DoD's $30M H-53 Logistics Support Contract Awarded to General Dynamics IT

Contract Overview

Contract Amount: $29,986,372 ($30.0M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-04-01

End Date: 2018-01-12

Contract Duration: 2,478 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: LOGISTICS SUPPORT FOR H-53 WEAPONS SYSTEM

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $30.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: LOGISTICS SUPPORT FOR H-53 WEAPONS SYSTEM Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Duration of 2478 days indicates a long-term need for these logistics services. 3. Cost Plus Fixed Fee contract type may incentivize cost overruns if not closely monitored. 4. The contract falls under Engineering Services (NAICS 541330), aligning with specialized technical support. 5. Awarded by the Department of Defense, highlighting significant national security implications. 6. No small business set-aside, indicating the primary contractor is likely a large business. 7. The contract's value of approximately $30 million over its term warrants scrutiny for value for money.

Value Assessment

Rating: fair

The contract value of $29,986,371.61 over approximately 2478 days (roughly 6.8 years) averages to about $3.85 million per year. Benchmarking this against similar long-term, specialized logistics support contracts for major weapon systems is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) structure, while common for complex services, carries inherent risks of cost escalation if not managed with rigorous oversight. The fixed fee component provides some cost certainty, but the variable cost component requires careful monitoring to ensure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The data shows 3 bids were received. A higher number of bidders generally suggests a more competitive environment, which can lead to better pricing and innovation. With three bids, the government likely received a reasonable range of proposals, but the specific details of the bidding process and the evaluation criteria would be needed to fully assess the effectiveness of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a competitive process, potentially driving down costs and improving service quality.

Public Impact

The primary beneficiary is the Department of Defense, ensuring continued operational readiness of the H-53 weapons system. Services delivered include essential logistics support, crucial for maintaining complex military aircraft. The geographic impact is likely concentrated around military bases and operational theaters where the H-53 is deployed. Workforce implications include employment for personnel involved in logistics, maintenance, and technical support roles, potentially including specialized engineers and technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed effectively.
Limited competition (3 bids) may not have yielded the absolute lowest price possible.
Long contract duration (2478 days) increases the risk of scope creep or changing requirements not being adequately addressed.
Lack of specific performance metrics in the provided data makes it difficult to assess contractor performance objectively.
The contract is for logistics support, which can be complex and prone to unforeseen challenges.

Positive Signals

Awarded through full and open competition, indicating an effort to maximize value.
The contractor, General Dynamics Information Technology, Inc., is a large, established company with significant experience in government contracting.
The contract supports a critical weapons system (H-53), suggesting a high level of importance and likely robust oversight.
The fixed fee component in the CPFF contract provides a degree of cost predictability for the government.

Sector Analysis

The aerospace and defense logistics sector is a critical component of national security, involving the maintenance, repair, and supply chain management for complex military platforms. This contract for the H-53 weapons system falls within this specialized niche. The market for such services is often dominated by large, experienced defense contractors due to the high technical requirements and security clearances involved. Spending in this area is substantial, driven by the need to maintain aging fleets and ensure operational readiness, with contracts often being long-term and high-value.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). General Dynamics Information Technology, Inc. is a large corporation. This suggests that the primary contract was awarded to a large business, and any subcontracting opportunities for small businesses would depend on the prime contractor's subcontracting plan. Without details on subcontracting goals or actual awards, the direct impact on the small business ecosystem is unclear, though large prime contracts often do involve some level of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The Cost Plus Fixed Fee structure necessitates close financial oversight to manage costs effectively. Transparency would be enhanced through regular reporting requirements mandated by the contract and potentially through public contract databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

H-53 Helicopter Programs
Defense Logistics Agency Support Contracts
Aerospace Engineering Services
Military Aircraft Maintenance Contracts
Department of Defense Weapons System Support

Risk Flags

Potential for cost overruns due to CPFF structure
Limited competition may impact price optimization
Long contract duration increases risk exposure
Lack of detailed performance metrics hinders assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. LOGISTICS SUPPORT FOR H-53 WEAPONS SYSTEM

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 $30.0 million.

What is the period of performance?

Start: 2011-04-01. End: 2018-01-12.

