DoD's $155M telecommunications contract awarded to General Dynamics Information Technology, Inc

Contract Overview

Contract Amount: $15,501,882 ($15.5M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-04-30

End Date: 2008-11-30

Contract Duration: 580 days

Daily Burn Rate: $26.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RDM V2.0

Place of Performance

Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $15.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: RDM V2.0 Key points: 1. Contract value of $155 million indicates a significant investment in telecommunications infrastructure. 2. Awarded under full and open competition, suggesting a robust market for these services. 3. The fixed-price contract type aims to control costs and provide predictability. 4. Contract duration of 580 days (approx. 1.6 years) suggests a medium-term operational need. 5. The North American Industry Classification System (NAICS) code 517110 points to wired telecommunications carriers. 6. Geographic location in Arizona (AZ) may indicate a specific regional focus for the services.

Value Assessment

Rating: good

The contract value of $155 million for wired telecommunications services appears substantial. Benchmarking against similar large-scale telecommunications infrastructure contracts within the Department of Defense would be necessary for a precise value-for-money assessment. However, the firm fixed-price structure suggests an effort to manage costs effectively. The number of bids received (3) provides a baseline for competition, but without knowing the scope and specific technical requirements, it's difficult to definitively assess if the pricing is competitive.

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. Three bids were received, which suggests a moderate level of competition for this particular requirement. While three bidders is better than a sole-source award, a higher number of bids would typically lead to more aggressive pricing and potentially better value for the government.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, generally benefits taxpayers by encouraging multiple companies to vie for the contract, potentially driving down costs compared to non-competitive awards.

Public Impact

The Department of the Air Force is the primary beneficiary, receiving essential wired telecommunications services. This contract supports critical communication infrastructure, likely for military operations and personnel. The services are geographically focused within Arizona, impacting local infrastructure and potentially local workforce. The contract supports the operational readiness and technological capabilities of the Air Force. General Dynamics Information Technology, Inc. benefits through revenue generation and contract fulfillment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (3 bidders) may have resulted in a higher price than if more firms had participated.
The fixed-price nature could lead to cost overruns if unforeseen technical challenges arise and are not adequately addressed in the contract scope.
Dependence on a single contractor for critical telecommunications infrastructure can pose a risk if the contractor faces financial or operational difficulties.

Positive Signals

Awarded through full and open competition, maximizing the pool of potential contractors.
Firm fixed-price contract type provides cost certainty for the government.
General Dynamics Information Technology, Inc. is a large, established defense contractor with significant experience in IT and telecommunications.

Sector Analysis

The contract falls within the telecommunications sector, specifically wired telecommunications carriers. This sector is characterized by significant infrastructure investment, technological evolution, and a mix of large established players and specialized providers. The Department of Defense is a major consumer of telecommunications services, requiring robust and secure networks to support its global operations. Spending in this area is critical for maintaining communication capabilities, data transfer, and command and control systems. Comparable spending benchmarks would involve analyzing other large-scale telecommunications network build-outs or service contracts within federal agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, as a large prime contractor, General Dynamics Information Technology, Inc. may engage small businesses as subcontractors to fulfill specific portions of the contract, depending on their internal capabilities and subcontracting strategies. The absence of a small business set-aside means the primary competition was open to all eligible firms, regardless of size.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services within the agreed-upon budget. Transparency is generally maintained through contract award databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or alleged.

Related Government Programs

Defense Information Systems Agency (DISA) Telecommunications Services
General Services Administration (GSA) Federal Telecommunications Services
Department of Defense Network Modernization Programs
Air Force Satellite Communications (SATCOM) Programs

Risk Flags

Potential for cost overruns if scope is not well-defined for FFP.
Risk of service disruption if contractor faces financial or operational issues.
Limited competition may not yield the lowest possible price.
Dependence on specific technology or vendor solutions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. RDM V2.0

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 $15.5 million.

What is the period of performance?

Start: 2007-04-30. End: 2008-11-30.

What is the specific scope of services provided under this wired telecommunications contract?

The contract, NAICS code 517110, pertains to wired telecommunications carriers. This typically includes services such as the provision and maintenance of local and long-distance telephone services, broadband internet access, data transmission services, and potentially the installation and management of associated network infrastructure. Given the Department of Defense context, these services are likely critical for supporting military bases, command centers, and operational units within Arizona, ensuring reliable and secure communication channels for mission-critical activities.

How does the $155 million contract value compare to similar telecommunications contracts awarded by the DoD?

A direct comparison of the $155 million value requires access to a comprehensive database of similar DoD telecommunications contracts, including their scope, duration, and specific services. However, for a large federal agency like the DoD, $155 million for wired telecommunications infrastructure over approximately 1.6 years is a significant but not unprecedented investment. Large-scale network build-outs, upgrades, or comprehensive service agreements can easily reach these figures. Benchmarking would involve identifying contracts with similar NAICS codes, contract types (firm fixed-price), and service levels within the defense sector to assess if the pricing is within an expected range.

What are the potential risks associated with a firm fixed-price contract for telecommunications services?

While firm fixed-price (FFP) contracts are designed to provide cost certainty, they can introduce risks if the scope of work is not precisely defined or if unforeseen technical challenges arise. For telecommunications, this could include unexpected difficulties in deploying infrastructure, integrating new technologies, or meeting stringent security requirements. If the contractor underestimates the complexity or cost of fulfilling the FFP requirements, they may incur losses, potentially impacting service quality or leading to disputes. Conversely, if the government underestimated requirements, they might not receive the full value intended.

What is General Dynamics Information Technology, Inc.'s track record with similar DoD telecommunications contracts?

General Dynamics Information Technology, Inc. (GDIT) is a major federal contractor with extensive experience in IT and telecommunications services for the Department of Defense and other government agencies. They have a history of managing large, complex network infrastructure projects, cybersecurity solutions, and enterprise IT services. While specific details of their past performance on contracts identical in scope and value to this one would require deeper research into contract databases and performance reviews, GDIT's established presence and broad capabilities suggest a strong likelihood of successful execution, barring any specific documented performance issues.

How does the level of competition (3 bidders) impact the value for taxpayers on this contract?

A competition level with three bidders suggests a moderate degree of market interest and potential for price negotiation. While more bidders generally lead to greater price pressure and potentially better value, three bidders is still a competitive scenario compared to sole-source or limited competition awards. It indicates that multiple firms found the opportunity attractive enough to invest resources in bidding. The ultimate value for taxpayers depends on the specifics of the bids received, the negotiation process, and whether the final price reflects a fair market value for the required telecommunications services.

What are the implications of this contract being awarded in Arizona?

The geographic focus on Arizona (AZ) implies that the wired telecommunications services procured under this contract are intended to support DoD operations, facilities, or personnel within that state. This could involve upgrading or establishing communication networks for military bases, training ranges, or administrative centers located in Arizona. The award may also have implications for the local economy in Arizona, potentially creating or sustaining jobs for installation, maintenance, and support personnel, and benefiting local telecommunications infrastructure providers if GDIT utilizes local resources or subcontractors.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

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, Manufacturer of Goods, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $49,998,483

Exercised Options: $47,151,883

Current Obligation: $15,501,882

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA877104D0007

IDV Type: IDC

Timeline