DoD's $19M Computer Systems Design Services contract awarded to General Dynamics in 2008 shows long-term engagement
Contract Overview
Contract Amount: $19,183,042 ($19.2M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-06-25
End Date: 2013-07-01
Contract Duration: 1,832 days
Daily Burn Rate: $10.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: CNI ENGINEERING SERVICES (FY08) BASIC AWARD TAS::17 1804::TAS
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $19.2 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: CNI ENGINEERING SERVICES (FY08) BASIC AWARD TAS::17 1804::TAS Key points: 1. Contract awarded in FY08 for computer systems design services. 2. Long contract duration of over 5 years. 3. Awarded via full and open competition. 4. Contract type is Cost Plus Fixed Fee. 5. Services provided by General Dynamics Mission Systems, Inc. 6. Contract value of $19.18M over its life. 7. Virginia-based contract with Defense Contract Management Agency oversight.
Value Assessment
Rating: fair
The contract's value of $19.18M over more than five years averages to approximately $3.8M annually. Without specific performance metrics or deliverables, it's challenging to benchmark value for money. The Cost Plus Fixed Fee (CPFF) structure can incentivize cost overruns, though the fixed fee component provides some cost certainty. Comparison to similar IT services contracts from the same era would be necessary for a more precise value assessment.
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 offers. The number of bidders is not specified, but the open competition suggests a potentially robust bidding process. This approach is generally favored for ensuring fair pricing and access to a wide range of capabilities.
Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the best value from the widest possible pool of contractors.
Public Impact
Benefits the Department of Defense by providing essential computer systems design services. Supports national security objectives through advanced technological solutions. Services likely impact military operations and readiness. Workforce implications include employment for IT professionals and engineers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can lead to higher costs if not managed carefully.
- Long contract durations may reduce flexibility to adopt newer technologies.
- Lack of specific performance data makes value assessment difficult.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process.
- Long-term contract indicates a sustained need for these services.
- General Dynamics is a large, established defense contractor.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically Computer Systems Design Services. The IT services market is vast and highly competitive, with significant government spending. Contracts like this are crucial for maintaining and upgrading the technological infrastructure of federal agencies, particularly in defense, where advanced systems are paramount. Benchmarking would involve comparing this contract's value and duration to other similar IT service contracts awarded by the DoD or other agencies during the late 2000s.
Small Business Impact
The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a large prime contractor, potentially limiting direct opportunities for small businesses on this specific contract, unless they were part of the prime's supply chain.
Oversight & Accountability
Oversight was provided by the Defense Contract Management Agency (DCMA), a standard practice for DoD contracts. Accountability measures would be embedded within the contract's terms and conditions, including reporting requirements and performance standards. Transparency is generally facilitated through contract award databases, though detailed performance data may be less accessible.
Related Government Programs
- DoD IT Services Contracts
- Computer Systems Design Services
- General Dynamics Contracts
- Cost Plus Fixed Fee Contracts
Risk Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Long contract duration may result in technological obsolescence.
- Lack of detailed performance data hinders value assessment.
Tags
it, defense, department-of-defense, general-dynamics-mission-systems, definitive-contract, cost-plus-fixed-fee, full-and-open-competition, computer-systems-design-services, virginia, fy08
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.2 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. CNI ENGINEERING SERVICES (FY08) BASIC AWARD TAS::17 1804::TAS
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS MISSION SYSTEMS, 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 $19.2 million.
What is the period of performance?
Start: 2008-06-25. End: 2013-07-01.
What was the specific nature of the computer systems design services provided under this contract?
The contract focused on 'Computer Systems Design Services' (NAICS code 541512). While the specific details are not provided in the summary data, this typically involves designing and integrating hardware and software systems. For the Department of Defense, such services could range from developing new command and control systems, upgrading existing network infrastructures, designing secure communication platforms, or integrating complex weapon systems with IT components. The long duration (over 5 years) suggests a substantial and ongoing project rather than a short-term task.
How does the Cost Plus Fixed Fee (CPFF) contract type impact cost control and contractor incentive?
The CPFF contract type involves the government paying the contractor's actual costs plus a fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or involves high uncertainty. While the fixed fee provides some incentive for the contractor to control costs (as their profit is capped), it can also lead to higher overall costs for the government compared to fixed-price contracts if the actual costs are significantly higher than anticipated. Effective government oversight is crucial to manage costs and ensure the contractor is not incentivized to inflate expenses.
What is the significance of the contract being awarded in FY08 and ending in 2013?
Awarded in FY08 and ending in mid-2013, this contract represents a significant period of IT service provision during a time of evolving technological landscapes and ongoing military operations. The five-year duration indicates a substantial, long-term requirement for the services. It also means the contract was active during a period of significant global events and technological advancements, potentially influencing the nature of the systems designed and the security requirements.
How does General Dynamics Mission Systems, Inc.'s track record influence the assessment of this contract?
General Dynamics Mission Systems, Inc. is a major defense contractor with extensive experience in providing complex IT, C4ISR, and cybersecurity solutions to government agencies. Their established presence and history suggest a capacity to handle large, intricate projects like the one described. However, a full assessment would require examining their performance on this specific contract, including any past performance issues, cost variances, or delivery successes, which are not detailed in the provided summary data.
What are the potential risks associated with a long-duration IT services contract like this?
Long-duration IT contracts carry several risks. Technological obsolescence is a primary concern; systems designed early in the contract may be outdated by its end. Scope creep is another risk, where the project's objectives expand beyond the original agreement, potentially increasing costs and timelines. Furthermore, maintaining consistent performance and contractor engagement over many years can be challenging. The CPFF structure also introduces financial risk if costs escalate unexpectedly. Regular reviews and contract modifications are essential to mitigate these risks.
Can we compare the value of this contract to current IT spending benchmarks?
Direct comparison of this $19.18M contract from 2008-2013 to current IT spending benchmarks is difficult due to inflation, technological advancements, and changes in market dynamics. The average annual value of approximately $3.8M would need to be adjusted for inflation to be comparable in real terms. Moreover, the nature of IT services has evolved significantly; current contracts might involve cloud computing, AI, or advanced cybersecurity, which differ from the systems design focus of this older contract. Benchmarking would be most effective against similar contracts from the same period.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0002408R5205
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 12450 FAIR LAKES CIR STE 800, FAIRFAX, VA, 22033
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $28,655,575
Exercised Options: $19,540,182
Current Obligation: $19,183,042
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2008-06-25
Current End Date: 2013-07-01
Potential End Date: 2013-07-01 00:00:00
Last Modified: 2022-06-29
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