DoD's $38M CNIC Labor Contract Awarded to General Dynamics
Contract Overview
Contract Amount: $38,284,192 ($38.3M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-09-30
End Date: 2014-01-31
Contract Duration: 854 days
Daily Burn Rate: $44.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: LABOR CLIN FOR CNIC
Place of Performance
Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29419
Plain-Language Summary
Department of Defense obligated $38.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: LABOR CLIN FOR CNIC Key points: 1. Significant contract value of $38.28 million. 2. General Dynamics Information Technology, Inc. secured the award. 3. Contract falls under the Wired Telecommunications Carriers sector. 4. Awarded via Full and Open Competition, indicating broad market participation.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The awarded amount is substantial, and its value needs to be assessed against the specific services provided and market rates for similar telecommunications support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically yields competitive pricing by allowing all qualified vendors to bid.
Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers, as it aims to secure the best value and price through market forces.
Public Impact
Impacts the Department of Defense's telecommunications infrastructure. Supports CNIC (Commander, Navy Installations Command) operations. General Dynamics, a major defense contractor, is the awardee.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Contract duration of 854 days requires ongoing monitoring.
Positive Signals
- Awarded under Full and Open Competition.
- Multiple Delivery Orders (2) indicate flexibility and phased execution.
Sector Analysis
This contract is within the IT and telecommunications sector, specifically Wired Telecommunications Carriers. Spending in this area is critical for maintaining operational readiness and communication networks for military installations.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. As a large contract awarded to a major prime contractor, opportunities for small businesses would likely be through subcontracting, which is not detailed here.
Oversight & Accountability
The contract's oversight would fall under the Department of the Navy's contracting and program management offices. Monitoring the Cost Plus Fixed Fee structure and delivery order execution is crucial for accountability.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPFF contract type.
- Lack of detail on small business participation.
- Contract duration requires sustained oversight.
- Need for detailed service scope to validate value.
Tags
wired-telecommunications-carriers, department-of-defense, sc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. LABOR CLIN FOR CNIC
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 Navy).
What is the total obligated amount?
The obligated amount is $38.3 million.
What is the period of performance?
Start: 2011-09-30. End: 2014-01-31.
What specific labor services are covered under this contract, and how do they align with CNIC's mission requirements?
The contract, 'LABOR CLIN FOR CNIC,' implies it covers personnel services essential for the Commander, Navy Installations Command's operations. These likely include technical support, network management, and potentially administrative labor related to telecommunications infrastructure. A detailed breakdown of labor categories and hours is needed to fully assess alignment with CNIC's mission and ensure efficient resource allocation.
How effectively was the Cost Plus Fixed Fee structure managed to control costs and ensure value for the taxpayer?
The Cost Plus Fixed Fee (CPFF) structure requires diligent oversight to prevent cost overruns. The agency must ensure that General Dynamics' costs are reasonable and allocable, and that the fixed fee remains appropriate for the effort. Regular audits and performance reviews are essential to verify that the contractor is incentivized to control costs while meeting performance objectives.
What was the competitive landscape like for this contract, and did full and open competition truly yield the best possible pricing?
Awarding under 'Full and Open Competition' suggests multiple bidders participated, theoretically driving down prices. However, the actual pricing achieved depends on the specific requirements, the number and capability of bidders, and the negotiation process. Benchmarking the final negotiated price against industry standards for similar telecommunications labor contracts would confirm if optimal value was secured.
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: COST PLUS FIXED FEE (U)
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: $53,104,061
Exercised Options: $53,104,061
Current Obligation: $38,284,192
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $6,443,234
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QUZ06D0012
IDV Type: IDC
Timeline
Start Date: 2011-09-30
Current End Date: 2014-01-31
Potential End Date: 2014-01-31 00:00:00
Last Modified: 2019-09-10
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