State Department's $72.5M Global Support Strategy contract for overseas consular services awarded to General Dynamics IT

Contract Overview

Contract Amount: $72,484,970 ($72.5M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of State

Start Date: 2017-07-30

End Date: 2024-07-29

Contract Duration: 2,556 days

Daily Burn Rate: $28.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE

Sector: Other

Official Description: IGF::OT::IGF GLOBAL SUPPORT STRATEGY (GSS) PERFORMANCE-BASED TASK ORDER FOR OVERSEAS CONSULAR SUPPORT IN EMIRATES AND SOUTHEASTERN EUROPE (ESEE) SUPPORTING TURKEY, ARMENIA, ALBANIA, AZERBAIJAN, CYPRUS, BOSNIA, CROATIA, MACEDONIA, SERBIA, GREECE AND THE UNITED ARAB EMIRATES (UAE) THAT REPLACES A PATCHWORK OF USER-PAYS INFORMATION, APPOINTMENT, FEE COLLECTION, DOCUMENT DELIVERY, GREETER, AND OFFSITE BIO-METRIC COLLECTION SERVICES CURRENTLY EMPLOYED BY THE POSTS.

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $72.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: IGF::OT::IGF GLOBAL SUPPORT STRATEGY (GSS) PERFORMANCE-BASED TASK ORDER FOR OVERSEAS CONSULAR SUPPORT IN EMIRATES AND SOUTHEASTERN EUROPE (ESEE) SUPPORTING TURKEY, ARMENIA, ALBANIA, AZERBAIJAN, CYPRUS, BOSNIA, CROATIA, MACEDONIA, SERBIA, GREECE AND THE UNITED ARAB EMIRATES (UAE) … Key points: 1. This contract consolidates disparate user-pays services into a unified performance-based task order, aiming for improved efficiency and cost-effectiveness. 2. The competition was full and open, suggesting a robust market engagement and potential for competitive pricing. 3. Performance-based elements incentivize contractor success in delivering specified consular support services. 4. The contract duration of approximately seven years indicates a significant, long-term commitment by the agency. 5. The scope covers a wide geographic area, including the UAE, Turkey, and Southeastern Europe, highlighting the global reach of the services. 6. Consolidation of services may lead to economies of scale and reduced administrative overhead for the State Department.

Value Assessment

Rating: good

The contract value of $72.5 million over nearly seven years suggests a substantial investment in overseas consular support. Benchmarking against similar large-scale IT and support service contracts for government agencies, this pricing appears within a reasonable range, especially considering the broad geographic scope and the consolidation of multiple service types. The performance-based nature of the contract further supports value by linking payment to successful service delivery.

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 offers. This approach typically fosters a competitive environment, encouraging multiple bidders to propose their best pricing and technical solutions. The specific number of bidders is not provided, but the 'full and open' designation suggests a healthy level of competition was sought.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and encouraging innovative solutions that can lead to more efficient service delivery.

Public Impact

U.S. citizens and foreign nationals requiring consular services abroad will benefit from potentially more streamlined and efficient processes. The contract delivers a range of services including information provision, appointment scheduling, fee collection, document delivery, greeter services, and offsite biometric collection. The geographic impact is significant, covering posts in Turkey, Armenia, Albania, Azerbaijan, Cyprus, Bosnia, Croatia, Macedonia, Serbia, Greece, and the United Arab Emirates. The contract supports the operational workforce at these consular posts by managing essential support functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long-term nature and consolidation of services.
Ensuring consistent service quality across diverse geographic locations and cultural contexts can be challenging.
Reliance on a single large contractor for critical support functions could pose risks if performance falters.

Positive Signals

Consolidation of services is expected to improve efficiency and reduce administrative burdens.
Performance-based structure incentivizes the contractor to meet or exceed service level agreements.
Full and open competition suggests a competitive pricing structure was achieved.

Sector Analysis

This contract falls within the IT and professional services sector, specifically focusing on IT facilities management and outsourced support services. The market for such services is large and competitive, with numerous large system integrators and IT service providers capable of delivering global support. The State Department's spending in this area is consistent with efforts by various federal agencies to modernize and streamline operations through technology and outsourced support, often seeking to consolidate fragmented services for better management and cost control.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a primary set-aside objective for this specific task order. While General Dynamics Information Technology Inc. is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors. However, the absence of explicit small business set-aside requirements suggests that the focus was on full and open competition for the prime contract, potentially limiting direct subcontracting opportunities for small businesses unless they are brought in by the prime.

Oversight & Accountability

Oversight for this contract is primarily managed by the Department of State's Bureau of Information Resource Management (IRM) and relevant contracting officers. The performance-based nature of the contract includes specific metrics and service level agreements that will be monitored. Transparency is facilitated through contract award databases and reporting requirements. While specific Inspector General (IG) jurisdiction is not detailed here, the State Department's Office of Inspector General would have oversight authority over agency spending and contract performance.

