DoD's $22.6M VMware contract with General Dynamics IT awarded via full and open competition

Contract Overview

Contract Amount: $22,598,918 ($22.6M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-04-30

End Date: 2011-11-30

Contract Duration: 1,309 days

Daily Burn Rate: $17.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VMWARE

Place of Performance

Location: NEEDHAM HEIGHTS, NORFOLK County, MASSACHUSETTS, 02494

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $22.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: VMWARE Key points: 1. Contract value represents a significant investment in IT infrastructure support. 2. General Dynamics IT's incumbency suggests a strong performance record. 3. The firm fixed-price structure aims to control costs and manage risk. 4. Wired Telecommunications Carriers NAICS code indicates a focus on network services. 5. The contract duration of over 3 years provides stability for service delivery. 6. Awarded under the MAS contract vehicle, potentially indicating streamlined procurement.

Value Assessment

Rating: good

The contract's firm fixed-price nature suggests a degree of cost certainty. Benchmarking against similar VMware support contracts would be necessary for a precise value-for-money assessment. However, the competitive award process implies that pricing was vetted against market alternatives. The total award amount of $22.6 million over approximately three years indicates a substantial but potentially reasonable investment for comprehensive IT support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 5 bidders suggests a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: Taxpayers benefit from a competitive process that drives down costs and ensures the government is not overpaying for essential IT services.

Public Impact

The Department of Defense benefits from reliable and supported VMware infrastructure, crucial for its operations. IT services delivered under this contract ensure the functionality of critical defense systems. The contract supports the technological backbone of defense operations, impacting national security. Workforce implications include the potential for IT specialists employed by General Dynamics IT to support this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if VMware solutions become deeply integrated.
Reliance on a single vendor's technology could pose long-term strategic risks.
The effectiveness of firm fixed-price contracts can be diminished by scope creep.

Positive Signals

Award to a large, established contractor like General Dynamics IT suggests a lower risk of performance failure.
The firm fixed-price contract type provides cost predictability.
Full and open competition indicates a robust vetting of potential providers and pricing.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on telecommunications and network infrastructure support. The market for enterprise software and support services, such as VMware, is substantial and highly competitive, with numerous large and small businesses vying for government contracts. General Dynamics Information Technology is a major player in the government IT services market, competing with other large system integrators and specialized IT firms.

Small Business Impact

The contract was awarded to General Dynamics Information Technology, a large business, and there is no indication of a small business set-aside. While the primary awardee is a large business, there may be subcontracting opportunities for small businesses within the scope of this contract, depending on General Dynamics IT's subcontracting plan. Further analysis of subcontracting reports would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

The contract is managed by the Defense Contract Management Agency (DCMA), which provides contract administration services to ensure compliance with terms and conditions. Oversight is inherent in the firm fixed-price structure, which incentivizes the contractor to meet performance requirements within budget. Transparency is facilitated through contract award databases, though detailed performance metrics are typically internal.

Related Government Programs

General Services Administration (GSA) Schedules
Department of Defense IT Modernization Programs
Enterprise Software Licensing Agreements

Risk Flags

Potential for vendor lock-in
Reliance on a single technology provider
Cybersecurity vulnerabilities inherent in complex software

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. VMWARE

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 $22.6 million.

What is the period of performance?

Start: 2008-04-30. End: 2011-11-30.

What is the historical spending trend for VMware-related services within the Department of Defense?

Analyzing historical spending on VMware services within the DoD requires access to detailed procurement data over multiple fiscal years. Generally, the DoD has consistently invested heavily in IT infrastructure, including virtualization technologies like VMware, to support its vast operational needs. Spending trends are influenced by factors such as technology refresh cycles, cybersecurity requirements, and the consolidation of IT systems. While this specific $22.6 million contract represents a significant outlay, it must be viewed within the broader context of the DoD's overall IT budget, which can run into billions of dollars annually. Without specific historical data for VMware services, it's difficult to ascertain if this contract represents an increase, decrease, or stable level of investment compared to previous periods.

How does the pricing of this contract compare to industry benchmarks for VMware support and maintenance?

Benchmarking the pricing of this $22.6 million contract against industry standards for VMware support and maintenance requires detailed knowledge of the specific VMware products and support levels procured. General Dynamics Information Technology, as the awardee, likely leveraged its purchasing power and established relationship with VMware to secure competitive rates. The firm fixed-price nature of the contract suggests that the total cost was determined upfront. However, without knowing the exact service level agreements (SLAs), the number of licenses, and the duration of support, a direct comparison is challenging. Typically, large enterprise agreements negotiated through competitive processes tend to offer better per-unit pricing than smaller, ad-hoc purchases. Further analysis would involve comparing the effective hourly rates or per-license costs against publicly available pricing or data from similar large-scale government contracts.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key Performance Indicators (KPIs) for a contract of this nature, supporting VMware infrastructure, would likely focus on service availability, system performance, response times for issue resolution, and adherence to security protocols. For instance, uptime percentages for virtualized environments, latency metrics for critical applications hosted on VMware, and the time taken to resolve reported incidents would be crucial. The contract's firm fixed-price structure implies that meeting these performance standards is essential for the contractor to achieve full payment and avoid penalties. While specific KPIs are often detailed in the contract's Statement of Work (SOW) or Performance Work Statement (PWS), common metrics include Mean Time Between Failures (MTBF), Mean Time To Repair (MTTR), and successful patch/update deployment rates. The Defense Contract Management Agency (DCMA) would likely monitor these KPIs to ensure contractor performance.

What is General Dynamics Information Technology's track record with similar large-scale IT infrastructure contracts for the DoD?

General Dynamics Information Technology (GDIT) has a long and extensive track record of delivering large-scale IT infrastructure and services to the Department of Defense and other federal agencies. They are a major prime contractor on numerous complex programs involving network modernization, cybersecurity, cloud migration, and enterprise IT support. GDIT's experience often includes managing multi-year, multi-billion dollar contracts. Their performance history generally indicates a capability to handle significant technical challenges and manage large teams of personnel. While specific contract performance details are often proprietary or found in past performance evaluations, GDIT's continued success in winning large competitive bids suggests a consistent ability to meet or exceed client expectations in demanding environments like the DoD.

What are the potential risks associated with relying on a single vendor's technology (VMware) for critical DoD infrastructure?

Relying heavily on a single vendor's technology, such as VMware, for critical Department of Defense infrastructure presents several potential risks. Firstly, there's the risk of vendor lock-in, where the cost and complexity of switching to an alternative solution become prohibitively high, giving the vendor significant leverage. Secondly, the DoD becomes dependent on the vendor's product roadmap, security updates, and pricing strategies. If VMware discontinues support for certain versions or significantly increases prices, the DoD could face substantial disruption and unexpected costs. Thirdly, a major security vulnerability discovered in VMware products could have a widespread impact across DoD systems. Finally, reliance on a single technology stack can stifle innovation and limit the adoption of potentially more advanced or cost-effective solutions from competing vendors.

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: 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, 02494

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

Financial Breakdown

Contract Ceiling: $89,809,711

Exercised Options: $67,842,834

Current Obligation: $22,598,918

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA877104D0007

IDV Type: IDC

Timeline