DoD's $11.4M IT contract for computer systems design services awarded to General Dynamics Information Technology, Inc

Contract Overview

Contract Amount: $11,369,980 ($11.4M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-03-21

End Date: 2012-02-07

Contract Duration: 1,784 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INITIAL IDE SYSTEM TAS::97 0100::TAS

Place of Performance

Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: INITIAL IDE SYSTEM TAS::97 0100::TAS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1784 days indicates a long-term need for these services. 3. The firm fixed-price contract type suggests predictable costs for the government. 4. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery indefinite-quantity (IDIQ) contract. 5. The contractor, General Dynamics Information Technology, Inc., is a significant player in the federal IT services market. 6. The services fall under NAICS code 541512, Computer Systems Design Services, a common category for IT support.

Value Assessment

Rating: fair

Benchmarking the value of this specific $11.4 million contract is challenging without more detailed service descriptions and comparable contract data. However, the duration of nearly five years suggests a substantial investment. The firm fixed-price nature provides cost certainty, which is a positive indicator for value. Further analysis would require comparing the per-unit costs or service levels to similar contracts awarded by the Department of the Navy or other defense agencies for computer systems design.

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 fact that there were 8 bidders (no) suggests a healthy level of competition for this requirement. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: The robust competition for this contract likely resulted in a more competitive price for taxpayers, ensuring that government funds were used efficiently.

Public Impact

The Department of the Navy benefits from specialized computer systems design services, crucial for its operational efficiency. This contract supports the modernization and maintenance of critical IT infrastructure within the defense sector. The services likely impact a wide range of Navy personnel and operations that rely on robust IT systems. The contract's performance in Virginia (VA, SN) suggests a concentration of IT workforce and economic activity in that region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the contractor's proprietary systems are used extensively.
Risk of cost overruns if the scope of work expands beyond the initial fixed-price agreement without proper change order management.
Dependence on a single large contractor could limit future flexibility in adopting new technologies or service providers.

Positive Signals

Awarded through full and open competition, indicating a competitive market for these services.
Firm fixed-price contract provides cost certainty and reduces the risk of budget overruns.
Long contract duration suggests a stable and reliable service provider for essential IT functions.
The contractor, General Dynamics Information Technology, Inc., is a well-established entity with significant experience in government IT contracts.

Sector Analysis

The federal IT services market is vast and highly competitive, with agencies like the Department of Defense being major consumers. Computer Systems Design Services (NAICS 541512) represent a significant segment, encompassing everything from system integration to custom software development. This contract fits within the broader trend of defense agencies outsourcing complex IT functions to specialized contractors to leverage expertise and manage costs. Comparable spending benchmarks would involve looking at other large IT service contracts awarded by DoD agencies for similar design and integration services.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). The award to a large prime contractor like General Dynamics Information Technology, Inc. suggests that subcontracting opportunities may exist for small businesses. However, the extent of these opportunities would depend on the prime contractor's subcontracting plan and the specific nature of the services required. Without explicit set-aside provisions, the direct impact on the small business ecosystem is likely limited, though indirect benefits through subcontracting are possible.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a Delivery Order under a larger IDIQ, oversight mechanisms would be tied to the parent contract's structure. Transparency is generally facilitated through contract award databases like FPDS. Accountability measures would include performance reviews, adherence to the firm fixed-price terms, and potential penalties for non-performance. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense IT Modernization Programs
Navy Enterprise IT Services Contracts
Computer Systems Design and Related Services
Information Technology Professional Services

Risk Flags

Long contract duration may increase risk of scope creep or obsolescence.
Firm Fixed Price contracts can be challenging for evolving IT requirements.
Potential for contractor inefficiency if not closely monitored.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. INITIAL IDE SYSTEM TAS::97 0100::TAS

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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $11.4 million.

What is the period of performance?

Start: 2007-03-21. End: 2012-02-07.

