, cybersecurity, data analytics, and mission support. While specific performance details for individual contracts are often not publicly disclosed in detail, GDIT's sustained presence and substantial contract awards suggest a generally reliable performance history. However, like any large contractor, they may have faced past performance issues or disputes on specific projects, which would typically be documented in past performance evaluations during recompetes.

How does the $10.8 million value compare to similar technical services contracts for OUSD-AT&L or equivalent defense entities?

The $10.8 million contract value, spread over approximately 1916 days (roughly 5.25 years), equates to an average annual value of about $2.06 million. This figure appears moderate for comprehensive technical services supporting a high-level defense organization like OUSD-AT&L. Large-scale technical support, advisory, and engineering services contracts for entities such as the Office of the Secretary of Defense, major commands, or defense agencies can range from tens of millions to hundreds of millions of dollars annually, depending on the breadth and depth of services required. Therefore, this $10.8 million award seems to represent a specific, defined scope of work rather than an all-encompassing support contract, making it appear reasonably valued in that context.

What are the primary risks associated with a Time and Materials (T&M) contract of this nature and duration?

The primary risk associated with a Time and Materials (T&M) contract, especially one spanning over five years, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the scope of work is not tightly defined, or if project management and oversight are insufficient, the contractor may incur more labor hours or material costs than initially anticipated, leading to a higher final price for the government. For OUSD-AT&L technical services, risks include scope creep, inefficient labor utilization, and potentially inflated material costs if not properly audited. Effective oversight, clear task orders, and vigilant monitoring of labor hours and material expenditures are crucial to mitigate these risks.

How effective is a competitive delivery order process in ensuring value for money for technical services?

A competitive delivery order process is generally effective in ensuring value for money, particularly when compared to sole-source or limited competition awards. It allows multiple qualified vendors to bid on specific requirements, fostering price competition and encouraging contractors to offer their best pricing and technical solutions. The 'full-and-open' competition designation suggests a broad outreach, maximizing the pool of potential bidders. This competitive pressure incentivizes contractors to be efficient and cost-conscious. However, the ultimate value for money also depends on the clarity of the requirement, the effectiveness of the evaluation criteria, and the government's ability to manage the resulting contract to ensure performance aligns with the price paid.

What is the historical spending pattern for engineering services (NAICS 541330) within the Department of the Interior or similar defense-related agencies?

The Department of the Interior (DOI) spends significant funds on engineering services, though its primary mission differs from defense agencies. DOI's spending in NAICS 541330 often relates to infrastructure, natural resource management, environmental assessments, and construction oversight. Defense agencies, on the other hand, utilize engineering services extensively for weapon system development, acquisition, sustainment, research and development, and complex IT integration. Historical spending patterns within defense agencies for engineering services are typically much larger in aggregate than for DOI, reflecting the scale and complexity of military operations and technology. Analyzing specific agency spending requires accessing detailed historical contract data, but generally, defense-related engineering services represent a substantial portion of the federal engineering services market.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 15036 CONFERENCE CENTER DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,960,276

Exercised Options: $11,960,276

Current Obligation: $10,835,054

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F0038L

IDV Type: FSS

Timeline