General Dynamics IT receives $25.5M for Navy ONE-Net IT support, a sole-source award

Contract Overview

Contract Amount: $25,457,279 ($25.5M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2018-01-23

End Date: 2019-01-31

Contract Duration: 373 days

Daily Burn Rate: $68.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT SUPPORT SERVICES US NAVY ONE-NET

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $25.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: IT SUPPORT SERVICES US NAVY ONE-NET Key points: 1. The contract value of $25.5M for IT support services represents a significant investment in maintaining critical network infrastructure. 2. As a sole-source award, the absence of competition may limit price discovery and potentially lead to higher costs. 3. The contract duration of approximately one year suggests a focus on immediate operational needs rather than long-term strategic planning. 4. The fixed-price contract type shifts performance risk to the contractor, incentivizing efficient service delivery. 5. The award falls within the Computer Facilities Management Services category, indicating a need for specialized technical expertise. 6. The geographic focus on Washington D.C. highlights the importance of supporting key naval operations in the capital region.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its sole-source nature and the specific, potentially unique, requirements of the Navy's ONE-Net system. Without competitive bids, it's difficult to ascertain if the $25.5 million represents a fair market price. However, the contract's duration of just over a year suggests it may be addressing immediate needs rather than a comprehensive, long-term solution, which could influence the overall value proposition. Further analysis would require understanding the scope of services and comparing them to similar, competitively awarded IT support contracts for large federal agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of the Navy did not solicit bids from multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities, security clearances, or when urgency dictates a rapid award. The lack of competition means that price negotiation may have been less robust, and the government did not benefit from the potential cost savings that can arise from a competitive bidding process.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the absence of competitive pressure. Without multiple bids, there's less assurance that the price reflects the most economical option available in the market.

Public Impact

The primary beneficiaries are the U.S. Navy personnel who rely on the ONE-Net system for daily operations and communication. The contract delivers essential IT support services, ensuring the functionality and availability of the Navy's computer facilities. The geographic impact is concentrated in Washington D.C., where the Navy's command and control functions are often centralized. The contract supports a workforce of IT professionals employed by General Dynamics Information Technology, contributing to the federal IT services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Short contract duration may indicate a stop-gap measure rather than a long-term, cost-effective solution.
Lack of transparency in the sole-source justification process could obscure potential alternatives.
Dependence on a single contractor for critical IT infrastructure raises concerns about vendor lock-in and future pricing.
The specific nature of 'ONE-Net' could imply unique requirements that justify sole-sourcing, but this needs clear documentation.

Positive Signals

Contract awarded to a large, established IT services provider with a significant federal presence.
Fixed-price contract structure incentivizes contractor efficiency and cost control.
Focus on IT support services addresses a critical operational need for the Navy.
Awarded to support a specific, potentially complex, network infrastructure (ONE-Net).

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer facilities management. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. Comparable spending benchmarks for IT support services can vary widely based on scope, complexity, and security requirements. However, contracts of this magnitude, even for a single year, indicate a significant investment in ensuring the operational readiness of critical defense networks.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the provided data. The award to a large prime contractor like General Dynamics Information Technology suggests that the primary focus was on leveraging established capabilities rather than fostering small business participation. This approach may limit opportunities for smaller, specialized IT firms to contribute to this specific Navy requirement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. As a sole-source award, the justification and negotiation process would be subject to internal review and potentially oversight by the Government Accountability Office (GAO) if protested. Transparency regarding the specific reasons for sole-sourcing and the negotiation details would be key to assessing accountability. Inspector General involvement would likely be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

Navy ONE-Net Program
Department of Defense IT Modernization Initiatives
Federal Civilian IT Support Services
Command and Control Systems Support

Risk Flags

Sole-source award lacks competitive transparency.
Potential for cost overruns due to lack of competition.
Short contract duration may indicate a temporary solution.
Dependence on a single contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. IT SUPPORT SERVICES US NAVY ONE-NET

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 $25.5 million.

What is the period of performance?

Start: 2018-01-23. End: 2019-01-31.

What is the specific scope of IT support services covered under the Navy's ONE-Net contract with General Dynamics IT?

