State Department's $29M IT services contract awarded to General Dynamics IT shows fair value and strong competition

Contract Overview

Contract Amount: $29,134,286 ($29.1M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of State

Start Date: 2016-05-26

End Date: 2022-11-17

Contract Duration: 2,366 days

Daily Burn Rate: $12.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: GSS VISA SERVICE FOR CANADA. IGF::CT::IGF

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $29.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: GSS VISA SERVICE FOR CANADA. IGF::CT::IGF Key points: 1. The contract demonstrates a commitment to value for money through a competitive bidding process. 2. Competition dynamics appear healthy, with a full and open approach likely driving competitive pricing. 3. Risk indicators are generally low, given the firm-fixed-price structure and established contractor. 4. Performance context suggests a long-term engagement for essential IT services. 5. This contract positions General Dynamics IT as a key provider within the government IT services sector.

Value Assessment

Rating: good

The contract's value of approximately $29 million over its period of performance appears reasonable when benchmarked against similar IT services contracts awarded by the Department of State. The firm-fixed-price contract type helps control costs and provides predictability. While specific per-unit cost data is not provided, the competitive nature of the award suggests that the pricing achieved was likely market-competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach typically fosters a robust bidding environment, encouraging multiple vendors to compete, which can lead to better pricing and service offerings for the government. The fact that it was competed fully suggests a deliberate effort to ensure market-based pricing.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it maximizes the potential for cost savings by encouraging a wide range of vendors to offer their best prices and innovative solutions.

Public Impact

The Department of State benefits from reliable IT infrastructure and management services. Government operations, particularly those involving international affairs and diplomacy, are supported by these IT services. The contract supports IT professionals employed by General Dynamics Information Technology Inc. The services provided are crucial for the day-to-day functioning of the State Department's mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type helps manage cost certainty.
Long contract duration (2016-2022) suggests a stable and ongoing need for services.
General Dynamics Information Technology is a large, established federal contractor with a significant track record.

Sector Analysis

This contract falls within the broader government IT services sector, a large and competitive market. General Dynamics Information Technology is a major player in this space, providing a wide range of IT solutions to federal agencies. Spending in this category is consistently high across government, reflecting the critical role of IT in modern operations. Benchmarks for similar IT facilities management contracts often range from tens to hundreds of millions of dollars, depending on scope and duration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This suggests that the primary award went to a large business, and the impact on the small business ecosystem would likely be through potential subcontracting opportunities that are not explicitly detailed in this summary.

Oversight & Accountability

The contract is managed by the Department of State, which has its own internal oversight mechanisms for contract performance and financial management. As a delivery order under a larger contract vehicle, oversight may also be influenced by the terms of the parent contract. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics are not detailed here.

Related Government Programs

IT Professional Services
IT Facilities Management
Department of State IT Contracts
General Dynamics IT Contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $29.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. GSS VISA SERVICE FOR CANADA. IGF::CT::IGF

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 $29.1 million.

What is the period of performance?

Start: 2016-05-26. End: 2022-11-17.

What is the track record of General Dynamics Information Technology Inc. with the Department of State?

General Dynamics Information Technology Inc. (GDIT) has a substantial history of contracting with the Department of State, providing a wide array of IT and professional services. This specific contract, valued at approximately $29 million, represents one engagement within a broader, long-standing relationship. GDIT is a major federal IT contractor, and their work with the State Department typically involves supporting critical infrastructure, cybersecurity, and mission-specific IT applications necessary for diplomatic operations. Their performance history with the agency would be reflected in past performance evaluations during competitive bidding processes for subsequent contracts. Agencies often consider a contractor's past performance, including their ability to meet deadlines, manage costs, and deliver quality services, as a key factor in award decisions.

How does the value of this contract compare to similar IT services contracts awarded by the Department of State?

The $29 million value of this contract, awarded over a period of roughly six years (May 2016 to November 2022), translates to an average annual value of approximately $4.8 million. This figure is within a reasonable range for IT facilities management and computer services contracts awarded by large federal agencies like the Department of State. Many IT service contracts can range from a few million dollars for specialized support to hundreds of millions for comprehensive enterprise-wide solutions. Given that this was a delivery order, it likely represents a specific set of services within a larger framework. Benchmarking against similar contracts would require access to detailed scope of work and performance data, but the overall value appears consistent with the agency's needs for ongoing IT support.

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

The primary risks associated with IT services contracts often include cost overruns, schedule delays, performance deficiencies, and cybersecurity vulnerabilities. For this contract, the firm-fixed-price (FFP) award structure is a key risk mitigation strategy, as it places the responsibility for cost control on the contractor, General Dynamics Information Technology Inc. The long duration (over 6 years) could introduce risks related to technological obsolescence or changing requirements, which are typically managed through contract modifications or task orders. Cybersecurity risks are inherent in IT contracts; mitigation would involve adherence to strict government security protocols, regular audits, and potentially specific security clauses within the contract. The contractor's established track record and the competitive bidding process also serve as indirect risk mitigators, suggesting a higher likelihood of successful performance.

How effective has General Dynamics Information Technology Inc. been in delivering Computer Facilities Management Services for the Department of State under this contract?

Assessing the precise effectiveness of GDIT's delivery of Computer Facilities Management Services under this specific contract requires access to performance reports, user feedback, and potentially Inspector General audits, which are not publicly detailed in the provided data. However, the contract's duration (over six years) and its award under full and open competition suggest a level of satisfaction and successful performance that warranted its continuation. Agencies typically conduct performance reviews and utilize past performance data in future procurement decisions. The firm-fixed-price nature of the contract incentivizes GDIT to deliver services efficiently to maintain profitability. Without specific metrics on uptime, service response times, or user satisfaction, a definitive judgment on effectiveness is limited, but the contract's longevity is a positive indicator.

What are the historical spending patterns for Computer Facilities Management Services at the Department of State?

The Department of State has consistently allocated significant funding towards IT services, including facilities management, reflecting the critical nature of its global operations. Historical spending patterns reveal a sustained reliance on both large prime contractors and a diverse range of specialized IT service providers. The agency frequently utilizes contract vehicles like Indefinite Delivery/Indefinite Quantity (IDIQ) contracts and delivery orders to procure these services, allowing for flexibility and responsiveness to evolving technological needs and geopolitical demands. Spending in this category is influenced by factors such as infrastructure modernization initiatives, cybersecurity enhancements, and the need to support a geographically dispersed workforce. The approximately $29 million awarded to GDIT for this specific contract aligns with the agency's established pattern of investing in robust IT infrastructure and support.

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corporation

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: $31,482,667

Exercised Options: $31,482,667

Current Obligation: $29,134,286

Actual Outlays: $8,139,286

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA10D0017

IDV Type: IDC

Timeline