Interior Department's $26M IT Support Contract Awarded to General Dynamics for 3 Years

Contract Overview

Contract Amount: $26,066,020 ($26.1M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of the Interior

Start Date: 2012-04-09

End Date: 2015-03-31

Contract Duration: 1,086 days

Daily Burn Rate: $24.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IT SUPPORT SERVICES CONTRACT

Place of Performance

Location: NEW ORLEANS, JEFFERSON County, LOUISIANA, 70123

State: Louisiana Government Spending

Plain-Language Summary

Department of the Interior obligated $26.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IT SUPPORT SERVICES CONTRACT Key points: 1. Value for money appears fair given the duration and scope of IT support services. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Risk indicators are moderate, typical for a large IT services contract. 4. Performance context is within the standard range for government IT support. 5. Sector positioning is within the IT services domain for federal agencies.

Value Assessment

Rating: fair

The contract's total value of approximately $26 million over three years for IT support services suggests a moderate annual spend. Benchmarking against similar large-scale IT support contracts for federal agencies indicates that this pricing is within a reasonable range, though specific performance metrics and service levels would be needed for a more precise valuation. The contract was awarded through full and open competition, which typically drives more competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a reasonable level of competition for this IT support services requirement. This competitive process is designed to ensure that the government receives the best value by allowing multiple vendors to propose solutions and pricing.

Taxpayer Impact: A competitive bidding process generally leads to more favorable pricing for taxpayers by fostering a market-driven approach to contract awards.

Public Impact

The Bureau of Safety and Environmental Enforcement (BSEE) benefits from consistent IT support. Essential IT infrastructure and user support services are delivered to BSEE personnel. The contract's geographic impact is primarily focused on the locations where BSEE operates, with a significant presence in Louisiana. Workforce implications include the employment of IT professionals by General Dynamics to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly.
Dependence on a single contractor for critical IT functions.
Ensuring continued innovation and adaptation to evolving IT needs.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
General Dynamics is a large, established federal contractor with a track record.
Contract duration provides stability for IT service delivery.

Sector Analysis

The IT support services sector for the federal government is a substantial market. Agencies rely heavily on contractors for maintaining and upgrading complex IT systems. This contract fits within the broader category of IT professional services, which includes areas like help desk support, network management, and software maintenance. Comparable spending benchmarks for similar IT support contracts often range from tens to hundreds of millions of dollars annually, depending on the agency's size and scope of IT needs.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to a large prime contractor like General Dynamics suggests that small businesses may be involved as subcontractors, but their participation level and impact on the small business ecosystem are not detailed here. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would typically be managed by the Bureau of Safety and Environmental Enforcement's contracting officers and program managers. Accountability measures are usually embedded within the contract's performance work statement, including service level agreements and reporting requirements. Transparency is 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
Professional Services
Information Technology Support
General IT Services
Contract Operations and Support

Risk Flags

Potential for vendor lock-in
Risk of service degradation
Ensuring technological currency
Cybersecurity vulnerabilities
Contract performance monitoring challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $26.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IT SUPPORT SERVICES CONTRACT

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 (Bureau of Safety and Environmental Enforcement).

What is the total obligated amount?

The obligated amount is $26.1 million.

What is the period of performance?

Start: 2012-04-09. End: 2015-03-31.

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

General Dynamics Information Technology, Inc. (GDIT) is a major federal contractor with extensive experience in providing IT services across various government agencies. They have a long history of managing large, complex IT support, cybersecurity, cloud computing, and systems integration contracts. GDIT's track record includes numerous awards and successful contract performances, often involving significant dollar values and multi-year durations. While specific performance metrics for individual contracts are not publicly detailed, their consistent presence and ability to win large-scale federal procurements suggest a generally positive standing. However, like any large contractor, they may have faced performance challenges or disputes on specific contracts, which would require deeper investigation into individual contract histories.

How does the value of this contract compare to similar IT support contracts?

The total contract value of approximately $26 million over three years, averaging around $8.7 million per year, places this contract in the mid-to-large range for IT support services within a specific bureau like the Bureau of Safety and Environmental Enforcement. When compared to IT support contracts for larger agencies or enterprise-wide solutions, this value might appear modest. However, for the scope of services provided to BSEE, it is a significant investment. Benchmarking against similar contracts awarded to other large IT service providers for comparable federal entities suggests that the pricing is competitive, especially given it was awarded through full and open competition. Factors such as the number of users supported, the complexity of the IT environment, and the specific services included (e.g., help desk, network management, cybersecurity) would influence precise comparisons.

What are the primary risks associated with this IT support contract?

Key risks for this IT support contract include potential vendor lock-in, where the agency becomes overly dependent on General Dynamics, making future transitions difficult or costly. There's also the risk of service degradation if performance standards are not consistently met or if the contractor faces staffing issues. Technological obsolescence is another concern; the IT landscape evolves rapidly, and the contract must ensure that the services provided remain current and effective. Furthermore, cybersecurity threats pose a constant risk, requiring robust security measures from the contractor. Finally, budget fluctuations or changes in agency priorities could impact the contract's long-term viability or scope.

How effective is full and open competition in ensuring value for IT services?

Full and open competition is generally considered the most effective method for ensuring value in federal IT services procurement. By allowing all responsible sources to compete, it fosters a dynamic environment where multiple vendors propose solutions and pricing, driving down costs and encouraging innovation. This process allows the government to select the offer that provides the best combination of technical merit and price. The presence of multiple bidders, as indicated by the 3 bidders in this case, suggests that the competition was meaningful. However, the effectiveness also depends on the clarity of the solicitation, the evaluation criteria, and the agency's ability to accurately assess proposals to identify the true best value, rather than just the lowest price.

What are the historical spending patterns for IT support at the Bureau of Safety and Environmental Enforcement?

Analyzing historical spending patterns for IT support at the Bureau of Safety and Environmental Enforcement (BSEE) would require access to detailed historical contract data beyond the single award provided. Typically, federal agencies aim for stable, predictable spending on essential services like IT support, often renewing contracts or awarding new ones to incumbent or competitive providers. Significant year-over-year fluctuations might indicate changes in agency needs, budget allocations, or shifts in procurement strategies (e.g., moving towards cloud services or consolidating contracts). Without broader historical data, it's difficult to establish a trend, but the $26 million award over three years suggests a consistent level of investment in IT support during this period.

Industry Classification

NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores

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: 3

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 3211 JERMANTOWN RD, FAIRFAX, VA, 22030

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $26,066,020

Exercised Options: $26,066,020

Current Obligation: $26,066,020

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4357D

IDV Type: FSS

Timeline