General Dynamics IT awarded $21.5M for network support services by OPM

Contract Overview

Contract Amount: $21,520,978 ($21.5M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Office of Personnel Management

Start Date: 2012-04-01

End Date: 2014-04-30

Contract Duration: 759 days

Daily Burn Rate: $28.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NETWORK SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20415

State: District of Columbia Government Spending

Plain-Language Summary

Office of Personnel Management obligated $21.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: NETWORK SUPPORT Key points: 1. Contract awarded through a competitive process, suggesting potential for value. 2. Services fall under computer systems design, a common IT sector need. 3. The contract duration of over two years indicates a significant operational requirement. 4. Fixed-price contract type may offer cost certainty for the government. 5. Awarded to a large, established IT contractor, implying a focus on stability and experience.

Value Assessment

Rating: fair

The contract value of $21.5 million over approximately two years for network support services appears within a reasonable range for large-scale IT services. Benchmarking against similar large federal IT support contracts would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an attempt to control costs, but the ultimate value depends on the efficiency of service delivery and the actual needs met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process is generally expected to foster competitive pricing and encourage a wider range of solutions. The presence of two bids suggests a moderate level of competition for this specific award.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices and ensures the government receives the best possible value by considering a broad marketplace.

Public Impact

Federal employees and agencies benefit from reliable network infrastructure and support. Essential IT services are delivered to maintain the operational capabilities of the Office of Personnel Management. The primary geographic impact is within the District of Columbia, where OPM is headquartered. The contract supports IT professionals and potentially other roles within General Dynamics Information Technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized.
Reliance on a single large contractor could limit future flexibility.
Scope creep could increase costs beyond initial projections if not managed tightly.

Positive Signals

Awarded through full and open competition, indicating a fair process.
Firm fixed-price contract can provide cost predictability.
Contract awarded to a well-established IT provider with a track record.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and network support. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract represents a portion of that ongoing investment, supporting core operational needs for a key government agency.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and there is no explicit mention of small business subcontracting requirements. As a large contract awarded to a major IT provider, the primary focus is likely on the prime contractor's capabilities, with subcontracting opportunities potentially being at the discretion of General Dynamics Information Technology.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Office of Personnel Management. Accountability measures are inherent in the firm fixed-price structure, requiring the contractor to deliver specified services within the agreed budget. Transparency is generally maintained through federal procurement databases, though specific performance metrics and oversight activities are internal to the agency.

Related Government Programs

Federal Civilian Agency IT Support Contracts
Network Infrastructure Services
Computer Systems Design Services
IT Services for Human Resources Management

Risk Flags

Potential for vendor lock-in
Scope creep risk
Reliance on contractor performance

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $21.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. NETWORK SUPPORT

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Office of Personnel Management (Office of Personnel Management).

What is the total obligated amount?

The obligated amount is $21.5 million.

What is the period of performance?

Start: 2012-04-01. End: 2014-04-30.

What is General Dynamics Information Technology's track record with federal network support contracts?

General Dynamics Information Technology (GDIT), now part of General Dynamics, has a long and extensive history of providing IT services, including network support, to various federal agencies. They have held numerous large-scale contracts for network engineering, maintenance, and modernization across departments like Defense, Homeland Security, and civilian agencies. Their track record generally indicates experience with complex IT environments and a capacity to manage significant federal contracts. However, specific performance details, past issues, or commendations on similar network support contracts would require a deeper dive into contract performance reports and agency evaluations.

How does the $21.5 million value compare to similar network support contracts?

The $21.5 million value for a two-year network support contract is substantial but not extraordinary within the federal IT landscape. Large agencies often award contracts in the tens or hundreds of millions for comprehensive network services over similar or longer periods. For instance, contracts for enterprise-wide network modernization or sustainment for agencies like the Department of Defense or the IRS can easily exceed this amount. The value is considered moderate for a contract supporting a significant agency like OPM, especially given the firm fixed-price nature which aims for cost control. A precise comparison would necessitate analyzing contracts with similar scope, duration, and agency size.

What are the primary risks associated with this type of contract?

Key risks for this contract include potential scope creep, where the requirements may expand beyond the initial agreement, leading to cost overruns if not managed strictly. There's also a risk of vendor lock-in, where the government becomes heavily reliant on GDIT's specific systems and expertise, making future transitions difficult or costly. Performance risk exists if GDIT fails to deliver the required level of network uptime, security, or responsiveness. Furthermore, changes in technology or agency needs could render the contracted services less effective over time, posing a strategic risk if the contract isn't agile enough to adapt.

How effective is a firm fixed-price contract for network support services?

A firm fixed-price (FFP) contract is generally effective for network support services when the scope of work is well-defined and unlikely to change significantly. It places the risk of cost overruns on the contractor, incentivizing efficiency and cost control. For the government, it offers budget predictability. However, if unforeseen technical challenges arise or requirements evolve rapidly, an FFP contract can be less flexible, potentially leading to disputes or the contractor resisting necessary changes. For ongoing network support, where requirements might fluctuate, a hybrid approach or careful scope management is crucial for maximizing the effectiveness of an FFP structure.

What are historical spending patterns for network support at OPM?

Analyzing historical spending patterns for network support at the Office of Personnel Management (OPM) would reveal trends in IT infrastructure investment. Prior contracts, their values, durations, and awarded vendors would indicate OPM's reliance on external support and the evolution of its network needs. Consistent spending in this area suggests a sustained requirement for robust network capabilities. Significant fluctuations might point to major upgrades, system replacements, or shifts in IT strategy. Understanding this history provides context for the current $21.5 million award, helping to assess if it aligns with or deviates from past investment levels and priorities.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

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

Business Categories: Category Business, Hospital, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,520,978

Exercised Options: $21,520,978

Current Obligation: $21,520,978

Parent Contract

Parent Award PIID: OPM3212A0020

IDV Type: BPA

Timeline