DoD awards $11.3M task order to General Dynamics for computer systems design services

Contract Overview

Contract Amount: $11,315,000 ($11.3M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-11-12

End Date: 2026-11-15

Contract Duration: 368 days

Daily Burn Rate: $30.7K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: THIS IS TASK ORDER 2 UNDER IDIQ CONTRACT #N0003925D7800.

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: THIS IS TASK ORDER 2 UNDER IDIQ CONTRACT #N0003925D7800. Key points: 1. Contract awarded as a delivery order under an existing IDIQ, suggesting a pre-established relationship and potentially streamlined acquisition. 2. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but requires robust oversight to manage potential overruns. 3. The duration of 368 days indicates a medium-term project, requiring sustained performance monitoring. 4. The award is not competed, raising questions about price discovery and potential for better value through broader market engagement. 5. The specific NAICS code (541512) points to a focus on computer systems design, a critical area for defense modernization. 6. The contract is for the Department of the Navy, a major component of the DoD, highlighting its importance within naval operations.

Value Assessment

Rating: fair

This task order, valued at $11.3 million, is for computer systems design services. Without specific benchmarks for comparable task orders under the parent IDIQ or for similar services within the Department of the Navy, a precise value-for-money assessment is challenging. The CPFF contract type necessitates careful monitoring of costs to ensure they align with the fixed fee and the overall value delivered. Benchmarking against industry standards for similar IT services would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This task order was not competed, indicating it was likely awarded under a sole-source justification or as a directed task order under an existing IDIQ contract. The absence of competition means that multiple vendors were not given the opportunity to bid, which can limit price discovery and potentially lead to higher costs than if a competitive process had been employed. The rationale for not competing this specific task order would need further investigation.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the most cost-effective solution, as the government did not benefit from a bidding war among potential providers.

Public Impact

The Department of the Navy benefits from enhanced computer systems design capabilities, crucial for maintaining operational effectiveness. Personnel within the Department of the Navy will likely utilize the improved systems, impacting daily workflows and mission execution. The services delivered are expected to support critical IT infrastructure and potentially new system development for naval operations. The primary geographic impact is within the Department of the Navy's operational areas, likely concentrated in Virginia where the contractor is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
CPFF contract type requires diligent cost oversight to prevent overruns.
Performance risks associated with complex system design are inherent.
Dependence on a single contractor for this task order could pose continuity risks if not managed proactively.

Positive Signals

Awarded under an existing IDIQ, suggesting a pre-vetted contractor with a known performance history.
General Dynamics Information Technology is a large, established company with significant experience in government IT services.
The task order is for a defined period, allowing for performance evaluation before potential future awards.
The specific focus on computer systems design aligns with critical defense modernization needs.

Sector Analysis

The computer systems design services sector is a vital component of the broader IT industry, supporting government and commercial entities in developing, implementing, and managing complex technological infrastructures. This contract falls within the defense IT sub-sector, characterized by high demand for specialized solutions, stringent security requirements, and significant government spending. Comparable spending benchmarks in this area are often tied to specific system modernization efforts or cybersecurity initiatives within defense agencies.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). As a result, there is no direct allocation for small business participation within this specific task order. Subcontracting opportunities for small businesses would depend on General Dynamics Information Technology's internal procurement practices and their commitment to engaging the small business ecosystem, which is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Navy, likely through contracting officers and technical representatives who will monitor performance, costs, and adherence to the contract terms. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to ensure that costs are reasonable and allocable, and that the fixed fee is earned appropriately. Transparency is typically managed through contract reporting requirements and available contract databases, though specific IG jurisdiction would depend on the nature of any potential issues.

Related Government Programs

Department of Defense IT Modernization Programs
Naval Information Warfare Systems Command (NAVWAR) Contracts
Computer Systems Design Services (NAICS 541512) Spending
Cost Plus Fixed Fee Contracts in Defense
Indefinite Delivery/Indefinite Quantity (IDIQ) Contract Vehicles

Risk Flags

Lack of Competition
Cost Plus Fixed Fee Oversight Required
Potential for Cost Overruns
Value for Money Uncertainty

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. THIS IS TASK ORDER 2 UNDER IDIQ CONTRACT #N0003925D7800.

