DoD's $8.76M GRIDS IV contract awarded to General Dynamics IT for R&D services

Contract Overview

Contract Amount: $8,764,386 ($8.8M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-05-11

End Date: 2027-05-10

Contract Duration: 729 days

Daily Burn Rate: $12.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: GEOSPATIAL, RESEARCH, INTEGRATION, DEVELOPMENT AND SUPPORT (GRIDS IV)

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $8.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: GEOSPATIAL, RESEARCH, INTEGRATION, DEVELOPMENT AND SUPPORT (GRIDS IV) Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. General Dynamics Information Technology, Inc. is the prime contractor. 3. The contract has a duration of 729 days. 4. This is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 6. The contract was awarded using full and open competition. 7. The North American Industry Classification System (NAICS) code is 541715.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the scope of work and deliverables. However, the Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs compared to fixed-price contracts if not managed carefully. The total value of $8.76 million over two years suggests a moderate investment for specialized R&D services. Further analysis would require comparing the specific tasks and expected outcomes against similar research projects within the Department of Defense.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 8 bidders (implied by 'no': 8) indicates a competitive environment. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers for its requirements.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices and encouraging innovation among a wider pool of potential contractors.

Public Impact

The Department of the Army benefits from advanced research and development services. Services delivered likely include scientific research, engineering, and technical support. The geographic impact is primarily within Virginia, where the contractor is located. Workforce implications include employment for scientists, engineers, and technical staff at General Dynamics IT.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type may lead to cost overruns if not closely monitored.
The specific deliverables and success metrics for this R&D contract are not detailed, making performance assessment difficult.
Reliance on a single delivery order under a larger IDIQ could concentrate risk if the IDIQ itself has issues.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contractor, General Dynamics Information Technology, Inc., is a large and established entity with significant experience.
The contract duration of two years allows for sustained effort on research objectives.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for such services is substantial, driven by government and private sector investment in innovation. Comparable spending benchmarks would involve looking at other R&D contracts awarded by the DoD and other federal agencies for similar scientific disciplines. The GRIDS IV IDIQ vehicle itself likely represents a significant portion of the government's spending in this area.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a delivery order under a larger IDIQ, the prime contractor, General Dynamics IT, is responsible for managing subcontracting. It is unclear from the provided data whether small businesses will be involved as subcontractors, which could impact the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. The Cost Plus Fixed Fee structure necessitates close financial oversight to ensure costs remain reasonable and aligned with the fixed fee. Transparency would be enhanced through regular reporting requirements and potentially through the Federal Procurement Data System (FPDS). Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Contracts
Information Technology Services Contracts
Scientific and Engineering Services Contracts
General Dynamics IT Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Lack of specific performance metrics in provided data hinders assessment.
Potential for undefined scope creep in R&D contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. GEOSPATIAL, RESEARCH, INTEGRATION, DEVELOPMENT AND SUPPORT (GRIDS IV)

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 $8.8 million.

What is the period of performance?

Start: 2025-05-11. End: 2027-05-10.

What is the historical spending pattern for the GRIDS IV IDIQ contract vehicle?

The provided data pertains to a single delivery order under the GRIDS IV IDIQ. To understand the historical spending pattern for the GRIDS IV vehicle, one would need to access data on all delivery orders issued against it since its inception. This would involve querying federal procurement databases for all awards made under the GRIDS IV contract number. Analyzing this data would reveal the total value obligated, the number of delivery orders, the agencies utilizing the vehicle, and the types of services procured. Without this broader context, it's impossible to establish a historical spending trend for the IDIQ itself, only for this specific task order.

How does the pricing of this delivery order compare to similar R&D contracts?

Directly comparing the pricing of this $8.76 million delivery order to 'similar' R&D contracts is challenging without a detailed understanding of the specific research objectives, deliverables, and labor categories involved. The Cost Plus Fixed Fee (CPFF) structure means that costs are reimbursed, plus a fixed fee representing profit. Benchmarking would require identifying contracts with comparable scope, duration, and complexity within the physical, engineering, and life sciences R&D domain. Factors like the level of innovation required, the maturity of the technology being researched, and the specific expertise needed would all influence pricing. A comprehensive comparison would involve analyzing the proposed labor rates, indirect cost allocations, and the fixed fee percentage against industry standards and historical government data for analogous procurements.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

The provided data does not specify the key performance indicators (KPIs) or the measurement methods for this particular delivery order. For a Cost Plus Fixed Fee contract, performance is typically measured against the defined scope of work, technical objectives, and milestones outlined in the contract. The government contracting officer's representative (COR) is usually responsible for monitoring progress and ensuring that the contractor meets its obligations. Specific KPIs might include research progress reports, successful completion of experimental phases, development of prototypes, or validation of scientific findings. The fixed fee is contingent upon satisfactory performance, incentivizing the contractor to meet these objectives.

What is General Dynamics Information Technology, Inc.'s track record with similar DoD R&D contracts?

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record of performing research and development (R&D) and IT services for the Department of Defense (DoD) and other federal agencies. They are a large, established contractor with extensive experience in complex scientific, engineering, and technical support. Analyzing their past performance on similar contracts would involve reviewing contract databases for awards related to scientific research, systems integration, and advanced technology development. Key aspects to examine would include their performance ratings, any past performance issues or disputes, and their success in delivering on complex R&D requirements within budget and schedule. GDIT's size and experience suggest a generally reliable performance history, but specific contract reviews are necessary for a definitive assessment.

What is the potential risk associated with the Cost Plus Fixed Fee (CPFF) contract type for this R&D effort?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract type for R&D is the potential for cost overruns. In a CPFF arrangement, the government reimburses the contractor for allowable costs incurred, plus a predetermined fixed fee (profit). If the R&D effort proves more complex or costly than initially estimated, the government bears the burden of these increased costs, up to the contract's ceiling. While the fixed fee provides some incentive for the contractor to control costs, it doesn't offer the same level of cost certainty as a firm-fixed-price contract. Effective oversight, rigorous cost tracking, and clear definition of work are crucial to mitigate these risks and ensure value for taxpayer money.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W5J9CQ24R0002

Offers Received: 8

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $62,969,561

Exercised Options: $23,132,103

Current Obligation: $8,764,386

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W5J9CQ25D0001

IDV Type: IDC

Timeline