DoD's $49.1M Fort Shafter facility contract awarded to General Dynamics IT shows strong competition

Contract Overview

Contract Amount: $49,117,201 ($49.1M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-09-25

End Date: 2024-03-31

Contract Duration: 1,649 days

Daily Burn Rate: $29.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PERFORM THE MISSION COMMAND FACILITY (MCF) PHASE 3 REQUIREMENT AT FORT SHAFTER, HI.

Place of Performance

Location: WESTWOOD, NORFOLK County, MASSACHUSETTS, 02090

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $49.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: PERFORM THE MISSION COMMAND FACILITY (MCF) PHASE 3 REQUIREMENT AT FORT SHAFTER, HI. Key points: 1. Contract value of $49.1M over 5.5 years indicates a significant investment in facility operations. 2. Full and open competition suggests a healthy market with multiple potential bidders. 3. The fixed-price contract type aims to control costs and provide predictability. 4. Performance period of over 1600 days highlights the long-term nature of the requirement. 5. The contract supports critical infrastructure at Fort Shafter, a key military installation. 6. The award to a large, established contractor like General Dynamics IT suggests a focus on proven capabilities.

Value Assessment

Rating: good

The contract's total value of $49.1 million over approximately 5.5 years averages to about $8.9 million annually. Benchmarking this against similar facility management contracts is challenging without more specific service details. However, the firm fixed-price structure suggests an effort to ensure cost control. The presence of three bidders in a full and open competition indicates a reasonable level of price discovery, though a more granular comparison of the bids would be needed for a definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bids received. This level of competition is generally positive, suggesting that multiple capable vendors were aware of and interested in the requirement. The fact that three companies submitted proposals indicates a competitive environment that likely drove pricing towards market rates. The specific details of the bidding process and the spread between the bids would offer further insight into the effectiveness of the competition.

Taxpayer Impact: A competitive bidding process for this contract helps ensure that taxpayer dollars are used efficiently by encouraging vendors to offer their best pricing. Three bidders suggest a reasonable level of market interest, which can lead to cost savings compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are the Department of Defense and military personnel stationed at Fort Shafter, Hawaii, who rely on the Mission Command Facility (MCF). The contract ensures the continued operation and maintenance of critical infrastructure, supporting military readiness and command functions. The geographic impact is localized to Fort Shafter, Hawaii, a significant Army installation in the Pacific region. Workforce implications may include direct employment by the contractor, General Dynamics Information Technology, and potential indirect employment in supporting industries in Hawaii.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for unforeseen operational challenges.
Dependence on a single large contractor could limit flexibility in adapting to future technological or operational changes.
Ensuring adequate performance monitoring and quality control over a long-term contract is crucial.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm fixed-price contract type helps manage cost certainty for the government.
Long performance period suggests a stable requirement and a contractor committed to long-term service delivery.
Contract awarded to a well-established company with a track record in government contracting.

Sector Analysis

This contract falls within the telecommunications and IT services sector, specifically related to supporting critical infrastructure at a military base. The North American Industry Classification System (NAICS) code 517110, Wired Telecommunications Carriers, suggests a focus on the underlying infrastructure. The market for such services is substantial, driven by government and commercial needs for reliable communication and facility support. Comparable spending benchmarks would depend on the specific scope of services, but facility operations and maintenance contracts for large government installations represent a significant portion of federal IT and infrastructure spending.

Small Business Impact

This contract was not set aside for small businesses, and there is no explicit indication of small business subcontracting requirements in the provided data. The award to General Dynamics Information Technology, a large prime contractor, suggests that the primary focus was on a large-scale solution. This may limit direct opportunities for small businesses as prime contractors on this specific award, although they could potentially participate as subcontractors if opportunities arise and are mandated.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Performance monitoring, quality assurance surveillance plans (QASPs), and regular reporting are standard mechanisms to ensure contractor compliance and service delivery. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Fort Shafter Operations and Maintenance
Department of Defense IT Infrastructure Support
Army Base Communications Services
Mission Command Facility Operations

Risk Flags

Long contract duration may increase risk of performance degradation or scope creep.
Reliance on a single large contractor could limit future flexibility.
Potential for cost increases if not all operational variables were fully captured in the fixed price.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. PERFORM THE MISSION COMMAND FACILITY (MCF) PHASE 3 REQUIREMENT AT FORT SHAFTER, HI.

