DoD's $16.7M Engineering Services Contract with General Dynamics Extended to 2026

Contract Overview

Contract Amount: $16,737,696 ($16.7M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-08-16

End Date: 2026-02-04

Contract Duration: 1,998 days

Daily Burn Rate: $8.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE PURPOSE OF THIS AMENDMENT IS TO EXTEND THE DATE AND CLOSING TIME AND UPDATE THE PWS.

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: THE PURPOSE OF THIS AMENDMENT IS TO EXTEND THE DATE AND CLOSING TIME AND UPDATE THE PWS. Key points: 1. Contract value of $16.7M over its extended period suggests significant engineering support needs. 2. The 'full and open competition' indicates a broad market solicitation, potentially leading to competitive pricing. 3. The contract type (Cost Plus Fixed Fee) can incentivize cost control by the contractor while ensuring a defined profit. 4. An extension to February 2026 points to ongoing program requirements and contractor performance satisfaction. 5. The engineering services sector is critical for defense readiness and technological advancement. 6. The contract's duration of nearly 2000 days highlights a long-term commitment to these services.

Value Assessment

Rating: good

The total award amount of $16.7M for engineering services over approximately six years appears reasonable, especially considering the complexity often associated with Department of Defense contracts. Benchmarking against similar large-scale engineering support contracts within the DoD would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, requires careful monitoring to ensure costs remain within projected bounds and that the fixed fee provides adequate incentive for efficient performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors were invited to bid. The specific number of bidders is not provided, but this approach generally fosters a competitive environment, which is intended to drive down prices and improve the quality of services offered. The open competition is a positive indicator for price discovery and ensuring the government receives the best value.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically leads to more competitive pricing and a wider selection of qualified contractors, maximizing the efficient use of public funds.

Public Impact

The Department of the Navy benefits from specialized engineering expertise to support its complex operations and systems. Services delivered likely include design, analysis, testing, and integration of various defense systems. The contract's impact is primarily national, supporting the readiness and technological superiority of the U.S. Navy. The contract supports a workforce of skilled engineers and technical professionals within General Dynamics Information Technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage potential cost overruns.
The long duration of the contract could lead to scope creep if not managed effectively.
Ensuring continued alignment with evolving technological requirements is crucial over the contract's extended period.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The contract extension suggests satisfactory performance and a continued need for the services.
General Dynamics Information Technology is a large, established contractor with significant experience in government services.

Sector Analysis

The engineering services sector is a vital component of the defense industrial base, providing essential technical expertise for the development, maintenance, and modernization of military systems. This contract falls within the broader professional, scientific, and technical services market, which is characterized by high demand from government agencies. Comparable spending benchmarks for large-scale engineering support contracts within the DoD often run into tens or hundreds of millions of dollars, depending on the scope and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large prime contract awarded to General Dynamics Information Technology, there may be opportunities for small businesses to participate as subcontractors. However, the extent of small business subcontracting is not detailed in this award notice and would require further investigation into the contractor's subcontracting plan.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Navy. Performance monitoring, financial reviews, and adherence to the contract's terms and conditions are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements, though specific details of ongoing performance are often proprietary.

Related Government Programs

Defense Engineering Services
Naval Systems Support
Information Technology Support Services
Professional, Scientific, and Technical Services

Risk Flags

Potential for cost overruns in CPFF contract
Need for robust oversight of contractor performance
Ensuring continued relevance of services over contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. THE PURPOSE OF THIS AMENDMENT IS TO EXTEND THE DATE AND CLOSING TIME AND UPDATE THE PWS.

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 $16.7 million.

What is the period of performance?

Start: 2020-08-16. End: 2026-02-04.

What specific engineering services are being provided under this contract?

The provided data indicates the contract is for 'Engineering Services' (nd: Engineering Services) and the purpose of the amendment is to update the PWS (Performance Work Statement). While the PWS itself is not included, typical engineering services for the Department of the Navy can encompass a wide range of activities. These may include systems engineering, design and development, technical analysis, testing and evaluation, integration, logistics support, and lifecycle management for various naval platforms, weapons systems, or IT infrastructure. The specific nature of the services would be detailed in the PWS, which outlines the tasks, deliverables, and performance standards expected from General Dynamics Information Technology.

How does the $16.7M award compare to other similar engineering contracts within the DoD?

The $16.7 million total award value for this contract, spanning nearly 2000 days (approximately 5.5 years), places it as a significant, but not exceptionally large, engineering services contract within the Department of Defense. Many major defense programs involve engineering support contracts that can range from tens to hundreds of millions of dollars, or even billions for very large, long-term system development efforts. For instance, contracts for major platform development (ships, aircraft) or complex IT system overhauls often exceed this value considerably. This contract's value suggests it supports a specific set of engineering needs for the Navy, likely focused on particular systems or projects rather than a broad, enterprise-wide engineering overhaul.

What are the key risks associated with a Cost Plus Fixed Fee (CPFF) contract of this duration?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially one extending for nearly 2000 days, is the potential for cost escalation. While the 'fixed fee' component provides the contractor with a defined profit margin, the 'cost plus' element means the government reimburses the contractor's allowable costs. If cost controls are weak or unforeseen issues arise, the total cost to the government can increase significantly beyond initial estimates. For the government, effective oversight is crucial to scrutinize incurred costs, ensure they are reasonable and allocable, and prevent inefficiencies. The contractor, while motivated by the fixed fee, may have less incentive to aggressively seek cost savings compared to fixed-price contracts, though they are still obligated to perform the work within the scope.

What is the significance of the contract being awarded under 'full and open competition'?

Awarding this contract under 'full and open competition' signifies that the Department of the Navy solicited proposals from all responsible sources capable of meeting the requirements. This is generally considered the preferred method of government contracting because it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive proposals. This competitive process is designed to ensure the government obtains the best possible value (considering both price and technical factors) and promotes innovation. It also provides a level playing field for various companies, preventing favoritism and ensuring taxpayer funds are used efficiently. The absence of set-asides or sole-source justifications implies that the market was deemed capable of providing the required engineering services through a competitive bidding process.

How has spending on engineering services by the Department of the Navy trended historically?

Historical spending on engineering services by the Department of the Navy is substantial and generally trends upwards, reflecting the continuous need for modernization, maintenance, and development of naval assets and systems. The Navy relies heavily on external engineering expertise to support its complex technological requirements, from shipbuilding and aircraft sustainment to advanced research and development and cybersecurity. While specific year-over-year trends for 'engineering services' can fluctuate based on major program cycles and budget allocations, the overall demand remains consistently high. Factors influencing this include the aging of existing platforms, the introduction of new technologies, and evolving geopolitical threats requiring advanced defense capabilities. This contract represents a portion of that ongoing, significant investment in engineering support.

What is the role of General Dynamics Information Technology in this contract?

General Dynamics Information Technology (GDIT), as the prime contractor, is responsible for delivering the specified engineering services to the Department of the Navy. Their role encompasses managing the project, deploying qualified personnel, performing the required technical tasks, and meeting all contractual obligations outlined in the Performance Work Statement (PWS). As a large, established defense contractor, GDIT possesses the resources, expertise, and infrastructure to undertake complex government contracts. They will be accountable for the quality of work, adherence to schedules, and management of costs associated with the engineering services provided. Their performance will be evaluated throughout the contract period, and the extension indicates satisfaction with their execution to date.

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

Solicitation ID: N6133120R3001

Offers Received: 1

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: $20,303,784

Exercised Options: $20,303,784

Current Obligation: $16,737,696

Actual Outlays: $21,595

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