General Dynamics IT awarded $56M for Marine Corps C4IS2 systems support

Contract Overview

Contract Amount: $55,992,405 ($56.0M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-07-01

End Date: 2016-02-10

Contract Duration: 2,050 days

Daily Burn Rate: $27.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONTRACTOR LOGISTICS SUPPORT (CLS) SERVICES TO SUPPORT CURRENT MARINE CORPS C4IS2 SYSTEMS INVENTORY

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $56.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: CONTRACTOR LOGISTICS SUPPORT (CLS) SERVICES TO SUPPORT CURRENT MARINE CORPS C4IS2 SYSTEMS INVENTORY Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract was not competed, raising questions about potential cost savings. 3. A long duration of 2050 days suggests a need for sustained support. 4. The contract falls under Engineering Services, a broad category. 5. The award was made to a single bidder, limiting price discovery. 6. The contract value is substantial, requiring careful performance monitoring.

Value Assessment

Rating: fair

The contract value of approximately $56 million over its period of performance is significant. Without comparable contract data for similar C4IS2 system support services, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure suggests that the government has defined the scope and expects the contractor to deliver within the agreed-upon price. The lack of competition, however, may have prevented the government from securing potentially lower pricing through a competitive bidding process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities, security clearances, or proprietary knowledge to perform the required services. The lack of competition means that the government did not benefit from the price reductions and innovation that can arise from a competitive bidding process.

Taxpayer Impact: Taxpayers may have paid a higher price than they would have in a competitive environment. The absence of competing bids limits the government's leverage to negotiate the best possible terms and pricing.

Public Impact

The primary beneficiaries are the United States Marine Corps, who will receive continued support for their Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4IS2) systems. This contract ensures the operational readiness and effectiveness of critical military communication and information systems. The services delivered are essential for maintaining the technological infrastructure supporting Marine Corps operations. The geographic impact is likely global, as Marine Corps C4IS2 systems are deployed worldwide.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award raises concerns about the availability of alternative solutions or potential cost efficiencies.
Long contract duration could lead to scope creep or price increases if not managed effectively.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to General Dynamics Information Technology, Inc., a known entity in defense IT, suggests a level of established capability.
The contract supports critical C4IS2 systems, essential for national security.

Sector Analysis

This contract falls within the broader Defense Information Technology Services sector, a significant segment of federal IT spending. The market for C4IS2 systems support is specialized, often dominated by a few large defense contractors with the requisite security clearances and technical expertise. General Dynamics Information Technology, Inc. is a major player in this space. Comparable spending benchmarks would involve looking at other large-scale IT support contracts for military branches, which often run into tens or hundreds of millions of dollars.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of significant subcontracting opportunities for small businesses within the provided data. This suggests that the primary contractor, General Dynamics Information Technology, Inc., will likely perform the majority of the work. The impact on the small business ecosystem is minimal for this specific contract, as it was not designed to foster small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA) and the relevant program office within the Department of Defense. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services within budget. Transparency is facilitated through contract databases, though detailed performance metrics are often not publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Marine Corps C4ISR Modernization Programs
Department of Defense IT Infrastructure Support
Command and Control Systems Procurement
Intelligence, Surveillance, and Reconnaissance (ISR) Systems Maintenance

Risk Flags

Sole-source award
Lack of competition
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $56.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. CONTRACTOR LOGISTICS SUPPORT (CLS) SERVICES TO SUPPORT CURRENT MARINE CORPS C4IS2 SYSTEMS INVENTORY

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $56.0 million.

What is the period of performance?

Start: 2010-07-01. End: 2016-02-10.

What is General Dynamics Information Technology, Inc.'s track record with similar C4IS2 support contracts for the Marine Corps or other branches?

General Dynamics Information Technology, Inc. (GDIT) has a long history of supporting complex IT and C4IS2 systems for various branches of the U.S. military, including the Marine Corps. Their experience often includes system integration, sustainment, modernization, and cybersecurity services for critical command and control networks. While specific contract details and performance reviews are often proprietary, GDIT's consistent presence in large-scale defense IT contracts suggests a demonstrated capability to meet the demanding requirements of military operations. Their track record typically involves managing large teams, adhering to stringent security protocols, and delivering services across diverse and often challenging operational environments. However, like many large contractors, they may have faced scrutiny on specific contracts regarding cost overruns or performance issues, which would be detailed in internal DoD reviews or IG reports.

How does the $56 million contract value compare to historical spending on similar Marine Corps C4IS2 support?

The $56 million contract value for CLS services to support current Marine Corps C4IS2 systems inventory represents a significant investment. To benchmark this effectively, one would need to analyze historical spending patterns for similar support contracts awarded to the Marine Corps or other Department of Defense entities over the past decade. Factors such as the specific systems supported, the scope of services (e.g., maintenance, upgrades, cybersecurity), and the contract duration are crucial for comparison. Without access to detailed historical contract databases and specific system support requirements, it's difficult to state definitively whether $56 million is high or low. However, given the critical nature and complexity of C4IS2 systems, substantial funding is typically allocated for their sustainment and operational readiness, making this figure plausible within the context of large defense IT contracts.

What are the primary risks associated with a sole-source award for critical C4IS2 system support?

The primary risks associated with a sole-source award for critical C4IS2 system support revolve around cost, innovation, and vendor lock-in. Without competition, the government loses the opportunity to leverage market forces to achieve the lowest possible price. This can lead to inflated costs for taxpayers. Furthermore, a sole-source contract may stifle innovation, as the incumbent contractor may have less incentive to develop more efficient or cost-effective solutions when they are the only option. There's also the risk of vendor lock-in, where the government becomes heavily reliant on a single provider, making it difficult and costly to switch vendors in the future, even if performance or pricing becomes unsatisfactory. This dependence can reduce the government's negotiating leverage over time.

How effective is the firm-fixed-price (FFP) contract type in managing costs for complex IT support services like C4IS2?

The firm-fixed-price (FFP) contract type is generally considered effective in managing costs for well-defined IT support services, as it shifts the cost risk to the contractor. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This provides cost certainty for the government and incentivizes the contractor to manage their expenses efficiently. For services like C4IS2 system support, where the scope of work can be clearly delineated (e.g., maintenance schedules, incident response times), FFP can be highly beneficial. However, if the scope is highly uncertain or subject to frequent changes, an FFP contract might lead the contractor to build in significant contingencies, potentially increasing the base price, or it could lead to disputes if the government requests changes outside the original scope.

What are the potential performance implications of a contract lasting from 2010 to 2016 for C4IS2 systems?

A contract duration of approximately six years (July 2010 to February 2016) for C4IS2 systems support implies a need for sustained, long-term operational capability. The primary performance implication is the continuity of service, ensuring that the Marine Corps' critical communication and intelligence systems remain operational and supported throughout this period. This long duration allows the contractor to develop deep expertise with the specific systems. However, it also presents challenges. Technology evolves rapidly, especially in C4IS2. By the end of the contract, the systems supported might be nearing obsolescence, requiring significant modernization efforts or a transition to new technologies. Effective performance management by the government is crucial to ensure the contractor remains responsive to evolving threats and technological advancements, and to prevent complacency over the extended period.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $67,817,996

Exercised Options: $55,992,405

Current Obligation: $55,992,405

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline