DoD's $17.1M hardware integration contract with General Dynamics awarded via full and open competition

Contract Overview

Contract Amount: $17,108,298 ($17.1M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-09-30

End Date: 2011-08-30

Contract Duration: 1,064 days

Daily Burn Rate: $16.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: IT

Official Description: CITS HARDWARE SYSTEMS INTEGRATION

Place of Performance

Location: WESTWOOD, NORFOLK County, MASSACHUSETTS, 02090

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $17.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: CITS HARDWARE SYSTEMS INTEGRATION Key points: 1. Value for money assessed through competitive bidding and comparison to similar IT hardware integration services. 2. Competition dynamics indicate a robust market for these services, potentially driving favorable pricing. 3. Risk indicators include contract duration and potential for scope creep in complex IT projects. 4. Performance context relies on successful delivery of wired telecommunications carrier services. 5. Sector positioning within IT hardware integration and telecommunications infrastructure.

Value Assessment

Rating: good

The contract value of $17.1 million for hardware systems integration appears reasonable given the 3-year duration and the nature of IT infrastructure projects. Benchmarking against similar large-scale IT integration contracts within the Department of Defense suggests that pricing is likely competitive due to the full and open competition. However, without specific details on the scope of services and the exact hardware components, a precise value-for-money assessment is challenging. The cost-no-fee pricing structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator for the government.

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. The presence of two bidders suggests a moderate level of competition for this specific requirement. While two bidders are better than one, a higher number of bids typically leads to more aggressive pricing and a wider range of innovative solutions. The government likely benefited from a competitive process, but further analysis could explore if the market could have supported more participants.

Taxpayer Impact: The full and open competition likely resulted in a fair market price for taxpayers. The presence of multiple bidders helps ensure that the government is not overpaying for the required hardware integration services.

Public Impact

The Department of Defense benefits from enhanced wired telecommunications capabilities. Services delivered include the integration of critical IT hardware systems. Geographic impact is likely focused on DoD installations requiring these telecommunications services. Workforce implications may involve specialized IT and telecommunications technicians for installation and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if project scope expands beyond initial estimates.
Dependence on contractor's ability to deliver complex integration on time and within budget.
Risk of technological obsolescence if hardware is not future-proofed.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Contractor's experience in large-scale IT integration projects is a positive signal.
Clear delivery order structure provides defined milestones for performance evaluation.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on hardware systems integration and wired telecommunications. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading its technological infrastructure. General Dynamics Information Technology, Inc. is a major player in this space, often competing for large-scale government contracts. Comparable spending benchmarks would involve looking at other large IT integration contracts awarded by the DoD and other federal agencies for similar services.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements for small businesses. General Dynamics Information Technology, Inc. is a large prime contractor, and while they may utilize small business subcontractors on various projects, there's no explicit indication of that here. The absence of a small business set-aside means the primary focus was on securing the best overall offer from any qualified source, potentially limiting direct opportunities for smaller firms on this specific prime contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are embedded in the contract's delivery order structure, requiring adherence to specified timelines and technical requirements. Transparency is facilitated through contract award databases, though detailed performance metrics and specific oversight reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD IT Modernization Programs
Defense Information Systems Agency (DISA) Contracts
Federal Telecommunications Infrastructure Contracts
General Services Administration (GSA) Schedule Contracts

Risk Flags

Contract duration may lead to technology obsolescence.
Potential for scope creep in complex IT integration projects.
Reliance on a single contractor for critical infrastructure integration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. CITS HARDWARE SYSTEMS INTEGRATION

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 $17.1 million.

What is the period of performance?

Start: 2008-09-30. End: 2011-08-30.

What is the track record of General Dynamics Information Technology, Inc. in delivering similar IT hardware integration services for the Department of Defense?

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record with the Department of Defense, often securing large and complex IT services contracts. They are known for providing a wide range of services including systems integration, network infrastructure, cybersecurity, and cloud solutions. Their experience spans decades, and they have been a consistent recipient of significant DoD funding for IT modernization and support. While specific performance details for every contract are not always public, GDIT's continued success in winning competitive bids suggests a generally positive performance history and capability to meet the demanding requirements of military IT environments. Their portfolio includes work on command and control systems, logistics IT, and enterprise IT services, all of which involve significant hardware integration components.

How does the $17.1 million contract value compare to other similar IT hardware integration contracts awarded by the DoD in the same period?

The $17.1 million contract value for this hardware systems integration effort, awarded in late 2008, falls within a moderate range for large-scale IT projects within the Department of Defense. During that era, major IT modernization initiatives, network upgrades, and system integrations often commanded tens to hundreds of millions of dollars. Contracts of this size were typical for procuring and integrating significant hardware components, software, and associated services for specific military branches or operational needs. For instance, broader network infrastructure overhauls or enterprise resource planning system implementations could easily exceed this amount. This specific contract's value suggests a focused scope, likely related to a particular system or installation, rather than a comprehensive agency-wide overhaul, making it comparable to many specialized integration tasks.

What are the primary risks associated with a contract of this nature (hardware systems integration) and duration (1064 days)?

The primary risks associated with a hardware systems integration contract of this duration (nearly three years) include technological obsolescence, integration complexity, and potential cost overruns. Hardware procured today might be outdated by the time integration is complete or shortly thereafter, especially in rapidly evolving IT fields. Integrating diverse hardware components from potentially different manufacturers, along with existing systems, presents significant technical challenges that can lead to delays and increased costs. Scope creep is another major risk; as the project progresses, requirements may change or expand, leading to additional work not initially accounted for in the contract. Furthermore, reliance on a single contractor for critical integration tasks can pose a risk if the contractor experiences financial difficulties, management issues, or fails to meet performance standards, potentially disrupting essential military communications and operations.

What does the 'Cost No Fee' (PT) contract type imply for contractor performance and government oversight?

The 'Cost No Fee' (PT) contract type places the financial risk primarily on the contractor. Under this structure, the contractor is reimbursed for allowable costs incurred in performing the contract but receives no additional fee or profit. This incentivizes the contractor to control costs diligently and perform efficiently, as any cost overruns directly reduce their overall return. For the government, this type of contract can be advantageous in situations where the scope of work is not precisely defined or is subject to change, as it shifts the burden of cost uncertainty. However, it necessitates robust government oversight to ensure that costs claimed are reasonable, allocable, and allowable, and that the contractor is making a good-faith effort to manage expenses and achieve the contract objectives without the profit motive.

How might the 'MASSACHUSETTS' (SN) location impact the delivery and support of these wired telecommunications services?

The 'MASSACHUSETTS' (SN) designation indicates the state where the contract was likely awarded or where the primary performance is expected to occur. For wired telecommunications services, this location could imply the need for installation, maintenance, and support of infrastructure within military bases, government facilities, or related sites in Massachusetts. This might involve coordination with local utility providers, adherence to state and local regulations regarding telecommunications infrastructure, and potentially leveraging local technical expertise. The geographic focus could also influence logistical considerations, such as the ease of deploying personnel and equipment to sites within the state, and the potential for quicker response times for support services compared to a contract with a broader, multi-state or national scope.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

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: $19,368,133

Exercised Options: $17,217,978

Current Obligation: $17,108,298

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA877104D0007

IDV Type: IDC

Timeline