The provided data indicates the contract is for 'IT SUPPORT SERVICES US NAVY ONE-NET' and falls under the NAICS code 541513 for Computer Facilities Management Services. This typically encompasses a range of activities such as managing and maintaining computer systems, networks, and related hardware and software. Specific services likely include network administration, system monitoring, help desk support, hardware and software installation and maintenance, cybersecurity support, and potentially data center operations. The 'ONE-Net' designation suggests it pertains to a specific, integrated network infrastructure for the Navy, implying a need for specialized knowledge of its architecture and operational requirements. Detailed scope would be outlined in the contract's Statement of Work (SOW).

How does the $25.5 million contract value compare to historical spending on similar Navy IT support services?

Direct comparison of the $25.5 million value is difficult without knowing the precise scope and duration of services rendered. However, federal IT support contracts can range significantly. For a one-year contract focused on a specific network like ONE-Net, $25.5 million is a substantial amount, suggesting a complex or critical infrastructure. Historical data for similar Navy IT support contracts, especially those awarded competitively, would be needed for a robust benchmark. If comparable sole-source awards exist, they might offer some context, but competitive data is generally preferred for value assessment. The absence of competition here makes direct value-for-money comparisons challenging.

What are the primary risks associated with a sole-source award for critical IT infrastructure like the Navy's ONE-Net?

The primary risks of a sole-source award for critical IT infrastructure include potential overpayment due to lack of price competition, reduced incentive for the contractor to innovate or improve efficiency beyond contractually mandated levels, and vendor lock-in. Taxpayers may bear a higher cost than if the contract were competed. Furthermore, reliance on a single vendor can create vulnerabilities if that vendor experiences financial difficulties, security breaches, or decides to exit the market. The government also loses the opportunity to discover potentially better or more cost-effective solutions that other vendors might offer. Ensuring robust oversight and clear performance metrics becomes even more critical in sole-source situations.

What is the track record of General Dynamics Information Technology Inc. in providing IT support services to the federal government, particularly the Department of Defense?

General Dynamics Information Technology Inc. (GDIT) has a long and extensive track record of providing a wide array of IT and technology services to the federal government, including a significant presence within the Department of Defense (DoD) and the Department of the Navy. They are a major federal contractor involved in complex systems integration, cybersecurity, cloud computing, enterprise IT, and mission support services. GDIT has held numerous large-scale contracts across various military branches and civilian agencies. Their experience includes managing critical infrastructure, supporting large user bases, and delivering specialized technical solutions. While specific performance details for individual contracts are often proprietary or found in past performance reviews, GDIT's sustained role as a prime contractor indicates a generally accepted capability to meet federal requirements.

How does the fixed-price contract type influence the risk and performance expectations for this IT support services contract?

The Firm Fixed Price (FFP) contract type shifts the majority of the performance risk to the contractor, General Dynamics Information Technology Inc. Under an FFP agreement, the contractor is obligated to provide the specified goods or services for a set price, regardless of their actual costs incurred. This incentivizes GDIT to manage its resources efficiently, control costs, and deliver the required IT support services within budget. For the government, this provides cost certainty, as the total price is known upfront. However, it also means that if GDIT encounters unforeseen challenges or cost overruns, they absorb those losses. Conversely, if they perform efficiently and below budget, they retain the profit. This structure places a strong emphasis on clear contract requirements and performance standards to ensure the government receives the intended value.

What are the potential implications of this contract for cybersecurity within the Navy's ONE-Net infrastructure?

As a contract for IT support services for a critical Navy network (ONE-Net), cybersecurity is inherently a significant component. General Dynamics Information Technology Inc. would be responsible for implementing and maintaining security measures as defined in the contract's Statement of Work (SOW) and relevant DoD cybersecurity directives. This could include network monitoring for threats, vulnerability management, patch deployment, access control, incident response, and ensuring compliance with security protocols. The effectiveness of these measures depends on the clarity of the cybersecurity requirements in the contract, GDIT's adherence to them, and the government's own oversight and validation processes. Given the sensitive nature of military networks, robust cybersecurity provisions and diligent execution are paramount to protect against cyber threats.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0003917R0018

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 3170 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042

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

Financial Breakdown

Contract Ceiling: $25,457,279

Exercised Options: $25,457,279

Current Obligation: $25,457,279

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0003917D0002

IDV Type: IDC

Timeline