What is the track record of General Dynamics Information Technology, Inc. with similar IT service contracts within the Department of Defense?

General Dynamics Information Technology, Inc. (GDIT) has a substantial and long-standing track record of providing IT services to the Department of Defense and other federal agencies. They are a major contractor across various defense branches, including the Navy, Army, and Air Force, delivering a wide range of solutions from enterprise IT infrastructure management and cybersecurity to cloud migration and application development. Their history includes numerous large-scale, complex contracts similar in nature to computer systems design services. Analyzing GDIT's past performance on contracts with similar firm-fixed-price structures and durations would provide insight into their reliability, cost control, and ability to meet performance requirements within the DoD environment. Past performance reviews and contract close-out data, where available, are crucial for assessing their suitability and value.

How does the $11.4 million total value compare to other computer systems design contracts awarded by the Department of the Navy during the contract period?

The $11.4 million total value for this contract, spanning approximately five years (1784 days), translates to an average annual value of roughly $2.28 million. During the contract's performance period (2007-2012), the Department of the Navy awarded numerous IT contracts. To benchmark this value, one would need to compare it against other contracts for 'Computer Systems Design Services' (NAICS 541512) awarded by the Navy during that timeframe. Contracts for similar scope, duration, and complexity would be the most relevant comparators. If this contract's value falls within the typical range for similar services, it suggests reasonable pricing. However, if it is significantly higher or lower than comparable awards, it might indicate either exceptional value or potential overpricing, respectively. Accessing historical contract databases would be necessary for a precise comparison.

What are the primary risks associated with a firm fixed-price contract of this duration for computer systems design services?

A primary risk with firm fixed-price (FFP) contracts, especially for complex services like computer systems design over a long duration (1784 days), is the potential for scope creep and contractor inefficiency. If the requirements evolve significantly beyond the initial SOW, the contractor may resist incorporating changes without additional compensation, leading to disputes or incomplete solutions. Conversely, if the contractor becomes highly efficient, they might cut corners on quality to maximize profit, which could impact system performance or reliability. For the government, the risk lies in not adequately defining all requirements upfront, potentially leading to a system that doesn't fully meet evolving needs by the end of the contract. Contractor performance monitoring is crucial to mitigate these risks and ensure the delivered system remains relevant and functional.

How effective are delivery orders under IDIQ contracts for managing IT service needs compared to other contracting vehicles?

Delivery orders (DOs) under Indefinite Delivery/Indefinite Quantity (IDIQ) contracts are generally an effective mechanism for managing IT service needs, particularly when requirements are anticipated but not precisely defined in terms of quantity or timing. They offer flexibility, allowing agencies to procure services incrementally as needed, which can be crucial for dynamic IT environments. This approach helps ensure timely access to services while maintaining a degree of competition if the IDIQ itself was competitively awarded. Compared to other vehicles like fixed-price contracts for specific projects or sole-source awards, DOs under IDIQs can provide a balance between flexibility, cost control (if the base IDIQ was competitively priced), and speed of procurement. However, effectiveness hinges on the quality of the base IDIQ contract and diligent management of individual delivery orders to prevent uncontrolled spending.

What is the typical market rate or average cost for computer systems design services provided to the federal government?

The market rate for computer systems design services provided to the federal government can vary significantly based on factors such as the specific services required (e.g., integration, custom development, cybersecurity consulting), the complexity of the systems, the geographic location of service delivery, and the level of security clearance needed. NAICS code 541512 encompasses a broad range of activities. Average hourly rates can range from $100 to over $300 per hour, depending on the skill set and experience of the personnel involved. For larger contracts like this one, which is firm fixed-price, the overall value is more indicative than hourly rates. Benchmarking would involve comparing the total contract value against the scope of work and duration relative to similar government contracts or industry data for large-scale IT system design projects.

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: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

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: $33,746,957

Exercised Options: $11,369,980

Current Obligation: $11,369,980

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4594G

IDV Type: FSS

Timeline