DoD's $24.3M IT support contract awarded to General Dynamics Information Technology Inc. for application sustainment

Contract Overview

Contract Amount: $24,292,538 ($24.3M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2019-08-30

End Date: 2024-08-29

Contract Duration: 1,826 days

Daily Burn Rate: $13.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: PROVIDE APPLICATIONS SUSTAINMENT SUPPORT SERVICES TO THE CECOM SEC SERVICES DIRECTORATE IN THE FOLLOWING AREAS: SW CHANGE REQUESTS, APPLICATIONS DEVELOPMENT, APPLICATION QUALITY ASSURANCE, PROGRAM&PROJECT MANAGEMENT

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $24.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: PROVIDE APPLICATIONS SUSTAINMENT SUPPORT SERVICES TO THE CECOM SEC SERVICES DIRECTORATE IN THE FOLLOWING AREAS: SW CHANGE REQUESTS, APPLICATIONS DEVELOPMENT, APPLICATION QUALITY ASSURANCE, PROGRAM&PROJECT MANAGEMENT Key points: 1. Contract provides critical application sustainment and development services for CECOM SEC Services Directorate. 2. General Dynamics Information Technology Inc. secured this contract through full and open competition. 3. The contract duration of 1826 days indicates a long-term need for these IT services. 4. The Cost Plus Fixed Fee (CPFF) pricing structure may allow for cost overruns. 5. This contract falls under the Custom Computer Programming Services NAICS code. 6. The award was a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

The total value of $24.3 million over five years for application sustainment and development services appears to be within a reasonable range for complex IT support. However, without specific benchmarks for the exact services provided (e.g., number of applications supported, complexity of development tasks), a precise value-for-money assessment is challenging. The CPFF contract type introduces some risk, as it can incentivize cost increases if not managed tightly. Comparing this to similar sustainment contracts for large defense IT systems would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 5 bidders suggests a competitive environment. This level of competition is generally favorable for price discovery and ensuring that the government receives competitive pricing. The specific details of the bidding process and the number of proposals received would further illuminate the strength of the competition.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through vendor rivalry, leading to potentially more cost-effective solutions and a wider array of innovative approaches.

Public Impact

The primary beneficiaries are the Department of the Army's CECOM SEC Services Directorate, which will receive sustained application support. Services delivered include software change requests, application development, quality assurance, and program/project management. The geographic impact is primarily within the Department of Defense's operational and administrative infrastructure. Workforce implications include the employment of IT professionals by General Dynamics Information Technology Inc. to fulfill these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not closely monitored.
Lack of specific performance metrics makes it difficult to assess the efficiency and effectiveness of the services.
The duration of the contract (5 years) requires ongoing vigilance to ensure continued value and alignment with evolving needs.
Limited information on the specific applications supported hinders a deeper understanding of the contract's complexity and risk.
The absence of small business subcontracting goals (based on 'sb': false) may limit opportunities for smaller firms in this contract.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
General Dynamics Information Technology Inc. is a large, established contractor with significant experience in government IT services.
The contract addresses critical sustainment needs for essential applications, ensuring operational continuity.
The contract duration indicates a stable, long-term requirement, allowing for focused service delivery.
The delivery order structure implies it's part of a potentially larger, pre-competed framework.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. The market for IT sustainment and development services for the federal government is substantial, with agencies like the Department of Defense being major spenders. This contract represents a portion of the broader spending on maintaining and enhancing complex defense IT systems. Comparable spending benchmarks would involve analyzing other large-scale IT sustainment contracts within the DoD or other federal agencies for similar scope and duration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses ('sb': false). As a result, there are no explicit subcontracting requirements for small businesses mandated by this specific award. This means that opportunities for small businesses to participate in this contract are likely limited to those that might be engaged by the prime contractor, General Dynamics Information Technology Inc., on a voluntary basis or through other existing agreements. The overall impact on the small business ecosystem for this particular contract is therefore minimal.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army's contracting officers and program managers responsible for CECOM SEC Services Directorate. Accountability measures would be defined within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

CECOM SEC Services Directorate IT Support
Department of Defense Application Development Contracts
Custom Computer Programming Services
IT Sustainment Services
General Dynamics Information Technology Inc. Federal Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type may lead to cost overruns.
Long-term contract duration requires ongoing performance monitoring.
Limited public information on specific performance metrics.
No explicit small business subcontracting requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. PROVIDE APPLICATIONS SUSTAINMENT SUPPORT SERVICES TO THE CECOM SEC SERVICES DIRECTORATE IN THE FOLLOWING AREAS: SW CHANGE REQUESTS, APPLICATIONS DEVELOPMENT, APPLICATION QUALITY ASSURANCE, PROGRAM&PROJECT MANAGEMENT

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 $24.3 million.

