Department of the Interior's $48.5M IT services contract awarded to General Dynamics Information Technology, Inc

Contract Overview

Contract Amount: $48,543,919 ($48.5M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of the Interior

Start Date: 2013-09-16

End Date: 2019-03-15

Contract Duration: 2,006 days

Daily Burn Rate: $24.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: CYBER TECHNOLOGIES AUGMENTATION PROGRAM IGF::OT::IGF

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $48.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: CYBER TECHNOLOGIES AUGMENTATION PROGRAM IGF::OT::IGF Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Services provided under a Time and Materials (T&M) contract type, which can pose cost control challenges. 3. The contract duration spans over 5 years, indicating a long-term need for these IT services. 4. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services. 5. The award was a delivery order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The contract was not set aside for small businesses, nor did it indicate specific small business subcontracting goals. 7. The base contract duration was 2006 days, with a significant period of performance. 8. The contract was awarded to a single vendor, General Dynamics Information Technology, Inc.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or detailed cost breakdowns. Time and Materials contracts can sometimes lead to higher costs if not managed closely, as they reimburse the contractor for direct labor hours and materials. Comparing this to similar IT services contracts for government agencies would require access to more granular data on scope and deliverables. The total award amount of $48.5 million over approximately 5 years suggests a moderate annual spend for IT systems design and integration services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 12 bidders suggests a robust competitive environment for this IT services requirement. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award. The significant number of bidders indicates that taxpayer funds were likely used efficiently to secure these services.

Public Impact

The Department of the Interior benefits from enhanced IT systems design and integration services. The contract supports the operational efficiency and technological capabilities of departmental offices. The geographic impact is primarily within the United States, supporting federal IT infrastructure. The contract supports a workforce skilled in computer systems design and related IT services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials (T&M) contract type if not closely monitored.
Lack of specific small business subcontracting goals may limit opportunities for smaller IT firms.
The long duration of the contract could lead to technology obsolescence if not managed proactively.

Positive Signals

Awarded through full and open competition, ensuring a competitive bidding process.
Multiple bidders (12) indicate a healthy market response and potential for competitive pricing.
The contract supports critical IT infrastructure for a major federal agency.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. The federal government is a significant consumer of these services, with spending often categorized under IT modernization, cybersecurity, and general IT support. Comparable spending benchmarks would typically involve analyzing other large IT services contracts awarded by agencies like the Department of Defense or GSA, often measured by annual spend or per-project value for similar scope.

Small Business Impact

This contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting requirements. This suggests that opportunities for small businesses to directly participate in this contract may be limited, unless they are part of a larger team led by General Dynamics Information Technology, Inc. The absence of set-asides or specific subcontracting goals means the direct impact on the small business IT ecosystem for this particular award is likely minimal.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Interior. Accountability measures would be embedded in the contract terms, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Services Contracts
Computer Systems Design Services
Departmental IT Modernization Programs
General Dynamics IT Contracts
Time and Materials Contracts
Full and Open Competition Awards

Risk Flags

Potential for cost overruns due to T&M contract type.
Lack of specific small business subcontracting goals.
Long contract duration may lead to technology obsolescence.
Performance management for T&M contracts requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $48.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. CYBER TECHNOLOGIES AUGMENTATION PROGRAM IGF::OT::IGF

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 $48.5 million.

What is the period of performance?

Start: 2013-09-16. End: 2019-03-15.

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

General Dynamics Information Technology, Inc. (GDIT) has a long and extensive history of performing IT services for various U.S. federal agencies. They are a major government contractor known for providing a wide range of IT solutions, including systems engineering, software development, cybersecurity, cloud computing, and IT infrastructure management. Their track record includes numerous large-scale contracts across defense, civilian, and intelligence communities. While generally considered a capable provider, like any large contractor, they have experienced both successes and challenges in contract execution. Performance reviews and past performance information are typically considered during the source selection process for new awards. Analyzing specific past performance data for similar contracts would provide a more detailed assessment.

How does the $48.5M award compare to other IT services contracts for the Department of the Interior?

The $48.5 million award to General Dynamics Information Technology, Inc. for computer systems design services represents a significant, but not exceptionally large, IT investment for the Department of the Interior over its approximately 5-year performance period. The Department of the Interior, like many large federal agencies, procures a substantial volume of IT services annually, often through multiple contracts and task orders. This specific award likely supports a particular program or set of systems. To provide a precise comparison, one would need to analyze the total IT spending of the Department of the Interior for the relevant fiscal years and identify other contracts of similar scope (e.g., systems design, integration, maintenance) and value. However, it is within the typical range for major IT service delivery contracts awarded to large system integrators.

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

The primary risk associated with a Time and Materials (T&M) contract, such as this one, is the potential for cost growth and lack of definitive cost control. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor hours expended and materials used, plus a fixed fee or percentage for profit. This structure can incentivize longer task durations or higher labor rates if not rigorously managed. For the government, risks include difficulty in predicting the total contract cost upfront, potential for inefficient performance if oversight is lax, and the possibility of the contractor incurring higher-than-expected material costs. Effective oversight, detailed tracking of labor hours, and strong negotiation of labor rates are crucial to mitigate these risks.

How does the 'full and open competition' with 12 bidders impact value for taxpayers?

The fact that this contract was awarded under 'full and open competition' with 12 bidders is a strong positive indicator for taxpayer value. Full and open competition ensures that all responsible sources are allowed to compete, fostering a robust marketplace. A high number of bidders, like 12 in this case, typically drives down prices as contractors vie for the award. This competitive pressure encourages efficiency and innovation from the bidders, leading to potentially better service offerings at a more favorable cost. For taxpayers, this means their money is more likely to be spent efficiently, securing necessary IT services at a price reflective of market competition rather than being subject to the potentially higher costs associated with sole-source or limited-competition procurements.

What is the significance of the NAICS code 541512 (Computer Systems Design Services) in understanding this contract?

The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' is crucial for understanding the core purpose of this contract. This code signifies that the contract's primary objective is to provide services related to the analysis, design, development, integration, and implementation of computer systems. This can encompass a wide range of activities, including custom software development, hardware integration, network design, IT consulting, and systems management. By identifying this NAICS code, analysts can categorize the spending, compare it to similar procurements across the government, and understand the specific type of IT expertise being acquired by the Department of the Interior. It helps frame the contract within the broader IT services market.

What does the contract award type 'Delivery Order' imply about its structure?

The award type 'Delivery Order' indicates that this contract is likely a task order issued under a larger, pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar type of multiple-award contract vehicle. IDIQ contracts establish terms and conditions, including pricing structures and performance requirements, under which the government can issue specific orders for goods or services as needed. A delivery order represents a specific commitment to purchase a defined quantity of services or products at a specified price and delivery schedule. This structure allows agencies to procure services flexibly and efficiently over a period, often leveraging pre-competed terms, while the delivery order formalizes a specific requirement and funding commitment.

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

Offers Received: 12

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

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: $184,516,605

Exercised Options: $184,516,605

Current Obligation: $48,543,919

Actual Outlays: $1,148,255

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200050W

IDV Type: GWAC

Timeline