DoD's $26.1M engineering services contract awarded to General Dynamics Information Technology, Inc. shows potential for cost savings

Contract Overview

Contract Amount: $26,132,700 ($26.1M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2013-02-27

End Date: 2014-10-31

Contract Duration: 611 days

Daily Burn Rate: $42.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROFESSIONAL SERVICES

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $26.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: PROFESSIONAL SERVICES Key points: 1. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 2. The fixed-price contract type helps mitigate cost overrun risks for the government. 3. The duration of the contract (611 days) is relatively standard for complex engineering services. 4. The award was made by the Department of the Navy, a major component of the DoD. 5. The specific engineering service code (541330) indicates a focus on technical and design expertise. 6. The contract value of approximately $26.1 million falls within a moderate spending range for such services.

Value Assessment

Rating: good

The contract's total value of $26.1 million for engineering services over approximately 20 months appears reasonable when benchmarked against similar large-scale defense contracts. The firm fixed-price structure inherently encourages cost efficiency from the contractor's side. Without specific per-unit deliverables or detailed service breakdowns, a precise value-for-money assessment is challenging, but the competitive award process provides a positive indicator.

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 multiple bidders, as suggested by the award to General Dynamics Information Technology, Inc. (a large prime contractor), typically leads to more competitive pricing and a wider range of technical solutions. The specific number of bidders is not provided, but the nature of the competition implies a robust process.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring the government receives the best value available. This approach minimizes the risk of inflated costs often associated with less competitive or sole-source procurements.

Public Impact

The Department of the Navy benefits from specialized engineering services to support its operational and developmental needs. The contract likely supports critical defense infrastructure or platform development, contributing to national security. The geographic impact is primarily within the United States, supporting naval operations and facilities. The contract may have implications for a specialized engineering workforce, potentially creating or sustaining high-skilled jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly, given the nature of engineering services.
Reliance on a single large prime contractor could limit opportunities for smaller, specialized firms if subcontracting is not robust.

Positive Signals

Firm fixed-price contract structure incentivizes contractor efficiency and cost control.
Awarded through full and open competition, suggesting a competitive market and potentially better pricing.
Contractor (General Dynamics Information Technology) is a well-established entity in the federal contracting space.

Sector Analysis

This contract falls within the broader professional services sector, specifically engineering services, which is a critical component of the defense industrial base. The market for defense engineering services is substantial, driven by the continuous need for modernization, maintenance, and development of military platforms and infrastructure. Spending in this category is often characterized by long-term relationships and significant contract values, reflecting the complexity and criticality of the work. Comparable spending benchmarks would typically be found within large-scale defense procurement data for similar engineering and technical support services.

Small Business Impact

The data indicates that small business participation was not a primary set-aside component for this specific contract (ss: false, sb: false). While General Dynamics Information Technology, Inc. is a large prime contractor, the extent of small business subcontracting is not detailed here. Without specific subcontracting plans or performance data, it's difficult to assess the direct impact on the small business ecosystem. However, large prime contracts often include subcontracting goals, which can provide opportunities for qualified small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within the Department of the Navy. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified engineering services. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Engineering Services
Naval Sea Systems Command Contracts
Professional Services Contracts
Information Technology Support Services
Defense Engineering and Technical Support

Risk Flags

Potential for cost overruns if scope is not clearly defined.
Contractor performance risk associated with complex engineering tasks.
Dependence on a single large prime contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. PROFESSIONAL SERVICES

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 $26.1 million.

What is the period of performance?

Start: 2013-02-27. End: 2014-10-31.

What is the historical spending trend for engineering services by the Department of the Navy?

The Department of the Navy consistently allocates significant funding towards engineering services, reflecting its vast operational and developmental requirements. Historical data shows a steady demand for specialized engineering expertise across various domains, including naval architecture, systems engineering, and technical support for platforms and infrastructure. Annual spending can fluctuate based on major acquisition programs, modernization efforts, and maintenance cycles. For instance, periods of increased shipbuilding or major platform upgrades often correlate with higher expenditures in engineering services. Benchmarking this $26.1 million contract against the Navy's overall engineering services budget provides context, indicating it represents a moderate investment within a much larger portfolio of such procurements.

How does the firm fixed-price contract type influence contractor performance and government risk?

A firm fixed-price (FFP) contract type is generally favored by the government when the scope of work is well-defined and risks can be reasonably estimated. Under an FFP agreement, the contractor assumes the primary responsibility for all costs incurred and is paid a predetermined price regardless of the actual costs. This structure incentivizes the contractor to manage resources efficiently and control expenses to maximize profit. For the government, the primary benefit is cost certainty, as the total price is fixed upfront, minimizing the risk of cost overruns. However, if the scope of work changes significantly, change orders can become necessary, potentially increasing the overall cost. The success of an FFP contract heavily relies on a clear statement of work and robust contractor performance monitoring.

What are the typical services encompassed by the NAICS code 541330 (Engineering Services) in a defense context?

The NAICS code 541330, Engineering Services, in a defense context typically covers a broad range of specialized activities. This includes providing expertise in areas such as mechanical, electrical, civil, aerospace, and systems engineering. For the Department of Defense, this often translates to services like design and development of military platforms (ships, aircraft, vehicles), weapons systems, command and control systems, and related infrastructure. It can also encompass technical analysis, feasibility studies, testing and evaluation, project management, and consulting related to engineering challenges. The services are critical for ensuring the performance, reliability, and safety of defense assets throughout their lifecycle.

What is the track record of General Dynamics Information Technology, Inc. in performing similar federal contracts?

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record as a prime contractor for the U.S. federal government, including numerous contracts with the Department of Defense and its various branches. They are known for providing a wide array of IT, engineering, and professional services. Their experience spans large-scale system integration, cybersecurity, cloud computing, data analytics, and mission support. GDIT has consistently secured and performed on complex, high-value contracts, demonstrating a capacity to manage significant programs. While specific performance metrics for every contract are not publicly detailed, their sustained presence and continued awards suggest a generally positive performance history and capability to meet government requirements in demanding sectors like defense.

How does the competition level (full and open) impact the pricing and innovation for this contract?

Awarding a contract through 'full and open competition' means that all responsible sources, regardless of size or type, were encouraged to submit proposals. This broad competitive landscape typically drives down prices as contractors vie for the award by offering their most competitive rates and technically superior solutions. It fosters an environment where contractors are motivated to be efficient and innovative to win the contract and potentially secure future work. For taxpayers, this means a higher likelihood of receiving optimal value for the funds expended. Furthermore, open competition can spur innovation as contractors may propose novel approaches or technologies to differentiate themselves from rivals, ultimately benefiting the government's mission.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: M6785413Q0009

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 3211 JERMANTOWN RD, FAIRFAX, VA, 22030

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $34,687,942

Exercised Options: $26,132,700

Current Obligation: $26,132,700

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS23F0076K

IDV Type: FSS

Timeline