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 $49.1 million.

What is the period of performance?

Start: 2019-09-25. End: 2024-03-31.

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

General Dynamics Information Technology (GDIT) has a substantial track record with the Department of Defense and other federal agencies, often handling large-scale IT services, infrastructure support, and facility operations. Their experience typically includes managing complex systems, ensuring cybersecurity, and providing mission-critical support across various military branches and installations. While specific details on past performance for similar facility management contracts at Army bases would require deeper analysis of contract databases and performance reports, GDIT's overall profile suggests they are a capable provider for requirements like the Fort Shafter MCF Phase 3. Their history often involves long-term engagements, indicating a capacity to meet sustained operational needs and adhere to stringent government standards.

How does the awarded price compare to market rates for similar wired telecommunications carrier services or facility operations?

Directly comparing the awarded price of $49.1 million over approximately 5.5 years (averaging ~$8.9 million annually) to precise market rates for 'Wired Telecommunications Carriers' (NAICS 517110) or facility operations is difficult without a detailed breakdown of the services rendered. NAICS 517110 primarily covers the provision of wired telecommunications infrastructure, which might be a component but not the entirety of the MCF Phase 3 requirement. Facility operations and maintenance contracts can vary widely in scope and cost based on the size and complexity of the facility, the services included (e.g., HVAC, power, security, IT support), and the geographic location. The fact that this was a full and open competition with three bidders suggests the pricing was likely competitive within the market for such specialized support at a major military installation.

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

Primary risks for this contract include potential cost overruns if the firm fixed-price contract doesn't fully anticipate all operational challenges, performance degradation over the long contract term, and potential vendor lock-in. Mitigation strategies likely involve robust performance monitoring by the government, clear service level agreements (SLAs), and contingency planning within the contract's scope. The firm fixed-price nature itself is a risk mitigation tool for the government, shifting cost overrun risk to the contractor. The long duration also necessitates strong government oversight to ensure sustained quality and address any emerging issues proactively. The competition itself helps mitigate risks by selecting a vendor perceived as capable.

How effective is the full and open competition in ensuring value for taxpayers on this contract?

The full and open competition, with three bidders, is a strong indicator of potential value for taxpayers. It allows a wider pool of qualified vendors to compete, fostering a more competitive environment that typically drives down prices and encourages innovation. Receiving three bids suggests that the market is sufficiently robust and that the requirement was well-defined enough to attract multiple interested parties. This competitive pressure encourages bidders to offer their most cost-effective solutions. While the ultimate value depends on the specific bids and the contractor's performance, the competitive nature of the award process is a positive sign for taxpayer value compared to sole-source or limited competition scenarios.

What is the historical spending pattern for Mission Command Facility support at Fort Shafter or similar Army installations?

Historical spending patterns for Mission Command Facility (MCF) support at Fort Shafter or similar Army installations would likely show a consistent need for operations, maintenance, and IT infrastructure support. Such contracts are often long-term due to the enduring nature of military base requirements. Spending can fluctuate based on upgrades, modernization efforts, or changes in operational tempo. Analyzing past contracts for Fort Shafter or comparable installations would reveal trends in contract values, durations, and the types of services procured. This specific $49.1 million contract over 5.5 years represents a significant, but potentially typical, investment for maintaining critical command and control facilities over an extended period.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 101 STATION DR, WESTWOOD, MA, 02090

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

Financial Breakdown

Contract Ceiling: $49,117,201

Exercised Options: $49,117,201

Current Obligation: $49,117,201

Subaward Activity

Number of Subawards: 42

Total Subaward Amount: $14,786,457

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA873215D0038

IDV Type: IDC

Timeline