DoD's $133M IT services contract with General Dynamics Information Technology Inc. awarded under full and open competition

Contract Overview

Contract Amount: $133,381,335 ($133.4M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2017-04-28

End Date: 2023-06-02

Contract Duration: 2,226 days

Daily Burn Rate: $59.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF FOR OTHER FUNCTIONS

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $133.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: IGF::OT::IGF FOR OTHER FUNCTIONS Key points: 1. Contract awarded to a large, established IT services provider. 2. Significant duration of over 6 years suggests a need for sustained IT support. 3. Cost Plus Fixed Fee contract type may incentivize cost overruns if not closely monitored. 4. The contract's value is substantial, indicating a critical role in supporting defense operations. 5. Performance was managed by the Defense Contract Management Agency, suggesting a focus on contract compliance.

Value Assessment

Rating: fair

The contract's total value of $133.4 million over approximately 6 years averages to about $22.2 million annually. Benchmarking this against similar large-scale IT support contracts for federal agencies is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) structure, while allowing for flexibility, can sometimes lead to higher costs compared to fixed-price contracts if cost controls are not rigorously applied. The absence of specific performance metrics or comparison data makes a definitive value assessment difficult, but the duration and scope suggest a significant investment.

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 offers. The presence of 4 bidders suggests a reasonably competitive environment for this type of large-scale IT services contract. A competitive award process is generally expected to yield better pricing and terms for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and encourages a wider range of innovative solutions, potentially leading to better value for the government's investment.

Public Impact

The Department of Defense benefits from sustained IT services crucial for its operations. The contract supports various IT functions, likely encompassing infrastructure, software, and technical support. The geographic impact is primarily within the Department of Defense's operational footprint, potentially nationwide or global. The contract supports a significant workforce, both within the contractor and potentially indirectly through related IT ecosystems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to increased costs if not managed effectively.
The long duration of the contract may reduce flexibility to adapt to rapidly changing IT needs.
Lack of detailed performance metrics in the provided data makes it difficult to assess contractor performance objectively.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Managed by the Defense Contract Management Agency, indicating oversight and compliance focus.
The contractor, General Dynamics Information Technology Inc., is a large and experienced federal IT provider.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically supporting government IT infrastructure and operations. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological capabilities. This contract represents a significant portion of spending within a specific IT service category for the Department of Defense, likely related to enterprise IT support or managed services.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the prime contractor is a large corporation. There is no explicit information on subcontracting plans for small businesses. Without this data, it's difficult to assess the direct impact on the small business ecosystem, though large prime contracts often involve subcontracting opportunities.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency (DCMA), which is responsible for overseeing contract performance and compliance. The Cost Plus Fixed Fee (CPFF) structure necessitates robust oversight to ensure costs remain reasonable and that the contractor is meeting performance expectations. Transparency regarding specific performance metrics and cost breakdowns would further enhance accountability.

Related Government Programs

Department of Defense IT Modernization Programs
Federal Civilian IT Services Contracts
Defense Information Systems Agency (DISA) Contracts
IT Infrastructure Support Services

Risk Flags

Potential for cost overruns due to CPFF contract type.
Risk of scope creep without adequate management.
NAICS code mismatch may indicate data quality issues.
Long contract duration could limit adaptability to new technologies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $133.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. IGF::OT::IGF FOR OTHER FUNCTIONS

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 $133.4 million.

What is the period of performance?

Start: 2017-04-28. End: 2023-06-02.

What specific IT services were provided under this contract?

The provided data does not specify the exact IT services rendered under this contract. However, given the contractor (General Dynamics Information Technology Inc.) and the agency (Department of Defense), it likely encompassed a broad range of IT support functions. These could include network management, cybersecurity, system integration, software development and maintenance, help desk support, and IT infrastructure operations. The 'Book Publishers' NAICS code (511130) seems incongruous with the contract description and may be an error in the data source, as it typically relates to publishing activities rather than IT services. A more appropriate NAICS code for IT services would be expected.

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

The average annual value of this contract is approximately $22.2 million ($133.4 million / 6.2 years). Comparing this to similar DoD IT contracts requires access to a broader dataset of contract awards with comparable scope and service types. Large-scale IT support contracts for major federal agencies can range significantly, from tens of millions to hundreds of millions annually, depending on the complexity, duration, and specific services required. Without more granular data on comparable contracts (e.g., specific IT functions, security requirements, user base size), a precise benchmark is difficult. However, $22.2 million annually for comprehensive IT support is within the expected range for a significant defense agency.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract of this magnitude is the potential for cost escalation. While the 'fixed fee' component provides some predictability for the contractor's profit, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If cost controls are weak or if the scope of work expands without adequate adjustments, the total cost to the government can exceed initial estimates. This structure can also reduce the contractor's incentive to control costs aggressively, as their profit is fixed regardless of the actual expenses. Robust oversight, detailed cost tracking, and clear scope management are crucial to mitigate these risks.

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

General Dynamics Information Technology Inc. (GDIT) has a long and extensive track record of performing large, complex IT services contracts for the federal government, including the Department of Defense. As a major federal IT contractor, GDIT has historically managed numerous multi-year, multi-million dollar awards across various agencies. Their experience typically includes providing a wide array of IT solutions, from infrastructure management and cybersecurity to cloud services and enterprise resource planning. While specific performance details for every contract are not publicly available, GDIT's continued success in winning and executing large federal contracts suggests a generally positive performance history and capability in meeting government requirements.

How has federal spending on IT services evolved, and where does this contract fit in?

Federal spending on IT services has consistently been a significant portion of agency budgets, driven by the need for modernization, cybersecurity, and digital transformation. Over the years, spending has shifted towards cloud computing, data analytics, and agile development. This contract, awarded in 2017 and ending in 2023, represents a substantial investment in traditional IT infrastructure and support services during a period of ongoing technological evolution. While it may not reflect the latest trends like pure cloud-native development, it addresses fundamental needs for operational IT stability and support within the DoD, fitting into the broader category of enterprise IT sustainment and modernization efforts.

Industry Classification

NAICS: Information › Newspaper, Periodical, Book, and Directory Publishers › Book Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: M6785415R9500

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corporation

Address: 3170 FAIRVIEW PARK DR, 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: $149,081,392

Exercised Options: $137,297,155

Current Obligation: $133,381,335

Actual Outlays: $25,919,224

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $9,136,743

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline