DoD awards $20.8M contract for Wired Telecommunications Carriers to General Dynamics

Contract Overview

Contract Amount: $20,830,380 ($20.8M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-03-20

End Date: 2010-09-30

Contract Duration: 924 days

Daily Burn Rate: $22.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST NO FEE

Sector: IT

Official Description: MIGRATED DATA VALUE UNKNOWN

Place of Performance

Location: NEEDHAM HEIGHTS, NORFOLK County, MASSACHUSETTS, 02494, UNITED STATES OF AMERICA

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $20.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: MIGRATED DATA VALUE UNKNOWN Key points: 1. Contract awarded to a single, large vendor, General Dynamics Information Technology, Inc. 2. The contract value is substantial at over $20 million. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The sector is Wired Telecommunications Carriers, a critical infrastructure component.

Value Assessment

Rating: fair

The contract was awarded under a 'Cost No Fee' (CNF) pricing structure. This structure can sometimes lead to less price certainty compared to fixed-price contracts, especially when costs are not well-defined upfront. The awarded amount of $20.8 million needs to be benchmarked against similar contracts for wired telecommunications services to assess its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, which is generally positive for price discovery. This method allows any qualified vendor to bid, fostering competition and potentially driving down costs. The impact on price discovery is likely positive, as multiple bids would have been evaluated.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best possible price for the required services.

Public Impact

Ensures continued wired telecommunications services for the Department of Defense. Supports critical communication infrastructure necessary for military operations. The contract's duration of 924 days (approximately 2.5 years) indicates a significant, ongoing need. Potential for job creation within General Dynamics and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost No Fee pricing structure may lack cost control.
Data on 'MIGRATED DATA VALUE UNKNOWN' suggests potential data integrity issues.
Contract duration is substantial, requiring ongoing monitoring.

Positive Signals

Awarded under full and open competition.
Contract supports essential defense operations.
Vendor is a well-established entity in the IT sector.

Sector Analysis

The Wired Telecommunications Carriers sector (NAICS 517110) involves the provision of telecommunications services via wired networks. Spending in this sector is crucial for government operations, supporting data transmission and communication infrastructure. Benchmarks for similar contracts would be necessary to fully assess the value of this award.

Small Business Impact

The data indicates that this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency (DCMA), indicating a level of oversight. However, the 'Cost No Fee' structure warrants close monitoring to ensure costs remain reasonable and within expectations.

Related Government Programs

Wired Telecommunications Carriers
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost No Fee (CNF) pricing structure.
Unknown migrated data value.
Lack of specific cost and competition details in summary data.
Potential for cost overruns with CNF contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. MIGRATED DATA VALUE UNKNOWN

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $20.8 million.

What is the period of performance?

Start: 2008-03-20. End: 2010-09-30.

What was the specific nature of the wired telecommunications services provided under this contract, and how did the 'Cost No Fee' structure impact the final cost compared to alternative pricing models

The specific services likely included the provision, maintenance, and operation of wired telecommunications networks essential for DoD communications. The 'Cost No Fee' (CNF) structure means the contractor is reimbursed for allowable costs plus a fixed fee, regardless of performance. While it can facilitate rapid deployment in uncertain environments, it offers less incentive for cost efficiency compared to fixed-price contracts. Without detailed cost breakdowns, it's difficult to definitively assess the final cost's competitiveness against other models.

Given the 'full and open competition' award, what was the range of bids received, and how did General Dynamics' proposal compare in terms of technical merit and cost to other qualified bidders?

While the award specifies 'full and open competition,' the provided data does not include the number of bids received or a comparison of General Dynamics' proposal against competitors. Typically, this information is available in detailed contract award documents. Understanding the bid range and the evaluation criteria used would provide insight into the effectiveness of the competition in achieving the best value for the government.

How effectively did the Defense Contract Management Agency (DCMA) oversee the 'Cost No Fee' aspects of this contract to ensure that the $20.8 million expenditure represented a fair and reasonable pric

The DCMA's role in overseeing CNF contracts is critical for managing cost risks. Effective oversight would involve rigorous auditing of contractor costs, ensuring compliance with contract terms, and verifying that all incurred costs were allowable, allocable, and reasonable. Without access to DCMA's audit reports and performance reviews for this specific contract, it's challenging to definitively assess the effectiveness of their oversight in ensuring value for taxpayer money.

Industry Classification

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

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 77 A STREET, NEEDHAM, MA, 02494

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

Financial Breakdown

Contract Ceiling: $31,638,005

Exercised Options: $31,638,005

Current Obligation: $20,830,380

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA877104D0007

IDV Type: IDC

Timeline