DoD's $33.7M IT services contract to General Dynamics Information Technology shows fair value with a competitive bidding process

Contract Overview

Contract Amount: $33,671,068 ($33.7M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-06-25

End Date: 2011-10-31

Contract Duration: 493 days

Daily Burn Rate: $68.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: IT

Official Description: OTHER COMPUTER RELATED SERVICES

Place of Performance

Location: NEEDHAM HEIGHTS, NORFOLK County, MASSACHUSETTS, 02494

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $33.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: OTHER COMPUTER RELATED SERVICES Key points: 1. The contract was awarded under full and open competition, suggesting a robust market for these services. 2. While specific performance metrics are not detailed, the duration and value indicate a significant IT support requirement. 3. The pricing appears reasonable when benchmarked against similar IT service contracts, though detailed cost breakdowns are absent. 4. The use of a Delivery Order under a larger contract vehicle (MAS) is a common and efficient procurement method. 5. General Dynamics Information Technology has a substantial track record with government contracts, implying experience and capability. 6. The contract's focus on wired telecommunications carriers suggests a foundational IT infrastructure support role.

Value Assessment

Rating: good

The contract value of approximately $33.7 million over its period of performance appears reasonable for the scope of IT services provided. Benchmarking against similar large-scale IT support contracts awarded by the Department of Defense suggests that the overall cost is within expected ranges. However, without detailed breakdowns of labor categories, hours, and specific services rendered, a precise value-for-money assessment is challenging. The contract type (Cost No Fee) implies that the government reimburses allowable costs, with the contractor's fee being fixed, which can offer cost control if managed effectively.

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 fact that it was competed suggests a healthy market for the specified IT services. While the number of bidders is not specified, full and open competition generally leads to better price discovery and potentially lower costs for the government compared to limited or sole-source procurements. This approach ensures that the government can select the offeror providing the best value.

Taxpayer Impact: Full and open competition benefits taxpayers by fostering a competitive environment that drives down prices and encourages innovation among contractors, ultimately leading to more cost-effective government spending.

Public Impact

The Department of the Air Force benefits from reliable IT infrastructure support, ensuring operational readiness. Services likely include maintenance, support, and potentially upgrades for wired telecommunications networks. The contract supports the Air Force's mission-critical operations by ensuring the availability of essential communication systems. Geographic impact is likely concentrated around Air Force installations where these services are deployed. The contract supports a workforce of IT professionals employed by General Dynamics Information Technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess efficiency and effectiveness.
The Cost No Fee contract type requires diligent oversight to ensure costs remain reasonable and allowable.
Absence of specific service delivery details limits the ability to gauge the full scope of work performed.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
General Dynamics Information Technology is an established government contractor with significant experience.
The contract duration suggests a stable, long-term need for these IT services.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on telecommunications infrastructure. The market for IT services to the federal government is substantial, with significant spending allocated to maintaining and upgrading complex systems. Contracts like this are crucial for ensuring the operational capabilities of agencies like the Department of Defense. Comparable spending benchmarks in IT services for defense agencies often run into the tens or hundreds of millions of dollars annually, reflecting the critical nature of these systems.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. General Dynamics Information Technology, as a large prime contractor, may engage small businesses for specific components or services, but the primary awardee is a large business. Further analysis would be needed to determine the extent of small business participation through subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. The contract type (Cost No Fee) necessitates careful monitoring of incurred costs to ensure they are allowable, reasonable, and allocable. Transparency is generally maintained through contract reporting systems, and the Inspector General's office would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

IT Infrastructure Support Services
Telecommunications Services
Information Technology Professional Services
Defense Information Systems Network (DISN) Support
Network Engineering and Maintenance

Risk Flags

Cost Control Risk (CNF Contract Type)
Performance Monitoring Difficulty (Broad Service Description)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. OTHER COMPUTER RELATED SERVICES

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 $33.7 million.

What is the period of performance?

Start: 2010-06-25. End: 2011-10-31.

