DoD's $116M IT Services Contract with Computer Sciences Corp. Awarded in 1999, Extended Through 2005

Contract Overview

Contract Amount: $120,800,120 ($120.8M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 1999-06-02

End Date: 2005-11-23

Contract Duration: 2,366 days

Daily Burn Rate: $51.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: 199909!1700!2139!BW10C!NAVAL SURFACE WARFARE CENTER, DA!N0017899C2005 !A!*!* !19990602!20040731!116273467!009581091!009581091!N!51066!COMPUTER SCIENCES CORPORATION !304 ROUTE 38 !MOORESTOWN !NJ!08057!21008!099!51!DAHLGREN !KING GEORGE !VIRGINIA !0001!+000000200000!N!N!000000000000!AD25!RDTE/SERVICES-ENG/MANUF DEVELOP !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !7371!3!*!*!*!B!A!*!A !N!R!2!001!B!* !Z!N!Z!* !* !N!C!*!A!A!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $120.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: 199909!1700!2139!BW10C!NAVAL SURFACE WARFARE CENTER, DA!N0017899C2005 !A!*!* !19990602!20040731!116273467!009581091!009581091!N!51066!COMPUTER SCIENCES CORPORATION !304 ROUTE 38 !MOORESTOWN !NJ!08057!21008!099!51!DAHLGREN !KING G… Key points: 1. Contract value of $116.3M over its lifecycle suggests a significant investment in IT services. 2. Awarded under full and open competition, indicating a potentially competitive bidding process. 3. The contract's duration of nearly 6 years points to a long-term need for the services provided. 4. Services included engineering, manufacturing, and development, indicating a broad scope of IT support. 5. The contract was managed by the Naval Surface Warfare Center, highlighting its defense-specific application. 6. The use of a Cost Plus Award Fee (CPAF) contract type suggests performance incentives were in place.

Value Assessment

Rating: fair

The contract's total value of $116.3 million over approximately six years averages to about $19.4 million per year. Without specific benchmarks for similar IT services contracts from the late 1990s and early 2000s, it's challenging to definitively assess value for money. However, the duration and scope suggest a substantial requirement. The CPAF structure implies that the government aimed to incentivize performance, which could contribute to value if the award fees were tied to meaningful outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that all responsible sources were permitted to submit bids. This typically leads to a more robust price discovery process and potentially lower prices compared to sole-source or limited competition scenarios. The number of bidders is not specified in the provided data, which would offer further insight into the intensity of the competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation from multiple vendors.

Public Impact

The primary beneficiaries are likely the Department of Defense and its various branches, particularly the Naval Surface Warfare Center, which received IT services. Services delivered encompassed engineering, manufacturing, and development, crucial for maintaining and advancing defense technology capabilities. The contract's geographic impact is centered around the Naval Surface Warfare Center's locations, primarily Dahlgren, Virginia. Workforce implications include employment for IT professionals, engineers, and support staff employed by Computer Sciences Corporation and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The long contract duration (nearly 6 years) could lead to vendor lock-in and reduced flexibility for the government to adapt to changing technological needs.
Cost Plus Award Fee (CPAF) contracts can sometimes lead to cost overruns if not carefully managed, as the contractor is reimbursed for costs plus a fee that can be adjusted based on performance.
Lack of specific details on the number of bidders in the full and open competition makes it difficult to fully assess the competitive pressure on pricing.
The contract was awarded in 1999, and the services provided may be outdated by current technological standards, potentially impacting its long-term effectiveness.
The provided data does not detail the specific performance metrics or award fee criteria, making it hard to evaluate the effectiveness of the incentive structure.

Positive Signals

Awarded through full and open competition, suggesting a potentially competitive process that could yield better value.
The Cost Plus Award Fee (CPAF) structure includes incentives for performance, aiming to ensure the contractor meets or exceeds expectations.
The contract's significant value indicates a critical need for the IT services provided to the Naval Surface Warfare Center.
The long duration suggests a stable and reliable provision of essential IT services over an extended period.
The contract was managed by a specific entity (Naval Surface Warfare Center), implying focused oversight for its requirements.

Sector Analysis

This contract falls within the Information Technology (IT) and Defense sector, specifically focusing on IT services, engineering, manufacturing, and development for military applications. The market for defense IT services is substantial, driven by the need for advanced technological capabilities, cybersecurity, and data management. Contracts of this nature are common within the Department of Defense, supporting everything from research and development to operational systems. Benchmarking this contract's value against similar IT service contracts from the late 1990s would require access to historical procurement data, but its $116M total value over six years indicates a significant, long-term engagement.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (sb: false). There is no explicit information regarding subcontracting plans or performance related to small businesses. Therefore, the direct impact on the small business ecosystem is not discernible from this data alone. It's possible that Computer Sciences Corporation, as a large prime contractor, may have utilized small business subcontractors, but this detail is not present.

Oversight & Accountability

Oversight for this contract would have been primarily managed by the Naval Surface Warfare Center (NSWC), the awarding agency, and potentially the Defense Contract Management Agency (DCMA) for contract administration. The Cost Plus Award Fee (CPAF) structure implies performance monitoring and evaluation to determine award fee payouts. Transparency regarding specific performance metrics and award fee decisions is often limited for national security contracts. Inspector General jurisdiction would typically apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Naval Surface Warfare Center IT Support Services
Department of Defense IT Services Contracts
Computer Sciences Corporation Defense Contracts
Cost Plus Award Fee Contracts
IT Engineering and Development Contracts

Risk Flags

Long contract duration may limit flexibility
CPAF structure requires careful oversight to control costs
Performance metrics and award fee criteria not detailed
Potential for outdated technology given contract start date

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $120.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. 199909!1700!2139!BW10C!NAVAL SURFACE WARFARE CENTER, DA!N0017899C2005 !A!*!* !19990602!20040731!116273467!009581091!009581091!N!51066!COMPUTER SCIENCES CORPORATION !304 ROUTE 38 !MOORESTOWN !NJ!08057!21008!099!51!DAHLGREN !KING GEORGE !VIRGINIA !0001!+000000200000!N!N!000000000000!AD25!RDTE/SERVICES-ENG/MANUF DEVELOP !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !7371!3!*!*!*!B!A!*!A !N!R!2!0

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 $120.8 million.

What is the period of performance?

Start: 1999-06-02. End: 2005-11-23.

What was the specific performance history of Computer Sciences Corporation (CSC) on this contract, particularly concerning the award fee structure?

The provided data does not contain specific details about CSC's performance history or the breakdown of award fees paid under this contract. Contracts utilizing a Cost Plus Award Fee (CPAF) structure typically involve the government evaluating the contractor's performance against predefined criteria. These criteria often relate to technical execution, schedule adherence, cost control, and customer satisfaction. CSC would have received its base cost reimbursement plus a variable award fee, the amount of which depended on how well its performance met or exceeded these criteria. Without access to the contract's performance reports or award fee determinations, it's impossible to quantify CSC's specific success or shortcomings in meeting these objectives.

How does the $116.3 million total contract value compare to other similar IT services contracts awarded by the DoD around 1999-2005?

Comparing the $116.3 million total contract value requires context regarding the scope and duration of similar IT services contracts from that era. This contract spanned nearly six years, averaging approximately $19.4 million annually. During the late 1990s and early 2000s, the Department of Defense was heavily investing in IT modernization. Large-scale IT services contracts, encompassing areas like systems integration, software development, and infrastructure support, often ran into tens or hundreds of millions of dollars. While $116.3 million is a substantial sum, it was not uncommon for major defense IT procurements. To provide a precise comparison, one would need to analyze contracts with similar service descriptions (e.g., engineering, development, IT support) and durations awarded to other large IT service providers during the same period.

What were the primary risks associated with this Cost Plus Award Fee (CPAF) contract, and how were they managed?

The primary risks associated with a CPAF contract include potential cost growth if the contractor's costs escalate beyond initial projections, and the possibility of the government overpaying if the award fee criteria are not sufficiently stringent or if performance is mediocre but still warrants a significant fee. Managing these risks involves robust government oversight, clear and measurable performance standards, and careful negotiation of the fee structure. The government must actively monitor contractor costs and performance, ensuring that award fees are only granted for exceptional performance. For this specific contract, the Naval Surface Warfare Center would have been responsible for defining the performance metrics and making award fee determinations, aiming to balance incentivizing good performance with controlling costs.

What was the overall effectiveness of the services provided under this contract in meeting the Naval Surface Warfare Center's mission requirements?

The effectiveness of the services provided under this contract cannot be definitively assessed from the given data. The contract's duration of nearly six years suggests that the services were likely meeting the Naval Surface Warfare Center's needs to a degree that warranted continued engagement. Furthermore, the use of a Cost Plus Award Fee (CPAF) structure implies that the government intended to incentivize high performance. However, without access to performance reviews, end-user feedback, or mission accomplishment reports tied to the services rendered by Computer Sciences Corporation, a conclusive judgment on effectiveness remains elusive. The contract's renewal or extension, if applicable, could serve as an indirect indicator of satisfaction.

How did the spending on this contract compare to overall IT spending within the Department of Defense during the contract period (1999-2005)?

The total spending of $116.3 million on this contract represents a specific investment in IT services for the Naval Surface Warfare Center. During the period of 1999-2005, the Department of Defense's overall IT spending was in the tens of billions of dollars annually, driven by major initiatives like Y2K remediation, network modernization, and the integration of systems following the Goldwater-Nichols Act. Therefore, this $116.3 million contract, while substantial for a single award, constituted a relatively small fraction of the DoD's total IT budget. It highlights a focused expenditure on specific engineering, manufacturing, and development services rather than a broad, enterprise-wide IT overhaul.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Csra LLC (UEI: 080011988)

Address: 3170 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline