General Dynamics IT awarded $32M for computer systems design services by GSA

Contract Overview

Contract Amount: $32,031,519 ($32.0M)

Contractor: General Dynamics Information Technology, Inc

Awarding Agency: General Services Administration

Start Date: 2003-11-24

End Date: 2005-04-14

Contract Duration: 507 days

Daily Burn Rate: $63.2K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: MRSC SUPPORT SVCS

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

General Services Administration obligated $32.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC for work described as: MRSC SUPPORT SVCS Key points: 1. Contract value of $32 million over approximately 1.7 years suggests a moderate investment in IT support. 2. The use of a competitive delivery order indicates a degree of market engagement, though specific competition details are limited. 3. The 'Time and Materials' pricing structure can pose a risk for cost overruns if not closely managed. 4. This contract falls within the broader IT services sector, specifically computer systems design. 5. The award was made by the General Services Administration, a common contracting vehicle for federal agencies.

Value Assessment

Rating: fair

The contract value of $32 million for a duration of 507 days (approximately 1.7 years) for computer systems design services appears within a reasonable range for federal IT support. However, without specific details on the scope of work and deliverables, a precise value-for-money assessment is challenging. The 'Time and Materials' pricing model, while flexible, can lead to higher costs if not meticulously monitored compared to fixed-price contracts. Benchmarking against similar GSA contracts for computer systems design would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, suggesting it was competed under a broader indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle. The presence of '2' bidders indicates a limited but present level of competition for this specific order. While competitive, the low number of bidders might suggest that the market for this specific service or the terms of the IDIQ limited broader participation, potentially impacting price discovery.

Taxpayer Impact: A competitive award, even with a limited number of bidders, is generally favorable for taxpayers as it introduces some level of price pressure. However, the true benefit depends on the intensity of the competition and the resulting pricing.

Public Impact

Federal agencies utilizing GSA's Federal Acquisition Service benefit from the computer systems design and support services provided. The services delivered likely enhance the operational efficiency and technological capabilities of the supported agencies. The geographic impact is primarily within Ohio, where the contractor is located, but the services likely support federal operations nationwide. The contract supports a workforce skilled in computer systems design and related IT fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Time and Materials' pricing structure carries inherent risks of cost escalation if not managed with rigorous oversight and clear performance metrics.
A limited number of bidders (2) for this competitive order may indicate potential barriers to entry or a niche service, which could affect long-term competition and pricing.
The contract duration of approximately 1.7 years is relatively short for complex IT systems design, potentially leading to continuity challenges or frequent re-competition.

Positive Signals

The award was made through a competitive process, indicating that multiple vendors had the opportunity to bid, fostering some level of market responsiveness.
The General Services Administration's involvement suggests adherence to established federal procurement standards and potentially leverages existing contract vehicles for efficiency.
The contract is for computer systems design services, a critical area for federal IT infrastructure modernization and operational support.

Sector Analysis

The federal IT services market is vast and highly competitive, with agencies constantly seeking solutions for systems design, integration, and support. This contract for computer systems design services, valued at $32 million, fits within the broader category of professional, scientific, and technical services. Comparable spending benchmarks for similar IT support contracts by agencies like GSA often range from tens to hundreds of millions of dollars, depending on the scope and duration. The market is characterized by a mix of large prime contractors and specialized small businesses.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. The absence of a set-aside means that large businesses were eligible to compete and potentially win. This could limit opportunities for small businesses to participate directly in this specific contract, although they might be involved as subcontractors if General Dynamics Information Technology, Inc. chooses to utilize them.

Oversight & Accountability

The General Services Administration (GSA) typically employs robust oversight mechanisms for its contracts, including performance monitoring and financial controls. As a delivery order under a larger IDIQ, it likely falls under the purview of GSA's Federal Acquisition Service. Transparency is generally maintained through contract award databases like FPDS. Inspector General oversight would apply if any fraud, waste, or abuse is suspected within the contract's execution.

Related Government Programs

IT Professional Services
Computer Systems Design
General Services Administration Contracts
IT Support Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited competition indicated by only two bidders.
Lack of explicit small business subcontracting requirements.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $32.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. MRSC SUPPORT SVCS

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $32.0 million.

What is the period of performance?

Start: 2003-11-24. End: 2005-04-14.

What is the specific scope of 'Computer Systems Design Services' covered under this contract?

The provided data indicates the contract falls under NAICS code 541512, 'Computer Systems Design Services.' This typically encompasses a wide range of activities including analyzing client's business or scientific needs and then designing, developing, and implementing system solutions. This can involve custom software development, systems integration, IT infrastructure design, and IT consulting. However, without the full contract details or statement of work, the precise services rendered under this specific $32 million award remain unspecified. It could range from designing new IT architectures to integrating existing systems or providing specialized design expertise for complex federal IT projects.

How does the 'Time and Materials' pricing structure compare to other contract types for similar services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change. They reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee or profit. Compared to fixed-price contracts, T&M offers flexibility but carries a higher risk of cost overruns for the government if not managed diligently. For IT services, fixed-price contracts are generally preferred when requirements are well-defined, as they provide greater cost certainty. However, for research, development, or rapidly evolving IT needs, T&M can be appropriate, provided strong oversight is in place to control labor hours and material costs.

What are the potential risks associated with only two bidders competing for this delivery order?

Having only two bidders for a competitive delivery order, even under a larger IDIQ, can present several risks. Firstly, it suggests a potentially limited pool of qualified vendors for this specific requirement or within the scope of the parent contract, which could indicate market concentration or high barriers to entry. Secondly, with fewer competitors, there is less downward pressure on pricing, potentially leading to a higher cost for the government than if there were more bidders. Thirdly, it might reduce the incentive for the winning contractor to perform exceptionally well, as the threat of losing future competitions to a wider array of competitors is diminished. This situation warrants closer scrutiny of the pricing and performance metrics.

What is the historical spending pattern for 'Computer Systems Design Services' by the General Services Administration?

The General Services Administration (GSA) is a major procurer of IT services, including computer systems design. Historical spending data reveals that GSA consistently awards significant contracts in this category, often through its various IT schedule contracts and IDIQ vehicles. Annual spending can reach billions of dollars across numerous awards, reflecting the federal government's reliance on GSA for IT acquisition. The specific amount spent on computer systems design services fluctuates based on agency needs, technological shifts, and budget allocations. This $32 million award represents a single data point within GSA's broader IT procurement portfolio, which is characterized by both large, multi-year programs and smaller, task-order-based procurements.

What is General Dynamics Information Technology, Inc.'s track record with federal IT contracts?

General Dynamics Information Technology, Inc. (GDIT) is a major federal contractor with a substantial history of winning and performing on IT service contracts across various government agencies. They have a broad portfolio encompassing IT modernization, cybersecurity, cloud computing, data analytics, and mission support. GDIT has been involved in numerous large-scale federal IT programs, often serving as a prime contractor. Their track record includes both successes and challenges, as is common with large government IT providers. Analyzing their specific performance on past contracts, including any past performance evaluations or contract disputes, would provide a more granular understanding of their reliability and capability for this particular award.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 15245 SHADY GROVE RD STE 200, ROCKVILLE, MD, 20850

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $239,646,749

Exercised Options: $139,576,807

Current Obligation: $32,031,519

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00T99ALD0203

IDV Type: GWAC

Timeline