DoD's $64.7M Enterprise Service Delivery Contract Awarded to General Dynamics IT Faces Scrutiny

Contract Overview

Contract Amount: $64,749,464 ($64.7M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-02-05

End Date: 2022-02-04

Contract Duration: 1,095 days

Daily Burn Rate: $59.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE SERVICE DELIVERY

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $64.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: ENTERPRISE SERVICE DELIVERY Key points: 1. The contract, valued at $64.7 million, was awarded to General Dynamics Information Technology, Inc. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract duration is 1095 days, ending in February 2022. 4. The North American Industry Classification System (NAICS) code is 541519 (Other Computer Related Services). 5. The contract type is Firm Fixed Price, which helps control costs.

Value Assessment

Rating: fair

The contract's value of $64.7 million over three years for enterprise service delivery appears within a reasonable range for large-scale IT services. However, without specific service details or benchmarks for 'Other Computer Related Services,' a precise pricing assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The use of full and open competition is intended to maximize taxpayer value by fostering a competitive environment that drives down costs and improves service quality.

Public Impact

Ensures critical enterprise services for the Department of Defense are maintained. Supports the Defense Logistics Agency's operational capabilities. Potential impact on IT service providers and the broader technology sector. The fixed-price nature aims to provide cost certainty for taxpayers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of specific performance metrics or outcomes in the provided data.
  • Potential for scope creep in 'Other Computer Related Services' if not tightly managed.
  • The 'VA' status (Virginia) might indicate a concentration of work or oversight.

Positive Signals

  • Awarded under full and open competition.
  • Firm Fixed Price contract type offers cost predictability.
  • Significant value indicates a substantial and important service delivery.

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services.' Spending benchmarks for this category can vary widely based on the specific services rendered, but large enterprise-level contracts like this are common within defense agencies requiring extensive IT support.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the awardee, General Dynamics Information Technology, Inc., is a large corporation. Therefore, there is no direct benefit to small businesses from this specific award.

Oversight & Accountability

Oversight would typically be managed by the Defense Logistics Agency contracting officers and program managers. The firm fixed price structure provides some inherent accountability, but detailed performance monitoring is crucial to ensure effective service delivery and prevent cost overruns.

Related Government Programs

  • Other Computer Related Services
  • Department of Defense Contracting
  • Defense Logistics Agency Programs

Risk Flags

  • Lack of detailed service description.
  • Potential for undefined scope in 'Other Computer Related Services'.
  • No performance metrics provided.
  • Limited insight into the competitive bidding process beyond 'full and open'.

Tags

other-computer-related-services, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $64.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. ENTERPRISE SERVICE DELIVERY

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 (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $64.7 million.

What is the period of performance?

Start: 2019-02-05. End: 2022-02-04.

What specific 'Other Computer Related Services' were included in this contract, and how do their costs compare to industry standards for similar services?

The provided data lacks specifics on the 'Other Computer Related Services' rendered under this contract. To assess value, a detailed breakdown of services (e.g., network management, cybersecurity, software development, data analytics) and their associated costs would be needed. Benchmarking against similar contracts within the DoD or other federal agencies for comparable services would then reveal if the $64.7 million price tag represents fair market value or if it is inflated.

Given the 'full and open competition' award, what was the competitive landscape, and did the final price reflect significant cost savings compared to initial estimates?

While 'full and open competition' suggests multiple bids were received, the provided data doesn't detail the number of bidders or the initial estimates. A robust competitive process should ideally drive the final price below initial projections. Further analysis would require access to bid data and pre-negotiation cost estimates to confirm the extent of savings achieved through competition.

How effectively did General Dynamics Information Technology, Inc. deliver the enterprise services, and were there any performance issues or contract modifications that impacted the final cost or durat

The data indicates the contract was completed within its original duration (2019-2022). However, it doesn't provide information on performance quality, service level adherence, or any contract modifications. Assessing effectiveness would require reviewing performance reports, user feedback, and any supplemental agreements or change orders issued during the contract's lifecycle.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesOther Computer Related 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

Solicitation ID: SP470918Q0054

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3211 JERMANTOWN RD, FAIRFAX, VA, 22030

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

Financial Breakdown

Contract Ceiling: $64,749,464

Exercised Options: $64,749,464

Current Obligation: $64,749,464

Actual Outlays: $37,007,914

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $36,812

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP470917D0005

IDV Type: IDC

Timeline

Start Date: 2019-02-05

Current End Date: 2022-02-04

Potential End Date: 2022-02-04 00:00:00

Last Modified: 2023-01-27

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