DoD's $69.5M STEI Support Contract Awarded to General Dynamics

Contract Overview

Contract Amount: $69,463,862 ($69.5M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-05-26

End Date: 2026-06-03

Contract Duration: 2,199 days

Daily Burn Rate: $31.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SPECIAL TECHNOLOGIES ENGINEERING AND INTEGRATION (STEI) SUPPORT

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $69.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: SPECIAL TECHNOLOGIES ENGINEERING AND INTEGRATION (STEI) SUPPORT Key points: 1. Contract awarded to General Dynamics Information Technology, Inc. for specialized engineering and integration support. 2. The contract has a significant value of $69.5 million, indicating a substantial need for these services. 3. Full and open competition was utilized, suggesting a robust price discovery process. 4. The contract spans over 6 years, from May 2020 to June 2026. 5. Services fall under Engineering Services (NAICS 541330).

Value Assessment

Rating: good

The contract is a Delivery Order under a larger IDIQ, making direct pricing comparisons difficult. However, the Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement with a negotiated profit, which is common for complex engineering services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally leads to competitive pricing. The use of a Delivery Order implies that the base IDIQ contract underwent a competitive process, and this order was placed based on established terms.

Taxpayer Impact: Full and open competition aims to secure the best value for taxpayers by allowing all eligible vendors to bid, potentially driving down costs and improving service quality.

Public Impact

Ensures critical engineering and integration support for Department of the Navy programs. Supports advanced technological capabilities within the defense sector. Provides long-term stability for the contractor and its workforce. Potential for technology transfer and innovation within the DoD.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is long (over 6 years).
Cost Plus Fixed Fee contract type can sometimes lead to cost overruns if not managed tightly.
No small business participation indicated.

Positive Signals

Awarded under full and open competition.
Significant value suggests critical need and potential for high-impact services.
Long-term contract provides program stability.

Sector Analysis

This contract falls within the Engineering Services sector, which is crucial for defense modernization and technological advancement. Spending benchmarks for similar large-scale engineering support contracts can vary widely based on scope and duration, but $69.5M over 6 years is a substantial investment.

Small Business Impact

The data indicates that this contract was not awarded to a small business (sb: false). There is no specific mention of small business subcontracting goals or participation within the provided details.

Oversight & Accountability

As a Delivery Order under a larger IDIQ, oversight is likely managed through the base contract's terms and conditions. The Department of the Navy is responsible for ensuring performance and adherence to the contract's cost and schedule.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Long contract duration may lead to outdated technology if not managed.
CPFF structure can incentivize cost increases.
No small business participation noted.
Potential for scope creep in complex engineering projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $69.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. SPECIAL TECHNOLOGIES ENGINEERING AND INTEGRATION (STEI) 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 $69.5 million.

What is the period of performance?

Start: 2020-05-26. End: 2026-06-03.

What specific engineering and integration services are included under STEI Support, and how do they align with current and future naval technological needs?

The STEI Support contract likely encompasses a range of advanced engineering services, including system design, integration, testing, and lifecycle support for complex naval technologies. This could involve areas like C4ISR systems, cybersecurity solutions, platform modernization, and emerging technologies such as AI and autonomous systems, directly supporting the Navy's strategic objectives for maintaining technological superiority.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration for specialized engineering services?

CPFF contracts carry inherent risks of cost overruns if the fixed fee doesn't adequately account for unforeseen complexities or scope creep. For specialized engineering, estimating all costs accurately over a 6-year period is challenging. The government bears the risk of cost increases beyond the estimate, necessitating robust oversight to manage expenditures and ensure the fixed fee remains appropriate for the delivered value.

How effectively does the full and open competition process ensure optimal value and innovation for the Department of the Navy in acquiring specialized engineering support?

Full and open competition is designed to maximize value by fostering a competitive environment where multiple vendors vie for the contract, driving down prices and encouraging innovative solutions. For specialized engineering, this process allows the Navy to access a broad range of technical expertise and potentially discover novel approaches that might not emerge from more restricted acquisition methods, ultimately benefiting program effectiveness and taxpayer investment.

Industry Classification

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

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › EQUIPMENT AND MATERIALS TESTING

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0017820R3006

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: $97,007,454

Exercised Options: $97,007,454

Current Obligation: $69,463,862

Actual Outlays: $583,634

Subaward Activity

Number of Subawards: 89

Total Subaward Amount: $86,886,331

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7693

IDV Type: IDC

Timeline