State Department's $41.7M IT support contract for consular operations awarded to General Dynamics IT

Contract Overview

Contract Amount: $41,719,442 ($41.7M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of State

Start Date: 2012-07-30

End Date: 2017-06-25

Contract Duration: 1,791 days

Daily Burn Rate: $23.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PREPONDERANCE OF SERVICES: ESSENTIAL; PROVIDES SUPPORT SERVICES FOR CONSULAR OPERATIONS IN TURKEY, ARMENIA, ALBANIA, AZERBAIJAN, CYPRUS, BOSNIA, CROATIA, MACEDONIA, SERBIA, GREECE, AND THE UNITED ARAB EMIRATES.

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $41.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: THE PREPONDERANCE OF SERVICES: ESSENTIAL; PROVIDES SUPPORT SERVICES FOR CONSULAR OPERATIONS IN TURKEY, ARMENIA, ALBANIA, AZERBAIJAN, CYPRUS, BOSNIA, CROATIA, MACEDONIA, SERBIA, GREECE, AND THE UNITED ARAB EMIRATES. Key points: 1. Contract provides essential support services for consular operations across multiple countries, indicating a broad geographic scope. 2. The firm-fixed-price contract type suggests predictable costs for the government, assuming scope is well-defined. 3. Awarded via full and open competition, this contract likely benefited from a competitive bidding process. 4. The duration of nearly five years (1791 days) points to a long-term need for these IT services. 5. General Dynamics Information Technology Inc. is a significant player in the federal IT services market. 6. The contract's value of over $41 million over its term suggests a substantial investment in maintaining critical diplomatic infrastructure.

Value Assessment

Rating: good

The contract value of $41.7 million over approximately five years averages to about $8.34 million annually. Benchmarking this against similar IT support contracts for large-scale government operations, this appears to be within a reasonable range, especially considering the global reach and complexity of supporting consular functions across multiple countries. The firm-fixed-price structure helps control costs, but detailed performance metrics would be needed for a complete value assessment.

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 bids suggests a moderate level of competition for this requirement. While two bidders are better than one, a higher number of bidders could potentially drive prices down further and foster greater innovation.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of offers and can lead to more competitive pricing, ensuring the government receives good value for its investment.

Public Impact

Benefits U.S. diplomats and consular staff by ensuring the reliable functioning of IT systems critical to their operations. Delivers essential IT support services, including computer facilities management, across nine countries in Europe and the Middle East. Geographic impact is significant, covering Turkey, Armenia, Albania, Azerbaijan, Cyprus, Bosnia, Croatia, Macedonia, Serbia, Greece, and the United Arab Emirates. Supports the Department of State's mission to facilitate international travel and commerce by maintaining secure and efficient consular operations. Indirectly benefits U.S. citizens abroad by ensuring the smooth processing of visas and other consular services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if transition planning is inadequate at contract end.
Reliance on a single large contractor for critical global IT infrastructure could pose risks if the contractor faces financial or operational difficulties.
Ensuring consistent service quality across diverse geographic locations and cultural contexts can be challenging.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair selection process.
Firm-fixed-price contract type provides cost certainty for the government.
Long contract duration indicates a stable, long-term partnership for essential services.
General Dynamics Information Technology is an established provider with a track record in federal IT services.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer facilities management. The federal IT services market is vast and highly competitive, with agencies increasingly relying on contractors for specialized support. This contract represents a significant portion of spending for consular IT operations, highlighting the importance of reliable technology in supporting diplomatic missions abroad. Comparable spending benchmarks would typically look at IT support contracts for large agencies with global footprints.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting goals for small businesses explicitly mentioned in the provided data. The prime contractor, General Dynamics Information Technology, is a large business. This means that opportunities for small businesses would likely be through subcontracting, if General Dynamics chooses to engage them. The absence of explicit set-asides or goals suggests a limited direct impact on the small business ecosystem for this specific award, though indirect participation is possible.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract. Regular performance reviews and reporting requirements would be standard oversight mechanisms.

