DoD's $17.4M IT hardware contract to General Dynamics saw 6 bidders, indicating competitive pricing

Contract Overview

Contract Amount: $17,442,479 ($17.4M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-03-20

End Date: 2011-11-15

Contract Duration: 1,335 days

Daily Burn Rate: $13.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NM/ND BLOCK 30 SPIRAL 1 SW & SUPP. HW

Place of Performance

Location: NEEDHAM HEIGHTS, NORFOLK County, MASSACHUSETTS, 02494

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $17.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: NM/ND BLOCK 30 SPIRAL 1 SW & SUPP. HW Key points: 1. The contract was awarded under full and open competition, suggesting a robust market for these services. 2. A firm-fixed-price structure likely provided cost certainty for the government. 3. The duration of the contract (1335 days) suggests a need for sustained IT support. 4. The North American Industry Classification System (NAICS) code 517110 points to telecommunications infrastructure. 5. The award was made by the Defense Contract Management Agency, a key procurement arm for the DoD. 6. The contract's value is moderate within the context of large-scale IT procurements.

Value Assessment

Rating: good

The contract's value of approximately $17.4 million over its term appears reasonable given the scope of IT hardware and support services. Benchmarking against similar DoD IT hardware contracts awarded during the 2008-2011 period would provide a more precise value-for-money assessment. The firm-fixed-price contract type generally indicates that the government secured predictable costs, assuming the contractor managed their own expenses effectively. Without specific performance metrics or detailed cost breakdowns, a definitive assessment of cost efficiency is challenging, but the competitive award suggests a market-driven price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' meaning all responsible sources were permitted to submit a bid. The presence of six bidders indicates a healthy level of competition for this requirement. A higher number of bidders generally leads to more competitive pricing and a wider range of technical solutions, benefiting the government by driving down costs and improving service quality. The competition level suggests that the market was receptive to the government's needs and that the solicitation was structured to attract multiple interested parties.

Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario. It ensured that the Department of Defense received the best value available in the market.

Public Impact

The Department of Defense benefits from reliable IT hardware and support, crucial for its operational readiness. The contract ensures the provision of necessary telecommunications infrastructure and related supplies. The geographic impact is likely concentrated within DoD facilities where the hardware is deployed. The contract supports jobs within the IT sector, particularly at General Dynamics Information Technology, Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific hardware configurations are mandated without clear exit strategies.
Risk of cost overruns if the firm-fixed-price contract did not adequately account for unforeseen technical challenges or market fluctuations in hardware prices.
Dependence on a single large contractor for critical IT infrastructure could pose a risk if the contractor's performance degrades.

Positive Signals

Awarded under full and open competition, suggesting a competitive market price was achieved.
Firm-fixed-price contract type provides cost certainty for the government.
The contractor, General Dynamics Information Technology, Inc., is a large, established entity with significant experience in government contracting.
The contract duration implies a stable, long-term need that was met through a structured procurement process.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on telecommunications hardware and support. The market for IT hardware and services is vast and highly competitive, with numerous vendors offering a wide array of solutions. The Department of Defense is a significant consumer of IT goods and services, often procuring large-scale solutions to meet complex operational requirements. Comparable spending benchmarks in this area would typically involve multi-million dollar contracts for network infrastructure, hardware provisioning, and associated maintenance, often awarded through competitive solicitations.

Small Business Impact

There is no indication from the provided data that this contract included specific small business set-asides. The award to General Dynamics Information Technology, Inc., a large corporation, suggests it was not primarily aimed at small businesses. However, large prime contractors often engage small businesses as subcontractors. Further analysis would be needed to determine the extent of small business participation through subcontracting opportunities generated by this award and its impact on the small business IT ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and administrative contracting officer within the Defense Contract Management Agency (DCMA). Performance monitoring, compliance checks, and payment approvals are standard oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.

Related Government Programs

Department of Defense IT Procurement
Telecommunications Infrastructure Contracts
IT Hardware and Support Services
General Dynamics Information Technology Contracts

Risk Flags

Potential for outdated technology due to contract duration
Lack of specific performance metrics in summary data
Limited insight into subcontracting opportunities for small businesses

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. NM/ND BLOCK 30 SPIRAL 1 SW & SUPP. HW

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 $17.4 million.

What is the period of performance?

Start: 2008-03-20. End: 2011-11-15.

