DoD's $61.5M IT Support Contract Awarded to General Dynamics Information Technology Inc

Contract Overview

Contract Amount: $61,532,171 ($61.5M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2017-05-31

End Date: 2018-11-30

Contract Duration: 548 days

Daily Burn Rate: $112.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IT SUPPORT SERVICES - IGF::OT::IGF

Place of Performance

Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32509

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $61.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: IT SUPPORT SERVICES - IGF::OT::IGF Key points: 1. The contract represents a significant investment in IT support services for the Department of the Navy. 2. Competition dynamics indicate a full and open bidding process, suggesting potential for competitive pricing. 3. The contract duration of 548 days (approx. 1.5 years) is relatively short for complex IT services. 4. Performance context is tied to IT support services, a critical function for military operations. 5. The sector positioning is within IT services, a broad and essential category for government functions. 6. The award was a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

Benchmarking the value of this $61.5 million contract is challenging without direct comparisons to similar IT support services contracts awarded by the Department of the Navy during the same period. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs if not managed tightly, as it allows the contractor to recover all allowable costs plus a fixed fee. However, the fixed fee provides some incentive for the contractor to control costs. Without detailed cost breakdowns and performance metrics, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit bids. The number of bidders is not specified in the provided data, but a full and open competition generally fosters a competitive environment. This approach is intended to ensure that the government receives the best possible pricing and services by allowing a wide range of contractors to participate and present their offerings.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and innovative solutions, potentially leading to cost savings compared to less competitive procurement methods.

Public Impact

The primary beneficiaries are the Department of the Navy, receiving essential IT support services. Services delivered include IT support, crucial for maintaining operational readiness and administrative functions. The geographic impact is focused on Florida, where the contract was performed. Workforce implications include employment opportunities for IT professionals in Florida, both directly with the contractor and potentially through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not meticulously managed.
Limited duration of the contract may indicate a need for ongoing re-competition or potential disruption.
Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the IT support provided.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
General Dynamics Information Technology Inc. is a large, established contractor with significant experience in government IT services.
The contract was a delivery order, likely part of a larger, pre-competed IDIQ vehicle, which can streamline procurement.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, a vast and critical area for government operations. The IT services market is highly competitive, with numerous large and small businesses vying for federal contracts. Spending in this sector is consistently high across all federal agencies, supporting everything from basic infrastructure to advanced cyber defense. This specific contract for IT support services is a common type of award, essential for maintaining the day-to-day functioning of military and civilian agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, as a large prime contractor, General Dynamics Information Technology Inc. may engage small businesses as subcontractors to fulfill specific needs, though this is not mandated by the contract terms as presented.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy. The CPFF structure necessitates close monitoring of costs and performance to ensure the fixed fee remains appropriate and that all allowable costs are reasonable and allocable. Transparency is generally maintained through contract reporting systems, and accountability is enforced through contract clauses and performance reviews. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Support Services
General IT Services
Department of Defense IT Contracts
Navy IT Procurement
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Short contract duration may lead to transition risks or require frequent re-competition.
Lack of detailed performance data limits comprehensive value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $61.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. IT SUPPORT SERVICES - IGF::OT::IGF

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 $61.5 million.

What is the period of performance?

Start: 2017-05-31. End: 2018-11-30.

What is the track record of General Dynamics Information Technology Inc. with similar IT support contracts for the Department of the Navy?

General Dynamics Information Technology Inc. (GDIT) has a long and extensive history of providing IT support services to the Department of the Navy and other Department of Defense components. They are a major federal IT contractor, frequently awarded large-scale contracts for network operations, system maintenance, cybersecurity, and help desk support. Their track record typically includes managing complex IT infrastructures and delivering services across various naval commands and installations. While specific performance metrics for individual contracts are often proprietary or require deeper analysis, GDIT's sustained presence and significant contract awards suggest a generally accepted capability to meet the government's IT needs. However, like any large contractor, they may have faced performance challenges or disputes on specific projects, which would be detailed in contract performance reports and agency evaluations.

How does the $61.5 million value compare to other IT support contracts of similar scope and duration?

The $61.5 million value for approximately 1.5 years of IT support services is within a typical range for contracts of this nature, especially for a large organization like the Department of the Navy. However, a precise comparison requires detailed analysis of the specific services rendered, the number of users supported, the complexity of the IT environment, and the geographic scope. Contracts for enterprise-wide IT infrastructure management or advanced cyber defense typically command higher values. Conversely, smaller, localized support contracts would be significantly less. Given that this was a delivery order, it might represent a portion of a larger IDIQ contract, making direct comparison to standalone contracts less meaningful without understanding the parent IDIQ's overall value and scope.

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

The primary risk with a CPFF contract for IT support lies in potential cost overruns and reduced incentive for efficiency. While the contractor's profit (the fixed fee) is predetermined, they are reimbursed for all allowable costs incurred. If the contractor is not diligent in managing resources, or if unforeseen technical challenges arise that increase costs significantly, the total expenditure can exceed initial estimates. This places a greater burden on the government to meticulously oversee and audit the contractor's expenses to ensure they are reasonable, allocable, and necessary. Without strong oversight, the government may end up paying more than anticipated, even though the contractor's fee remains fixed.

How effective is full and open competition in ensuring value for money for IT support services?

Full and open competition is generally considered the most effective method for ensuring value for money in IT support services. By allowing all responsible sources to bid, the government maximizes the potential for receiving competitive pricing, innovative solutions, and high-quality services. The competitive pressure encourages bidders to offer their best terms and pricing to win the contract. Furthermore, it provides a broader base for evaluating technical approaches and past performance, enabling the agency to select the offer that represents the best overall value. While it requires more upfront effort in terms of solicitation and evaluation, the long-term benefits in terms of cost savings and service quality typically outweigh these initial investments.

What are the implications of the contract's relatively short duration (548 days)?

The relatively short duration of 548 days (approximately 1.5 years) for this IT support contract has several implications. It suggests that the services might be for a specific project, a transition period, or that the Department of the Navy intends to re-compete the requirement frequently. Frequent re-competition can ensure that the government continually benefits from current market pricing and technology, but it also introduces potential risks of disruption during contract transitions and requires ongoing procurement resources. It could also indicate that the scope of work was limited or that the agency preferred to maintain flexibility rather than committing to a longer-term arrangement without further evaluation.

What is the significance of this contract being a 'Delivery Order'?

The fact that this award is a 'Delivery Order' signifies that it was issued under a pre-existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract. IDIQ contracts establish terms and conditions for services or supplies over a period, allowing agencies to issue specific orders (like this one) up to a certain ceiling amount. Delivery Orders are typically used to procure specific quantities of supplies or services at established prices. This method streamlines the procurement process for recurring needs, as the foundational contract has already been competed. It implies that the initial competition for the parent IDIQ contract likely involved multiple bidders, and this delivery order represents a specific tasking within that broader framework.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0018909RZ014

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corporation

Address: 3170 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: $61,532,171

Exercised Options: $61,532,171

Current Obligation: $61,532,171

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $1,124,880

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0018910DZ009

IDV Type: IDC

Timeline