DoD's $193M NITES-NEXT contract awarded to GDIT in 2009 for custom programming services
Contract Overview
Contract Amount: $19,332,751 ($19.3M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-08-21
End Date: 2012-08-21
Contract Duration: 1,096 days
Daily Burn Rate: $17.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: NITES-NEXT RELEASE 1 TAS::17 1804::TAS
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $19.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: NITES-NEXT RELEASE 1 TAS::17 1804::TAS Key points: 1. Contract awarded to General Dynamics Information Technology, Inc. for $193.3M. 2. Full and open competition was used for this definitive contract. 3. The contract duration was 1096 days, ending in August 2012. 4. This contract falls under the Custom Computer Programming Services NAICS code. 5. The contract type was Cost Plus Incentive Fee.
Value Assessment
Rating: fair
The Cost Plus Incentive Fee (CPIF) contract type can lead to cost overruns if not managed carefully. Benchmarking CPIF contracts for custom programming services is difficult without detailed performance data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, suggesting a robust price discovery process. However, the CPIF structure means the final price is tied to performance incentives, not a fixed bid.
Taxpayer Impact: Taxpayer funds were used for custom programming services. The CPIF structure means the final cost could exceed initial estimates based on performance outcomes.
Public Impact
This contract supported the Department of Defense's IT infrastructure needs. The award to a large contractor like GDIT may have limited opportunities for smaller businesses. The use of CPIF suggests a focus on achieving specific performance targets for the IT services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee structure can lead to unpredictable final costs.
- Contract ended in 2012, making current relevance and cost benchmarks difficult to assess.
- Lack of specific performance metrics makes value assessment challenging.
Positive Signals
- Full and open competition promotes market efficiency.
- Awarded to a known entity in the IT services sector.
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming. Spending benchmarks for such contracts vary widely based on scope, complexity, and duration.
Small Business Impact
The contract was not set aside for small businesses, and the award went to a large prime contractor. This suggests limited direct opportunities for small businesses unless they were subcontractors.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency. Oversight would focus on ensuring performance targets were met and costs were reasonable within the CPIF framework.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Incentive Fee (CPIF) can lead to cost uncertainty.
- Contract ended in 2012; data may not reflect current market conditions.
- Lack of specific performance details hinders effectiveness assessment.
- No small business set-aside noted.
Tags
custom-computer-programming-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. NITES-NEXT RELEASE 1 TAS::17 1804::TAS
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 $19.3 million.
What is the period of performance?
Start: 2009-08-21. End: 2012-08-21.
What was the final awarded cost of the contract, and how did it compare to the initial estimate given the CPIF structure?
The initial award amount was $193,327,510. With a Cost Plus Incentive Fee (CPIF) contract, the final cost is contingent upon achieving specific performance metrics. Without knowing the final negotiated cost and the performance outcomes, it's impossible to definitively assess if the final price represented good value or if it significantly exceeded initial projections due to incentive payouts.
What were the key performance indicators (KPIs) for this contract, and how effectively were they met to justify the incentive fees?
The provided data does not specify the key performance indicators (KPIs) for the NITES-NEXT RELEASE 1 contract. Understanding these KPIs is crucial for evaluating the effectiveness of the Cost Plus Incentive Fee (CPIF) structure. Without them, we cannot determine if the incentive fees paid out were justified by the contractor's performance in delivering the custom computer programming services.
How did the competition process for this contract ensure fair pricing and prevent potential cost overruns under the CPIF model?
The contract was awarded under 'full and open competition,' which theoretically ensures a competitive bidding process to achieve fair pricing. However, the Cost Plus Incentive Fee (CPIF) structure inherently introduces variability in the final cost, as it is tied to performance outcomes. While competition sets the initial baseline, effective oversight and clearly defined, achievable performance metrics are critical to managing costs and ensuring value under a CPIF arrangement.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: N0003908R0002
Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 3150 FAIRVIEW PARK DR STE 100, FALLS CHURCH, VA, 22042
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $67,719,979
Exercised Options: $22,317,150
Current Obligation: $19,332,751
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-08-21
Current End Date: 2012-08-21
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2021-11-01
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