Related Government Programs

Department of State Overseas Support Services
Federal IT Services Contracts
Global Consular Operations Support
Information Technology Facilities Management
Performance-Based Service Contracts

Risk Flags

Potential for service disruption if prime contractor performance falters.
Risk of inadequate adaptation to unique local requirements across diverse posts.
Long-term dependency on a single large contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $72.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. IGF::OT::IGF GLOBAL SUPPORT STRATEGY (GSS) PERFORMANCE-BASED TASK ORDER FOR OVERSEAS CONSULAR SUPPORT IN EMIRATES AND SOUTHEASTERN EUROPE (ESEE) SUPPORTING TURKEY, ARMENIA, ALBANIA, AZERBAIJAN, CYPRUS, BOSNIA, CROATIA, MACEDONIA, SERBIA, GREECE AND THE UNITED ARAB EMIRATES (UAE) THAT REPLACES A PATCHWORK OF USER-PAYS INFORMATION, APPOINTMENT, FEE COLLECTION, DOCUMENT DELIVERY, GREETER, AND OFFSITE BIO-METRIC COLLECTION SERVICES CURRENTLY EMPLOYED BY THE POSTS.

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 $72.5 million.

What is the period of performance?

Start: 2017-07-30. End: 2024-07-29.

What is the historical spending trend for similar overseas consular support services by the Department of State?

Historical spending on overseas consular support services by the Department of State has likely been fragmented, with various posts managing their own user-pays systems and support contracts. This $72.5 million contract represents a significant consolidation effort, suggesting that previous spending was spread across numerous smaller contracts and internal resources. Analyzing past spending would require examining individual post budgets and smaller, localized contracts for services like appointment scheduling, fee collection, and document delivery. The move to a large, performance-based task order indicates a strategic shift towards centralized management and potentially greater cost control compared to a decentralized approach.

How does the per-unit cost of services under this contract compare to market rates for similar outsourced support functions?

Determining the precise per-unit cost for services like appointment scheduling or document delivery under this contract is challenging without detailed breakdowns of the fixed-price incentive structure and the volume of services delivered. However, the contract's value of $72.5 million over approximately seven years, covering multiple countries and a wide array of services, suggests an average annual spend of roughly $10 million. When benchmarked against the private sector for similar outsourced IT and administrative support functions, particularly those requiring global reach and security clearances, this figure appears competitive. The consolidation into a single large contract often allows for economies of scale that can drive down per-unit costs compared to managing numerous smaller, localized contracts.

What are the key performance indicators (KPIs) and service level agreements (SLAs) that General Dynamics Information Technology must meet?

While the specific KPIs and SLAs are not detailed in the provided data, performance-based contracts like this typically include stringent metrics tied to service availability, response times, accuracy of information provided, efficiency of fee collection, and timeliness of document delivery. For example, KPIs might include the percentage of appointments scheduled within a target timeframe, the accuracy rate of collected fees, or the average time to deliver requested documents. SLAs would define the acceptable thresholds for these metrics, with potential financial incentives for exceeding them and penalties for failing to meet minimum standards. The State Department would actively monitor these to ensure effective consular support.

What is the track record of General Dynamics Information Technology (GDIT) in managing large-scale government IT and support contracts?

General Dynamics Information Technology (GDIT) has a substantial track record of managing large-scale IT and support contracts for various U.S. federal agencies, including the Department of Defense, NASA, and other civilian departments. They are known for their capabilities in areas such as IT infrastructure management, cybersecurity, cloud services, and mission support. GDIT has experience with complex, global operations and performance-based contracts. While specific performance on every contract varies, their overall presence and the types of contracts they secure indicate a demonstrated capacity to handle significant government programs. The State Department's award to GDIT suggests confidence in their ability to meet the requirements of this global consular support strategy.

What are the potential risks associated with consolidating these diverse consular support services under a single contract?

Consolidating diverse consular support services under a single contract, while offering potential efficiencies, introduces several risks. A primary risk is vendor lock-in, where the agency becomes heavily reliant on one provider, potentially reducing leverage in future negotiations. Performance degradation by the prime contractor could significantly disrupt services across multiple posts simultaneously, unlike fragmented contracts where issues might be localized. There's also a risk that the standardized approach might not adequately address unique local needs or cultural nuances at different embassies and consulates. Furthermore, managing a contract of this scale requires robust oversight from the State Department to ensure compliance, quality, and value for money.

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: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

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: $81,226,895

Exercised Options: $81,226,895

Current Obligation: $72,484,970

Actual Outlays: $24,393,812

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