General Dynamics IT awarded $25.6M contract for Amphibious Warfare Program Office support

Contract Overview

Contract Amount: $25,574,925 ($25.6M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-09-28

End Date: 2011-09-30

Contract Duration: 367 days

Daily Burn Rate: $69.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PROVIDE PROFESSIONAL AND SUPPORT SERVICES IN SUPPORT OF THE AMPHIBIOUS WARFARE PROGRAM OFFICE (PMS 377).

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20003

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $25.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: PROVIDE PROFESSIONAL AND SUPPORT SERVICES IN SUPPORT OF THE AMPHIBIOUS WARFARE PROGRAM OFFICE (PMS 377). Key points: 1. Contract provides essential professional and support services for a critical naval program. 2. The contract was awarded on a sole-source basis, limiting competitive pricing benefits. 3. A Cost Plus Fixed Fee (CPFF) structure may incentivize cost overruns. 4. The contract duration of over a year suggests a need for sustained support. 5. The specific NAICS code (541330) indicates engineering services, aligning with program needs. 6. The contract's value is moderate within the context of large defense procurements.

Value Assessment

Rating: fair

The contract value of $25.6 million for a year of support appears reasonable for specialized engineering and professional services within the defense sector. However, without specific benchmarks for similar amphibious warfare program support, a precise value-for-money assessment is challenging. The CPFF pricing structure, while common for complex R&D or services where costs are uncertain, carries inherent risks of exceeding initial estimates if not closely managed. Benchmarking against other sole-source contracts for similar program management support would be necessary for a more definitive evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities, proprietary knowledge, or existing infrastructure required for the service. While it ensures specialized expertise, it bypasses the competitive process that could potentially drive down costs and foster innovation through market forces. The lack of competition means taxpayers do not benefit from the price discovery that typically occurs in an open bidding environment.

Taxpayer Impact: The sole-source nature of this award means taxpayers may have paid a premium compared to what might have been achieved through a competitive bidding process. This limits the opportunity for cost savings that competition often provides.

Public Impact

The primary beneficiaries are the Department of the Navy and the Amphibious Warfare Program Office (PMS 377), receiving critical support for program execution. Services delivered include professional and support functions essential for managing and advancing amphibious warfare capabilities. The geographic impact is primarily within the defense sector's operational and administrative hubs, likely concentrated in areas with significant Navy presence. Workforce implications include the employment of skilled professionals in engineering, program management, and support roles by General Dynamics Information Technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost Plus Fixed Fee contract type can lead to cost overruns if not managed stringently.
Lack of transparency in the justification for sole-source award.

Positive Signals

Contract supports a critical national defense program (Amphibious Warfare).
General Dynamics Information Technology is a large, established defense contractor with relevant experience.
Contract duration suggests a stable, ongoing need for these services.

Sector Analysis

This contract falls within the Defense sector, specifically supporting naval capabilities. The market for defense support services is substantial, with significant government spending allocated to program management, engineering, and technical support for complex weapon systems and platforms. Companies like General Dynamics Information Technology are key players in this market, often securing contracts through competitive bidding or, as in this case, sole-source awards for specialized needs. Benchmarks for similar program support contracts within the DoD can range widely depending on the scope and duration.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. General Dynamics Information Technology is a large business. There is no explicit information provided regarding subcontracting plans to small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor actively engages small businesses for subcontracting opportunities not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a sole-source award, the justification and terms would be subject to review by relevant DoD oversight bodies. Transparency is limited due to the non-competitive nature. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Naval Ship Systems Engineering
Amphibious Assault Ship Programs
Naval Program Management Support
Defense Engineering Services

Risk Flags

Sole-source award
Cost-reimbursable contract type
Potential for cost overruns
Limited competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. PROVIDE PROFESSIONAL AND SUPPORT SERVICES IN SUPPORT OF THE AMPHIBIOUS WARFARE PROGRAM OFFICE (PMS 377).

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 $25.6 million.

What is the period of performance?

Start: 2010-09-28. End: 2011-09-30.

What is the specific justification for awarding this contract on a sole-source basis to General Dynamics Information Technology?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when a unique capability, proprietary technology, or urgent need exists that only one contractor can fulfill. For defense contracts, this might involve specialized knowledge of existing systems, critical infrastructure, or a requirement for seamless continuation of services by the incumbent provider. A full justification would normally be documented by the agency and potentially made public through sources like the Federal Business Opportunities (now SAM.gov) or agency procurement records, detailing why competition was not feasible or advantageous.

How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other pricing models for similar defense support services?

The Cost Plus Fixed Fee (CPFF) structure is common for services where the scope of work or associated costs are difficult to define precisely upfront, such as research and development or complex system integration. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This differs from Fixed Price contracts, where the contractor agrees to a set price regardless of actual costs, offering more cost certainty to the government but potentially higher risk for the contractor. It also differs from Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) contracts, which include mechanisms to adjust the fee based on performance or cost targets. For routine support services, Fixed Price contracts are often preferred for better cost control, but CPFF can be justified for highly uncertain or evolving requirements like those in advanced program offices.

What is General Dynamics Information Technology's track record with the Department of the Navy and similar defense programs?

General Dynamics Information Technology (GDIT), now part of General Dynamics, has a long and extensive history of providing IT, professional, and support services to the Department of Defense, including the Department of the Navy. They are a major defense contractor frequently awarded contracts for systems engineering, program management, cybersecurity, and various IT modernization efforts across multiple naval platforms and commands. While specific performance metrics for this particular contract are not detailed, GDIT's overall presence and the volume of contracts they hold with the Navy suggest a generally accepted capability to perform such services. However, like any large contractor, their performance can vary across individual contracts, and past performance reviews would be necessary for a comprehensive assessment.

What are the potential risks associated with a sole-source, CPFF contract for supporting a major defense program like Amphibious Warfare?

The primary risks associated with a sole-source, CPFF contract for a major defense program are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to higher costs than might be achieved in a competitive environment. The government does not benefit from the price discovery and innovation that competition fosters. Secondly, the CPFF structure itself carries inherent risks. While the fee is fixed, the contractor is reimbursed for all allowable costs. This can incentivize cost overruns, as the contractor may not be as motivated to control expenses as they would be under a fixed-price contract. Effective government oversight, stringent cost monitoring, and clear definition of allowable costs are crucial to mitigate these risks and ensure value for taxpayer money.

How does this $25.6 million contract compare to historical spending on the Amphibious Warfare Program Office (PMS 377)?

The provided data indicates a single contract award of $25.6 million with a duration of 367 days (approximately one year). To compare this to historical spending, one would need to examine the total budget allocated to PMS 377 over multiple fiscal years and identify all contracts awarded to support its mission. This $25.6 million represents a portion of the overall funding for the program office's operations and support services during the contract period (2010-2011). Without access to historical budget data and a comprehensive list of all contracts awarded to PMS 377, it is difficult to determine if this specific award is higher or lower than average, or if it represents a significant shift in spending patterns. However, $25.6 million is a substantial sum for a single year of professional and support services.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0002410R2252

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Csra LLC (UEI: 079735371)

Address: 1201 M ST SE STE 400, WASHINGTON, DC, 20003

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,312,565

Exercised Options: $26,312,565

Current Obligation: $25,574,925

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline