General Dynamics awarded $43M for Joint Integrated Air and Missile Defense Services by the Department of Defense

Contract Overview

Contract Amount: $43,087,089 ($43.1M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-08-24

End Date: 2021-08-23

Contract Duration: 1,825 days

Daily Burn Rate: $23.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF JOINT INTEGRATED AIR AND MISSILE DEFENSE SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $43.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF JOINT INTEGRATED AIR AND MISSILE DEFENSE SERVICES Key points: 1. Contract value of $43.1 million over five years indicates a significant investment in critical defense capabilities. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Engineering services are a key component, highlighting the need for specialized technical expertise. 4. The contract duration of 1825 days (5 years) suggests a long-term need for these services. 5. The award to General Dynamics Information Technology, Inc. positions them as a key provider in this defense sector. 6. The contract type (Cost Plus Fixed Fee) implies that costs are reimbursed plus a fixed fee, with potential for cost overruns. 7. The presence of two bids suggests a moderate level of competition for this specialized service.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable service contracts. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs compared to fixed-price contracts if not managed tightly. However, for complex engineering services where scope can evolve, CPFF can be appropriate. The total value of $43.1 million over five years averages to approximately $8.6 million annually, which appears reasonable for specialized defense engineering services, but a detailed cost breakdown and comparison to similar DoD contracts would be needed for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The data indicates two bids were received. While two bidders suggest some level of competition, it is on the lower end for a contract of this magnitude and complexity. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions. The limited number of bids may indicate a specialized niche or high barriers to entry for potential competitors.

Taxpayer Impact: For taxpayers, a limited number of bids can mean less downward pressure on pricing, potentially resulting in a higher overall cost for the services rendered compared to a more robustly competed contract.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches requiring advanced air and missile defense capabilities. The services delivered are critical for national security, focusing on engineering and technical support for integrated defense systems. The geographic impact is likely nationwide, supporting defense operations and personnel across various military installations. Workforce implications include employment opportunities for engineers, technical specialists, and support staff within General Dynamics and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not rigorously monitored.
Limited competition (2 bids) may have resulted in a less competitive price than a more open bidding process.
The specific nature of 'Joint Integrated Air and Missile Defense Services' suggests a complex and potentially evolving technological landscape, increasing risk.
The duration of the contract (5 years) means taxpayer funds are committed for an extended period, requiring ongoing scrutiny.

Positive Signals

Awarded under full and open competition, ensuring a broad initial opportunity for qualified contractors.
General Dynamics Information Technology, Inc. is a large, established contractor with significant experience in defense IT and engineering services.
The contract addresses a critical national security need, indicating strategic importance and likely robust internal oversight within the DoD.
The contract value, while substantial, is spread over five years, suggesting a managed approach to funding these essential services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the Defense industry's need for advanced technological solutions in air and missile defense. The market for defense engineering services is substantial, driven by continuous modernization and evolving threats. Comparable spending benchmarks would typically involve other large-scale engineering support contracts for complex defense systems, often awarded by agencies like the DoD, NASA, or DHS. The total contract value of $43.1 million over five years places it as a significant, but not exceptionally large, award within the broader defense contracting landscape.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications mandated by a small business set-aside. However, as a large prime contractor, General Dynamics may choose to subcontract portions of this work to small businesses to meet broader federal small business utilization goals. The absence of a set-aside means that the primary competition was open to all responsible sources, including large businesses.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for contract administration. The Department of Defense's Inspector General (IG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract. Transparency is generally maintained through contract award databases like FPDS, though detailed performance reports and cost breakdowns may be considered sensitive. Accountability measures would include performance reviews, adherence to contract terms, and potential penalties for non-compliance.

Related Government Programs

Missile Defense Agency (MDA) Contracts
Air Force Air Defense Systems Contracts
Army Integrated Air and Missile Defense (AIAMD) Programs
Naval Air and Missile Defense Contracts
DoD Engineering and Technical Services Contracts

Risk Flags

Potential for cost overruns due to CPFF contract type.
Limited competition may impact price competitiveness.
Complexity of integrated air and missile defense systems presents technical risks.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF JOINT INTEGRATED AIR AND MISSILE DEFENSE SERVICES

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 $43.1 million.

