DoD's $18.3M contract for wired telecommunications services awarded to General Dynamics Information Technology Inc

Contract Overview

Contract Amount: $18,298,462 ($18.3M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2007-11-19

End Date: 2009-11-18

Contract Duration: 730 days

Daily Burn Rate: $25.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)

Sector: Other

Official Description: SOAF OPERATIONAL SERVICES

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: SOAF OPERATIONAL SERVICES Key points: 1. Contract value represents a moderate investment in essential telecommunications infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. Contract duration of 730 days indicates a medium-term service requirement. 4. Awarded under the Defense Information Systems Agency, highlighting its strategic importance. 5. The North American Industry Classification System (NAICS) code 517110 points to a specific market segment. 6. The contract's base value of $25,066 suggests initial scope, with potential for growth. 7. The award type 'DO' indicates a priority rating, signifying urgency or importance.

Value Assessment

Rating: fair

Benchmarking the value of this $18.3 million contract requires more granular data on the specific services rendered. However, for a two-year telecommunications services contract, the amount is within a plausible range for large-scale government operations. Without specific performance metrics or detailed service breakdowns, a precise value-for-money assessment is challenging. Comparing it to similar contracts for wired telecommunications carriers within the Department of Defense would provide better context for pricing and service delivery efficiency.

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. The presence of 4 bids suggests a reasonable level of competition for this telecommunications services requirement. A higher number of bidders generally leads to more competitive pricing and a wider range of technical solutions, but the specific dynamics depend on the complexity and market size for the services sought.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive environment that can drive down costs and improve service quality, ensuring the government receives the best value for its investment.

Public Impact

The Department of Defense benefits from reliable wired telecommunications services essential for its operations. Personnel within the Defense Information Systems Agency are likely direct users or managers of these services. The geographic impact is primarily within Virginia, where the contract is registered. The contract supports the broader mission of national defense through robust communication infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the contractor's effectiveness beyond basic service delivery.
The relatively small base award value compared to the total potential could indicate significant scope creep or unexercised options, requiring close monitoring.
The 'DO' priority rating suggests potential urgency, which could sometimes lead to expedited processes that might bypass thorough vetting.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
General Dynamics Information Technology Inc. is a large, established contractor with significant experience in government IT services.
The contract is managed by the Defense Information Systems Agency, an entity focused on providing IT support to the DoD.

Sector Analysis

This contract falls within the telecommunications services sector, specifically wired telecommunications carriers. This industry is critical for supporting government operations, providing the backbone for data, voice, and video communications. The market for such services is mature, with several large providers capable of meeting the demanding requirements of federal agencies. Spending in this area is consistent across various government departments, reflecting the ubiquitous need for reliable communication networks.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting requirements. This suggests that the primary contractor, General Dynamics Information Technology Inc., will likely handle the majority of the work internally. The absence of small business participation could mean missed opportunities for smaller firms to contribute to this significant federal contract, potentially limiting their access to government revenue streams.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the Defense Information Systems Agency (DISA). As a Department of Defense contract, it is also subject to review by the DoD Inspector General. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance monitoring details are often internal. Accountability measures would include adherence to service level agreements and contractual terms.

Related Government Programs

Defense Information Systems Agency Contracts
Wired Telecommunications Services
General Dynamics Information Technology Inc. Awards
Department of Defense IT Spending

Risk Flags

Potential for technological obsolescence
Dependency on a single large contractor
Cybersecurity risks inherent in telecommunications infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. SOAF OPERATIONAL 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 (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $18.3 million.

What is the period of performance?

Start: 2007-11-19. End: 2009-11-18.

What is the historical spending pattern for wired telecommunications services by the Department of Defense?

The Department of Defense has consistently allocated significant funds towards wired telecommunications services over the years, recognizing their critical role in national security and operational readiness. Historical data shows a trend of large, multi-year contracts awarded to major telecommunications and IT service providers. Spending often fluctuates based on technological advancements, infrastructure upgrades, and evolving mission requirements. Agencies like the Defense Information Systems Agency (DISA) are primary drivers of this spending, managing complex networks that span global operations. While specific annual figures vary, the overall investment remains substantial, reflecting the enduring need for robust and secure communication channels.

How does the awarded amount compare to other similar contracts for wired telecommunications services within the DoD?

Comparing this $18.3 million contract to other similar DoD contracts requires access to a broader dataset of telecommunications awards. However, for a two-year duration, this amount suggests a substantial service requirement, likely encompassing a significant user base or complex network infrastructure within a specific region or facility. Larger contracts in this category can range from tens to hundreds of millions of dollars, depending on the scope, duration, and technological sophistication. Smaller, more localized contracts might be in the hundreds of thousands or low millions. This award appears to be in the mid-to-upper range for a single, defined service period, indicating a significant operational need.

What is General Dynamics Information Technology Inc.'s track record with similar DoD contracts?

General Dynamics Information Technology Inc. (GDIT) has a long and extensive track record of performing IT and telecommunications services for the Department of Defense and other federal agencies. They are a major prime contractor on numerous large-scale contracts, including those involving network infrastructure, telecommunications, cybersecurity, and enterprise IT solutions. GDIT has consistently demonstrated the capacity to manage complex projects and deliver services across various DoD branches and combatant commands. Their history includes successful execution of contracts similar in scope and nature to this wired telecommunications award, often involving significant dollar values and long-term commitments.

What are the potential risks associated with this type of telecommunications contract?

Potential risks for this type of telecommunications contract include technological obsolescence, where the contracted services or equipment may become outdated before the contract's end. There's also the risk of vendor lock-in, making it difficult or costly to switch providers if performance issues arise. Security vulnerabilities in the network infrastructure are a constant concern, requiring robust cybersecurity measures. Furthermore, cost overruns can occur if the scope of work expands beyond initial projections or if unforeseen operational challenges emerge. Ensuring compliance with evolving regulatory requirements and maintaining service level agreements under potentially demanding operational conditions also present risks.

How effective are competition levels like 'full and open' in ensuring value for taxpayer money in telecommunications contracts?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in telecommunications contracts. By allowing all responsible sources to bid, it fosters a competitive environment that drives down prices and encourages innovation. When multiple bidders vie for a contract, they are incentivized to offer the most competitive pricing and the most effective solutions to win the award. This process helps establish a market-based price, reducing the likelihood of overpayment. While the number of bidders (4 in this case) provides some indication, the true measure of competition's effectiveness lies in the resulting price, quality, and service levels achieved throughout the contract's lifecycle.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 3160 FAIRVIEW PARK DRIVE, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $122,744,528

Exercised Options: $18,298,462

Current Obligation: $18,298,462

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06D0018

IDV Type: IDC

Timeline