DoD's $60.6M IT support contract awarded to General Dynamics Information Technology, Inc. shows potential value concerns

Contract Overview

Contract Amount: $10,948,222 ($10.9M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-09-30

End Date: 2009-03-14

Contract Duration: 1,626 days

Daily Burn Rate: $6.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: 200412!000399!97AS!0000 !DLA SUPPORT SERVICES !26301D0050 !B!N! !N!SP470004F0347! !20040930!20041022!097779698!097779698!606261683!N!SYSTEMS RESEARCH AND APPLICATI!4300 FAIR LAKES COURT !FAIRFAX !VA!22033!29008!059!51!FORT BELVOIR !FAIRFAX !VIRGINIA !+000000220000!N!N!000000000000!R699!OTHER ADMINISTRATIVE SUPPORT SERVICES !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !541519!E! !5!A!S! ! ! !99990909!B!E!N!N!Z!A! !J! !001!A! !Z! ! ! ! !N!C!N! ! ! !Z!Z!A!A!000! !A!N! ! ! ! ! ! !0001! !

Place of Performance

Location: SCOTT AFB, ST. CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $10.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: 200412!000399!97AS!0000 !DLA SUPPORT SERVICES !26301D0050 !B!N! !N!SP470004F0347! !20040930!20041022!097779698!097779698!606261683!N!SYSTEMS RESEARCH AND APPLICATI!4300 FAIR LAKES COURT !FAIRFAX !VA!22033!29008!059!51!FORT BELVOIR !FAIR… Key points: 1. The contract's cost-plus-fixed-fee structure may incentivize cost overruns. 2. Limited public data makes a direct value-for-money assessment challenging. 3. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 4. The duration of the contract (over 5 years) indicates a long-term need for these services. 5. The specific IT services provided are not detailed, hindering performance context. 6. The contractor has a significant presence in the federal IT services market.

Value Assessment

Rating: fair

The total award amount of $60.6 million over approximately five years suggests a substantial investment in IT support. Benchmarking this against similar contracts is difficult without more specific service details. However, the cost-plus-fixed-fee (CPFF) pricing structure, while allowing for flexibility, can sometimes lead to higher costs compared to fixed-price contracts if not managed tightly. The lack of detailed performance metrics in the provided data makes it hard to definitively assess value for money, but the significant award amount warrants scrutiny.

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 typically suggests a robust bidding process where multiple companies vied for the contract. The presence of multiple bidders generally leads to more competitive pricing and better value for the government. However, the specific number of bidders is not provided, which would offer further insight into the intensity of the competition.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it is expected to drive down costs through market forces and encourage a wider range of innovative solutions.

Public Impact

The Department of Defense benefits from enhanced IT support services. The contract supports critical IT infrastructure and operations within the agency. The geographic impact is likely nationwide, supporting DoD operations across various locations. The contract supports jobs within the IT services sector, particularly at General Dynamics Information Technology, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee structure may lead to cost inefficiencies.
Lack of detailed service scope makes performance evaluation difficult.
Long contract duration could mask potential for outdated technology or services if not managed proactively.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Contractor is a well-established entity in the federal IT space.
Long-term contract indicates a sustained need and potential for stable service delivery.

Sector Analysis

This contract falls within the broader Information Technology services sector, specifically focusing on IT support and potentially related services. The federal IT market is highly competitive, with significant spending across various agencies. Contracts of this magnitude are common for major defense and civilian agencies requiring extensive IT infrastructure and support. Comparable spending benchmarks would typically involve analyzing other large-scale IT support contracts within the Department of Defense or other federal agencies with similar operational needs.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While General Dynamics Information Technology, Inc. is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on the prime contractor's strategy and the specific requirements of the contract, which are not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. The Inspector General's office for the DoD would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is facilitated by contract award databases, but detailed performance reports and audits are often internal or classified, limiting public visibility into day-to-day oversight.

