DoD's $18.8M contract for battle staff augmentation services awarded to General Dynamics IT

Contract Overview

Contract Amount: $18,802,927 ($18.8M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-05-29

End Date: 2024-10-28

Contract Duration: 1,979 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: Defense

Official Description: BATTLE STAFF AUGMENTATION SERVICES FOR UNITED STATES FORCES-AFGHANISTAN SUPPORTING NATO SPECIAL OPERATIONS COMPONENT COMMAND-AFGHANISTAN/SPECIAL OPERATIONS JOINT TASK FORCE-AFGHANISTAN (NSOCC/SOJTF).

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: BATTLE STAFF AUGMENTATION SERVICES FOR UNITED STATES FORCES-AFGHANISTAN SUPPORTING NATO SPECIAL OPERATIONS COMPONENT COMMAND-AFGHANISTAN/SPECIAL OPERATIONS JOINT TASK FORCE-AFGHANISTAN (NSOCC/SOJTF). Key points: 1. Contract provides critical support for NATO operations in Afghanistan. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Long performance period (over 5 years) indicates sustained need for services. 4. Services are labor-hour based, requiring careful monitoring of efficiency. 5. Contractor has a significant presence in defense IT services. 6. Geographic focus on Afghanistan highlights complex operational environment. 7. No small business set-aside, indicating large prime contractor award.

Value Assessment

Rating: fair

The contract's value of $18.8 million over approximately five years suggests a moderate annual spend. Benchmarking this against similar support contracts for deployed forces is challenging without more specific service details. However, the labor-hour pricing structure necessitates close oversight to ensure efficiency and prevent cost overruns. The absence of a defined ceiling or fixed price components raises concerns about potential cost variability.

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 offers. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service quality. The agency's decision to use full and open competition suggests confidence in the market's ability to provide the required specialized support.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the government. Full and open competition increases the likelihood of receiving competitive bids, potentially driving down costs compared to less competitive award methods.

Public Impact

Provides essential augmentation services to U.S. and NATO special operations forces in Afghanistan. Supports critical command and control functions for military operations. Enhances the operational effectiveness of Special Operations Joint Task Force-Afghanistan. Indirectly benefits the security and stability efforts in the region. Requires skilled personnel to perform complex analytical and planning tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor-hour pricing can lead to cost uncertainty if not managed effectively.
Long contract duration may not adapt well to rapidly changing operational needs.
Geographic location in Afghanistan presents inherent logistical and security risks.
Dependence on a single contractor for critical augmentation services.

Positive Signals

Awarded through full and open competition, suggesting market validation.
Contractor (General Dynamics Information Technology) is a well-established defense contractor.
Long performance period indicates a sustained and recognized need for the services.
Supports critical NATO and U.S. special operations missions.

Sector Analysis

This contract falls within the Engineering Services (NAICS 541330) sector, specifically supporting defense operations. The market for defense support services is substantial, with numerous large and small businesses competing for government contracts. General Dynamics Information Technology is a major player in this space, providing a wide range of IT and professional services to the federal government. This specific contract addresses a niche requirement for battle staff augmentation within a complex, high-stakes operational theater.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The prime contractor, General Dynamics Information Technology, is a large business. This means that opportunities for small businesses would likely be through subcontracting, if General Dynamics chooses to engage them, rather than direct prime contract awards.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Given the operational context in Afghanistan, there would also be oversight from military command structures. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

NATO Support and Procurement Agency Contracts
Special Operations Forces Support Services
Afghanistan Security Assistance Programs
Department of Defense Professional Services Contracts
Intelligence Support Services

Risk Flags

Long contract duration may limit adaptability to changing operational needs.
Labor-hour pricing requires diligent oversight to control costs.
Performance in a high-risk operational theater presents inherent challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. BATTLE STAFF AUGMENTATION SERVICES FOR UNITED STATES FORCES-AFGHANISTAN SUPPORTING NATO SPECIAL OPERATIONS COMPONENT COMMAND-AFGHANISTAN/SPECIAL OPERATIONS JOINT TASK FORCE-AFGHANISTAN (NSOCC/SOJTF).

