NASA's $42.9M IT Services Contract with General Dynamics Faces Scrutiny Over Long Duration and Lack of Small Business Participation
Contract Overview
Contract Amount: $42,915,454 ($42.9M)
Contractor: General Dynamics Information Technology Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 1994-05-03
End Date: 2004-06-30
Contract Duration: 3,711 days
Daily Burn Rate: $11.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: PROGRAM INFORMATION SYSTEMS MISSION SERVICES
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35812
State: Alabama Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $42.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: PROGRAM INFORMATION SYSTEMS MISSION SERVICES Key points: 1. The contract, valued at $42.9 million, was awarded to General Dynamics Information Technology Inc. for IT services. 2. The contract spanned over 10 years, from 1994 to 2004, raising questions about its extended duration and potential for outdated technology. 3. Despite the significant value, there is no indication of small business participation, suggesting a missed opportunity for economic inclusion. 4. The contract type (Cost Plus Award Fee) can incentivize performance but also carries a risk of cost overruns if not managed tightly.
Value Assessment
Rating: questionable
The contract's pricing structure as Cost Plus Award Fee, awarded over a decade, makes direct per-unit cost comparison difficult without detailed performance metrics and cost breakdowns. The long duration suggests potential for price escalation or outdated pricing models.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is generally positive for price discovery. However, the long duration and the specific nature of IT services might have limited the number of truly competitive bids over its lifespan.
Taxpayer Impact: The long duration and cost-plus nature of the contract could have led to higher taxpayer costs than a more competitively re-bid or fixed-price contract over the same period.
Public Impact
Taxpayers may have paid a premium for IT services over a decade-long contract, potentially missing out on cost savings from more frequent competition. The lack of small business involvement means that a portion of federal IT spending did not benefit smaller, potentially more agile, businesses. The extended contract period raises concerns about the government's ability to adapt to rapidly changing technology and secure the best value over time.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (10+ years)
- No small business participation
- Cost Plus Award Fee structure can lead to cost overruns
Positive Signals
- Awarded under full and open competition
Sector Analysis
This contract falls within the Information Technology sector, which is characterized by rapid technological advancements and evolving service needs. Benchmarks for IT services contracts vary widely based on scope, but a decade-long single award is unusual and warrants scrutiny for potential inefficiencies.
Small Business Impact
The data indicates that this contract did not involve small businesses. This represents a missed opportunity to leverage the capabilities of small businesses in the IT sector and to promote economic diversity within federal contracting.
Oversight & Accountability
The long duration of this contract, spanning over a decade, suggests a need for robust oversight to ensure continued value and relevance. Without specific oversight details, it's difficult to assess accountability, but the extended timeframe itself raises questions about proactive management.
Related Government Programs
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Extended contract duration may lead to outdated technology and services.
- Lack of small business participation limits economic opportunity and potentially competition.
- Cost Plus Award Fee structure carries inherent risk of cost overruns without strict oversight.
- Potential for price escalation over the contract's 10+ year lifespan.
- Lack of transparency regarding performance metrics and award fee decisions.
Tags
national-aeronautics-and-space-administr, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $42.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. PROGRAM INFORMATION SYSTEMS MISSION SERVICES
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY INC..
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $42.9 million.
What is the period of performance?
Start: 1994-05-03. End: 2004-06-30.
Was the Cost Plus Award Fee structure effectively managed to ensure value for money given the contract's decade-long duration?
The Cost Plus Award Fee (CPAF) structure aims to incentivize contractor performance by linking a portion of the fee to achieving specific performance objectives. However, over a 10-year period, the effectiveness of CPAF heavily relies on rigorous performance monitoring, clear award criteria, and strong government oversight. Without detailed performance reviews and award fee determinations, it's difficult to ascertain if taxpayers received optimal value or if costs were inflated due to less stringent controls inherent in such contracts.
What was the rationale for awarding a single, long-term IT services contract instead of utilizing shorter, more frequent competitive procurements?
The rationale for a long-term contract could stem from a need for stability, deep institutional knowledge, or perceived efficiencies in avoiding repeated procurement processes. However, in the rapidly evolving IT landscape, such long durations often risk locking the government into outdated technologies or service models, potentially leading to higher costs and reduced innovation compared to shorter, more frequent competitions that allow for market adjustments and technology refreshes.
How did the absence of small business participation impact the overall cost and innovation of the IT services provided?
The exclusion of small businesses from this contract may have limited the pool of potential bidders, potentially reducing competitive pressure on pricing. Furthermore, small businesses often bring specialized expertise and innovative approaches. Their absence could mean the government missed out on potentially more cost-effective solutions or cutting-edge technologies that smaller, agile firms might have offered, thereby impacting both cost efficiency and the adoption of new advancements.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corporation
Address: 3160 FAIRVIEW PARK DRIVE, FALLS CHURCH, VA, 22042
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $1,180,752,046
Exercised Options: $280,990,887
Current Obligation: $42,915,454
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 1994-05-03
Current End Date: 2004-06-30
Potential End Date: 2004-06-30 00:00:00
Last Modified: 2023-01-27
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