DoD's $19M contract for telecommunications services awarded to General Dynamics Information Technology, Inc

Contract Overview

Contract Amount: $19,009,259 ($19.0M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-11-09

End Date: 2014-05-13

Contract Duration: 550 days

Daily Burn Rate: $34.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TDC VOICE MODERNIZATION II

Place of Performance

Location: NEEDHAM HEIGHTS, NORFOLK County, MASSACHUSETTS, 02494

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $19.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: TDC VOICE MODERNIZATION II Key points: 1. The contract's value appears reasonable given the scope of telecommunications services. 2. Full and open competition suggests a competitive bidding process. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. The contract duration of approximately 18 months is standard for such services. 5. This contract falls within the broader IT services sector for the Department of Defense.

Value Assessment

Rating: good

The contract value of approximately $19 million for telecommunications services seems aligned with industry standards for a two-year period. Benchmarking against similar Department of Defense contracts for wired telecommunications infrastructure and support indicates a competitive pricing structure. The firm fixed-price nature of the award further suggests that the contractor assumed the risk for cost overruns, which is generally favorable 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 three bidders suggests a healthy level of competition for this requirement. This competitive environment is expected to drive more favorable pricing and service offerings for the government.

Taxpayer Impact: The full and open competition process ensures that taxpayer dollars are used efficiently by fostering a market where multiple vendors vie for the contract, leading to potentially lower prices and better value.

Public Impact

The Department of Defense benefits from modernized telecommunications infrastructure. This contract supports critical communication services for military operations. The geographic impact is likely within the operational areas of the Air Force. The contract supports jobs within the telecommunications and IT services industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Firm fixed-price contract type limits government cost exposure.
Contract awarded to a well-established IT services provider.

Sector Analysis

The telecommunications services sector is a critical component of the IT infrastructure supporting government operations. This contract, specifically for wired telecommunications carriers, falls under the broader North American Industry Classification System (NAICS) code 517110. Spending in this area is essential for maintaining secure and reliable communication networks for defense agencies. Comparable spending benchmarks for similar telecommunications modernization projects within the federal government can vary widely based on scope and duration, but this $19 million award appears to be a moderate investment.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless General Dynamics Information Technology, Inc. actively engages small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Air Force. Transparency is facilitated through contract award databases like FPDS. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver specified services within the agreed budget. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Network (DISN)
Air Force Network Integration Center (AFNIC)
Telecommunications Infrastructure Modernization Programs

Risk Flags

Potential for technical obsolescence if modernization is not future-proof.
Risk of integration challenges with existing legacy systems.
Performance degradation impacting critical voice communications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. TDC VOICE MODERNIZATION II

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 $19.0 million.

What is the period of performance?

Start: 2012-11-09. End: 2014-05-13.

What is the track record of General Dynamics Information Technology, Inc. with the Department of Defense for similar telecommunications contracts?

General Dynamics Information Technology, Inc. (GDIT) has a substantial history of contracting with the Department of Defense (DoD) across a wide array of IT and telecommunications services. They are a major federal contractor with numerous awards for network modernization, cybersecurity, and communication systems support. For telecommunications specifically, GDIT has been involved in projects ranging from tactical communication systems to enterprise-wide network upgrades. Their extensive experience suggests a strong understanding of DoD requirements and a proven capability to deliver complex solutions. Analyzing their past performance on similar firm-fixed-price contracts would provide further insight into their reliability and cost-effectiveness in delivering these types of services.

How does the $19 million contract value compare to other federal spending on wired telecommunications carriers?

The $19 million contract value for TDC VOICE MODERNIZATION II, awarded to General Dynamics Information Technology, Inc., represents a moderate investment within the federal government's spending on wired telecommunications carriers (NAICS 517110). Federal spending in this category can range from tens of thousands for localized upgrades to billions for large-scale network infrastructure projects. For a contract spanning approximately 18 months and focused on voice modernization, $19 million is within a typical range, especially considering the potential scope of modernizing telecommunications for a specific Air Force command or set of facilities. It is not an outlier in terms of sheer dollar amount but signifies a significant project for the specific requirements it addresses.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential technical obsolescence if modernization efforts do not adequately future-proof the systems, integration challenges with existing networks, and performance issues impacting critical voice communications. The mitigation strategies are largely embedded in the contract structure and execution. The firm fixed-price nature shifts cost overrun risk to the contractor. The requirement for full and open competition suggests that the chosen solution is likely to be robust and well-vetted. Furthermore, the Department of the Air Force's oversight, including performance monitoring and acceptance criteria, is crucial for ensuring the delivered services meet operational needs and minimize disruption.

What is the expected program effectiveness and impact of the 'TDC VOICE MODERNIZATION II' contract?

The 'TDC VOICE MODERNIZATION II' contract is expected to enhance the reliability, security, and efficiency of the Department of Defense's voice communication systems. Modernization typically involves upgrading outdated infrastructure to more advanced, potentially IP-based, telephony solutions. This can lead to improved call quality, reduced maintenance costs, and better integration with other digital communication platforms. The effectiveness will be measured by the successful deployment of new systems, the reduction in communication failures or disruptions, and the achievement of specified performance metrics. The impact is critical for ensuring seamless command and control operations, supporting daily administrative functions, and maintaining readiness.

How has federal spending on wired telecommunications carriers evolved over the past five years?

Federal spending on wired telecommunications carriers (NAICS 517110) has generally seen a sustained level of investment, driven by the continuous need for secure and reliable communication infrastructure across various government agencies, particularly defense and intelligence. While specific modernization projects like 'TDC VOICE MODERNIZATION II' represent discrete investments, the overall trend reflects a commitment to maintaining and upgrading networks to meet evolving technological standards and security requirements. Spending patterns are influenced by factors such as the lifecycle of existing infrastructure, the adoption of new technologies (like VoIP and unified communications), and national security imperatives. Agencies often prioritize upgrades to enhance bandwidth, improve network resilience, and ensure compliance with federal IT modernization mandates.

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: 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, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $19,009,259

Exercised Options: $19,009,259

Current Obligation: $19,009,259

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA877104D0007

IDV Type: IDC

Timeline