DoD's $11.5M IT contract awarded to General Dynamics Information Technology, Inc. for computer systems design services

Contract Overview

Contract Amount: $11,495,396 ($11.5M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-09-28

End Date: 2008-01-23

Contract Duration: 117 days

Daily Burn Rate: $98.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FIXED PRICE

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22240

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: FIXED PRICE Key points: 1. The contract was awarded under a firm-fixed-price structure, indicating a defined scope and cost. 2. Competition was full and open, suggesting a robust bidding process. 3. The contract duration was relatively short at 117 days. 4. The award was made under the "Other" contract vehicle. 5. The base contract value was approximately $9.8M, with the awarded amount exceeding this. 6. The contractor, General Dynamics Information Technology, Inc., is a significant player in the federal IT space.

Value Assessment

Rating: fair

The contract's value of $11.5M for 117 days of computer systems design services appears to be within a reasonable range for a large federal IT contract. Benchmarking against similar contracts for system design services from the same period would provide a more precise assessment of value for money. The firm-fixed-price nature suggests that the government aimed to control costs, but the final award exceeding the base value warrants further investigation into the scope changes or initial underestimation.

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 a bid. The presence of 3 bidders suggests a moderate level of competition for this specific requirement. While full and open competition is generally preferred for maximizing price discovery and ensuring fair access to government contracts, the specific number of bidders can influence the competitiveness of the final price.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces. A moderate number of bidders, like three in this case, suggests that while competition existed, it may not have been as intense as with a larger pool of offerors, potentially leading to a less aggressive pricing strategy from the winning contractor.

Public Impact

The primary beneficiary of this contract is the Department of Defense, specifically the Defense Information Systems Agency (DISA). The services delivered are computer systems design, crucial for maintaining and enhancing military information infrastructure. The geographic impact is likely within the operational areas supported by DISA, primarily CONUS and potentially OCONUS. The contract supports the IT workforce within General Dynamics Information Technology, Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the award exceeding the base value.
Short contract duration might indicate a specific, time-sensitive need or a bridge contract.
Limited number of bidders (3) could suggest barriers to entry or a niche requirement.

Positive Signals

Awarded under full and open competition, promoting fairness and broad market access.
Firm-fixed-price contract type helps manage cost certainty for the government.
Contractor is a well-established entity in the federal IT sector.

Sector Analysis

The contract falls within the Information Technology sector, specifically Computer Systems Design Services (NAICS 541512). This is a critical area for federal agencies, supporting everything from administrative functions to complex defense systems. The market for these services is large and competitive, with numerous large and small businesses vying for federal contracts. Comparable spending benchmarks would involve analyzing other IT system design contracts awarded by DoD and other agencies during the same period.

Small Business Impact

There is no indication that this contract was set aside for small businesses, and the contractor, General Dynamics Information Technology, Inc., is a large business. Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside. The absence of a small business set-aside means that opportunities for small business participation would depend on General Dynamics' own subcontracting plans, which are not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Defense Information Systems Agency. Accountability measures are inherent in the firm-fixed-price contract structure, requiring the contractor to deliver specified services within the agreed-upon cost. Transparency is generally facilitated through contract databases like FPDS-NG, where award details are publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Information Systems Agency IT Support Services
DoD Enterprise IT Services
Federal Civilian IT Modernization Programs
IT Services for National Security Agencies

Risk Flags

Award value significantly exceeded base value.
Short contract duration may indicate a temporary solution or specific project.
Limited number of bidders (3) in a full and open competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. FIXED PRICE

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 $11.5 million.

What is the period of performance?

Start: 2007-09-28. End: 2008-01-23.

What was the specific nature of the computer systems design services provided under this contract?

The contract, awarded to General Dynamics Information Technology, Inc. under NAICS code 541512 (Computer Systems Design Services), likely involved the design, development, integration, or modification of computer systems for the Department of Defense. Without specific task orders or statements of work, the precise nature of the 'design' is not detailed. It could range from architectural design of new systems, re-engineering of existing systems, to the integration of hardware and software components to meet specific military operational requirements. The short duration (117 days) suggests it might have been for a specific project phase, a critical upgrade, or a specialized system development effort rather than a long-term sustainment or development program.

How does the awarded value of $11.5M compare to the base value of $9.8M, and what does this difference signify?

The awarded value of $11,495,396.23 significantly exceeded the base value of $9,825,100 by approximately $1.67 million, or about 17%. This increase could signify several possibilities. It might indicate that the initial base value was an estimate or a minimum guaranteed amount, and the full scope of work required more resources than initially anticipated. Alternatively, it could reflect the exercise of contract options or modifications to the original scope of work after the award. For a firm-fixed-price contract, such an increase warrants scrutiny to ensure it was justified by legitimate changes in requirements and not due to poor initial planning or contractor upselling. Understanding the reason for this delta is crucial for assessing value for money.

What is the track record of General Dynamics Information Technology, Inc. with federal IT contracts, particularly with the DoD?

General Dynamics Information Technology, Inc. (GDIT) is a major federal IT contractor with a long history of serving the Department of Defense and other government agencies. They have consistently secured large, complex contracts across various IT domains, including systems integration, cybersecurity, cloud computing, and enterprise IT services. Their track record with DoD is extensive, often involving mission-critical systems and large-scale modernization efforts. While generally considered a capable provider, like any large contractor, they have faced scrutiny on specific contracts regarding performance, cost, and delivery. This particular contract, being relatively short and specific, would be one of many in their extensive portfolio with the DoD.

Given the 'Other' contract vehicle used, what does this imply about the procurement process and potential alternatives?

The use of an 'Other' contract vehicle, often associated with Other Transaction Authority (OTA) agreements or specific agency-unique vehicles, can imply a procurement process that deviates from traditional FAR-based methods. OTAs, for example, are designed to foster innovation and speed up acquisition, particularly for research, development, and prototyping, by offering more flexible terms and conditions. If this was an OTA, it might suggest the requirement was for advanced technology development or rapid prototyping where traditional contracting was deemed too slow or restrictive. However, 'Other' can also encompass a variety of less common or specialized contract vehicles. The implication is that the procurement might have prioritized speed, flexibility, or specific technological advancements over the standard competitive bidding processes typically associated with GSA schedules or agency-specific IDIQs.

How does the short duration of 117 days impact the assessment of this contract's overall significance and risk?

The short duration of 117 days (approximately 4 months) suggests this contract was likely for a specific, time-bound task rather than an ongoing program. This could indicate a bridge contract to cover a gap until a longer-term solution is in place, a project with a defined deliverable and endpoint, or a phase of a larger effort. From a risk perspective, a shorter duration can sometimes reduce the overall risk exposure for both the government and the contractor, as there is less time for requirements to change drastically or for performance issues to compound. However, it also means that the impact of any potential failures or successes is concentrated within that short timeframe. It also raises questions about why a longer-term solution wasn't procured initially.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 7700 HUBBLE DR, LANHAM, MD, 04

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,495,396

Exercised Options: $11,495,396

Current Obligation: $11,495,396

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0010404AZF16

IDV Type: IDC

Timeline