Interior Dept. Spends $64.7M on IT Services with General Dynamics, Raising Oversight Questions

Contract Overview

Contract Amount: $64,688,930 ($64.7M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of the Interior

Start Date: 2001-09-15

End Date: 2005-09-30

Contract Duration: 1,476 days

Daily Burn Rate: $43.8K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 51

Pricing Type: FIRM FIXED PRICE

Sector: IT

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $64.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: Key points: 1. Significant contract value of $64.7 million awarded to a single large vendor. 2. Competition was competitive, but the long duration raises questions about sustained value. 3. Risk of vendor lock-in and potential for cost overruns over the contract's lifespan. 4. IT services sector is prone to rapid technological change, impacting long-term relevance.

Value Assessment

Rating: fair

The contract value of $64.7 million over 4 years for computer systems design services appears within a reasonable range for large-scale IT projects. However, without specific benchmarks for the exact services rendered, a precise comparison is difficult. The fixed-price nature offers some cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This was awarded as a competitive delivery order, indicating a degree of open competition. The fixed-price contract type likely encouraged competitive bidding to secure the best price. However, the long duration might have limited the number of truly competitive bids.

Taxpayer Impact: Taxpayer funds were used in a competitive process, aiming for value. The long-term nature and potential for scope creep warrant continued scrutiny to ensure efficient use of funds.

Public Impact

Citizens rely on the Department of the Interior's IT systems for access to information and services. Efficient IT spending ensures more funds are available for the department's core mission. Transparency in IT contracts builds public trust in government operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (4 years)
Large contract value
No small business participation noted

Positive Signals

Competitive award
Fixed-price contract

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending benchmarks for this sector vary widely based on complexity and scope. Large government IT contracts often exceed millions, but efficiency is key.

Small Business Impact

There is no indication of small business participation in this contract. This suggests that the scope of work may have been too large or specialized for small businesses to compete effectively, or that they were not specifically targeted.

Oversight & Accountability

The long duration of this contract necessitates robust oversight to ensure performance standards are met and costs remain controlled. Regular reviews and performance metrics are crucial for accountability.

Related Government Programs

Computer Systems Design Services
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Potential for vendor lock-in
Risk of scope creep over a long contract period
Technological obsolescence
Lack of small business participation
Limited transparency on specific performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $64.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. See the official description on USAspending.

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 $64.7 million.

What is the period of performance?

Start: 2001-09-15. End: 2005-09-30.

How effectively did the competitive process ensure the best value for the taxpayer given the 4-year duration?

While the contract was competitively awarded, the 4-year duration raises questions about whether the initial pricing remained optimal throughout the period. Market conditions and technology evolve rapidly. Continuous monitoring and potential for re-competition or adjustments would be necessary to ensure sustained value and prevent potential overspending due to outdated pricing or scope creep.

What are the primary risks associated with a 4-year fixed-price contract for computer systems design services?

Key risks include vendor lock-in, where the government becomes dependent on a single provider, potentially limiting future flexibility. Scope creep, where the project expands beyond its original definition without commensurate price adjustments, is another concern. Furthermore, rapid technological advancements could render the designed systems obsolete before the contract ends, diminishing the return on investment.

How does this contract's value and duration align with typical IT spending for similar government functions?

A $64.7 million contract over 4 years for computer systems design is substantial but not entirely unusual for large federal agencies. However, the trend is towards shorter, more agile contracts to adapt to technological changes. The long duration suggests a need for significant, long-term system development or maintenance, but it warrants scrutiny to ensure it doesn't represent an inefficient commitment compared to more modular or frequent re-competitions.

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: COMPETITIVE DELIVERY ORDER

Offers Received: 51

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Sterling Parent Inc. (UEI: 968838909)

Address: 4300 FAIR LAKES CT, FAIRFAX, VA, 22033

Business Categories: Category Business, Hospital, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $64,688,930

Exercised Options: $64,688,930

Current Obligation: $64,688,930

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4594G

IDV Type: FSS

Timeline