DoD's $17.6M contract for OMAN SERVICES awarded to General Dynamics IT shows potential value concerns

Contract Overview

Contract Amount: $17,569,899 ($17.6M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-03-06

End Date: 2009-07-25

Contract Duration: 506 days

Daily Burn Rate: $34.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OMAN SERVICES

Place of Performance

Location: BOSTON, SUFFOLK County, MASSACHUSETTS, 02210

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $17.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: OMAN SERVICES Key points: 1. The contract's value proposition requires scrutiny given the fixed-price nature and lack of detailed performance metrics. 2. Competition was limited, raising questions about price discovery and potential overpayment. 3. The contract duration and award type suggest a need for robust oversight to ensure effective service delivery. 4. General Dynamics Information Technology's track record with similar contracts warrants examination for performance consistency. 5. The absence of small business subcontracting goals may limit broader economic participation. 6. Sector positioning within wireless communications equipment manufacturing is noted, but specific service details are sparse.

Value Assessment

Rating: questionable

The $17.6 million contract awarded to General Dynamics Information Technology for OMAN SERVICES presents a questionable value proposition. As a firm-fixed-price contract, the onus is on the contractor to deliver within budget, but without clear performance benchmarks or comparison data, assessing true value-for-money is difficult. The lack of detailed service descriptions makes it challenging to benchmark against similar procurements or market rates. The contract's duration of 506 days also suggests a significant investment that needs careful justification.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicated by 'NOT AVAILABLE FOR COMPETITION'. This significantly limits the opportunity for competitive bidding and price negotiation. Without multiple bidders, it is difficult to ascertain if the government received the best possible price or if market competition could have driven costs down. The rationale for a sole-source award would typically involve unique capabilities or urgent needs, which are not detailed here.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as they bypass the price discovery mechanisms inherent in competitive bidding processes. This can result in less efficient use of public funds.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Department of the Army, receiving OMAN SERVICES. The services delivered are related to wireless communications equipment manufacturing, though specific operational details are not provided. The geographic impact is likely within the operational areas of the Department of the Army, but not specified. Workforce implications would involve personnel employed by General Dynamics Information Technology to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it hard to assess contractor effectiveness.
Sole-source award limits price competition, potentially increasing costs.
Contract duration and value warrant close monitoring for efficiency.
Absence of small business subcontracting goals may limit economic opportunity.
Limited public information on the specific nature of 'OMAN SERVICES'.

Positive Signals

Firm-fixed-price contract structure can incentivize contractor efficiency.
Award to an established contractor like General Dynamics IT suggests a degree of confidence in their capabilities.
Contract awarded by the Department of the Army indicates alignment with military operational needs.

Sector Analysis

This contract falls within the Information Technology and Communications sector, specifically related to wireless communications equipment manufacturing (NAICS 334220). The market for such services is substantial, driven by ongoing military modernization and the need for secure and reliable communication systems. Comparable spending benchmarks are difficult to establish without more specific service details, but large government contracts in this area often range from millions to billions of dollars, depending on scope and duration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information provided regarding subcontracting plans or goals. This suggests that opportunities for small businesses to participate in this specific contract may be limited, potentially impacting the broader small business ecosystem that supports larger prime contractors.

Oversight & Accountability

Oversight mechanisms for this contract are not explicitly detailed in the provided data. However, as a Department of Defense contract, it would likely fall under the purview of the Department of Defense's internal oversight bodies and potentially the Government Accountability Office (GAO). Transparency is limited due to the lack of public detail on service delivery and performance. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Communications Services
Information Technology Support Services
Wireless Communications Infrastructure
Military Communications Equipment Procurement
Government IT Services Contracts

Risk Flags

Limited Competition
Lack of Performance Metrics
Undefined Service Scope
Potential for Cost Overruns (due to sole-source)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. OMAN 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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $17.6 million.

What is the period of performance?