Related Government Programs

DoD IT Modernization Programs
Defense Information Systems Agency (DISA) Contracts
Federal Civilian IT Services Spending
IT Support Services for Government Agencies

Risk Flags

Cost-Plus-Fixed-Fee structure
Broad Service Classification (NAICS 541519)
Long Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. 200412!000399!97AS!0000 !DLA SUPPORT SERVICES !26301D0050 !B!N! !N!SP470004F0347! !20040930!20041022!097779698!097779698!606261683!N!SYSTEMS RESEARCH AND APPLICATI!4300 FAIR LAKES COURT !FAIRFAX !VA!22033!29008!059!51!FORT BELVOIR !FAIRFAX !VIRGINIA !+000000220000!N!N!000000000000!R699!OTHER ADMINISTRATIVE SUPPORT SERVICES !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !541519!E! !5!A!S! ! ! !999

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 (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $10.9 million.

What is the period of performance?

Start: 2004-09-30. End: 2009-03-14.

What specific IT services are encompassed by this contract?

The provided data indicates the primary NAICS code is 541519 (Other Computer Related Services) and the PSC code is R699 (OTHER ADMINISTRATIVE SUPPORT SERVICES). This suggests a broad range of IT support functions, potentially including help desk services, network management, system administration, IT infrastructure maintenance, and possibly some software or hardware support. However, without more granular detail, the exact scope of services remains undefined. This lack of specificity makes it challenging to assess if the services delivered align precisely with the evolving technological needs of the Department of Defense or if they represent a more generalized support function.

How does the cost-plus-fixed-fee (CPFF) structure compare to other contract types for similar IT support services?

Cost-plus-fixed-fee (CPFF) contracts are often used when the scope of work is not precisely defined or when there is a high degree of uncertainty in the costs involved, such as in research and development or complex IT implementations. For IT support services, fixed-price contracts (like Firm-Fixed-Price or Fixed-Price Incentive) are generally preferred by the government when requirements are well-understood, as they offer greater cost certainty and incentivize contractor efficiency. CPFF contracts, while providing flexibility, carry a higher risk of cost overruns for the government because the contractor is reimbursed for allowable costs plus a fixed fee. This fee, however, is fixed regardless of the final cost, meaning the contractor's profit margin can increase if costs are higher than anticipated. Therefore, CPFF for long-term, potentially evolving IT support services warrants close monitoring of cost drivers and performance.

What is General Dynamics Information Technology, Inc.'s track record with similar large-scale DoD IT contracts?

General Dynamics Information Technology, Inc. (GDIT) is a major federal contractor with extensive experience in providing IT services to the Department of Defense and other government agencies. They have a history of managing large, complex contracts involving IT infrastructure, cybersecurity, cloud services, and enterprise IT support. While specific performance details for individual contracts are often not publicly disclosed in detail, GDIT's continued success in winning significant federal contracts suggests a generally positive track record in meeting government requirements. However, like any large contractor, they may have faced challenges or criticisms on specific programs, which would require a deeper dive into contract performance reports or IG investigations if available.

What are the potential risks associated with a contract of this duration (over 5 years)?

A contract duration exceeding five years, as indicated by the award and expiration dates (2004-09-30 to 2009-03-14, totaling 1626 days or ~4.45 years), presents several potential risks. Firstly, technology evolves rapidly; services and solutions that are cutting-edge at the start of the contract may become outdated by its end, potentially leading to inefficiencies or the need for costly modifications. Secondly, long-term contracts can reduce flexibility for the government to adapt to changing mission requirements or to adopt new technologies or approaches that emerge during the contract period. Thirdly, there's a risk of contractor complacency or reduced incentive to innovate once a long-term commitment is secured. Effective contract management, including regular reviews and potential for modifications or re-competition, is crucial to mitigate these risks.

How does the 'Other Computer Related Services' classification impact our understanding of the contract's value?

The classification 'Other Computer Related Services' (NAICS 541519) is very broad and encompasses a wide array of IT functions beyond specific software development or hardware installation. This broadness makes it difficult to pinpoint the exact value proposition or to benchmark against more specialized IT contracts. It suggests the contract likely covers a mix of services, potentially including IT consulting, systems integration, IT support, and data processing services. While this flexibility can be beneficial for the agency, it also means that assessing the 'value for money' requires a detailed understanding of the specific tasks performed and their criticality to the agency's mission, which is not readily available from the high-level data provided.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: SRA International, Inc. (UEI: 606261683)

Address: 4300 FAIR LAKES COURT, FAIRFAX, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Parent Contract

Parent Award PIID: 26301D0050

IDV Type: IDC

Timeline