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 $11.3 million.

What is the period of performance?

Start: 2025-11-12. End: 2026-11-15.

What is the track record of General Dynamics Information Technology with the Department of the Navy for similar computer systems design services?

General Dynamics Information Technology (GDIT) has a substantial history of performing IT services for the Department of the Navy and the broader Department of Defense. Their experience typically encompasses a wide range of services, including systems design, integration, cybersecurity, and sustainment. Analyzing GDIT's past performance on similar Cost Plus Fixed Fee (CPFF) contracts with the Navy would provide insight into their ability to manage costs effectively and deliver quality technical solutions. Reviewing contract databases for past awards, performance evaluations (e.g., CPARS), and any documented issues or successes related to their Navy engagements would be crucial for a comprehensive assessment. This would help determine if their historical performance aligns with the requirements and potential risks of this specific task order.

How does the $11.3 million value of this task order compare to other computer systems design contracts awarded by the Navy?

The $11.3 million value for this task order is a moderate-sized award within the context of large-scale defense IT procurements. To benchmark this value effectively, one would need to compare it against the average and median values of similar computer systems design services contracts (NAICS 541512) awarded by the Department of the Navy over the past several fiscal years. Factors such as contract duration, complexity of the systems being designed, and the specific technological requirements would influence this comparison. If this task order's value is significantly higher or lower than comparable contracts, it could indicate either exceptional value or potential overpricing/underbidding. Accessing contract spending databases and filtering by agency, NAICS code, and contract type would be necessary for a robust comparative analysis.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for computer systems design?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for computer systems design revolve around cost control and contractor incentive. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' element means the government bears the risk of actual costs incurred. For the contractor, the incentive is to perform the work efficiently to maximize their profit within the fixed fee. However, for the government, the risk is that the contractor may not be sufficiently motivated to control costs if they believe the government will ultimately pay for them, potentially leading to cost overruns. Robust government oversight, detailed cost accounting, and clear definition of work are essential to mitigate these risks and ensure the government receives good value.

What is the expected program effectiveness or outcome of this computer systems design task order?

The expected program effectiveness of this computer systems design task order hinges on the successful delivery of functional, reliable, and secure computer systems tailored to the Department of the Navy's specific operational needs. The outcome should be an enhancement of the Navy's IT capabilities, potentially leading to improved data processing, communication, command and control, or other critical functions. The success will be measured by the system's performance against defined requirements, its integration into existing infrastructure, user adoption, and its contribution to the Navy's overall mission objectives. Without specific details on the system being designed, a precise prediction of effectiveness is difficult, but the goal is invariably to support and advance naval operations through advanced technology.

How has federal spending on computer systems design services (NAICS 541512) by the Department of the Navy trended historically?

Historical federal spending on computer systems design services (NAICS 541512) by the Department of the Navy has generally shown a consistent and significant demand, driven by the continuous need for modernization, upgrades, and development of complex IT systems. This spending often fluctuates based on major defense initiatives, technological advancements, and budget allocations. Analyzing spending trends over the past 5-10 years would reveal patterns, identify peak spending periods, and highlight any shifts in the types of services procured. Such an analysis would provide context for the current $11.3 million task order, indicating whether it represents a typical investment or a deviation from historical patterns, and could inform future budget planning and procurement strategies.

What are the implications of this contract being awarded under an existing IDIQ contract?

Awarding this task order under an existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract implies that the foundational contract vehicle has already undergone a competitive process, establishing a pool of pre-qualified vendors. This approach can streamline the acquisition process for subsequent task orders, reducing lead times and administrative burden. For this specific task order, it suggests that General Dynamics Information Technology was one of the pre-selected vendors under the parent IDIQ. While the IDIQ itself may have been competed, the individual task order was not, which raises questions about price competition at the task order level. The effectiveness of the initial IDIQ competition in securing favorable pricing for all subsequent task orders is a key consideration.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3150 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: $97,730,293

Exercised Options: $31,011,411

Current Obligation: $11,315,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0003925D7800

IDV Type: IDC

Timeline