Start: 2008-03-06. End: 2009-07-25.

What is the specific nature of the 'OMAN SERVICES' provided under this contract?

The provided data does not specify the exact nature of the 'OMAN SERVICES'. The NAICS code (334220) points towards 'Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing', suggesting the services are related to this industry. However, this could encompass a wide range of activities, from equipment maintenance and installation to specialized technical support or system integration. Without further documentation or clarification from the awarding agency (Department of the Army), the precise scope and deliverables of these services remain undefined, making a thorough assessment of performance and value challenging.

How does the $17.6 million cost compare to similar government contracts for wireless communications services?

Benchmarking the $17.6 million cost against similar contracts is difficult without more specific details on the 'OMAN SERVICES' and their scope. The contract duration is 506 days (approximately 1.4 years). If these services involve large-scale equipment deployment or complex system integration, the cost might be within a reasonable range for a firm-fixed-price contract awarded to a large prime contractor like General Dynamics Information Technology. However, if the services are more routine or maintenance-oriented, the cost per day ($34,723) could be considered high. A true comparison would require access to contract line-item details and performance metrics from comparable procurements within the Department of Defense or other federal agencies.

What are the potential risks associated with a sole-source award for this type of service?

A sole-source award, as indicated by 'NOT AVAILABLE FOR COMPETITION', carries several potential risks. Primarily, it eliminates the competitive pressure that typically drives down prices, potentially leading to the government paying more than necessary. It also reduces transparency in the procurement process. Furthermore, without competition, there's a risk that the chosen contractor may not be the most innovative or efficient provider available. The justification for a sole-source award usually rests on unique capabilities, urgent needs, or lack of market availability, but if these justifications are weak or not thoroughly vetted, the government may not achieve optimal value or performance.

What is General Dynamics Information Technology's track record with similar Department of Defense contracts?

General Dynamics Information Technology (GDIT) is a major federal contractor with extensive experience supporting the Department of Defense across various IT and services domains. While specific performance data for this 'OMAN SERVICES' contract is not detailed, GDIT has a history of managing large, complex contracts for military branches. Their track record generally includes significant work in areas like C4ISR systems, enterprise IT infrastructure, cybersecurity, and professional services. However, like any large contractor, they may have faced performance challenges or contract disputes on specific projects. A deeper dive into contract databases and performance reviews would be necessary to fully assess their specific history relevant to wireless communications equipment and related services.

What are the historical spending patterns for 'OMAN SERVICES' or similar categories by the Department of Defense?

The provided data only covers this single contract award from 2008-2009. To analyze historical spending patterns for 'OMAN SERVICES' or similar categories, one would need to access broader federal procurement databases (like USASpending.gov or FPDS). This would involve searching for contracts with similar Product Service Codes (PSCs), NAICS codes, or keywords related to wireless communications equipment and services awarded to the Department of Defense over multiple fiscal years. Analyzing trends in award volume, average contract values, and the prevalence of competitive versus sole-source awards would provide insight into historical spending and the evolution of needs in this area.

What oversight mechanisms are in place to ensure the effective delivery of services under this contract?

Specific oversight mechanisms for this contract are not detailed in the provided data. However, standard Department of Defense contracting procedures would typically involve a Contracting Officer's Representative (COR) responsible for monitoring contractor performance, ensuring compliance with contract terms, and verifying deliverables. For a firm-fixed-price contract, oversight often focuses on acceptance of final deliverables and adherence to schedule. Given the sole-source nature and the potential for significant expenditure, robust oversight would be crucial to mitigate risks related to cost and performance. The contract's duration also implies ongoing monitoring throughout its term.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W15P7T07RD242

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 77 A STREET, NEEDHAM, MA, 04

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

Financial Breakdown

Contract Ceiling: $17,569,899

Exercised Options: $17,569,899

Current Obligation: $17,569,899

Contract Characteristics

Cost or Pricing Data: YES

Timeline