DoD awards $90M for TDM capability set implementation and decommissioning across 15 sites

Contract Overview

Contract Amount: $89,964,111 ($90.0M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-10-25

End Date: 2025-05-14

Contract Duration: 2,028 days

Daily Burn Rate: $44.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TIME DIVISION MULTIPLEX (TDM) CAPABILITY SET AWARD FOR IMPLEMENTATION AND DECOMMISSION AT UP TO 15 SITES.

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $90.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: TIME DIVISION MULTIPLEX (TDM) CAPABILITY SET AWARD FOR IMPLEMENTATION AND DECOMMISSION AT UP TO 15 SITES. Key points: 1. Contract awarded to General Dynamics Information Technology, Inc. for Time Division Multiplex (TDM) capability set implementation and decommissioning. 2. The contract has a duration of 2028 days, indicating a long-term project. 3. The award was made under full and open competition, suggesting a robust bidding process. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 5. The contract is for services at up to 15 sites, implying a geographically dispersed operation. 6. The North American Industry Classification System (NAICS) code 517110 points to services within the Wired Telecommunications Carriers sector.

Value Assessment

Rating: fair

The contract value of $89.96 million for TDM capability set implementation and decommissioning across 15 sites appears substantial. Benchmarking this against similar large-scale telecommunications infrastructure projects is challenging without more specific details on the scope of work and the technology involved. The Cost Plus Fixed Fee (CPFF) contract type introduces a degree of risk regarding cost control, as the government bears the cost of performance plus a fixed fee. However, the presence of a fixed fee can incentivize the contractor to manage costs efficiently to maximize their profit margin. Further analysis would require comparing the per-site cost or the overall project cost to industry standards for similar TDM deployments and decommissioning efforts.

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 bids. The data shows there were 6 bids received, suggesting a healthy level of competition for this requirement. A competitive process like this generally leads to better price discovery and can result in more favorable terms for the government. The number of bidders provides a reasonable indication that the market has sufficient capacity and interest to support such a contract.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it likely resulted in a more competitive price and a wider range of technical solutions being considered, ultimately leading to better value for the government's investment.

Public Impact

The Department of Defense (specifically the Department of the Army) is the primary beneficiary, receiving upgraded or decommissioned TDM capabilities. The services delivered will involve the implementation and decommissioning of Time Division Multiplexing (TDM) capabilities. The geographic impact extends to up to 15 different sites, suggesting a nationwide or significant regional deployment. Workforce implications may include specialized technicians for telecommunications infrastructure installation, maintenance, and removal.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not closely monitored.
The long duration of the contract (2028 days) requires sustained oversight to ensure performance and value.
Decommissioning services can sometimes be underestimated in complexity and cost.
Reliance on TDM technology may indicate legacy systems requiring careful integration or replacement planning.

Positive Signals

Awarded under full and open competition with multiple bids, indicating a competitive market.
The contract is for a defined scope of work (implementation and decommissioning), providing clarity.
The fixed fee component in the CPFF contract can incentivize contractor efficiency.
The contract specifies services at multiple sites, suggesting a standardized approach can be leveraged.

Sector Analysis

The contract falls within the Wired Telecommunications Carriers sector (NAICS 517110), which includes establishments primarily engaged in operating and maintaining telecommunications networks and providing access to them. This sector is crucial for supporting military communications infrastructure. The total spending in this sector can be substantial, with government contracts forming a significant portion. This specific award for TDM capabilities addresses a need for network infrastructure services, which are foundational for many other defense operations. Comparable spending benchmarks would involve looking at other large-scale telecommunications network upgrades or deployments within the federal government or large enterprises.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is marked as false. This suggests that the contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses detailed in this summary. Therefore, the direct impact on the small business ecosystem for this particular award may be limited, unless the prime contractor voluntarily engages small businesses in their supply chain. Further investigation into the contractor's subcontracting plan would be necessary to fully assess the implications for small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant program management office within the Department of the Army. The Cost Plus Fixed Fee (CPFF) structure necessitates diligent oversight to monitor costs, ensure adherence to the scope of work, and verify the reasonableness of expenses. Transparency is typically facilitated through contract reporting mechanisms and performance reviews. Inspector General jurisdiction may be involved if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Defense Communications Systems
Network Infrastructure Modernization
Telecommunications Services Contracts
Information Technology Services
Base Realignment and Closure (BRAC) related infrastructure support

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires close monitoring for cost control.
Long contract duration necessitates sustained oversight and risk of technological obsolescence.
Potential for scope creep in implementation and decommissioning phases.
Dependence on legacy TDM technology may require careful integration planning.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $90.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. TIME DIVISION MULTIPLEX (TDM) CAPABILITY SET AWARD FOR IMPLEMENTATION AND DECOMMISSION AT UP TO 15 SITES.

