Pension Benefit Guaranty Corporation awards $22.3M IT contract to General Dynamics Information Technology

Contract Overview

Contract Amount: $22,337,622 ($22.3M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2012-01-03

End Date: 2013-05-08

Contract Duration: 491 days

Daily Burn Rate: $45.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: IGF::CT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Pension Benefit Guaranty Corporation obligated $22.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::CT::IGF Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes contractor performance. 3. The duration of the contract is approximately 491 days. 4. The contract was awarded to a single vendor, General Dynamics Information Technology. 5. The North American Industry Classification System (NAICS) code is 541519, indicating IT services. 6. The contract was awarded in the District of Columbia. 7. The contract value is over $22 million. 8. The contract was not set aside for small businesses.

Value Assessment

Rating: fair

The contract value of $22.3 million for IT services over approximately 1.3 years appears to be within a reasonable range for a government contract of this scope. However, without specific details on the services rendered and performance metrics, a precise value-for-money assessment is challenging. Benchmarking against similar IT support contracts for federal agencies would provide a clearer picture of whether the pricing is competitive and reflects efficient resource utilization. The Cost Plus Award Fee structure allows for flexibility but requires careful monitoring to ensure costs remain controlled and performance is optimized.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 5 bids suggests a moderate level of competition for this IT services contract. While full and open competition is generally preferred for maximizing price discovery and ensuring fair market value, the specific number of bidders can influence the intensity of that competition. A higher number of bidders typically leads to more aggressive pricing.

Taxpayer Impact: Taxpayers benefit from full and open competition as it generally drives down costs through market forces. A competitive bidding process increases the likelihood of securing services at the most advantageous price point for the government.

Public Impact

The primary beneficiary of this contract is the Pension Benefit Guaranty Corporation (PBGC), which receives IT services to support its operations. The services delivered are expected to enhance the PBGC's information technology infrastructure and capabilities. The contract's geographic impact is primarily within the District of Columbia, where the PBGC is headquartered. The contract supports the IT workforce, likely involving skilled professionals in various technology domains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to cost overruns if not managed diligently.
The specific performance metrics and award fee criteria are not detailed, making it difficult to assess the effectiveness of the incentive structure.
The duration of the contract is relatively short (491 days), which might lead to transition costs if a new contract is required soon after.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The Cost Plus Award Fee structure incentivizes high performance and efficiency.
The contract is with a well-established IT services provider, General Dynamics Information Technology.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under Other Computer Related Services. The IT services market for federal agencies is substantial, with significant spending allocated to software development, system integration, cybersecurity, and general IT support. Contracts like this are crucial for agencies to maintain and modernize their technological infrastructure, ensuring efficient operations and data management. Benchmarks for similar IT support contracts often vary widely based on scope, duration, and specific service requirements.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses. This means that the primary award went to a large business, and opportunities for small businesses would likely depend on General Dynamics Information Technology's own subcontracting decisions. Without explicit set-aside provisions or reporting on subcontracting plans, the direct impact on the small business ecosystem for this specific contract is likely limited.

Oversight & Accountability

Oversight for this contract would typically be managed by the Pension Benefit Guaranty Corporation's contracting officers and program managers. Accountability measures are embedded within the Cost Plus Award Fee structure, which links contractor payment to performance against defined objectives. Transparency is generally maintained through contract award databases, though specific performance details and cost breakdowns may be subject to proprietary or security restrictions. The Inspector General of the PBGC would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

IT Services
Information Technology Support
General IT Services
Computer Systems Design
Federal IT Procurement

Risk Flags

Cost Plus Award Fee contract type requires careful monitoring.
Performance metrics and award criteria need clear definition and evaluation.
Potential for cost overruns if not managed diligently.

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $22.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Pension Benefit Guaranty Corporation (Pension Benefit Guaranty Corporation).

What is the total obligated amount?

The obligated amount is $22.3 million.

What is the period of performance?

Start: 2012-01-03. End: 2013-05-08.

What specific IT services were provided under this contract?

The contract, NAICS code 541519 (Other Computer Related Services), suggests a broad range of IT services were procured. While the specific statement of work is not detailed here, typical services under this code for an agency like the Pension Benefit Guaranty Corporation (PBGC) could include IT infrastructure management, network support, help desk services, software maintenance and development, database administration, cybersecurity support, and IT consulting. The Cost Plus Award Fee structure implies that the PBGC defined specific performance objectives and award criteria related to these services, which General Dynamics Information Technology was expected to meet or exceed to earn incentive fees.

How does the $22.3 million contract value compare to similar IT contracts awarded by the PBGC or other federal agencies?

Comparing the $22.3 million contract value requires context regarding its duration (491 days, approximately 1.3 years) and the scope of services. For a contract of this length and type, the value is moderate. Federal agencies often award IT support contracts ranging from a few million to tens or even hundreds of millions of dollars annually, depending on the agency's size, mission complexity, and IT needs. The PBGC, as a government corporation, has specific IT requirements to manage pension data and operations. Without access to a detailed breakdown of services and performance metrics, a precise benchmark is difficult. However, the value appears consistent with IT support contracts for mid-sized federal entities.

What are the key risks associated with a Cost Plus Award Fee (CPAF) contract like this one?

The primary risk with CPAF contracts is the potential for cost growth if the award fee criteria are not tightly defined or if the government's oversight is insufficient. While CPAF aims to incentivize performance, there's a risk that the contractor might focus on achieving award fees rather than overall cost efficiency if the metrics are misaligned. Another risk is the administrative burden on the government to establish and evaluate performance against the award criteria. If the criteria are subjective or poorly defined, disputes can arise. For the PBGC, ensuring that the award fee structure genuinely drives the desired IT outcomes and cost control is crucial to mitigate these risks.

What was General Dynamics Information Technology's track record with the PBGC or similar agencies prior to this award?

General Dynamics Information Technology (GDIT) is a large, established federal contractor with extensive experience across numerous government agencies. While this specific data point doesn't detail GDIT's prior performance with the PBGC, their history typically includes providing a wide array of IT services, including infrastructure, cloud solutions, cybersecurity, and mission support. Agencies often award contracts to contractors with a proven track record of successful past performance. A deeper analysis would involve reviewing GDIT's performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) on previous contracts with the PBGC and other agencies to gauge their reliability, quality of service, and adherence to schedule and budget.

How has PBGC's spending on IT services evolved over time, and does this contract represent a significant shift?

Analyzing the PBGC's historical IT spending requires access to their budget documents and contract databases over multiple fiscal years. This single contract award of $22.3 million for a period of approximately 1.3 years provides a snapshot but doesn't reveal broader trends. Agencies' IT spending can fluctuate based on modernization initiatives, system upgrades, cybersecurity threats, and shifts in operational needs. Without historical data, it's impossible to determine if this contract represents a significant increase, decrease, or continuation of previous spending patterns. A trend analysis would be necessary to understand the PBGC's long-term IT investment strategy.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Csra LLC (UEI: 080011988)

Address: 15000 CONFERENCE CENTER DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,337,622

Exercised Options: $22,337,622

Current Obligation: $22,337,622

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline