DoD's $29.3M IT contract to General Dynamics shows fair value, but limited competition concerns

Contract Overview

Contract Amount: $29,337,645 ($29.3M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-10-12

End Date: 2014-02-23

Contract Duration: 1,595 days

Daily Burn Rate: $18.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT SOLUTION SERVICES

Plain-Language Summary

Department of Defense obligated $29.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IT SOLUTION SERVICES Key points: 1. Contract value of $29.3M over 5 years suggests moderate annual spending. 2. Full and open competition was utilized, indicating a broad search for bidders. 3. The contract was awarded as a delivery order, suggesting it's part of a larger framework. 4. FIRM FIXED PRICE contract type helps control costs and manage contractor risk. 5. The North American Industry Classification System (NAICS) code 517110 points to telecommunications services. 6. No small business set-aside was applied, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: fair

Benchmarking this $29.3M IT contract against similar Department of Defense (DoD) procurements requires more granular data on specific services rendered. However, the firm fixed-price structure is a positive indicator for cost control. Without detailed performance metrics or comparisons to market rates for the specific telecommunications services provided, a definitive value-for-money assessment is challenging. The duration of the contract (nearly 5 years) suggests a need for sustained services, but the total value implies a moderate annual spend.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The data indicates 5 bids were received, which suggests a reasonable level of competition for this IT solution services contract. While five bidders is a healthy number, the specific market dynamics for wired telecommunications carriers could influence whether this truly represents robust price discovery or if further consolidation limits the pool of truly competitive offers.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. The presence of multiple bidders suggests that the government likely received competitive pricing for these services.

Public Impact

The Department of the Army, a branch of the DoD, is the primary beneficiary of these IT solution services. The contract likely supports critical wired telecommunications infrastructure and services essential for military operations. Geographic impact is likely widespread within the Army's operational areas, supporting communication networks. The contract supports the IT workforce, potentially including roles in network management, installation, and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess if the full value was realized.
The NAICS code 517110 (Wired Telecommunications Carriers) might be broad, potentially masking specific service costs.
The contract's duration of nearly 5 years could lead to technology obsolescence if not managed proactively.

Positive Signals

Awarded under full and open competition, indicating a broad market solicitation.
Firm Fixed Price contract type provides cost certainty for the government.
The contract was awarded as a delivery order, suggesting it aligns with a pre-existing contract vehicle, potentially streamlining acquisition.

Sector Analysis

The IT services sector, particularly telecommunications, is a significant area of federal spending. This contract falls under NAICS code 517110, Wired Telecommunications Carriers. The federal government is a major consumer of these services, requiring robust communication networks for operations, data transfer, and command and control. Spending in this sector is influenced by technological advancements, cybersecurity needs, and the demand for reliable connectivity across various agencies and military branches. Comparable spending benchmarks would depend on the specific nature of the wired telecommunications services procured.

Small Business Impact

This contract does not appear to have been awarded as a small business set-aside, as indicated by 'sb': false. There is no information provided regarding subcontracting plans or performance. The absence of a small business set-aside means that opportunities for small businesses to directly compete for this prime contract were likely limited, though they may have participated as subcontractors.

Oversight & Accountability

As a delivery order issued under a larger contract, oversight would typically be managed through the terms and conditions of the parent contract and the specific delivery order. The Department of Defense generally has robust oversight mechanisms, including contract officers, inspectors general, and performance monitoring systems. Transparency is usually facilitated through contract databases like FPDS-NG (now SAM.gov), where basic award information is publicly available. Specific accountability measures would be detailed within the contract's statement of work and performance requirements.

Related Government Programs

IT Services
Telecommunications Services
Department of Defense Contracts
Army IT Procurement
Wired Network Infrastructure

Risk Flags

Potential for technology obsolescence given the contract duration.
Limited insight into specific performance metrics and value realization.
Competition level, while 'full and open', yielded only 5 bids, warranting monitoring for future procurements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IT SOLUTION SERVICES

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 Army).

What is the total obligated amount?

The obligated amount is $29.3 million.

What is the period of performance?

Start: 2009-10-12. End: 2014-02-23.

What specific wired telecommunications services were provided under this contract?

The provided data identifies the contract under NAICS code 517110, Wired Telecommunications Carriers, and the description as 'IT SOLUTION SERVICES'. However, it does not specify the exact nature of the wired telecommunications services. These could range from the installation and maintenance of physical network infrastructure (e.g., fiber optic cables, copper wiring), to the provision of managed network services, dedicated data circuits, or voice over IP (VoIP) services. Without a detailed statement of work or service description, it is difficult to ascertain the precise technical services rendered. Further investigation into the contract award details or related documents would be necessary to clarify the scope of services.

How does the $29.3 million contract value compare to similar IT service contracts awarded by the Department of the Army?

Comparing the $29.3 million contract value requires context regarding the duration and scope of services. This contract spanned approximately 5 years (from October 2009 to February 2014), equating to an average annual spend of roughly $5.86 million. To assess its comparability, one would need to analyze other IT service contracts awarded by the Department of the Army during that period, specifically those for wired telecommunications or similar infrastructure support. Contracts with similar NAICS codes and service descriptions would be most relevant. If the $5.86 million annual spend is significantly higher or lower than average for comparable services and contract types (like Firm Fixed Price), it could indicate differences in pricing, scope, or market conditions.

What were the key performance indicators (KPIs) for this contract, and how was performance measured?

The provided data does not include specific Key Performance Indicators (KPIs) or details on how performance was measured for this contract. Typically, for IT solution services and telecommunications contracts, KPIs might include network uptime, latency, data transfer speeds, response times for service requests, and successful installation rates. Performance measurement would likely involve regular reporting by the contractor, government inspections, and user feedback. The effectiveness of oversight and accountability would hinge on the clarity and enforceability of these KPIs and the rigor of the government's performance evaluation process. Without this information, assessing the contractor's performance and the overall success of the contract is not possible.

What is the historical spending trend for wired telecommunications carriers by the Department of the Army?

The provided data represents a single contract award from 2009-2014. To understand the historical spending trend for wired telecommunications carriers by the Department of the Army, a broader analysis of contract awards over multiple fiscal years would be necessary. This would involve examining spending patterns for NAICS code 517110 and potentially related codes across different Army commands and contracting offices. Trends could reveal increases or decreases in spending, shifts towards different types of telecommunications services (e.g., from traditional wired to more advanced wireless or cloud-based solutions), and the impact of technological advancements or budget allocations on procurement strategies.

Were there any identified risks or challenges associated with this contract during its performance period?

The provided data does not explicitly list any risks or challenges encountered during the performance of this contract. However, general risks associated with IT solution services and telecommunications contracts of this nature could include technological obsolescence, cybersecurity threats, integration issues with existing systems, contractor performance deficiencies, or unforeseen cost increases (though mitigated by the Firm Fixed Price structure). The duration of the contract (nearly 5 years) also presents a risk of the procured technology becoming outdated. A thorough risk assessment would require access to contract performance reports, modification history, and any issued cure notices or contract disputes.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

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: $34,634,427

Exercised Options: $29,337,645

Current Obligation: $29,337,645

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06D0012

IDV Type: IDC

Timeline