DoD's $24.5M IGF ADE 2.0 Cloud Design contract awarded to General Dynamics IT

Contract Overview

Contract Amount: $24,468,789 ($24.5M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-08-08

End Date: 2019-09-30

Contract Duration: 783 days

Daily Burn Rate: $31.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF ADE 2.0 CLOUD DESIGN

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $24.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF ADE 2.0 CLOUD DESIGN Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of 783 days indicates a significant, multi-year project. 4. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services. 5. The contract was awarded by the Defense Contract Management Agency, a key DoD oversight body. 6. The base award amount is $24.5 million, with potential for modifications.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables and performance metrics. The Cost Plus Fixed Fee (CPFF) structure necessitates close monitoring to ensure costs remain reasonable and do not escalate beyond initial estimates. Comparing this to similar cloud design and implementation contracts within the DoD would provide a clearer picture of its value proposition. The fixed fee component offers some cost certainty, but the cost-reimbursement aspect requires diligent oversight.

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 innovative solutions. The agency's decision to use full and open competition suggests confidence in the market's ability to provide qualified contractors.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it is intended to drive down costs and improve the quality of services received by the government.

Public Impact

The primary beneficiary is the Department of Defense, which will receive enhanced cloud design services. The services delivered are expected to improve the efficiency and capabilities of DoD's information technology infrastructure. The geographic impact is likely national, given the scope of DoD operations. Workforce implications may include specialized IT professionals within General Dynamics Information Technology and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contracts require robust oversight to control costs and prevent scope creep.
The specific performance metrics and deliverables are not detailed, making it difficult to assess success.
Potential for cost overruns inherent in CPFF contracts if not managed diligently.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace.
The contractor, General Dynamics Information Technology, is a large, established entity with significant government contracting experience.
The contract is managed by the Defense Contract Management Agency, suggesting a level of established oversight.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming and cloud solutions. The federal IT market is substantial, with significant spending allocated to cloud migration and modernization efforts across various agencies. This contract represents a portion of the DoD's investment in upgrading its digital infrastructure to meet evolving operational demands. Comparable spending benchmarks would involve analyzing other large-scale cloud architecture and implementation contracts within the defense sector.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration for this specific award (ss: false, sb: false). While General Dynamics Information Technology is a large business, there may be opportunities for small businesses to participate as subcontractors. The impact on the small business ecosystem would depend on the subcontracting plan, if any, and the specific needs of the project.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures would be embedded in the contract's terms and conditions, including reporting requirements and performance standards. Transparency is facilitated through contract award databases, though detailed performance data may be less accessible.

Related Government Programs

DoD Cloud Computing Strategy
General Services Administration (GSA) IT Schedule Contracts
Defense Information Systems Agency (DISA) IT Services

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep Potential
Performance Measurement Difficulty (Lack of Specific KPIs)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF ADE 2.0 CLOUD DESIGN

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 $24.5 million.

What is the period of performance?

Start: 2017-08-08. End: 2019-09-30.

What specific cloud technologies and architectures are being designed under this contract?

The provided data does not specify the exact cloud technologies or architectures. However, given the NAICS code (541511 - Custom Computer Programming Services) and the contractor's expertise, it likely involves designing scalable, secure, and resilient cloud environments. This could encompass public, private, or hybrid cloud solutions, potentially leveraging services from major cloud providers like AWS, Azure, or Google Cloud, tailored to DoD requirements for data security, interoperability, and mission-critical applications. Further details would be found in the contract's statement of work.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar IT design services?

The CPFF structure is common for complex IT projects where the scope may evolve or is not fully defined at the outset. It allows the contractor to recover all allowable costs plus a fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but carries higher risk of cost escalation for the government if not managed tightly. Cost-reimbursement contracts (like CPFF) are often used when the government needs a service but cannot precisely define the end product or cost beforehand, whereas FFP provides greater cost certainty but requires a well-defined scope.

What is General Dynamics Information Technology's track record with similar DoD cloud design contracts?

General Dynamics Information Technology (GDIT) has a substantial history of supporting the Department of Defense with IT services, including cloud computing, cybersecurity, and systems integration. While specific details on prior IGF ADE 2.0 Cloud Design contracts are not in the provided data, GDIT has been awarded numerous large-scale contracts for IT modernization and cloud migration across various military branches and agencies. Their extensive experience suggests a strong capability to undertake complex design projects, though performance on any specific contract would require further investigation into past performance reviews and award histories.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for cloud design contracts, KPIs would focus on aspects such as system performance (e.g., uptime, latency), security compliance (e.g., adherence to DoD security standards), scalability (ability to handle increased loads), cost-efficiency of the designed solution, and successful integration with existing DoD systems. The effectiveness of the CPFF structure also relies on monitoring cost performance against the estimated costs and the fixed fee.

How does the $24.5 million award compare to historical spending on similar DoD cloud initiatives?

The $24.5 million award for the IGF ADE 2.0 Cloud Design contract is a significant but not extraordinary figure within the context of large-scale DoD IT modernization efforts. The DoD invests billions annually in IT infrastructure, including cloud services. This specific contract's value should be compared to other contracts for cloud architecture design, migration planning, and foundational cloud services within the defense sector. Without broader spending data on comparable initiatives, it's difficult to definitively state if this represents high or low spending, but it aligns with the substantial investments required for such complex projects.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0003913R0002

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 15036 CONFERENCE CENTER DR, CHANTILLY, VA, 20151

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

Financial Breakdown

Contract Ceiling: $24,468,789

Exercised Options: $24,468,789

Current Obligation: $24,468,789

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $99,266

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0003914D0001

IDV Type: IDC

Timeline