DoD's $92M IT Support Contract for NSWC Crane Faces Scrutiny Over Value and Competition

Contract Overview

Contract Amount: $92,114,195 ($92.1M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-04-20

End Date: 2023-10-31

Contract Duration: 2,385 days

Daily Burn Rate: $38.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF INFORMATION TECHNOLOGY (IT) SUPPORT OF NEW AND EXISTING APPLICATIONS AND PROGRAMS SUPPORT OF THE RESEARCH, DEVELOPMENT, TEST, AND EVALUATION (RDT&E) AND BOUNDARY THREE COMMUNITIES OF INTEREST (B3COI) NETWORKS. THE INTENT OF THIS CONTRACT IS TO SATISFY THE ENTERPRISE IT NEEDS OF NSWC CRANE, INCLUDING IT WORK THAT OCCURS UNDER OTHER NON-IT SERVICE CONTRACTS. THIS CONTRACT IS NOT INTENDED TO ADDRESS THE TACTICAL WEAPON SYSTEM EFFORTS THAT ARE PART OF BROADER ENGINEERING EFFORTS.

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $92.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF INFORMATION TECHNOLOGY (IT) SUPPORT OF NEW AND EXISTING APPLICATIONS AND PROGRAMS SUPPORT OF THE RESEARCH, DEVELOPMENT, TEST, AND EVALUATION (RDT&E) AND BOUNDARY THREE COMMUNITIES OF INTEREST (B3COI) NETWORKS. THE INTENT OF THIS CONTRACT IS TO SATISFY THE ENTERPRISE… Key points: 1. The contract, valued at $92.1M, supports IT needs for NSWC Crane's RDT&E and B3COI networks. 2. Awarded to General Dynamics Information Technology, Inc. under full and open competition. 3. Concerns may arise regarding the true value and effectiveness of IT support within broader engineering efforts. 4. The sector is IT support services, a critical but often complex area for government agencies.

Value Assessment

Rating: fair

The contract's value of $92.1M over six years for IT support is substantial. Benchmarking against similar IT support contracts for RDT&E environments is necessary to assess if this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the broad scope encompassing IT work under non-IT contracts could obscure true cost drivers.

Taxpayer Impact: Taxpayer funds are being utilized for enterprise IT needs, with the expectation of efficient and effective service delivery. Oversight is crucial to ensure value for money.

Public Impact

Ensures critical IT infrastructure supports research and development activities at NSWC Crane. Potential for IT support costs to be embedded within larger, non-IT contracts, impacting transparency. The contract's duration and value suggest a significant, long-term reliance on the contractor. Impacts personnel and operations that depend on reliable and secure IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Scope creep potential: IT work under non-IT contracts.
Value assessment: Is $92M for IT support justified?
Effectiveness: Measuring IT impact on RDT&E outcomes.

Positive Signals

Awarded via full and open competition.
Supports critical RDT&E and B3COI networks.
Long-term contract provides stability for IT services.

Sector Analysis

This contract falls within the IT support services sector, specifically for defense research and development. Benchmarks for similar IT support contracts in the federal government, especially within DoD, would be useful for comparison.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the awardee is a large corporation. There is no explicit information on subcontracting opportunities for small businesses within this contract.

Oversight & Accountability

Oversight will be critical to ensure the contractor is meeting performance requirements and that costs are reasonable, especially given the potential for IT work to be integrated into other service contracts.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for IT costs to be hidden within non-IT contracts.
Difficulty in assessing true value for money without detailed benchmarking.
Measuring the direct impact of IT support on RDT&E outcomes.
Contract duration and value may indicate a lack of agile procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $92.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF INFORMATION TECHNOLOGY (IT) SUPPORT OF NEW AND EXISTING APPLICATIONS AND PROGRAMS SUPPORT OF THE RESEARCH, DEVELOPMENT, TEST, AND EVALUATION (RDT&E) AND BOUNDARY THREE COMMUNITIES OF INTEREST (B3COI) NETWORKS. THE INTENT OF THIS CONTRACT IS TO SATISFY THE ENTERPRISE IT NEEDS OF NSWC CRANE, INCLUDING IT WORK THAT OCCURS UNDER OTHER NON-IT SERVICE CONTRACTS. THIS CONTRACT IS NOT INTENDED TO ADDRESS THE TACTICAL WEAPON SYSTEM EFFORTS THAT ARE PART OF BROADER ENGINEERING EFFORTS.

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 $92.1 million.

What is the period of performance?

Start: 2017-04-20. End: 2023-10-31.

How effectively does this IT support contract contribute to the RDT&E and B3COI mission objectives of NSWC Crane, beyond basic network maintenance?

Assessing the contract's effectiveness requires evaluating its direct impact on research acceleration, development timelines, and the security and functionality of the Boundary Three Communities of Interest networks. Metrics should focus on uptime, response times for critical issues, and successful integration of new technologies that enhance the RDT&E process, rather than just standard IT service delivery.

What is the risk of cost overruns or inefficiencies given the broad scope of IT support potentially embedded within other non-IT service contracts?

The risk of cost overruns is moderate to high. When IT support is bundled within broader non-IT contracts, it can obscure true IT expenditures, making it difficult to track specific costs and identify potential inefficiencies. This lack of clear delineation may allow for scope creep and less rigorous cost scrutiny, potentially leading to higher overall spending than if IT services were procured separately.

Does the $92.1M contract value represent a fair and reasonable price for the IT support services provided over its duration, considering market rates?

Determining fairness requires a detailed cost-benefit analysis and comparison with similar IT support contracts awarded by the DoD or other federal agencies for comparable RDT&E environments. Factors like the complexity of the networks, required security levels, and the specific services included need to be benchmarked against industry standards and competitor pricing to ascertain if the $92.1M represents good value for taxpayer money.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002415R3171

Offers Received: 10

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

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: $97,220,538

Exercised Options: $96,940,834

Current Obligation: $92,114,195

Actual Outlays: $85,729

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $7,631,932

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4012

IDV Type: IDC

Timeline