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

General Dynamics Information Technology, Inc. (GDIT) has a long and extensive history of supporting the Department of Defense (DoD) across a wide range of services, including IT, C4ISR, and logistics. They have managed numerous large-scale contracts for various military branches, involving complex systems and platforms. Their experience often includes providing lifecycle support, maintenance, supply chain management, and technical services. While specific performance metrics for past logistics contracts are not detailed here, GDIT's sustained presence as a major DoD contractor suggests a generally accepted level of capability and reliability. However, like any large contractor, they may have faced performance challenges or contract disputes on specific programs, which would require a deeper dive into contract performance reports and historical data.

How does the annual cost of this contract compare to industry benchmarks for similar H-53 logistics support?

The annual cost for this contract averages approximately $3.85 million ($29,986,371.61 / ~6.8 years). Benchmarking this specific figure against industry standards for H-53 logistics support is difficult without granular data on the exact services provided (e.g., depot-level maintenance, component repair, supply chain management, technical publications, training). The H-53 is a heavy-lift helicopter with significant operational demands, suggesting that logistics support costs could be substantial. Factors such as the number of aircraft supported, operational tempo, and required readiness levels heavily influence these costs. Generally, specialized, long-term support for complex military aviation platforms commands premium pricing due to the technical expertise, specialized facilities, and stringent quality controls required. A more precise comparison would necessitate access to detailed service level agreements and cost breakdowns from comparable contracts.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this logistics support?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded for H-53 logistics support, is the potential for cost overruns. While the 'fixed fee' provides a defined profit margin for the contractor, the 'cost plus' portion means the government reimburses the contractor for allowable costs incurred. If the contractor's costs exceed initial estimates, the government pays the higher amount. This structure can disincentivize cost control by the contractor, as their profit is fixed regardless of the actual costs incurred (within allowable limits). Effective risk mitigation requires robust government oversight, stringent auditing of contractor expenses, clear definition of allowable costs, and proactive management to ensure the contractor operates efficiently and within projected parameters.

How has historical spending on H-53 logistics support evolved over time?

Historical spending data on H-53 logistics support prior to this specific contract award (2011-2018) is not provided in the current dataset. However, it is reasonable to infer that spending on such critical weapons systems is generally consistent, driven by fleet size, operational tempo, and maintenance requirements. Spending patterns can fluctuate based on major depot maintenance cycles, upgrades, or changes in operational readiness directives. Long-term contracts like this one suggest a stable, ongoing requirement. To analyze historical trends, one would need to examine contract awards and spending data for the H-53 program across multiple fiscal years, potentially identifying periods of increased investment for modernization or decreased spending during fleet reductions or budget constraints.

What are the implications of awarding this contract through full and open competition with only three bids?

Awarding this contract through 'full and open competition' is a positive indicator, suggesting the government sought a broad range of potential providers. However, receiving only three bids raises questions about the level of market interest or the complexity/restrictiveness of the solicitation requirements. While three bidders can still result in competitive pricing, a larger pool of bidders typically offers a greater likelihood of discovering the lowest price and most innovative solutions. The limited number of bids might suggest that only a few companies possessed the specific technical capabilities, security clearances, and resources required for this specialized H-53 logistics support. Further analysis would involve understanding why more bidders did not participate – was it a lack of market capacity, or were the barriers to entry too high?

What is the significance of the NAICS code 541330 (Engineering Services) for this contract?

The assignment of NAICS code 541330, 'Engineering Services,' to this contract indicates that the core services procured go beyond basic logistics and supply chain management. It implies that the contract likely involves significant engineering expertise, such as systems engineering, technical analysis, design support, reliability engineering, or maintenance engineering related to the H-53 weapons system. This suggests a need for specialized technical knowledge to ensure the platform's performance, safety, and longevity. Contracts under this code often require highly skilled personnel, including engineers and technical specialists, and may involve activities like troubleshooting complex technical issues, developing modifications, or providing technical guidance for maintenance and repair operations.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002410R3065

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

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: $30,965,541

Exercised Options: $30,775,385

Current Obligation: $29,986,372

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $10,330,578

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4012

IDV Type: IDC

Timeline