Related Government Programs

Department of State IT Modernization Programs
Global IT Infrastructure Support Contracts
Consular Affairs IT Services
Federal Information Technology Services Contracts
IT Support for Overseas Operations

Risk Flags

Potential for service disruption impacting critical consular functions.
Cybersecurity risks associated with handling sensitive government data.
Challenges in ensuring consistent service quality across diverse international locations.
Geopolitical instability in regions served could affect operations.
Reliance on a single large contractor for essential services.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $41.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. THE PREPONDERANCE OF SERVICES: ESSENTIAL; PROVIDES SUPPORT SERVICES FOR CONSULAR OPERATIONS IN TURKEY, ARMENIA, ALBANIA, AZERBAIJAN, CYPRUS, BOSNIA, CROATIA, MACEDONIA, SERBIA, GREECE, AND THE UNITED ARAB EMIRATES.

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 State (Department of State).

What is the total obligated amount?

The obligated amount is $41.7 million.

What is the period of performance?

Start: 2012-07-30. End: 2017-06-25.

What is the track record of General Dynamics Information Technology Inc. in performing similar IT support contracts for the Department of State or other federal agencies?

General Dynamics Information Technology Inc. (GDIT) has a substantial track record in providing IT support and services to various federal agencies, including the Department of State. They have historically managed large, complex IT infrastructure projects, cybersecurity solutions, and mission-critical systems. For the Department of State specifically, GDIT has been involved in contracts related to global IT infrastructure, network modernization, and end-user support. Their experience often includes operating in challenging overseas environments, which is directly relevant to this consular support contract. A review of their past performance ratings and any past performance issues on similar contracts would provide further insight into their reliability and capability for this specific requirement.

How does the per-unit cost or overall value of this contract compare to similar IT support contracts for consular operations or overseas government facilities?

Direct per-unit cost comparisons are difficult without knowing the specific services rendered (e.g., per user, per server, per site). However, the total contract value of $41.7 million over approximately five years, supporting consular operations in eleven countries, suggests an average annual spend of roughly $8.34 million. This figure needs to be contextualized against the scale and complexity of the operations. For instance, supporting IT across multiple diplomatic posts, each with unique infrastructure and user needs, is inherently more expensive than a single domestic facility. Benchmarking against other large-scale, geographically dispersed IT support contracts for agencies like the Department of Defense or USAID would be more appropriate. Generally, such global IT support contracts represent significant investments, and this value appears commensurate with the scope described, assuming effective service delivery.

What are the primary risk indicators associated with this contract, and how are they being managed?

Key risk indicators for this contract include the potential for service disruptions impacting critical consular functions, cybersecurity threats to sensitive government data, cost overruns if the firm-fixed-price model is strained by unforeseen issues, and challenges in maintaining consistent service quality across diverse international locations. Geopolitical instability in the regions served could also pose operational risks. Management of these risks would typically involve robust performance monitoring by the State Department, adherence to strict security protocols, contingency planning for service continuity, and clear communication channels with the contractor. The contractor's own risk management processes and past performance in mitigating similar issues are also crucial factors.

How effective has the Department of State been in managing its IT support contracts, particularly those with a global reach, based on historical data?

The Department of State has a mixed but generally improving record in managing its extensive portfolio of IT support contracts, especially those with a global reach. Historically, large agencies have faced challenges with IT modernization, contract consolidation, and ensuring consistent service delivery across dispersed locations. However, recent years have seen a concerted effort towards strategic sourcing, consolidating contracts, and implementing more rigorous performance management frameworks. The success of contracts like this one hinges on strong program oversight, clear performance metrics, and effective collaboration between the agency and the contractor. Data on contract performance ratings, task order completion, and any disputes or contract modifications would offer a more granular assessment of effectiveness.

What are the historical spending patterns for IT support services related to consular operations, and how does this contract fit within that trend?

Historical spending patterns for IT support related to consular operations have generally trended upwards, reflecting the increasing reliance on technology for diplomatic functions and the growing volume of consular services provided globally. Agencies like the State Department have often consolidated numerous smaller, localized IT contracts into larger, more comprehensive agreements to achieve economies of scale and improve management. This $41.7 million contract, awarded in 2012 for a five-year period, fits within this trend of consolidating IT support for essential functions. It represents a significant investment aimed at standardizing and enhancing IT capabilities across multiple overseas posts, aligning with broader federal efforts to modernize IT infrastructure and improve efficiency.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 3170 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,719,442

Exercised Options: $41,719,442

Current Obligation: $41,719,442

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA10D0017

IDV Type: IDC

Timeline