DoD awards $2.7M contract for SFF AFT PORT services to General Dynamics Information Technology, Inc

Contract Overview

Contract Amount: $2,693,424 ($2.7M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-07-23

End Date: 2026-05-31

Contract Duration: 677 days

Daily Burn Rate: $4.0K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SFF AFT PORT

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $2.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: SFF AFT PORT Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies. 2. The contract duration of 677 days suggests a need for sustained support. 3. Fixed-price contract type aims to control costs, but sole-source nature limits competitive pressure. 4. The award is a purchase order, indicating a potentially smaller scale or specific need. 5. No small business set-aside was utilized, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: questionable

Benchmarking the value of this $2.7 million contract is challenging due to its sole-source nature and lack of detailed performance metrics. Without competitive bids, it's difficult to ascertain if the pricing reflects fair market value. The fixed-price structure offers some cost control, but the absence of competition means potential savings may have been forgone. Further analysis would require comparison to similar sole-source procurements for comparable services, which are often less cost-effective than competed contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The Defense Logistics Agency likely determined that only General Dynamics Information Technology, Inc. could provide the required services. This approach bypasses the competitive bidding process, which typically leads to better price discovery and potentially lower costs for the government. The lack of competition here means taxpayers do not benefit from the usual downward pressure on prices that multiple bidders would exert.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the best possible price, as competition is a key driver of cost savings in government contracting.

Public Impact

The Department of Defense is the primary beneficiary, receiving critical SFF AFT PORT services. This contract supports essential maritime or port-related operations within the defense sector. The services delivered are crucial for maintaining operational readiness and logistical capabilities. The contract's impact on the workforce is likely concentrated within General Dynamics Information Technology, Inc., potentially involving specialized technical personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of transparency in the justification for sole-source procurement.
Potential for vendor lock-in given the specialized nature of the services.

Positive Signals

Fixed-price contract type provides some cost certainty for the government.
Award to an established contractor like General Dynamics suggests a degree of reliability.
Contract duration indicates a commitment to sustained support for a critical function.

Sector Analysis

The defense sector relies heavily on specialized IT and logistics support services. Contracts like this, even when sole-sourced, are essential for maintaining the complex operational infrastructure required by agencies like the Defense Logistics Agency. The market for such specialized services is often dominated by a few large contractors with specific expertise and security clearances. Benchmarking against similar sole-source IT support contracts within the DoD would be necessary for a comprehensive value assessment.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This means opportunities for small business participation are likely limited unless General Dynamics Information Technology, Inc. voluntarily includes them in their supply chain. The absence of a set-aside could mean that the nature of the required services necessitates specialized capabilities typically found in larger firms.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Logistics Agency's contracting officers and program managers. Accountability measures are inherent in the fixed-price contract terms, requiring delivery of specified services. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Logistics Agency IT Support Contracts
Department of Defense Procurement
Sole-Source IT Services
Maritime and Port Operations Support

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns (mitigated by FFP)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. SFF AFT PORT

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 $2.7 million.

What is the period of performance?

Start: 2024-07-23. End: 2026-05-31.

What specific services does 'SFF AFT PORT' entail, and why was General Dynamics Information Technology, Inc. uniquely qualified?

The provided data indicates 'SFF AFT PORT' relates to services within the 'Boat Building' NAICS code (336612), suggesting a connection to maritime or naval vessel support, maintenance, or related systems. The specific nature of 'SFF AFT PORT' is not detailed, but given the sole-source award to General Dynamics Information Technology, Inc. (GDIT), it implies a requirement for specialized technical expertise, proprietary systems integration, or unique knowledge of DoD maritime platforms that GDIT possesses. GDIT is a major defense contractor with extensive experience in IT, C4ISR, and platform integration for naval and other defense applications. The justification for sole-sourcing would typically detail why other contractors cannot meet the requirement, often citing unique technical capabilities, existing system compatibility, or urgent needs where competition is not feasible.

How does the $2.7 million value compare to similar sole-source IT support contracts within the DoD?

Direct comparison of this $2.7 million sole-source contract to similar DoD procurements is difficult without more specific service details and a clear understanding of the scope. Sole-source IT support contracts can vary widely in cost depending on complexity, duration, and the criticality of the systems supported. However, $2.7 million for a contract spanning approximately 22 months (based on the 677-day duration) suggests a moderate investment. Generally, sole-source awards tend to be more expensive than competed contracts due to the lack of competitive pressure. To assess value, one would need to benchmark against other sole-source contracts for similar IT services (e.g., system maintenance, software support, network management) awarded by the DLA or other DoD components, considering factors like contractor overhead, profit margins, and the specific technical requirements.

What are the primary risks associated with this sole-source award, and what mitigation strategies are in place?

The primary risk with this sole-source award is the potential for inflated costs due to the absence of competition, leading to reduced value for taxpayer money. Another risk is vendor lock-in, where the government becomes overly reliant on GDIT for these specific services, making future transitions difficult or costly. There's also a risk that without competitive pressure, service quality or innovation might stagnate. Mitigation strategies are typically embedded in the contract itself, such as performance metrics, clear deliverables, and termination clauses. Robust oversight by the Defense Logistics Agency contracting officers is crucial to monitor performance and ensure adherence to contract terms. However, the fundamental risk of paying a non-competitive price remains inherent in sole-source procurements.

What is the historical spending pattern for 'SFF AFT PORT' services or similar contracts by the Defense Logistics Agency?

Historical spending data for 'SFF AFT PORT' specifically is not readily available from the provided information. However, the Defense Logistics Agency (DLA) consistently spends billions annually on a wide range of support services, including IT, logistics, and maintenance for various defense assets. Contracts for boat building and related maritime support, even if not explicitly named 'SFF AFT PORT', are part of the DLA's broader mission to provide logistical support to the armed forces. Analyzing DLA's historical spending on IT services and maritime support contracts, particularly those awarded to large prime contractors like GDIT, would provide context. Trends might show an increasing reliance on specialized IT integration for defense platforms or a shift towards fixed-price contracts for better cost control, even in sole-source scenarios.

How does the fixed-price contract type influence the risk profile for both the government and the contractor?

A Firm Fixed Price (FFP) contract type, as indicated here, shifts most of the cost risk to the contractor (General Dynamics Information Technology, Inc.). The government agrees to pay a set price regardless of the contractor's actual costs incurred. This provides the government with cost certainty and protects against cost overruns. For the contractor, it means they must accurately estimate all costs associated with performing the contract, including labor, materials, and overhead. If their costs exceed the fixed price, their profit margin shrinks, or they may incur a loss. Conversely, if they manage costs efficiently, their profit margin increases. This structure incentivizes the contractor to control costs and perform efficiently to maximize profit, which can benefit the government if managed well, but the sole-source nature limits the government's ability to benefit from competitive efficiencies.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Boat Building

Product/Service Code: SHIP AND MARINE EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: SPMYM224Q0953

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3150 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: $2,693,424

Exercised Options: $2,693,424

Current Obligation: $2,693,424

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline