DoD's $62M Custom Programming Contract with GDIT Faces Scrutiny for Limited Competition
Contract Overview
Contract Amount: $62,121,250 ($62.1M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-01-21
End Date: 2024-09-30
Contract Duration: 983 days
Daily Burn Rate: $63.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: AUTHORITATIVE DATA ENVIRONMENT RDTE
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $62.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: AUTHORITATIVE DATA ENVIRONMENT RDTE Key points: 1. Significant contract value of $62.1M for custom computer programming. 2. Sole provider, General Dynamics Information Technology, Inc. (GDIT), raises competition concerns. 3. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. Sector is IT services, specifically custom computer programming.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee structure for a $62.1M contract warrants scrutiny. While it allows for flexibility in R&D, it can incentivize cost escalation without clear performance metrics.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT COMPETED,' indicating a sole-source or limited competition award. This significantly limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for a substantial $62.1M contract likely results in a higher price than could be achieved through a competitive bidding process.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. Potential for reduced innovation as there's no market pressure to improve services. Dependence on a single contractor for critical IT services poses a risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Cost-Plus Contract Type
- No Small Business Participation
Positive Signals
- Definitive Contract Awarded
- Long-Term Engagement (983 days)
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming. Benchmarks for similar custom programming services can vary widely based on complexity and duration, but a lack of competition often inflates costs.
Small Business Impact
The contract data indicates no small business participation (sb: false). This represents a missed opportunity to support small businesses and could indicate a lack of effort in seeking diverse vendor pools.
Oversight & Accountability
The 'NOT COMPETED' status suggests potential gaps in the procurement oversight process. Further review is needed to understand why this contract was not opened to broader competition.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competitive bidding
- Cost-plus contract type
- No small business participation
- Potential for cost overruns
- Single source dependency
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 $62.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. AUTHORITATIVE DATA ENVIRONMENT RDTE
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 $62.1 million.
What is the period of performance?
Start: 2022-01-21. End: 2024-09-30.
What specific justification was provided for not competing this $62.1M contract, and does it align with federal procurement regulations for sole-source awards?
Federal regulations permit sole-source or limited competition awards under specific circumstances, such as when only one responsible source can provide the required services. The justification for this contract's 'NOT COMPETED' status needs to be thoroughly reviewed to ensure it meets these stringent criteria and that adequate market research was conducted to confirm the absence of viable alternatives.
How does the Cost Plus Fixed Fee structure impact the government's ability to control costs and ensure value for money on this custom programming contract?
Cost Plus Fixed Fee contracts can be challenging for cost control as the contractor is reimbursed for allowable costs plus a fixed fee. This structure may not sufficiently incentivize the contractor to minimize costs, potentially leading to expenditures exceeding what might be achieved with a firm-fixed-price contract. Robust oversight is crucial to scrutinize costs and ensure they are reasonable and allocable.
What are the long-term implications of awarding a significant IT services contract without competition to a single large business, particularly regarding innovation and future market dynamics?
Awarding large contracts without competition can stifle innovation by removing market pressure for contractors to develop new solutions or improve efficiency. It also creates a barrier to entry for smaller, innovative firms and can lead to vendor lock-in, making it difficult and costly to switch providers in the future. This can negatively impact the government's access to cutting-edge technology.
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 › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0003922R0001
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
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, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $70,271,676
Exercised Options: $66,311,858
Current Obligation: $62,121,250
Subaward Activity
Number of Subawards: 63
Total Subaward Amount: $20,781,782
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2022-01-21
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2024-08-08
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