VA awards $23.3M for IT services to support cargo system applications, with General Dynamics Information Technology as the contractor

Contract Overview

Contract Amount: $23,287,176 ($23.3M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-07-24

End Date: 2019-04-01

Contract Duration: 616 days

Daily Burn Rate: $37.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE INFORMATION TECHNOLOGY SERVICES TO DEVELOP, MIGRATE, AND SUPPORT CARGO SYSTEM APPLICATIONS. THESE SERVICES SHALL INCLUDE NEW FUNCTIONALITY DEVELOPMENT AND TESTING, RE-FACTORING EXISTING SYSTEM FUNCTIONALITY, CORRECTIVE AND ADAPTIVE MAINTENANCE OF EXISTING APPLICATIONS, APPLICATION MAINTENANCE OF EXISTING SYSTEMS, AND ARCHITECTURE AND ENGINEERING SERVICES TO SUPPORT APPLICATION DEVELOPMENT TO MIGRATE THE FUNCTIONALITIES OF THE CARGO PRODUCTION APPLICATIONS TO THE TARGET ARCHITECTURE USING AGILE DEVELOPMENT METHODOLOGIES.

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22311

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $23.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE INFORMATION TECHNOLOGY SERVICES TO DEVELOP, MIGRATE, AND SUPPORT CARGO SYSTEM APPLICATIONS. THESE SERVICES SHALL INCLUDE NEW FUNCTIONALITY DEVELOPMENT AND TESTING, RE-FACTORING EXISTING SYSTEM FUNCTIONALITY, CORRECTIVE AND ADAPTIVE MAINT… Key points: 1. Contract focuses on IT services for development, migration, and support of cargo system applications. 2. Services include new functionality development, re-factoring, maintenance, and architecture support. 3. Utilizes Agile development methodologies for application migration to a target architecture. 4. Contract awarded via full and open competition, suggesting a competitive bidding process. 5. The contract duration is 616 days, indicating a medium-term project. 6. The primary agency is the Department of Veterans Affairs (VA), with the VA also serving as the supporting agency. 7. The North American Industry Classification System (NAICS) code is 541512 for Computer Systems Design Services.

Value Assessment

Rating: good

The contract value of $23.3 million for IT services over approximately 20 months appears reasonable given the scope of development, migration, and ongoing support for complex cargo system applications. Benchmarking against similar large-scale IT modernization projects within the federal government suggests that this pricing is within expected ranges. The use of Time and Materials (T&M) pricing, while offering flexibility, requires diligent oversight to ensure cost control and prevent scope creep. Without specific per-unit cost data for development hours or specific service components, a precise value-for-money assessment is challenging, but the overall award amount seems aligned with industry standards for such comprehensive IT services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The fact that it was competed openly suggests that the VA sought to leverage the broadest possible market to obtain the most advantageous contract. The number of bidders is not specified, but the open competition mechanism itself is a positive indicator for price discovery and potential cost savings for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider array of innovative solutions, potentially reducing overall project costs and improving service delivery.

Public Impact

Benefits the Department of Veterans Affairs by modernizing and supporting critical cargo system applications. Ensures the continued operation and development of systems essential for VA logistics and operations. The services delivered will enhance the efficiency and reliability of cargo management systems. Impacts the IT workforce within General Dynamics Information Technology, providing employment and project opportunities. Geographic impact is primarily within the VA's operational footprint, supporting its national mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored for scope and hours.
The complexity of migrating existing systems to a new architecture presents inherent technical risks.
Dependence on a single contractor for critical IT system development and support could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Utilizes Agile methodologies, which can promote flexibility and faster delivery cycles.
The contractor, General Dynamics Information Technology, is a large, established IT services provider with significant federal experience.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the IT services industry. The federal government is a major consumer of these services, particularly for system development, modernization, and maintenance. The market size for federal IT services is substantial, with agencies like the VA consistently investing in upgrading their technological infrastructure. This contract represents a typical investment in maintaining and enhancing mission-critical applications, fitting within the broader trend of digital transformation and IT modernization across government.

Small Business Impact

This contract was awarded to General Dynamics Information Technology, Inc., a large business. There is no indication of a small business set-aside for this specific contract. As a large prime contractor, General Dynamics may have subcontracting opportunities for small businesses, but the extent and nature of these opportunities are not detailed in the provided data. The absence of a small business set-aside means that the primary award did not directly target small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. The Time and Materials (T&M) pricing structure necessitates close monitoring of labor hours and material costs to ensure adherence to the contract ceiling and prevent unauthorized work. Transparency is generally maintained through contract reporting requirements and performance reviews. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected or identified.

Related Government Programs

VA IT Modernization Programs
Federal Civilian IT Services Contracts
Computer Systems Design and Related Services
Application Development and Maintenance Contracts

Risk Flags

Potential for cost overruns due to T&M contract type.
Technical risks associated with migrating legacy systems.
Need for strong government oversight to manage scope and labor hours.
Dependence on contractor performance for critical system support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $23.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE INFORMATION TECHNOLOGY SERVICES TO DEVELOP, MIGRATE, AND SUPPORT CARGO SYSTEM APPLICATIONS. THESE SERVICES SHALL INCLUDE NEW FUNCTIONALITY DEVELOPMENT AND TESTING, RE-FACTORING EXISTING SYSTEM FUNCTIONALITY, CORRECTIVE AND ADAPTIVE MAINTENANCE OF EXISTING APPLICATIONS, APPLICATION MAINTENANCE OF EXISTING SYSTEMS, AND ARCHITECTURE AND ENGINEERING SERVICES TO SUPPORT APPLICATION DEVELOPMENT TO MIGRATE THE FUNCTIONALITIES OF THE CARGO PRODUCTION APPLICATIO

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 $23.3 million.

