DoD's $13.5M C5AD Support Services contract awarded to General Dynamics IT shows fair value with 8 bidders

Contract Overview

Contract Amount: $13,564,478 ($13.6M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-08-01

End Date: 2023-02-21

Contract Duration: 1,665 days

Daily Burn Rate: $8.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF C5AD SUPPORT SERVICES

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF C5AD SUPPORT SERVICES Key points: 1. The contract was awarded under full and open competition, indicating a robust bidding process. 2. Pricing appears reasonable when benchmarked against similar engineering services contracts. 3. The number of bidders suggests healthy market competition for these specialized services. 4. Performance context is limited due to the nature of support services, but no major red flags were identified. 5. This contract falls within the broader IT and engineering services sector for the Department of Defense. 6. The contractor, General Dynamics Information Technology, has a significant presence in federal contracting.

Value Assessment

Rating: good

The contract's total value of approximately $13.5 million over its period of performance appears reasonable given the scope of engineering and IT support services. Benchmarking against similar contracts for C5AD (Command, Control, Communications, Computers, and Cyber) support within the Department of Defense suggests that the pricing is competitive. While specific cost breakdowns are not publicly available, the presence of multiple bidders in a full and open competition generally drives favorable pricing for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, meaning all responsible sources were permitted to submit a bid. The data indicates that eight bidders participated in this competition. A higher number of bidders generally leads to more competitive pricing and a wider range of technical solutions, benefiting the government by ensuring it receives the best value for its investment.

Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario. It also suggests that the government had a good selection of qualified contractors to choose from.

Public Impact

The primary beneficiaries are the Department of Defense units relying on C5AD systems for operational effectiveness. Services delivered include critical support for command, control, communications, computers, and cyber functions. The geographic impact is primarily within the Department of Defense's operational theaters, though specific locations are not detailed. Workforce implications include employment for specialized IT and engineering professionals within General Dynamics Information Technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on a single large contractor could limit future flexibility or innovation if not managed proactively.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Contractor has a strong track record in federal IT and defense services.
Clear period of performance and defined delivery order structure.

Sector Analysis

This contract falls within the broader Information Technology and Engineering Services sector, specifically supporting defense-related C5AD functions. The market for these services is substantial, driven by ongoing modernization and operational needs within military branches. Comparable spending benchmarks in this area are typically high due to the complexity and criticality of the systems involved. General Dynamics Information Technology is a major player in this space, competing with other large defense contractors.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of the services and the prime contractor, it is likely that any small business involvement would be through subcontracting opportunities. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are embedded within the contract terms and delivery order structure. Transparency is facilitated through contract award databases, though detailed performance metrics are not publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD IT Modernization Programs
C5ISR Support Services
Defense Communications Infrastructure
Cybersecurity Support Contracts

Risk Flags

Potential for cost overruns due to CPFF structure
Risk of technical obsolescence in rapidly evolving C5AD field
Cybersecurity vulnerabilities inherent in C5AD systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF C5AD SUPPORT 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 $13.6 million.

What is the period of performance?

Start: 2018-08-01. End: 2023-02-21.

What is the track record of General Dynamics Information Technology with similar DoD contracts?

General Dynamics Information Technology (GDIT), now part of General Dynamics, has a long and extensive history of supporting the Department of Defense across a wide array of IT, C5AD, and engineering services. They are a major federal contractor with numerous awards for complex system integration, network management, cybersecurity, and operational support. Their track record includes managing large-scale, multi-year contracts with significant budgets, often involving critical national security functions. While specific performance details for individual contracts are not always public, GDIT's continued success in winning competitive bids for similar services indicates a generally positive performance history and a strong understanding of DoD requirements and operational environments. However, like any large contractor, they have also faced scrutiny and challenges on specific contracts, underscoring the importance of ongoing oversight.

How does the value of this contract compare to other C5AD support services contracts?

The total contract value of approximately $13.5 million over its duration (roughly 4.5 years) positions this as a mid-sized contract for specialized C5AD support services within the Department of Defense. Larger, more comprehensive C5AD support contracts can easily reach hundreds of millions or even billions of dollars, often encompassing broader system development, integration, and sustainment across multiple services or commands. Smaller contracts might focus on very niche technical support or specific system components. This $13.5 million award suggests a focused scope, likely involving specific system enhancements, maintenance, or operational support for a particular unit or set of capabilities, rather than a complete overhaul or enterprise-wide solution. Benchmarking requires comparing it to contracts with similar service definitions, contract types (e.g., cost-plus fixed fee), and the specific DoD components being supported.

What are the primary risks associated with this type of support services contract?

Key risks for this C5AD Support Services contract include technical obsolescence, as C5AD technologies evolve rapidly, potentially rendering contracted support for older systems less valuable or requiring constant adaptation. There's also a risk of contractor performance issues, where GDIT might struggle to meet evolving technical requirements, maintain service levels, or manage costs effectively, especially under a Cost Plus Fixed Fee structure which requires careful monitoring. Cybersecurity vulnerabilities are a constant concern, as any compromise of C5AD systems can have severe operational consequences. Furthermore, personnel security risks, including the potential loss of key personnel or the need for extensive background checks for staff accessing sensitive systems, can impact continuity and performance. Finally, integration challenges with other DoD systems and platforms present a risk if not managed meticulously.

What is the historical spending trend for C5AD support services within the DoD?

Historical spending on C5AD (Command, Control, Communications, Computers, and Cyber) support services within the Department of Defense has consistently been substantial and generally increasing over the past decade. This trend is driven by the increasing reliance on networked systems, the rapid pace of technological advancement, the growing cyber threat landscape, and the ongoing need for secure and reliable communications for global military operations. The DoD's budget allocations reflect a strategic priority placed on maintaining and modernizing these critical capabilities. Spending encompasses a wide range of services, including system development, integration, maintenance, cybersecurity, network operations, and technical support. While specific figures fluctuate annually based on budget cycles and strategic priorities, the overall trajectory indicates a sustained and significant investment in C5AD capabilities and the associated support services required to keep them operational and effective.

How effective is the Cost Plus Fixed Fee (CPFF) contract type for acquiring C5AD support?

The Cost Plus Fixed Fee (CPFF) contract type, used here, is often employed for complex C5AD support services where the scope of work is not precisely defined at the outset or is expected to evolve. It allows the government to leverage the contractor's expertise to navigate uncertainties while providing a defined profit margin (the fixed fee) for the contractor. This structure can be effective in encouraging innovation and ensuring that necessary services are delivered even when requirements are fluid. However, it also presents risks. The government bears the cost risk if actual costs exceed estimates, and there's a potential for less cost-consciousness from the contractor compared to fixed-price contracts. Effective management, robust oversight, and clear communication are crucial to mitigate these risks and ensure value for money under a CPFF arrangement for C5AD support.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0018917RZ003

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: $20,879,362

Exercised Options: $18,448,916

Current Obligation: $13,564,478

Actual Outlays: $1,147,101

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $275,711

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0018918DZ020

IDV Type: IDC

Timeline