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 $18.8 million.

What is the period of performance?

Start: 2019-05-29. End: 2024-10-28.

What is the historical spending pattern for battle staff augmentation services within the Department of Defense?

Historical spending on battle staff augmentation services within the Department of Defense can be substantial, particularly during periods of active conflict or significant overseas operations. While specific figures for 'battle staff augmentation' as a distinct category are not readily available in public databases, related services such as intelligence analysis, operational planning support, and command and control augmentation have historically represented billions of dollars annually. Contracts like this one, supporting specific theaters like Afghanistan, are part of a broader portfolio of services aimed at enhancing military effectiveness. Analyzing trends requires looking at broader categories of "Professional Services," "Information Technology Services," and "Logistics Support" awarded to defense contractors over multiple fiscal years, often showing peaks during wartime and gradual declines post-conflict, though specialized support needs persist.

How does General Dynamics Information Technology's performance on similar contracts compare?

General Dynamics Information Technology (GDIT) is a large and established contractor with a long history of performance on Department of Defense contracts. Assessing their performance on similar battle staff augmentation or operational support contracts requires a deep dive into contract performance reports (CPARS), past performance evaluations, and any documented disputes or awards. Generally, GDIT has a strong track record in providing IT and professional services to the military. However, like any large contractor, performance can vary by contract, program, and specific task order. Without access to specific CPARS data for this contract or directly comparable ones, a definitive comparison is difficult. Publicly available information often highlights successful contract completions and contract vehicles, but potential issues or areas for improvement are less frequently detailed.

What are the key risks associated with providing battle staff augmentation in a deployed, high-threat environment like Afghanistan?

Providing battle staff augmentation in a deployed, high-threat environment like Afghanistan entails significant risks. Personnel safety and security are paramount, given the volatile conditions. Logistical challenges related to deploying and sustaining personnel, including housing, transportation, and access to necessary resources, are substantial. There's also the risk of mission creep, where the scope of augmentation services expands beyond the original intent, potentially increasing costs and complexity. Furthermore, the effectiveness of augmentation can be highly dependent on the stability of the operational environment and the seamless integration of augmented staff with existing military units. Political and security shifts in the region can rapidly alter operational needs and the viability of long-term support contracts, posing strategic risks.

What is the typical profit margin for companies providing these types of specialized support services to the DoD?

Profit margins for companies providing specialized support services to the Department of Defense (DoD) can vary significantly based on contract type, competition level, service complexity, and the contractor's overhead structure. For labor-hour contracts, which are common for staff augmentation, profit is built into the hourly rates. While exact profit margins are proprietary, industry benchmarks suggest that for large, established defense contractors like General Dynamics Information Technology, profit margins on IT and professional services contracts might range from 5% to 15% on average, sometimes higher for highly specialized or sole-source contracts. However, competitive bidding, especially under full and open competition, tends to drive down margins. The government also scrutinizes costs to ensure they are reasonable and allocable, which can influence the achievable profit.

How does the duration of this contract (nearly 5 years) impact its value and the government's flexibility?

A contract duration of nearly five years, as seen with this battle staff augmentation service, offers the government the benefit of sustained support and potential price stability over the performance period, assuming favorable contract terms. It allows the contractor to invest in personnel and resources, potentially leading to greater efficiency and expertise. However, such long durations can also reduce the government's flexibility. Operational needs, threat assessments, and technological advancements can change rapidly, especially in dynamic environments like Afghanistan. A lengthy contract might lock the government into services or pricing that become suboptimal or irrelevant over time. It also reduces opportunities for other contractors to compete for the work during the contract's term, potentially limiting innovation and market responsiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3150 FAIRVIEW PARK DR STE 100, FALLS CHURCH, VA, 22042

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

Financial Breakdown

Contract Ceiling: $38,815,818

Exercised Options: $38,815,818

Current Obligation: $18,802,927

Actual Outlays: $1,167,967

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $1,591,156

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU116

IDV Type: IDC

Timeline