What is the period of performance?

Start: 2016-08-24. End: 2021-08-23.

What is the track record of General Dynamics Information Technology, Inc. in delivering similar defense engineering services?

General Dynamics Information Technology, Inc. (GDIT) has a long and extensive track record in providing IT and engineering services to the U.S. federal government, particularly the Department of Defense. They are a major contractor involved in complex systems integration, cybersecurity, data analytics, and mission support across various defense branches. Their experience spans large-scale programs requiring sophisticated engineering, program management, and technical expertise. While specific performance details for this particular contract are not publicly available, GDIT's overall profile suggests they possess the capabilities and experience necessary to handle joint integrated air and missile defense services. However, past performance on similar contracts, including any past issues or successes, would be a critical factor in a deeper assessment.

How does the $43.1 million contract value compare to other similar air and missile defense engineering contracts awarded by the DoD?

The $43.1 million contract value, spread over five years, averages approximately $8.6 million per year. This figure is moderate within the context of large-scale defense procurements. Major air and missile defense programs, especially those involving system development, procurement, or extensive sustainment, can range from hundreds of millions to billions of dollars. Contracts for specialized engineering services, like those specified here, are typically smaller than those for hardware acquisition or full system development. To provide a precise comparison, one would need to analyze contracts with similar scopes (engineering services for integrated air and missile defense) and durations awarded by the DoD or its components (like the Missile Defense Agency or specific service branches) over the past few years. Without that granular data, it's difficult to definitively state if $43.1M is high or low, but it suggests a focused scope of work rather than a comprehensive program-wide contract.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. Unlike fixed-price contracts, the contractor does not bear the direct financial risk of cost increases. This can incentivize less cost-consciousness if oversight is not stringent. For the government, the risk is paying more than anticipated if the contractor's costs escalate due to inefficiencies, scope creep not properly managed, or unforeseen technical challenges. Effective risk mitigation requires robust government oversight, detailed cost tracking, clear definition of allowable costs, and strong negotiation of the fixed fee based on realistic projections.

How effective is 'full and open competition' in ensuring value for money when only two bids are received?

Full and open competition is designed to maximize value for money by encouraging a wide range of potential bidders, thereby fostering price competition and innovation. However, when only two bids are received, the effectiveness of this mechanism in securing optimal value is diminished. While two bidders are better than one, it represents a limited competitive environment. This situation can arise due to the specialized nature of the services, high barriers to entry (e.g., security clearances, technical expertise, past performance requirements), or insufficient market research by the procuring agency to identify more potential bidders. In such cases, the government may not achieve the lowest possible price or the most innovative solution that might have emerged from a larger pool of competitors. The agency must still conduct thorough evaluations to ensure the selected bid represents fair and reasonable pricing, but the inherent leverage of a more competitive market is reduced.

What are the historical spending patterns for 'Engineering Services' within the Department of Defense?

The Department of Defense is consistently one of the largest federal agencies for procuring engineering services, reflecting its complex technological needs and ongoing modernization efforts. Historical spending patterns show a significant and sustained investment in this category across various domains, including aerospace, naval systems, ground vehicles, C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance), and specialized areas like air and missile defense. These services are crucial for research and development, system design, testing, integration, sustainment, and lifecycle support. Spending often fluctuates based on geopolitical conditions, specific program requirements (e.g., development of new weapon systems), and budget allocations. The 'Engineering Services' category (NAICS code 541330) typically represents billions of dollars annually for the DoD, underscoring its critical role in maintaining military readiness and technological superiority.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

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: $53,880,964

Exercised Options: $44,307,489

Current Obligation: $43,087,089

Actual Outlays: $3,321,520

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $8,097,489

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU312

IDV Type: IDC

Timeline