DoD awards $79.7M IT support contract to General Dynamics for NCIS, raising value concerns

Contract Overview

Contract Amount: $79,709,353 ($79.7M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-07-30

End Date: 2026-08-31

Contract Duration: 1,858 days

Daily Burn Rate: $42.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: INFORMATION TECHNOLOGY (IT) SUPPORT SERVICES IN SUPPORT OF THE NAVAL CRIMINAL INVESTIGATIVE SERVICES (NCIS) INFORMATION TECHNOLOGY DIRECTORATE (ITD)

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $79.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: INFORMATION TECHNOLOGY (IT) SUPPORT SERVICES IN SUPPORT OF THE NAVAL CRIMINAL INVESTIGATIVE SERVICES (NCIS) INFORMATION TECHNOLOGY DIRECTORATE (ITD) Key points: 1. Contract value is substantial at $79.7M over 5 years. 2. General Dynamics is a major defense contractor, indicating significant competition. 3. Risk of cost overruns exists with Cost Plus Fixed Fee contract type. 4. IT support services are critical for NCIS operations.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee contract type can lead to cost overruns if not managed tightly. Benchmarking against similar IT support contracts for federal agencies is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing mechanisms and their impact on price discovery require further analysis.

Taxpayer Impact: Taxpayer funds are being used for essential IT support, with the potential for inefficiency if costs are not controlled.

Public Impact

Ensures continued IT operations for the Naval Criminal Investigative Service. Supports national security by maintaining critical information systems. Potential for cost savings through efficient contract management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type
Long contract duration (5 years)
No small business participation noted

Positive Signals

Full and open competition
Critical IT support for NCIS

Sector Analysis

This contract falls within the IT support services sector, a common area of federal spending. Benchmarks for similar IT support contracts can vary widely based on scope and complexity.

Small Business Impact

The data indicates no small business participation in this contract. Opportunities for small businesses in IT support services are often significant, and their exclusion warrants review.

Oversight & Accountability

Oversight will be crucial to manage the Cost Plus Fixed Fee structure and ensure the government receives value for its investment. Regular performance reviews and cost audits are recommended.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to CPFF structure
Lack of small business participation
Long contract duration may reduce flexibility
Need for detailed cost benchmarking

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $79.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. INFORMATION TECHNOLOGY (IT) SUPPORT SERVICES IN SUPPORT OF THE NAVAL CRIMINAL INVESTIGATIVE SERVICES (NCIS) INFORMATION TECHNOLOGY DIRECTORATE (ITD)

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 $79.7 million.

What is the period of performance?

Start: 2021-07-30. End: 2026-08-31.

What is the estimated cost per user or per service unit, and how does it compare to industry benchmarks for similar IT support contracts?

Without specific unit cost data, a direct comparison is difficult. However, the overall contract value of $79.7M for approximately 1858 days suggests a significant investment. Further analysis of the contract's detailed CLINs and task orders would be necessary to establish per-unit costs and benchmark them against similar federal or commercial IT support agreements.

What are the primary risks associated with the Cost Plus Fixed Fee contract type in this context, and what mitigation strategies are in place?

The primary risk of a CPFF contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. Mitigation strategies should include robust oversight, detailed performance metrics, clear scope definition, and regular audits to ensure costs are reasonable and allocable to the contract's objectives.

How effectively does this contract ensure the continuity and enhancement of NCIS's IT capabilities, and what metrics are used to measure success?

The contract's effectiveness hinges on the contractor's ability to provide reliable IT support, maintain system uptime, and implement necessary upgrades. Success metrics should include system availability rates, response times for support requests, successful project completion, and user satisfaction surveys. The long duration suggests a focus on sustained operational support.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0018921R3010

Offers Received: 3

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: $81,735,492

Exercised Options: $81,735,492

Current Obligation: $79,709,353

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $14,955,931

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