DoD's $69.6M ITT-2B DEVICE contract to General Dynamics Information Technology Inc. awarded for 2374 days

Contract Overview

Contract Amount: $69,553,462 ($69.6M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2017-09-28

End Date: 2024-03-29

Contract Duration: 2,374 days

Daily Burn Rate: $29.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: ITT-2B DEVICE NUMBERS 20B14, 20B14A (S/N 1),&20B14A (S/N 2)

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $69.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: ITT-2B DEVICE NUMBERS 20B14, 20B14A (S/N 1),&20B14A (S/N 2) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract (2374 days) is substantial, indicating a long-term need for the services or devices. 4. The North American Industry Classification System (NAICS) code 333319 points to the manufacturing of other commercial and service industry machinery. 5. The contract was awarded by the Department of Defense, a major federal agency with significant procurement needs. 6. The award was made by the Defense Contract Management Agency, responsible for overseeing defense contracts. 7. The contract is a Delivery Order, implying it's part of a larger contract vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the ITT-2B devices and their market prices. The Cost Plus Fixed Fee structure introduces inherent risk for cost control. Comparing it to similar large-scale IT procurements within the DoD would be necessary for a more precise value assessment. The total award amount of $69.6 million over nearly 6.5 years suggests a significant investment, but the value-for-money proposition depends heavily on the performance and necessity of the devices.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This typically suggests a robust bidding environment. However, the number of bidders is not specified, which is crucial for understanding the true level of competition. A high number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is intended to drive down prices through market forces. However, the ultimate benefit depends on the effectiveness of the competition and the government's negotiation strategy.

Public Impact

The Department of Defense is the primary beneficiary, receiving ITT-2B devices or related services. The contract supports the operational readiness and technological capabilities of the U.S. military. The geographic impact is likely concentrated within DoD facilities or operational areas where these devices are deployed. Workforce implications could include roles in manufacturing, installation, maintenance, and support of the ITT-2B devices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize profit, requiring vigilant oversight.
The long duration of the contract (2374 days) may lead to technology obsolescence if not managed proactively.
Lack of specific details on the 'ITT-2B DEVICE NUMBERS' makes it difficult to assess the necessity and true value of the procurement.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
The contract is managed by the Defense Contract Management Agency, an entity experienced in overseeing complex defense procurements.
The substantial award amount indicates a significant and potentially critical need for the contracted items or services.

Sector Analysis

The manufacturing of specialized machinery, as indicated by NAICS code 333319, falls within the broader industrial and commercial machinery sector. This sector is characterized by innovation and technological advancement. Federal spending in this area often supports defense, research, or critical infrastructure. Comparable spending benchmarks would require identifying specific types of machinery and their typical procurement costs within the defense industrial base.

Small Business Impact

The data indicates that small business participation (sb: false) was not a specific set-aside for this contract. There is no information provided on subcontracting plans for small businesses. This suggests that the primary contractor, General Dynamics Information Technology Inc., will likely handle the majority of the work, with potential for small business involvement being dependent on their internal subcontracting strategies rather than a direct requirement of this award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. Accountability measures are embedded within the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is generally facilitated through contract award databases, though specific performance metrics and detailed cost breakdowns may not always be publicly available.

Related Government Programs

Department of Defense IT Procurement
Defense Contract Management Agency Operations
Commercial and Service Industry Machinery Manufacturing
Cost-Plus-Fixed-Fee Contracts
Long-Term Government Contracts

Risk Flags

Cost Plus Fixed Fee contract type can lead to cost overruns.
Lack of specific details on the 'ITT-2B DEVICE NUMBERS' hinders value assessment.
Long contract duration may pose risks of technology obsolescence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $69.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. ITT-2B DEVICE NUMBERS 20B14, 20B14A (S/N 1),&20B14A (S/N 2)

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 $69.6 million.

What is the period of performance?

Start: 2017-09-28. End: 2024-03-29.

What is the specific nature and function of the 'ITT-2B DEVICE NUMBERS' being procured?

The provided data does not specify the exact nature or function of the 'ITT-2B DEVICE NUMBERS'. The NAICS code 333319 suggests they are related to 'Other Commercial and Service Industry Machinery Manufacturing.' Without further details, it is impossible to ascertain their specific application within the Department of Defense. This lack of specificity makes it difficult to assess the necessity of the procurement, compare it to market alternatives, or evaluate its strategic importance. Further investigation into the contract's statement of work or associated documentation would be required to understand the devices' purpose and technological specifications.

How does the $69.6 million award compare to similar procurements for IT or specialized machinery within the DoD?

Direct comparison of the $69.6 million award for 'ITT-2B DEVICE NUMBERS' to similar procurements is challenging without knowing the specific function and type of devices. However, as a nearly $70 million contract spanning over six years, it represents a significant investment. Large-scale IT and specialized equipment procurements for the DoD often range from tens to hundreds of millions of dollars, depending on the complexity, quantity, and technological sophistication. To provide a meaningful benchmark, one would need to identify contracts for comparable systems (e.g., communication equipment, specialized sensors, advanced computing hardware) awarded around the same period and assess their scope, duration, and unit costs.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this procurement?

The Cost Plus Fixed Fee (CPFF) contract type carries inherent risks for the government. In a CPFF arrangement, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. The primary risk is that the contractor may have less incentive to control costs compared to fixed-price contracts, as higher costs do not reduce their profit margin (the fee is fixed). This can potentially lead to cost overruns if the government's oversight is not rigorous. Effective management requires detailed cost tracking, auditing, and strong negotiation to ensure that costs remain reasonable and that the fixed fee adequately compensates the contractor for the effort involved.

What is General Dynamics Information Technology Inc.'s track record with similar large-scale DoD contracts?

General Dynamics Information Technology Inc. (GDIT) is a major federal contractor with extensive experience supporting the Department of Defense across a wide range of IT, C4ISR, and professional services. They have a history of managing large, complex contracts, including those involving hardware, software, and integrated systems. While specific performance details for this particular ITT-2B DEVICE contract are not provided, GDIT's overall track record suggests they possess the organizational capacity and technical expertise to execute such procurements. However, like any large contractor, their performance can vary across individual contracts, and a thorough review would necessitate examining past performance evaluations and any documented issues on similar programs.

How has federal spending on 'Other Commercial and Service Industry Machinery Manufacturing' (NAICS 333319) trended over the past five years?

Analyzing federal spending trends for a specific NAICS code like 333319 requires access to comprehensive federal procurement databases. Generally, spending within this category can fluctuate based on defense modernization priorities, infrastructure projects, and the demand for specialized industrial equipment. Without specific data, it's difficult to provide precise figures. However, the Department of Defense is a significant procurer of machinery and equipment, and its spending patterns are often influenced by geopolitical factors and technological advancements. Trends in R&D spending and capital investment within the defense sector could indirectly impact demand for machinery manufactured under this NAICS code.

Industry Classification

NAICS: Manufacturing › Commercial and Service Industry Machinery Manufacturing › Other Commercial and Service Industry Machinery Manufacturing

Product/Service Code: TRAINING AIDS AND DEVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6134011R0001

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3170, FAIRVIEW PARK DRIVE, 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: $69,553,462

Exercised Options: $69,553,462

Current Obligation: $69,553,462

Actual Outlays: $4,717,653

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $678,733

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6134012D5105

IDV Type: IDC

Timeline