DoD's $34M contract with General Dynamics IT for shipbuilding IT services awarded in 2005, ending 2008

Contract Overview

Contract Amount: $34,067,526 ($34.1M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-07-18

End Date: 2008-10-03

Contract Duration: 1,173 days

Daily Burn Rate: $29.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Place of Performance

Location: INGLESIDE, SAN PATRICIO County, TEXAS, 78362

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $34.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract type, Cost Plus Award Fee (CPAF), allows for performance-based incentives. 3. The duration of 1173 days indicates a significant, long-term IT support requirement. 4. Awarded by the Department of the Navy, this contract falls under defense sector IT services. 5. The contractor, General Dynamics Information Technology, Inc., is a major player in federal IT. 6. The contract's value of approximately $34 million over its term warrants scrutiny for value for money. 7. The absence of small business set-aside flags suggests it was not specifically targeted for small businesses.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contracts. The Cost Plus Award Fee (CPAF) structure implies that the final cost could vary based on performance, making a direct price comparison difficult. However, for a three-year IT support contract of this nature within the Department of Defense, the approximate $34 million total award value suggests a substantial investment. Further analysis would require understanding the scope of services and the award fees earned.

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 number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings. The Department of the Navy likely issued a solicitation that outlined specific requirements, allowing multiple companies to propose solutions.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and innovative solutions, maximizing the value of federal dollars spent.

Public Impact

The primary beneficiaries are the Department of the Navy and its shipbuilding operations, which receive essential IT support. Services delivered likely include IT infrastructure management, software support, and potentially cybersecurity for shipbuilding systems. The geographic impact is primarily within the Department of Defense's operational areas, potentially supporting naval facilities. Workforce implications include employment for IT professionals within General Dynamics Information Technology, Inc. and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess if the award fees were justified.
The CPAF structure can sometimes lead to cost overruns if not managed tightly.
Limited transparency on the competitive landscape (number of bidders) hinders a full assessment of price discovery.
The contract's age (awarded 2005) means current market rates and technologies may differ significantly.

Positive Signals

Awarded through full and open competition, indicating a potentially robust bidding process.
The CPAF structure incentivizes contractor performance, aiming for higher quality service delivery.
General Dynamics Information Technology, Inc. is a well-established federal contractor with significant experience.
The contract duration suggests a stable, long-term IT support solution for a critical defense function.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically supporting defense-related operations. The federal IT market is vast, with significant spending allocated to maintaining and upgrading systems for various agencies. Contracts like this are crucial for ensuring the operational readiness of military branches. Comparable spending benchmarks would involve analyzing other large-scale IT support contracts awarded to major defense contractors by agencies like the DoD.

Small Business Impact

The 'sb' (small business) indicator is false, and the 'ss' (small business set-aside) indicator is false, suggesting this contract was not specifically set aside for small businesses. This implies that large businesses were likely the primary bidders. There is no explicit information on subcontracting plans for small businesses within the provided data, which could be a missed opportunity for small business participation in this significant federal contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Navy. Accountability measures are embedded in the Cost Plus Award Fee (CPAF) structure, where performance against defined criteria influences the final payment. Transparency is generally facilitated through contract award databases, though detailed performance reports are often not publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense IT Modernization Programs
Naval Sea Systems Command (NAVSEA) IT Support Contracts
Federal Enterprise Architecture (FEA) Initiatives
Defense Information Systems Agency (DISA) Contracts

Risk Flags

Contract awarded prior to significant recent cybersecurity mandates.
Potential for cost overruns inherent in Cost Plus contract types.
Limited public data on specific performance outcomes and award fee justification.
Contract awarded over 15 years ago; technology and market conditions have evolved.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. See the official description on USAspending.

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 $34.1 million.

What is the period of performance?

Start: 2005-07-18. End: 2008-10-03.

What specific IT services were included under this contract, and how did they support shipbuilding?

While the provided data does not detail the specific IT services, contracts of this nature typically encompass a broad range of support functions. These could include network management, system administration, software development and maintenance, database management, cybersecurity, and end-user support. For shipbuilding, these IT services would likely be critical for managing complex design and engineering software (e.g., CAD/CAM), supply chain logistics, project management tools, and communication systems essential for coordinating large-scale naval construction projects. The 'Ship Building and Repairing' NAICS code (336611) suggests a direct link to the operational IT needs of naval shipyards and related facilities.

How did the Cost Plus Award Fee (CPAF) structure influence the final cost and performance?

The Cost Plus Award Fee (CPAF) contract type allows the government to reimburse the contractor for allowable costs plus a base fee, plus an award fee that is determined by the government based on the contractor's performance against pre-defined criteria. This structure incentivizes the contractor to exceed minimum performance standards to earn the maximum award fee. For taxpayers, the potential benefit is higher quality service delivery. However, the 'cost plus' nature means the final cost is not fixed upfront and can exceed initial estimates if costs are higher than anticipated or if the contractor achieves high performance ratings warranting significant award fees. Effective oversight is crucial to ensure award fees are earned legitimately and do not simply inflate costs.

What was the competitive landscape for this contract, and how many bids were received?

The contract was awarded under 'full and open competition,' which theoretically allows any responsible source to submit a bid. However, the provided data does not specify the exact number of bids received. For large, complex IT contracts within the Department of Defense, it is common to see multiple bidders, often including major defense contractors and specialized IT service providers. A robust competition typically involves several proposals, which the government evaluates based on technical merit, past performance, and price. The absence of a specific number of bidders makes it difficult to definitively assess the intensity of the competition and its potential impact on price negotiation.

What is General Dynamics Information Technology, Inc.'s track record with similar DoD IT contracts?

General Dynamics Information Technology, Inc. (GDIT) has a long and extensive history of providing IT services to the Department of Defense and other federal agencies. They are a major contractor known for handling large-scale, complex IT solutions across various domains, including defense, intelligence, and civilian sectors. Their track record typically includes managing enterprise IT infrastructure, cybersecurity, cloud computing, data analytics, and mission-critical application support. While specific performance details for this particular 2005 contract are not public, GDIT's continued presence and success in winning subsequent large federal IT contracts suggest a generally positive performance history and capability in meeting government requirements.

How does the $34 million award value compare to similar IT support contracts for shipbuilding?

Comparing the $34 million award value requires context regarding the contract's duration (1173 days, approximately 3.2 years) and the scope of services. This averages to roughly $10.6 million per year. For large-scale IT support within the defense sector, particularly for complex operations like shipbuilding, this figure can be considered moderate to significant. Larger, more comprehensive IT modernization or system development contracts can easily reach hundreds of millions or even billions of dollars. However, for ongoing IT support and maintenance services, $10.6 million annually is substantial and reflects the critical nature of IT in supporting naval shipbuilding infrastructure. Benchmarking would ideally involve comparing it to other NAVSEA or DoD shipbuilding IT support contracts awarded around the same period.

Are there any identified risks associated with this type of contract or contractor?

Risks associated with this contract type (CPAF) include potential for cost growth if performance targets are not met efficiently, and the subjective nature of award fee determinations which can lead to disputes. For the contractor, General Dynamics Information Technology, Inc., risks are generally related to meeting stringent DoD security requirements, adapting to evolving technological landscapes, and managing large, complex projects effectively. Given the contract's age, a key risk is obsolescence of the IT solutions provided if not continuously updated. Furthermore, any large federal contract carries inherent risks related to budget fluctuations, changing mission priorities, and potential cybersecurity threats.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 1545 CROSSWAYS BOULEVARD, CHESAPEAKE, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline