DoD Awards $37.9M for Telecom Services to General Dynamics, Raising Value Concerns

Contract Overview

Contract Amount: $37,947,348 ($37.9M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-03-31

End Date: 2008-03-22

Contract Duration: 1,087 days

Daily Burn Rate: $34.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 200507!000334!5700!FA8217!OO-ALC/PKHC/LHKC !FA877104D0007 !A!N! !Y!QP08 ! !20050331!20080331!121538859!116187758!001381284!N!GENERAL DYNAMICS NETWORK SYSTE!77 A ST !NEEDHAM HEIGHT !MA!02494!44175!021!25!NEEDHAM HEIGHTS !NORFOLK !MASS !+000012013304!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !519190!E! !5!B!M! !A! !20200930!B!E!N!A! !A!U!J!2!005!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: NEEDHAM HEIGHTS, NORFOLK County, MASSACHUSETTS, 02494

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $37.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: 200507!000334!5700!FA8217!OO-ALC/PKHC/LHKC !FA877104D0007 !A!N! !Y!QP08 ! !20050331!20080331!121538859!116187758!001381284!N!GENERAL DYNAMICS NETWORK SYSTE!77 A ST !NEEDHAM HEIGHT !MA!02494!44175!021!25!NEEDHAM HEIGHTS !NORF… Key points: 1. The contract awarded to General Dynamics Information Technology, Inc. for telecommunications services is substantial, representing a significant portion of the agency's spending in this area. 2. Competition was full and open, suggesting a potentially competitive bidding process, but the final award value warrants scrutiny against market benchmarks. 3. Potential risks include overpricing given the duration and scope of the contract, and the lack of specific performance metrics makes effectiveness difficult to assess. 4. The sector is IT, specifically Wired Telecommunications Carriers, a critical but often complex area for government procurement.

Value Assessment

Rating: questionable

The contract value of $37.9 million over approximately three years appears high for wired telecommunications services. Benchmarking against similar contracts for comparable services is crucial to determine if this represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the final award amount should still be compared to industry standards to ensure taxpayer funds were used efficiently.

Taxpayer Impact: The significant award value necessitates careful oversight to ensure it reflects competitive pricing and provides good value for taxpayers.

Public Impact

Taxpayers may be overpaying for essential telecommunications infrastructure and services if the contract price exceeds market rates. The long-term nature of the contract could lock the government into potentially outdated technology or higher-than-necessary costs. Lack of detailed performance metrics makes it challenging to gauge the true effectiveness and value delivered by General Dynamics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value for IT services
Long contract duration
Limited performance metrics specified

Positive Signals

Full and open competition utilized
Awarded to a known IT provider

Sector Analysis

This contract falls within the IT sector, specifically Wired Telecommunications Carriers. Government spending in this area is substantial, but often faces challenges related to rapid technological change and ensuring competitive pricing for long-term services.

Small Business Impact

There is no specific indication in the provided data whether small businesses were involved as subcontractors or partners in this contract. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract was awarded by the Department of the Air Force, part of the Department of Defense. Oversight would typically involve program managers and contracting officers ensuring adherence to terms and conditions, with potential for audits by agencies like the Government Accountability Office (GAO).

Related Government Programs

Wired Telecommunications Carriers
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

High total contract value
Long contract duration (approx. 3 years)
Potential for outdated technology procurement
Lack of detailed performance metrics
Limited insight into specific services rendered

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. 200507!000334!5700!FA8217!OO-ALC/PKHC/LHKC !FA877104D0007 !A!N! !Y!QP08 ! !20050331!20080331!121538859!116187758!001381284!N!GENERAL DYNAMICS NETWORK SYSTE!77 A ST !NEEDHAM HEIGHT !MA!02494!44175!021!25!NEEDHAM HEIGHTS !NORFOLK !MASS !+000012013304!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !519190!E! !5!B!M! !A! !202

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 Air Force).

What is the total obligated amount?

The obligated amount is $37.9 million.

What is the period of performance?

Start: 2005-03-31. End: 2008-03-22.

What specific telecommunications services were procured under this contract, and how do they align with current technological standards and needs?

The contract was for 'OTHER ADP & TELECOMMUNICATION SERVICES' and 'ELECTRONICS AND COMMUNICATION EQUIP'. Without more granular detail, it's difficult to assess alignment with current standards. The duration (2005-2008) suggests the services procured might be less advanced by today's standards, potentially impacting the value proposition if the government is still reliant on these specific services.

How does the awarded price of $37.9 million compare to industry benchmarks for similar telecommunications services during the contract period?

Benchmarking this $37.9 million contract against industry standards from 2005-2008 for wired telecommunications carriers is essential. Given the 'full and open competition' award, the price should ideally be competitive. However, without specific service details and market data from that era, it's hard to definitively say if it was optimal or if there was room for better price discovery.

What mechanisms were in place to ensure the effectiveness and efficiency of the services provided by General Dynamics over the contract's duration?

The data indicates a 'FIRM FIXED PRICE' contract type, which shifts some risk to the contractor. However, the lack of explicit performance metrics or key performance indicators (KPIs) makes it difficult to assess effectiveness. Oversight would rely on contract administration to ensure basic delivery, but measuring true value and efficiency would require more detailed reporting and evaluation criteria.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 77 A STREET, NEEDHAM, MA, 04

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Parent Contract

Parent Award PIID: FA877104D0007

IDV Type: IDC

Timeline