DoD's $116M contract for telecom services awarded to General Dynamics, raising cost concerns
Contract Overview
Contract Amount: $100,203,752 ($100.2M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-08-29
End Date: 2013-08-02
Contract Duration: 2,895 days
Daily Burn Rate: $34.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 200511!000595!5700!FA8773!38EIG/PK !FA877104D0007 !A!N! !N!TF03 ! !20050829!20071231!008968708!116187758!001381284!N!GENERAL DYNAMICS NETWORK SYSTE!77 A ST !NEEDHAM !MA!02494!73800!017!40!TINKER AFB !CANADIAN !OKLAHOMA !+000001611781!N!N!000000000000!D304!ADP TELECOMMUNICATIONS & TRANSMISSION SERVICES !S1 !SERVICES !000 !* !541330!E! !3!B!M! !A! !20200930!B!A!Y!A! !A!N!J!2!002!B! !Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73145
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $100.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: 200511!000595!5700!FA8773!38EIG/PK !FA877104D0007 !A!N! !N!TF03 ! !20050829!20071231!008968708!116187758!001381284!N!GENERAL DYNAMICS NETWORK SYSTE!77 A ST !NEEDHAM !MA!02494!73800!017!40!TINKER AFB !CANA… Key points: 1. The contract value of $116,187,758 for telecommunications services represents a significant investment. 2. General Dynamics Information Technology, Inc. secured this award, indicating a competitive landscape in the sector. 3. The fixed-price contract type suggests a degree of cost certainty, but the overall value warrants scrutiny. 4. The sector is Wired Telecommunications Carriers, a critical infrastructure area for government operations.
Value Assessment
Rating: questionable
The contract's total value of over $116 million is substantial. Benchmarking against similar telecommunications service contracts is crucial to determine if the pricing is competitive and reflects fair market value.
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 final negotiated price and its relation to the initial bids need further examination to ensure optimal value.
Taxpayer Impact: While competition was present, the substantial final award amount necessitates a review to ensure taxpayer funds were used efficiently and effectively for the services rendered.
Public Impact
Ensures critical telecommunications infrastructure for the Department of Defense. Supports national security by providing reliable communication networks. Impacts the telecommunications industry through a large government contract award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value
- Potential for cost overruns if not managed effectively
- Reliance on a single vendor for critical services
Positive Signals
- Awarded through full and open competition
- Firm fixed-price contract type
- Supports essential government functions
Sector Analysis
This contract falls within the Wired Telecommunications Carriers sector, which is vital for government operations. Spending in this sector can vary widely based on infrastructure needs and technological advancements.
Small Business Impact
The data does not indicate specific subcontracting opportunities for small businesses. Further analysis would be needed to determine if small businesses were involved in fulfilling this contract.
Oversight & Accountability
The contract was awarded by the Department of the Air Force, part of the Department of Defense. Oversight would typically involve contract management teams ensuring performance and adherence to terms.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- High total contract value
- Potential for scope creep
- Long contract duration
- Reliance on a single large contractor
Tags
wired-telecommunications-carriers, department-of-defense, ok, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $100.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. 200511!000595!5700!FA8773!38EIG/PK !FA877104D0007 !A!N! !N!TF03 ! !20050829!20071231!008968708!116187758!001381284!N!GENERAL DYNAMICS NETWORK SYSTE!77 A ST !NEEDHAM !MA!02494!73800!017!40!TINKER AFB !CANADIAN !OKLAHOMA !+000001611781!N!N!000000000000!D304!ADP TELECOMMUNICATIONS & TRANSMISSION SERVICES !S1 !SERVICES !000 !* !541330!E! !3!B!M! !A! !202
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 (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $100.2 million.
What is the period of performance?
Start: 2005-08-29. End: 2013-08-02.
What was the competitive landscape like for this specific telecommunications service, and how did the winning bid compare to others?
The contract was awarded under 'full and open competition,' indicating multiple bids were likely submitted. However, without access to the bid details, it's impossible to definitively state how the winning bid compared to others in terms of price and technical merit. Further investigation into the bid tabulation and evaluation process would be required.
Are there any identified risks associated with General Dynamics' performance on this contract, such as past performance issues or technical challenges?
The provided data does not contain specific information regarding General Dynamics' past performance or potential technical challenges related to this contract. A comprehensive risk assessment would require reviewing contract performance reports, any issued cure notices, and the contractor's overall performance history with the DoD.
How effectively has this contract supported the DoD's telecommunications needs, and what is the perceived value for money?
The effectiveness and value for money of this contract cannot be fully assessed from the provided data alone. While it supports critical DoD functions, a thorough evaluation would involve analyzing service delivery metrics, user satisfaction, and comparing the actual costs against the benefits realized over the contract's duration.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 77 A STREET, NEEDHAM, MA, 02494
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $86,982
Exercised Options: $86,982
Current Obligation: $100,203,752
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA877104D0007
IDV Type: IDC
Timeline
Start Date: 2005-08-29
Current End Date: 2013-08-02
Potential End Date: 2013-08-02 00:00:00
Last Modified: 2018-09-07
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