What was the specific nature of the 'Wired Telecommunications Carriers' services and hardware provided under this contract?

The NAICS code 517110, 'Wired Telecommunications Carriers,' suggests the contract involved the provision, installation, maintenance, or support of telecommunications infrastructure that uses physical wires. This could encompass a range of hardware such as routers, switches, servers, cabling, and related network equipment, along with the associated software and technical support necessary for their operation. Given the 'SUPP. HW' in the description, it strongly indicates the supply of hardware alongside potential support services. The exact configuration and purpose would depend on the specific needs of the Department of Defense units being served, likely related to secure communication networks, data transmission, or command and control systems.

How does the $17.4 million contract value compare to other similar DoD IT hardware procurements during the same period?

Comparing the $17.4 million contract value requires benchmarking against similar Department of Defense (DoD) procurements for IT hardware and telecommunications support awarded between March 2008 and November 2011. While this figure represents a significant investment, the DoD frequently awards IT contracts ranging from tens to hundreds of millions of dollars, particularly for large-scale infrastructure or system-wide deployments. The 'NM/ND BLOCK 30 SPIRAL 1 SW & SUPP. HW' description suggests a specific project or phase, possibly related to network upgrades or new system implementation. Without access to a detailed database of comparable contracts, it's difficult to definitively state if $17.4 million is high or low, but it falls within a common range for substantial IT hardware provisions for a major federal agency.

What were the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for an IT hardware and support contract of this nature, typical KPIs and SLAs would likely focus on aspects such as hardware delivery timelines, installation success rates, system uptime and availability, response times for technical support, resolution times for reported issues, and adherence to security protocols. The firm-fixed-price nature of the contract suggests that the government aimed for predictable costs, implying that performance metrics would be crucial for ensuring the contractor met their obligations without scope creep or excessive change orders. The Defense Contract Management Agency (DCMA) would have been responsible for monitoring adherence to these performance standards.

What is the track record of General Dynamics Information Technology, Inc. in fulfilling similar federal IT contracts?

General Dynamics Information Technology, Inc. (GDIT), a subsidiary of General Dynamics, has a long and extensive track record of fulfilling large-scale IT contracts for various U.S. federal agencies, including the Department of Defense. They are a major player in the government contracting space, known for providing a wide range of IT services, including network infrastructure, cybersecurity, cloud computing, and enterprise IT solutions. Historically, GDIT has managed numerous complex and high-value contracts, often involving mission-critical systems. While specific performance details for every contract are not publicly available, their continued success in winning significant federal contracts suggests a generally positive track record in delivering services and meeting government requirements, though like any large contractor, they may have faced challenges or scrutiny on specific projects.

Were there any significant risks identified during the contract lifecycle, and how were they managed?

The provided data does not detail specific risks identified during the lifecycle of this contract. However, common risks associated with IT hardware and support contracts include technological obsolescence, integration challenges with existing systems, cybersecurity threats, supply chain disruptions, and contractor performance issues. For a firm-fixed-price contract, a key risk for the government is ensuring the contractor delivers the specified quality and functionality within the agreed price. Risks for the contractor include underestimating costs or facing unforeseen technical difficulties. Management of these risks would typically involve robust project management, regular progress reviews, clear communication channels, and potentially contingency planning by both the government and the contractor. The DCMA's role would include monitoring contractor performance and identifying potential issues early.

How has spending on similar IT hardware and support services by the Department of Defense evolved since this contract was awarded?

Since the award of this $17.4 million contract (2008-2011), spending on IT hardware and support services by the Department of Defense has continued to grow and evolve significantly. There has been a pronounced shift towards cloud computing, cybersecurity solutions, data analytics, and artificial intelligence. While traditional hardware procurement remains essential, the emphasis has increasingly moved towards integrated solutions, software-defined infrastructure, and services-based models. The DoD's overall IT budget has remained substantial, reflecting the critical role of technology in modern defense operations. Trends include increased investment in modernizing legacy systems, enhancing network resilience, and adopting agile development methodologies, often through larger, more comprehensive contract vehicles than might have been typical during the period of this specific award.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

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

Financial Breakdown

Contract Ceiling: $17,442,479

Exercised Options: $17,442,479

Current Obligation: $17,442,479

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA877104D0007

IDV Type: IDC

Timeline