What is the period of performance?

Start: 2019-08-30. End: 2024-08-29.

What is the track record of General Dynamics Information Technology Inc. in delivering similar IT sustainment and development services to the Department of Defense?

General Dynamics Information Technology Inc. (GDIT) has a long and extensive history of providing IT services to the Department of Defense and other federal agencies. They are a major contractor known for handling large-scale, complex IT programs, including application development, sustainment, cybersecurity, and infrastructure management. Their track record includes supporting various branches of the military and defense agencies with critical mission systems. While specific performance details for individual contracts are often proprietary or require deep dives into contract performance reports, GDIT's consistent presence as a prime contractor on numerous high-value DoD contracts suggests a generally accepted capability to meet demanding requirements. However, like any large contractor, they may have faced challenges or criticisms on specific projects, which would be detailed in performance reviews or IG reports if publicly available.

How does the $24.3 million total contract value compare to similar IT sustainment contracts within the DoD?

The $24.3 million total contract value for five years of IT sustainment and development services for the CECOM SEC Services Directorate is a significant but not extraordinary amount for the Department of Defense. Large-scale IT sustainment and modernization programs within the DoD often run into hundreds of millions or even billions of dollars over their lifecycles. For example, contracts supporting enterprise resource planning systems, command and control systems, or major network infrastructure can far exceed this figure. This $24.3 million contract appears to be for a specific directorate's application portfolio, suggesting a focused scope. Benchmarking would require comparing it against contracts for similar types of applications (e.g., logistics, personnel, intelligence) and similar service levels (development, sustainment, QA) within the Army or other DoD components. Without more granular data on the number and complexity of applications supported, a precise comparison is difficult, but it falls within the typical range for specialized IT support services.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this application sustainment service?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract type for application sustainment services is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While the fee is fixed, the total cost is variable. This can incentivize contractors to incur higher costs, as their profit margin (the fixed fee) remains constant regardless of the total expenditure. For the government, this means the final contract price could be significantly higher than initially anticipated if costs escalate. Effective oversight, rigorous cost tracking, and clear definition of allowable costs are crucial to mitigate this risk and ensure the government does not overpay for the services rendered. Without strong management, CPFF contracts can be less cost-effective than fixed-price alternatives.

How effective is full and open competition in ensuring competitive pricing for custom computer programming services like these?

Full and open competition is generally considered the most effective method for ensuring competitive pricing for custom computer programming services. By allowing all responsible sources to submit bids, the government maximizes the pool of potential offerors, thereby increasing the likelihood of receiving multiple competitive proposals. This competitive pressure incentivizes contractors to offer their best pricing and technical solutions to win the contract. The presence of 5 bidders in this specific case indicates a healthy level of competition. However, the effectiveness also depends on the clarity of the solicitation, the evaluation criteria, and the government's ability to negotiate favorable terms. While full and open competition provides the framework for competitive pricing, the actual outcome is influenced by market dynamics and the specific requirements of the procurement.

What are the historical spending patterns for application sustainment and development services within the CECOM SEC Services Directorate or similar Army commands?

Historical spending patterns for application sustainment and development services within the CECOM SEC Services Directorate, or similar Army commands, typically show a consistent and significant investment. These services are essential for maintaining the operational readiness and effectiveness of critical command, control, communications, computers, and intelligence (C4I) systems. Spending often fluctuates based on modernization initiatives, system upgrades, cybersecurity requirements, and the lifecycle of the applications being supported. Agencies like CECOM often rely on a mix of contract types, including IDIQ vehicles, to procure these services efficiently. Analyzing past budgets and contract awards for CECOM or comparable Army organizations would reveal trends in spending levels, the types of services most frequently procured, and the dominant contractors in this space. Such analysis is crucial for forecasting future needs and ensuring budget alignment.

What are the potential implications of this contract on the IT workforce, both within the government and the contractor side?

This contract has several implications for the IT workforce. On the contractor side, it signifies continued employment and potential job creation for IT professionals at General Dynamics Information Technology Inc., including software developers, quality assurance testers, project managers, and system administrators. The duration of the contract suggests stable, long-term work. For the government, it means that critical IT functions are being outsourced, potentially allowing government personnel to focus on higher-level strategy, oversight, and requirements definition rather than day-to-day application maintenance. However, it also means a reliance on external expertise and a potential reduction in in-house government IT capabilities over time. The specific skill sets required by the contract will shape the demand for particular IT roles within GDIT.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3170 FAIRVIEW PARK DR, 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: $30,490,030

Exercised Options: $30,420,731

Current Obligation: $24,292,538

Actual Outlays: $3,426,126

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W15P7T12DE012

IDV Type: IDC

Timeline