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 $90.0 million.

What is the period of performance?

Start: 2019-10-25. End: 2025-05-14.

What is the historical spending pattern for TDM capability set implementation and decommissioning within the Department of Defense?

Analyzing historical spending on Time Division Multiplexing (TDM) capability set implementation and decommissioning within the Department of Defense (DoD) requires access to detailed procurement data over several fiscal years. Without specific historical data for this exact service category, a general trend can be inferred. The DoD has been undergoing significant modernization of its communication networks, moving from legacy systems like TDM towards more advanced IP-based and software-defined networking solutions. Therefore, spending on TDM implementation might be decreasing or focused on specific niche requirements or legacy site support, while spending on decommissioning these older systems is likely increasing as part of this transition. The $89.96 million award suggests a substantial, albeit potentially final, investment in TDM infrastructure at these 15 sites, possibly as part of a larger network consolidation or upgrade strategy. Further analysis would involve querying databases like FPDS-NG or USAspending for similar contract actions over the past 5-10 years to identify trends in award values, number of contracts, and specific agencies involved in TDM-related procurements.

How does the per-site cost of this contract compare to industry benchmarks for similar TDM deployments and decommissioning?

To compare the per-site cost, we first calculate it by dividing the total contract value ($89,964,110.63) by the number of sites (15), resulting in approximately $5,997,607 per site. Benchmarking this figure against industry standards for TDM capability set implementation and decommissioning is complex due to variations in scope, technology specifics, site complexity, and geographic location. TDM implementation can involve significant hardware, software, and integration costs, while decommissioning requires careful planning for data security, asset disposal, and site restoration. Generally, large-scale telecommunications infrastructure projects can range from hundreds of thousands to millions of dollars per site, depending on the services. Given the CPFF nature, the actual costs could fluctuate. Without detailed statements of work for comparable commercial or government projects, it's difficult to definitively label this per-site cost as high or low. However, for a project involving both implementation and decommissioning across multiple sites, this figure warrants scrutiny to ensure it aligns with expected project complexities and market rates.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this project?

The Cost Plus Fixed Fee (CPFF) contract type, while offering flexibility, carries inherent risks, particularly for a project involving both implementation and decommissioning across multiple sites. The primary risk is cost overrun, as the government agrees to reimburse the contractor for all allowable costs incurred, plus a predetermined fixed fee. If the contractor's costs exceed initial estimates, the government bears the burden, potentially leading to a final cost significantly higher than initially anticipated. This risk is amplified if the scope of work is not precisely defined or if unforeseen technical challenges arise during implementation or decommissioning. Effective management requires rigorous oversight of contractor expenditures, detailed cost accounting, and proactive identification of potential cost drivers. The fixed fee itself can also incentivize the contractor to complete the work efficiently to maximize profit, but it does not cap the total cost to the government. Therefore, robust contract administration and performance monitoring are crucial to mitigate these risks.

What is General Dynamics Information Technology, Inc.'s track record with similar large-scale telecommunications infrastructure contracts?

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record in providing IT and telecommunications services to government agencies, including the Department of Defense. They have historically managed large, complex programs involving network infrastructure, system integration, and modernization. While specific details on their past performance with TDM implementation and decommissioning at this scale are not provided in the summary data, GDIT's general experience suggests they possess the technical capabilities and project management expertise required for such a contract. Their portfolio often includes work on secure communication systems, enterprise IT solutions, and large-scale deployments. A deeper dive into their contract history, past performance evaluations, and any reported issues on similar projects would provide a more precise assessment of their suitability and potential risks associated with this specific award.

How does the duration of this contract (2028 days) impact the assessment of value for money?

The contract duration of 2028 days, approximately 5.5 years, is significant and has several implications for assessing value for money. A longer duration can allow for more efficient planning, phased implementation, and potentially better economies of scale, especially across 15 sites. It also provides stability for the contractor, potentially leading to more consistent performance and reduced turnover. However, it also extends the period during which costs are incurred and introduces risks related to technological obsolescence, changing requirements, and potential contractor performance degradation over time. For value for money, it's crucial that the phased delivery and performance metrics are structured to ensure continuous benefit realization and that the pricing remains competitive throughout the contract's life. Regular performance reviews and potential for contract modifications based on evolving needs are essential to ensure the long-term value proposition remains strong.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

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

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: $162,640,737

Exercised Options: $89,964,111

Current Obligation: $89,964,111

Subaward Activity

Number of Subawards: 103

Total Subaward Amount: $58,859,712

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