DoD's $25.5M IT contract to General Dynamics Information Technology Inc. for facilities management services awarded via sole-source

Contract Overview

Contract Amount: $25,518,933 ($25.5M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2019-02-01

End Date: 2020-01-31

Contract Duration: 364 days

Daily Burn Rate: $70.1K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF FIELD SUPPORT

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $25.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: IGF::OT::IGF FIELD SUPPORT Key points: 1. Contract awarded on a sole-source basis, limiting competitive pricing benefits. 2. Fixed-price contract type suggests cost certainty for the government. 3. Performance period of one year indicates a short-term need or a bridge contract. 4. The contract falls under IT services, specifically computer facilities management. 5. Awarded by the Department of the Navy, a major component of the DoD. 6. The contractor, General Dynamics Information Technology Inc., is a large, established entity in the federal IT space.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed service descriptions and performance metrics. However, the total value of approximately $25.5 million for a one-year IT facilities management contract with the Department of the Navy suggests a significant investment. Given the sole-source nature, it's difficult to assess if this represents optimal value for money compared to what might have been achieved through a competitive process. Further analysis would require comparing the specific services rendered against industry standards and pricing for similar government contracts.

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 typically occurs when a specific contractor is deemed uniquely qualified or when circumstances necessitate a rapid award without a full solicitation process. The lack of competition means that the government did not benefit from the price discovery and potential cost savings that a competitive bidding process could have provided. The justification for a sole-source award would need to be thoroughly documented to ensure it aligns with federal procurement regulations.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government may not secure the most competitive pricing available in the market. It also limits opportunities for other qualified businesses to compete for federal work.

Public Impact

The Department of the Navy benefits from continued IT facilities management services, ensuring operational continuity. The contract supports the IT infrastructure necessary for naval operations. Geographic impact is likely concentrated around the Navy facilities where these services are provided, primarily in Virginia. Workforce implications include employment for IT professionals and support staff managed by General Dynamics Information Technology Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential taxpayer savings.
Lack of transparency in the justification for sole-source award.
Contract duration is short, potentially leading to follow-on contracts with limited competition.

Positive Signals

Fixed-price contract provides cost certainty for the government.
Contract awarded to a large, experienced IT services provider with a track record in the federal sector.
Services are critical for maintaining IT infrastructure.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer facilities management services. This sector is a significant area of federal spending, encompassing a wide range of services from hardware maintenance to network operations and data center management. The market for IT services is highly competitive, with numerous large and small businesses vying for government contracts. However, sole-source awards bypass this competitive dynamic. Comparable spending benchmarks for IT facilities management can vary widely based on the scope and scale of services, but contracts of this magnitude are not uncommon for major federal agencies.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. The award to a large prime contractor like General Dynamics Information Technology Inc. suggests that the bulk of the work will be performed by the prime or its large business subcontractors. This limits direct opportunities for small businesses to participate in this specific contract, although they may be involved in other federal IT procurements.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. The Inspector General's office for the Department of Defense would have jurisdiction for audits and investigations. Transparency is limited by the sole-source nature of the award; however, contract awards are generally reported in federal procurement databases. Accountability measures would be defined by the contract's performance work statement and delivery terms.

Related Government Programs

DoD IT Services Contracts
Navy IT Infrastructure Support
Computer Facilities Management Services
General Dynamics IT Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Potential for higher costs to taxpayers.
Limited opportunity for small business participation.
Lack of detailed service scope in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. IGF::OT::IGF FIELD SUPPORT

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: 2019-02-01. End: 2020-01-31.

What was the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED,' which is synonymous with a sole-source award. Federal Acquisition Regulation (FAR) Part 6 outlines the policies for competitive contracting, and FAR Part 13.5 or Part 12 may allow for sole-source awards under specific circumstances, such as when only one responsible source can satisfy the agency's needs. Common justifications include unique capabilities, urgent requirements, or follow-on work to a previous contract where the original competition was limited. Without access to the specific justification document (e.g., a Justification and Approval - J&A), it is impossible to determine the precise reason for this sole-source award. This lack of transparency is a key concern for ensuring fair and open competition.

How does the $25.5 million value compare to similar IT facilities management contracts awarded by the Department of the Navy?

Comparing the $25.5 million value requires context regarding the scope, duration, and specific services included. This contract has a duration of one year. For a single year, $25.5 million is a substantial amount for IT facilities management. However, the Department of the Navy manages vast and complex IT infrastructures across numerous installations. Larger, multi-year contracts for similar services can easily reach hundreds of millions or even billions of dollars. To provide a precise benchmark, one would need to analyze contracts with comparable service levels (e.g., data center operations, network management, end-user support) and similar contract types (e.g., firm-fixed-price) awarded over the past few years. The sole-source nature also complicates direct value comparisons, as competitive bids might have yielded different pricing.

What are the potential risks associated with a sole-source award for IT facilities management?

The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competition. Without competing bids, the government may not achieve the best possible price for the services rendered. Another risk is a potential decline in service quality or innovation, as the contractor may face less pressure to excel compared to a competitive environment. Furthermore, sole-source awards can limit opportunities for other capable vendors, including small businesses, to enter the market or expand their footprint within the agency. There's also a risk if the sole-source justification is weak or improperly documented, potentially leading to protests or audit findings.

What is the track record of General Dynamics Information Technology Inc. in performing similar federal contracts?

General Dynamics Information Technology Inc. (GDIT) is a major federal contractor with extensive experience in providing IT services, including facilities management, to various government agencies, including the Department of Defense. They have a long history of performing large-scale IT support contracts. Their track record generally includes successful execution of complex projects, though like any large contractor, they may have faced challenges or criticisms on specific contracts. Performance data, past performance reviews, and contract award histories available through federal procurement databases (like FPDS or SAM.gov) would provide more granular insights into their specific performance on similar IT facilities management contracts for the Navy or other DoD components.

How does this contract fit into the broader IT spending patterns of the Department of the Navy?

This $25.5 million contract represents a specific component of the Department of the Navy's overall IT budget, which is substantial. The Navy, like all branches of the military, relies heavily on robust IT infrastructure for command, control, communications, intelligence, and logistics. Contracts for IT facilities management are essential for maintaining the operational readiness of these systems. This particular award, being for computer facilities management, likely supports the day-to-day functioning of critical Navy networks and data centers. It fits within a larger category of IT services spending that includes software development, cybersecurity, telecommunications, and hardware procurement, all vital for modern naval operations.

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: $25,518,933

Exercised Options: $25,518,933

Current Obligation: $25,518,933

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0003917D0002

IDV Type: IDC

Timeline