DoD Awards $18M for 1st Theater Sustainment Command Staffing, Competition Was Full and Open

Contract Overview

Contract Amount: $18,014,652 ($18.0M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-09-26

End Date: 2024-08-31

Contract Duration: 1,801 days

Daily Burn Rate: $10.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: MAIN SUPPORT STAFFING SERVICES IN SUPPORT OF 1ST THEATER SUSTAINMENT COMMAND.

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: MAIN SUPPORT STAFFING SERVICES IN SUPPORT OF 1ST THEATER SUSTAINMENT COMMAND. Key points: 1. Contract awarded to General Dynamics Information Technology, Inc. for essential support services. 2. Significant contract value of $18 million over a 5-year period. 3. Full and open competition was utilized, suggesting a robust price discovery process. 4. Services fall under Engineering Services (NAICS 541330), a broad category.

Value Assessment

Rating: good

The contract's pricing is based on labor hours, which can be variable. Benchmarking against similar support staffing contracts for large theater commands is necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery. This method allows multiple vendors to bid, theoretically driving down costs and ensuring fair market value.

Taxpayer Impact: Taxpayer funds are being utilized for essential operational support, with competition aiming to maximize value for money.

Public Impact

Ensures critical operational support for the 1st Theater Sustainment Command, impacting military readiness. Supports personnel in a key logistical and operational hub. General Dynamics Information Technology, Inc. is a major defense contractor, indicating established capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hour pricing can lead to cost overruns if not managed effectively.
Long duration of the contract (5 years) may limit flexibility for future needs.

Positive Signals

Full and open competition utilized.
Contract supports a critical military command.

Sector Analysis

This contract falls under Engineering Services, often associated with complex logistical and operational support for military units. Spending in this sector is substantial within the DoD, driven by global operational requirements.

Small Business Impact

The contract was awarded to a large business (General Dynamics Information Technology, Inc.) and did not indicate any specific small business set-aside or subcontracting goals. Therefore, the direct impact on small businesses appears minimal.

Oversight & Accountability

Oversight would typically be managed by the contracting officer and the requiring activity within the 1st Theater Sustainment Command. Performance monitoring and adherence to contract terms are crucial for accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for cost creep due to labor hour pricing.
Long contract duration may not reflect current market efficiencies.
Lack of small business participation noted.
Dependence on a single large contractor for critical support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. MAIN SUPPORT STAFFING SERVICES IN SUPPORT OF 1ST THEATER SUSTAINMENT COMMAND.

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 $18.0 million.

What is the period of performance?

Start: 2019-09-26. End: 2024-08-31.

What is the estimated labor rate for key personnel under this contract, and how does it compare to industry benchmarks for similar roles and experience levels?

The contract is priced using labor hours, making a direct per-unit cost difficult to ascertain without detailed breakdowns. However, an analysis of the average hourly rates for different labor categories against government-wide contract vehicles and industry surveys would be necessary. This would reveal if the rates are competitive and reflect fair market value for the expertise provided to the 1st Theater Sustainment Command.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured to ensure mission effectiveness and prevent potential waste?

Key performance indicators likely focus on the timely and accurate provision of support staff, adherence to schedules, and responsiveness to the 1st Theater Sustainment Command's needs. Performance is typically measured through regular reporting, user feedback, and milestone achievement. Effective oversight ensures that the contractor meets its obligations, thereby maximizing the value of taxpayer investment and ensuring operational readiness.

Given the 5-year duration, what mechanisms are in place to ensure the contract remains cost-effective and adaptable to evolving operational requirements?

The contract's long duration necessitates mechanisms for cost control and adaptability. While priced on labor hours, potential for cost escalation exists. The contract may include provisions for periodic rate reviews or adjustments based on market conditions. Furthermore, the government's ability to modify task orders within the scope of the contract allows for adaptation to changing needs, though significant shifts might require re-competition.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $18,014,652

Exercised Options: $18,014,652

Current Obligation: $18,014,652

Actual Outlays: $319,759

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $275,464

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