What is the specific nature of the 'OTHER COMPUTER RELATED SERVICES' provided under this contract?

The contract description 'OTHER COMPUTER RELATED SERVICES' is broad. Given the NAICS code 517110 (Wired Telecommunications Carriers) and the agency (Department of the Air Force), these services likely encompass the installation, maintenance, operation, and support of wired communication networks and infrastructure. This could include services related to cabling, network hardware, circuit management, and potentially the integration of voice and data communication systems essential for military operations. The 'Cost No Fee' contract type suggests that the contractor is reimbursed for allowable costs incurred in performing these services, with a fixed fee for profit, requiring careful cost tracking and justification by the contractor.

How does the $33.7 million contract value compare to similar IT services contracts awarded by the Department of Defense?

The $33.7 million contract value is a significant but not extraordinary amount for IT services within the Department of Defense. Large-scale IT support contracts for military branches often range from tens to hundreds of millions of dollars annually, reflecting the complexity and scale of defense networks. This contract's value appears consistent with procurements for maintaining and operating critical telecommunications infrastructure. For instance, similar contracts for network management or IT support services awarded to large system integrators by agencies like the Army, Navy, or Air Force often fall within this financial bracket, especially when considering multi-year durations or multiple delivery orders.

What are the potential risks associated with a 'Cost No Fee' (CNF) contract type for IT services?

The primary risk with a Cost No Fee (CNF) contract is that the government reimburses the contractor for all allowable costs incurred, but the contractor's profit (fee) is fixed and not tied to performance. This can disincentivize the contractor from aggressively controlling costs, as their profit remains constant regardless of efficiency. The government bears the risk of cost overruns if costs are not meticulously monitored and controlled. Effective oversight by the Contracting Officer's Representative (COR) is crucial to ensure costs are reasonable, allocable, and necessary for contract performance. Without strong oversight, costs could escalate beyond what might be expected under a fixed-price arrangement.

What is General Dynamics Information Technology's track record with federal IT contracts?

General Dynamics Information Technology (GDIT), now part of General Dynamics, has an extensive and long-standing track record as a major contractor for the U.S. federal government, particularly within the Department of Defense and other civilian agencies. They are known for providing a wide range of IT services, including network operations, cybersecurity, cloud computing, enterprise IT, and mission systems support. GDIT has held numerous large, complex contracts over many years, demonstrating a capacity to manage significant programs. Their history suggests a deep understanding of government procurement processes and requirements, as well as established relationships and infrastructure to support federal IT needs. This extensive experience generally implies a lower risk profile regarding contractor capability and performance.

How does the Wired Telecommunications Carriers (NAICS 517110) classification impact the scope of services?

The NAICS code 517110, 'Wired Telecommunications Carriers,' specifically categorizes establishments primarily engaged in operating and/or developing telecommunications networks. For this contract, it indicates that the core services procured relate to the physical infrastructure and operation of wired communication systems. This includes services like installing, maintaining, and managing the physical network components (cables, switches, routers), ensuring connectivity, and potentially managing the circuits and lines that transmit data and voice. It suggests a focus on the foundational 'plumbing' of the Air Force's communication systems rather than higher-level software development or cybersecurity solutions, although these wired systems are essential for all other IT functions.

What does the contract duration of 493 days imply about the nature of the IT support required?

A duration of 493 days (approximately 16 months) for this contract suggests a need for ongoing, sustained IT support rather than a short-term project. This timeframe is typical for services that require continuous maintenance, operation, and management of existing infrastructure. For 'Wired Telecommunications Carriers' services, this duration implies the need for consistent network upkeep, troubleshooting, and potentially minor upgrades or expansions to ensure reliable communication channels for the Air Force. It indicates a requirement that extends beyond immediate operational needs, pointing towards the management of essential, long-term IT assets.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $56,060,906

Exercised Options: $38,149,036

Current Obligation: $33,671,068

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA877104D0007

IDV Type: IDC

Timeline