What is the period of performance?

Start: 2017-07-24. End: 2019-04-01.

What is the track record of General Dynamics Information Technology, Inc. with the Department of Veterans Affairs for similar IT services?

General Dynamics Information Technology, Inc. (GDIT) has a substantial history of providing IT services to the Department of Veterans Affairs (VA). They have been a significant contractor across various VA initiatives, including electronic health records, cloud migration, and infrastructure support. For instance, GDIT was a major player in the VA's Oracle Human Capital Management (HCM) system implementation and has held numerous contracts for IT support, network services, and application development. Their extensive experience with the VA suggests a deep understanding of the agency's complex IT environment, existing systems, and operational requirements. This familiarity can be advantageous in executing projects like the cargo system application support, potentially leading to smoother integration and more efficient service delivery. However, like any large contractor, their performance history with the VA has likely included both successes and challenges, which would be detailed in past performance evaluations during competitive bidding processes.

How does the $23.3 million award compare to other federal IT services contracts for system development and migration?

The $23.3 million award for IT services related to cargo system applications is a moderate-sized contract within the federal IT landscape. Large-scale federal IT modernization projects, such as electronic health record system replacements or enterprise resource planning (ERP) implementations, can easily run into hundreds of millions or even billions of dollars over their lifecycle. However, contracts for specific application development, migration, and support, like this one, often fall within the multi-million dollar range. For example, contracts for cloud migration services, cybersecurity enhancements, or specialized software development for agencies can range from a few million to tens of millions of dollars. The value of this contract appears consistent with projects focused on modernizing or migrating specific application suites rather than a complete agency-wide IT overhaul. Its duration of approximately 20 months also aligns with typical project timelines for such undertakings.

What are the primary risks associated with migrating existing cargo system applications to a new architecture using Agile methodologies?

Migrating existing cargo system applications to a new architecture, especially using Agile methodologies, presents several key risks. Firstly, the 'lift and shift' or re-factoring of legacy systems can encounter unforeseen technical complexities, data integrity issues, or compatibility problems with the target architecture, potentially leading to delays and cost overruns. Secondly, Agile methodologies, while beneficial for flexibility, require strong project management and active stakeholder involvement. If requirements are not clearly defined and managed iteratively, scope creep can become a significant issue, increasing costs and extending timelines. There's also a risk of 'technical debt' if the re-factoring is not thorough, leading to future maintenance challenges. Furthermore, ensuring seamless data migration and maintaining application functionality throughout the transition period is critical to avoid disrupting ongoing operations. The success hinges on effective communication, robust testing, and skilled development teams capable of navigating both legacy system intricacies and modern architectural demands.

What is the historical spending pattern for Computer Systems Design Services (NAICS 541512) by the Department of Veterans Affairs?

The Department of Veterans Affairs (VA) is a significant spender on Computer Systems Design Services (NAICS 541512), reflecting its ongoing need to modernize and maintain its vast and complex IT infrastructure. Historically, the VA has consistently awarded substantial amounts for these services, often ranking among the top federal agencies for IT spending. This spending covers a wide range of activities, including software development, system integration, IT consulting, cloud migration, cybersecurity services, and application maintenance. The VA's budget for IT, including systems design, has typically been in the billions of dollars annually. Contracts under NAICS 541512 are crucial for supporting everything from its electronic health record system (like the ongoing Cerner/Oracle implementation) to its financial systems, human resources platforms, and operational support applications, such as the cargo system mentioned. Spending patterns often show a trend towards cloud adoption, data analytics, and enhancing user experience for veterans and staff.

What are the potential implications of using a Time and Materials (T&M) contract type for this IT services project?

The use of a Time and Materials (T&M) contract type for this IT services project, valued at $23.3 million, has several implications. T&M contracts are best suited for situations where the scope of work is not clearly defined or is expected to change, offering flexibility to the government. However, they carry a higher risk of cost overruns because the contractor is reimbursed for direct labor hours at specified rates and for the cost of materials. This necessitates robust government oversight to monitor labor hours, ensure efficiency, and prevent unnecessary work or 'gold plating.' For the VA, this means diligent project management, regular progress reviews, and strict adherence to the contract's ceiling amount. While T&M allows for adaptability during development and migration, it places a greater burden on the government to control costs compared to fixed-price contracts. Effective management is key to realizing the flexibility benefits without incurring excessive expenditures.

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: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 15036 CONFERENCE CENTER DR, CHANTILLY, VA, 20151

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

Financial Breakdown

Contract Ceiling: $23,287,176

Exercised Options: $23,287,176

Current Obligation: $23,287,176

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1016

IDV Type: IDC

Timeline