NASA's $71.4M IT Services Contract with General Dynamics Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $71,413,740 ($71.4M)
Contractor: General Dynamics Information Technology Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2004-09-01
End Date: 2020-02-28
Contract Duration: 5,658 days
Daily Burn Rate: $12.6K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: INFORMATION TECHNOLOGY SERVICES (ITS) TASK ORDER FOR SSC. REFERENCE GSA TO # 4TM80046006
Place of Performance
Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39529
Plain-Language Summary
National Aeronautics and Space Administration obligated $71.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: INFORMATION TECHNOLOGY SERVICES (ITS) TASK ORDER FOR SSC. REFERENCE GSA TO # 4TM80046006 Key points: 1. The contract awarded to General Dynamics Information Technology Inc. for IT services represents a significant expenditure. 2. Competition for this contract was competitive, but the pricing structure and duration warrant further examination. 3. Potential risks include cost overruns due to the Cost Plus Award Fee structure and long performance period. 4. The IT services sector is dynamic, and ensuring value for money over the contract's lifespan is crucial.
Value Assessment
Rating: questionable
The Cost Plus Award Fee structure, while offering flexibility, can lead to higher costs if not managed tightly. Benchmarking against similar large-scale IT service contracts is difficult without more granular data on specific services rendered and performance metrics.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract was awarded via a competitive delivery order, suggesting initial price discovery. However, the long duration and Cost Plus Award Fee structure may diminish competitive pressure over time, potentially impacting final pricing.
Taxpayer Impact: Taxpayer funds are significantly committed to this long-term IT services contract. Ensuring cost-effectiveness and value for money throughout its duration is paramount to responsible fiscal management.
Public Impact
Significant federal IT spending allocated to a single contractor over a long period. Potential for cost escalation due to the contract's fee structure and extended timeline. Impact on the IT services market and opportunities for other vendors over the contract's life. NASA's reliance on external contractors for critical IT infrastructure and support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 15 years)
- Cost Plus Award Fee structure
- Lack of specific performance metrics for value assessment
- No indication of small business participation
Positive Signals
- Initial competitive award process
- Contract supports critical NASA operations
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Federal spending in this area is substantial, with benchmarks varying widely based on service complexity and duration. Long-term contracts like this are common for maintaining complex systems.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. This represents a missed opportunity for small business participation in a significant federal IT procurement.
Oversight & Accountability
The long duration and Cost Plus Award Fee structure necessitate robust oversight from NASA to ensure performance standards are met and costs remain reasonable. Regular reviews and audits would be critical for accountability.
Related Government Programs
- Computer Systems Design Services
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Long contract duration may not reflect current market value or needs.
- Cost Plus Award Fee structure can lead to uncontrolled costs.
- Lack of transparency on specific services and performance metrics.
- No apparent small business participation.
- Potential for contractor lock-in over an extended period.
Tags
computer-systems-design-services, national-aeronautics-and-space-administr, ms, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $71.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. INFORMATION TECHNOLOGY SERVICES (ITS) TASK ORDER FOR SSC. REFERENCE GSA TO # 4TM80046006
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 $71.4 million.
What is the period of performance?
Start: 2004-09-01. End: 2020-02-28.
What specific IT services were provided under this contract, and how did their scope evolve over its 15+ year lifespan?
The contract was for Computer Systems Design Services (NAICS 541512). Without detailed task orders and performance reports, it's difficult to ascertain the precise evolution of services. However, such contracts typically encompass system design, integration, maintenance, and support for complex IT infrastructures, potentially including network management, software development, and cybersecurity.
How effectively did the Cost Plus Award Fee structure incentivize General Dynamics to control costs and maximize performance given the long contract duration?
The Cost Plus Award Fee (CPAF) structure allows for reimbursement of costs plus a fee that is based on performance. While intended to incentivize good performance, CPAF can also lead to cost overruns if the award criteria are not stringent or if oversight is lax. Over a 15-year period, the effectiveness of this incentive structure is questionable without detailed performance data and cost analysis.
What was the competitive landscape for similar IT services at the time of award and throughout the contract's life, and did this impact NASA's ability to secure favorable pricing?
The contract was awarded competitively. However, the IT services market is dynamic. While initial competition may have secured a reasonable starting price, the long duration and CPAF structure could have limited the agency's ability to benefit from subsequent market shifts or technological advancements that might have lowered costs with a different contract type or shorter term.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 3170 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $74,047,777
Exercised Options: $74,047,777
Current Obligation: $71,413,740
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS00T99ALD0203
IDV Type: GWAC
Timeline
Start Date: 2004-09-01
Current End Date: 2020-02-28
Potential End Date: 2020-02-28 00:00:00
Last Modified: 2026-03-25
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