DoD's $91.5M NSIPS contract to General Dynamics faces scrutiny over custom programming services
Contract Overview
Contract Amount: $91,489,122 ($91.5M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-05-16
End Date: 2023-06-07
Contract Duration: 1,117 days
Daily Burn Rate: $81.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: NSIPS SUSTAINMENT, O&MN
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $91.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: NSIPS SUSTAINMENT, O&MN Key points: 1. The contract value of $91.5M for custom computer programming services is significant. 2. General Dynamics Information Technology, Inc. is the sole awardee. 3. The contract duration of 1117 days raises questions about long-term needs. 4. The sector is IT, specifically custom computer programming services.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee (CPFF) pricing structure can lead to cost overruns if not managed tightly. Benchmarking against similar custom programming contracts is difficult without more detailed scope information.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While awarded under full and open competition, the specific award type is a Delivery Order, suggesting it might be part of a larger IDIQ. The impact on price discovery is moderate, as competition occurred at the IDIQ level.
Taxpayer Impact: Taxpayer funds are being used for IT sustainment services. The CPFF structure necessitates robust oversight to ensure cost efficiency and prevent unnecessary expenditures.
Public Impact
Ensures continued operation of critical Navy Personnel and Pay System (NSIPS). Supports military personnel and their families through payroll and personnel management. Potential for cost overruns due to CPFF contract type. Relies on a single contractor for sustainment, posing a potential single point of failure risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee pricing can incentivize higher costs.
- Long contract duration may not reflect evolving technological needs.
- Reliance on a single awardee for sustainment.
Positive Signals
- Awarded under full and open competition.
- Supports critical military personnel functions.
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming services. Spending benchmarks for similar large-scale IT sustainment contracts vary widely based on scope and complexity, but $91.5M is a substantial investment.
Small Business Impact
The data indicates no specific set-aside for small businesses. Large prime contractors like General Dynamics often utilize subcontractors, but the primary awardee is a large business, limiting direct opportunities for small businesses on this specific contract.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for oversight. The CPFF contract type requires diligent monitoring of costs and performance to ensure value for taxpayer money and prevent scope creep.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee pricing structure.
- Long contract duration (1117 days).
- Sole awardee for sustainment.
- Lack of specific small business set-aside.
- Potential for technology obsolescence over contract term.
Tags
custom-computer-programming-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $91.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. NSIPS SUSTAINMENT, O&MN
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 $91.5 million.
What is the period of performance?
Start: 2020-05-16. End: 2023-06-07.
What specific performance metrics are in place to ensure the value delivered by General Dynamics for the NSIPS sustainment?
Detailed performance metrics are crucial for CPFF contracts. These typically include system uptime, response times for critical functions, bug resolution rates, and adherence to security protocols. The contract documentation should outline specific KPIs and the associated award/incentive structure to ensure the government receives adequate value for the $91.5M investment.
What are the identified risks associated with relying on General Dynamics for sustainment over the contract's duration?
Key risks include potential vendor lock-in, reduced innovation if the contractor is not incentivized to propose new solutions, and the impact of contractor performance issues on critical military personnel and pay functions. The long duration also increases the risk of the technology becoming outdated if not actively managed and updated.
How effectively does this contract support the long-term strategic goals of the Navy's IT infrastructure?
The effectiveness hinges on whether NSIPS sustainment aligns with broader Navy IT modernization efforts. If NSIPS is slated for replacement or significant overhaul, a long sustainment contract might be inefficient. Conversely, if it's a core, enduring system, ensuring its continued robust operation and security is strategically vital.
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: $94,821,307
Exercised Options: $94,821,307
Current Obligation: $91,489,122
Actual Outlays: $4,137,030
Subaward Activity
Number of Subawards: 11
Total Subaward Amount: $27,241,439
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
Start Date: 2020-05-16
Current End Date: 2023-06-07
Potential End Date: 2023-06-07 00:00:00
Last Modified: 2025-07-17
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