DoD's $30.9M IGF Support Services contract awarded to General Dynamics IT shows fair value with 2 bids

Contract Overview

Contract Amount: $30,916,138 ($30.9M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-06-22

End Date: 2017-06-18

Contract Duration: 1,822 days

Daily Burn Rate: $17.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CL::IGF SUPPORT SERVICES FOR ISM AND RFMSS

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $30.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::CL::IGF SUPPORT SERVICES FOR ISM AND RFMSS Key points: 1. Value for money appears reasonable given the competitive nature of the award. 2. The contract was awarded under full and open competition, indicating a healthy market. 3. Risk indicators are low due to a firm fixed-price contract type. 4. Performance context is within computer systems design services, a common IT sector. 5. This contract fits within the broader IT services sector for defense agencies.

Value Assessment

Rating: good

The contract's total value of $30.9 million over approximately five years suggests a moderate annual spend. Benchmarking against similar IT support services contracts is challenging without more specific service details. However, the firm fixed-price contract type generally indicates that the government secured a defined scope of work at a predictable cost, which is a positive sign for value.

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 offers. Two bids were received, which, while not a large number, indicates some level of market interest and competition. The presence of multiple bidders helps in price discovery and ensures the government receives proposals from different market players.

Taxpayer Impact: The competitive bidding process for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The Department of the Army benefits from enhanced Information Systems Management (ISM) and Readiness, Force Management, and Maintenance Systems (RFMSS). Services delivered include computer systems design and related support, crucial for defense operations. The geographic impact is primarily within Virginia, where the contractor is located. Workforce implications include employment opportunities for IT professionals supporting the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Dependence on a single contractor for critical IT support systems could pose a risk.
Scope creep could occur if not managed tightly, potentially increasing costs beyond initial projections.

Positive Signals

Firm fixed-price contract type mitigates cost overrun risks.
Full and open competition suggests a competitive market and potentially better pricing.
Award to a large, established IT provider like General Dynamics Information Technology may indicate a lower risk of performance failure.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design and related services. The federal IT services market is substantial, with agencies across all branches investing heavily in maintaining and upgrading their technological infrastructure. This contract represents a portion of the Department of Defense's ongoing investment in IT support to ensure operational readiness and efficiency.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award, though General Dynamics IT may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Army. The firm fixed-price nature provides a degree of accountability for the contractor to deliver the agreed-upon services within the set budget. Transparency is generally maintained through contract award databases, though specific performance metrics might not be publicly detailed.

Related Government Programs

Defense Information Technology Support Services
Computer Systems Design Services Federal Contracts
Army IT Modernization Programs
Information Systems Management Contracts

Risk Flags

Potential for vendor lock-in
Dependence on single contractor for critical systems
Risk of scope creep if not managed effectively

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::CL::IGF SUPPORT SERVICES FOR ISM AND RFMSS

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 $30.9 million.

What is the period of performance?

Start: 2012-06-22. End: 2017-06-18.

What is the track record of General Dynamics Information Technology with similar IT support contracts for the Department of Defense?

General Dynamics Information Technology (GDIT) has a long and extensive history of providing IT support services to the Department of Defense and other federal agencies. They are a major player in the federal IT contracting space, frequently winning large-scale contracts for systems integration, cybersecurity, cloud services, and general IT support. Their track record includes managing complex IT infrastructures, supporting critical defense systems, and delivering a wide range of technology solutions. While specific performance details for individual contracts are often not public, GDIT's continued success in winning competitive bids suggests a generally positive performance history and capability to meet government requirements. However, like any large contractor, they may have faced past performance issues or disputes on specific projects, which would be detailed in government past performance databases accessible to contracting officers.

How does the awarded price compare to market rates for similar computer systems design services?

Directly comparing the awarded price of $30.9 million over approximately five years to precise market rates for 'Computer Systems Design Services' is difficult without granular data on the specific services rendered, the level of expertise required, and the geographic location of service delivery. However, the contract was awarded under full and open competition with two bidders, suggesting that the pricing was competitive within the market. The firm fixed-price (FFP) contract type implies that GDIT proposed a price they believed was sufficient to cover all costs and provide a reasonable profit for the defined scope. Generally, FFP contracts aim to provide good value when the scope is well-defined, as it shifts risk to the contractor. Without access to detailed cost breakdowns or benchmark data from similar, recently awarded FFP contracts for comparable services, a definitive value-for-money assessment against market rates remains qualitative.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential scope creep, contractor performance issues, and technological obsolescence. Scope creep, where the project's requirements expand beyond the initial agreement, could lead to cost overruns if not managed. This risk is mitigated by the firm fixed-price contract type, which incentivizes the contractor to adhere strictly to the defined scope. Contractor performance issues, such as failure to deliver services as required, are mitigated by the competitive bidding process (which theoretically selects capable vendors) and ongoing government oversight. Technological obsolescence is an inherent risk in IT contracts; mitigation involves clear contract terms regarding technology refresh cycles and potentially incorporating flexibility for upgrades within the contract structure or through future procurements. The government's ability to monitor performance and enforce contract terms is crucial.

What is the historical spending pattern for IGF Support Services for ISM and RFMSS within the Department of the Army?

Analyzing the historical spending pattern for 'IGF Support Services for ISM and RFMSS' requires accessing detailed federal procurement data over multiple fiscal years. This specific contract, awarded in 2012 and ending in 2017, represents a snapshot of spending during that period. To understand the broader pattern, one would need to examine prior contracts for similar services, identify the incumbent or previous contractors, and analyze the total obligated amounts and contract durations. Trends might reveal increasing or decreasing investment in these specific IT support areas, shifts in contracting strategies (e.g., from FFP to cost-plus), or changes in the number of competitors over time. Without access to a comprehensive historical database query, it's difficult to definitively describe the pattern beyond this single award's context.

How effective has General Dynamics Information Technology been in delivering similar IT support services to the government?

Assessing the overall effectiveness of General Dynamics Information Technology (GDIT) in delivering similar IT support services requires a review of their past performance evaluations, contract termination data, and any documented instances of outstanding performance or significant failures. Government agencies maintain Contractor Performance Assessment Reporting System (CPARS) records, which provide feedback on contractor performance. GDIT, as a large and established contractor, generally receives a mix of ratings across its numerous contracts. Their continued presence and success in winning competitive bids suggest that, on average, their performance is deemed acceptable or better by many agencies. However, specific effectiveness can vary significantly from contract to contract, depending on the complexity, the government's management, and the specific team assigned by GDIT. Without access to specific CPARS data for this contract or comparable ones, a definitive statement on their effectiveness is speculative.

Industry Classification

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

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

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

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

Financial Breakdown

Contract Ceiling: $33,763,392

Exercised Options: $30,916,138

Current Obligation: $30,916,138

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F4594G

IDV Type: FSS

Timeline