SEC Awards $461M Infrastructure Support Services Contract to General Dynamics IT

Contract Overview

Contract Amount: $461,348,535 ($461.3M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Securities and Exchange Commission

Start Date: 2016-02-01

End Date: 2026-07-03

Contract Duration: 3,805 days

Daily Burn Rate: $121.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: INFRASTRUCTURE SUPPORT SERVICES (ISS) IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20549

State: District of Columbia Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $461.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: INFRASTRUCTURE SUPPORT SERVICES (ISS) IGF::OT::IGF Key points: 1. The contract is for Computer Systems Design Services, a common IT sector. 2. General Dynamics Information Technology, Inc. is a major federal contractor. 3. The contract spans over 10 years, indicating long-term IT needs. 4. The use of Time and Materials pricing warrants scrutiny for cost control.

Value Assessment

Rating: fair

The contract value of $461M over 10 years averages $46M annually. This is a substantial amount, but without specific benchmarks for similar comprehensive IT infrastructure support, a precise value assessment is difficult. The Time and Materials pricing model can lead to cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the long duration and specific nature of infrastructure support may limit the number of truly competitive bids.

Taxpayer Impact: Taxpayer funds are being used for essential IT infrastructure, which is a necessary government function. The competitive award aims to ensure reasonable pricing, but the long-term nature and T&M pricing require ongoing vigilance.

Public Impact

Ensures continued operation of critical SEC IT systems. Supports the agency's mission to protect investors and maintain fair markets. Provides employment opportunities within the IT sector. Potential for cost efficiencies through long-term IT support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can inflate costs.
Long contract duration may reduce flexibility.
Potential for vendor lock-in.

Positive Signals

Awarded through full and open competition.
Supports critical government functions.
Experienced contractor selected.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Systems Design Services. Federal spending in this area is consistently high, supporting agency operations. Benchmarks for similar large-scale, long-term IT infrastructure support contracts are often in the tens to hundreds of millions of dollars annually.

Small Business Impact

The contract was awarded to General Dynamics Information Technology, Inc., a large business. There is no indication that small businesses were specifically included or subcontracted on this particular award, which is common for large IT prime contracts.

Oversight & Accountability

The SEC's contracting office is responsible for oversight. Given the contract's duration and value, robust performance monitoring and financial oversight are crucial to ensure value for money and prevent cost creep, especially with T&M pricing.

Related Government Programs

Computer Systems Design Services
Securities and Exchange Commission Contracting
Securities and Exchange Commission Programs

Risk Flags

Time and Materials pricing.
Long contract duration (over 10 years).
Potential for vendor lock-in.
Lack of specific performance metrics in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $461.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. INFRASTRUCTURE SUPPORT SERVICES (ISS) IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Securities and Exchange Commission (Securities and Exchange Commission).

What is the total obligated amount?

The obligated amount is $461.3 million.

What is the period of performance?

Start: 2016-02-01. End: 2026-07-03.

What is the projected cost per unit or service under this Time and Materials contract, and how does it compare to industry benchmarks for similar IT infrastructure support?

The provided data does not detail specific unit costs or service rates. Time and Materials contracts typically bill based on labor hours and material costs incurred. A thorough analysis would require access to the contract's detailed pricing structure and comparison with industry-standard rates for comparable IT support services to assess if the government is receiving fair market value.

What are the key performance indicators (KPIs) established for this contract, and how will performance be measured to mitigate risks associated with a long-term, high-value IT support agreement?

The data does not specify the KPIs. Effective oversight would necessitate clearly defined KPIs related to system uptime, response times, security compliance, and project completion rates. Regular performance reviews against these metrics are essential to ensure the contractor meets obligations and to identify any potential issues early, thereby mitigating risks of service degradation or cost overruns.

How does the SEC ensure ongoing competition and prevent vendor lock-in over the 10-year duration of this infrastructure support contract?

While awarded under full and open competition initially, the long duration presents a risk of vendor lock-in. The SEC should implement strategies such as incorporating clear exit clauses, ensuring knowledge transfer to government personnel or future contractors, and potentially conducting periodic market research or re-competition assessments to maintain leverage and encourage competitive pricing throughout the contract lifecycle.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SECHQ1-15-R-0015

Offers Received: 8

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3150 FAIRVIEW PARK DR STE 100, 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: $461,348,535

Exercised Options: $461,348,535

Current Obligation: $461,348,535

Actual Outlays: $311,726,870

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $92,988,615

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline