DHS CBP awards $66.8M IT contract to General Dynamics for application development support

Contract Overview

Contract Amount: $66,846,397 ($66.8M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2014-01-09

End Date: 2017-07-23

Contract Duration: 1,291 days

Daily Burn Rate: $51.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::CT::IGF DEPARTMENT OF HOMELAND SECURITY, U.S. CUSTOMS AND BORDER PROTECTION, OFFICE OF INFORMATION AND TECHNOLOGY, CARGO SYSTEMS PROGRAM OFFICE, APPLICATION DEVELOPMENT SUPPORT

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $66.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::CT::IGF DEPARTMENT OF HOMELAND SECURITY, U.S. CUSTOMS AND BORDER PROTECTION, OFFICE OF INFORMATION AND TECHNOLOGY, CARGO SYSTEMS PROGRAM OFFICE, APPLICATION DEVELOPMENT SUPPORT Key points: 1. The contract value of $66.8M over 3.5 years represents a significant investment in IT infrastructure. 2. General Dynamics Information Technology, Inc. secured this award, indicating strong competition in the IT services sector. 3. The use of Time and Materials pricing introduces potential cost escalation risks. 4. This spending falls within the broader IT services sector, which is crucial for government operations.

Value Assessment

Rating: fair

The contract's Time and Materials pricing structure, without a fixed ceiling, makes direct comparison difficult. However, the total award value of $66.8M for 1291 days of service suggests a daily rate that needs careful monitoring against industry benchmarks for similar application development support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust bidding process. However, the Time and Materials (T&M) pricing model, while common for evolving IT needs, can limit price predictability and may not always drive the most cost-effective solutions compared to fixed-price contracts.

Taxpayer Impact: While competition is positive, the T&M structure necessitates vigilant oversight to ensure taxpayer funds are used efficiently and not inflated by uncontrolled hours or rates.

Public Impact

Enhances critical cargo systems for U.S. Customs and Border Protection, impacting trade and national security. Supports application development, crucial for modernizing government IT infrastructure and improving service delivery. The duration of the contract suggests a long-term need for these IT services within DHS.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing
Lack of specific performance metrics in provided data
Potential for scope creep

Positive Signals

Full and open competition
Award to established IT provider
Supports critical government function

Sector Analysis

This contract falls under the Information Technology sector, specifically computer systems design services. Government spending in this area is substantial, driven by the need for modernization, cybersecurity, and efficient data management across agencies. Benchmarks for similar contracts vary widely based on complexity and duration.

Small Business Impact

The provided data does not indicate any specific set-asides or participation goals for small businesses in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The contract was awarded by the Department of Veterans Affairs (VA) for DHS. This inter-agency procurement requires clear communication and oversight to ensure requirements are met and funds are managed appropriately. The Time and Materials nature necessitates robust monitoring by both the contracting and program offices.

Related Government Programs

Computer Systems Design Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Time and Materials pricing model can lead to cost overruns.
Lack of detailed performance metrics in the provided data.
Potential for scope creep without strong oversight.
Inter-agency procurement (VA for DHS) could introduce coordination challenges.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $66.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::CT::IGF DEPARTMENT OF HOMELAND SECURITY, U.S. CUSTOMS AND BORDER PROTECTION, OFFICE OF INFORMATION AND TECHNOLOGY, CARGO SYSTEMS PROGRAM OFFICE, APPLICATION DEVELOPMENT SUPPORT

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 Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $66.8 million.

What is the period of performance?

Start: 2014-01-09. End: 2017-07-23.

What is the estimated hourly rate for the labor provided under this Time and Materials contract, and how does it compare to industry averages for similar IT services?

The provided data does not explicitly state the hourly rates. To estimate, one would divide the total award amount ($66.8M) by the total duration in hours (1291 days * 8 hours/day = 10,328 hours, assuming an 8-hour workday). This yields an approximate blended hourly rate. A comparison to industry benchmarks for application development support would reveal if this rate is competitive or inflated.

What mechanisms are in place to control costs and prevent scope creep given the Time and Materials pricing structure?

Effective oversight is crucial. This includes detailed tracking of hours worked, rigorous review of labor categories and rates, and a clear definition of tasks. The government contracting officer and technical team must actively manage the scope, ensuring all work aligns with the original requirements and that any changes are formally documented and approved through contract modifications.

How will the effectiveness of the application development support be measured to ensure it meets the critical needs of U.S. Customs and Border Protection?

Effectiveness should be measured against predefined Key Performance Indicators (KPIs) and Service Level Agreements (SLAs). These might include application uptime, bug resolution times, successful deployment of new features, and user satisfaction. Regular performance reviews between CBP and General Dynamics would assess progress against these metrics.

Industry Classification

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

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: 12

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Csra LLC (UEI: 080011988)

Address: 4300 FAIR LAKES CT, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $66,846,397

Exercised Options: $66,846,397

Current Obligation: $66,846,397

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $231,800

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11811D1010

IDV Type: IDC

Timeline