DoD's $59.6M Army Training Contract with General Dynamics Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $59,563,218 ($59.6M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-11-01
End Date: 2018-02-28
Contract Duration: 1,945 days
Daily Burn Rate: $30.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: RTS-MED TRAINING, MAINTENANCE, AND ADMINISTRATIVE SUPPORT SERVICES
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78209
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $59.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: RTS-MED TRAINING, MAINTENANCE, AND ADMINISTRATIVE SUPPORT SERVICES Key points: 1. The contract awarded to General Dynamics Information Technology, Inc. for training, maintenance, and administrative support services represents a significant investment. 2. While awarded under full and open competition, the long duration and firm-fixed-price nature warrant a closer look at ongoing value. 3. Potential risks include cost overruns if scope changes or performance issues arise over the contract's extended period. 4. The sector is IT services supporting defense operations, a critical but often high-cost area.
Value Assessment
Rating: fair
The $59.6 million contract over nearly 6 years suggests a substantial per-year spend. Benchmarking against similar IT support contracts for military training is needed to assess if the pricing reflects market rates and delivered value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which is positive for price discovery. However, the definitive contract type and long duration may have limited the agility of price adjustments over time.
Taxpayer Impact: Taxpayer funds are being utilized for essential defense support services. Ensuring competitive pricing throughout the contract lifecycle is crucial for maximizing the value of this expenditure.
Public Impact
Military readiness and training effectiveness are directly impacted by the quality and cost of these support services. The long-term nature of the contract raises questions about adaptability to evolving training needs and technological advancements. Transparency in performance metrics and cost breakdowns is essential for public trust and accountability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration
- Firm-fixed-price structure
- Lack of specific performance metrics in provided data
Positive Signals
- Awarded under full and open competition
- Supports critical defense training functions
Sector Analysis
This contract falls within the IT services sector, specifically supporting defense operations. Spending benchmarks for similar large-scale IT support and training services for government agencies are typically in the millions annually, making this contract significant but not necessarily outside the norm.
Small Business Impact
The provided data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
Oversight would typically involve regular performance reviews by the Department of the Army to ensure General Dynamics Information Technology, Inc. is meeting contract requirements and delivering value. Accountability is maintained through contract clauses and potential penalties for non-performance.
Related Government Programs
- Other Technical and Trade Schools
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration (over 5 years)
- Firm-fixed-price structure may not adapt well to changing needs
- Potential for cost inefficiencies if not closely managed
- Lack of detailed performance metrics in provided data
Tags
other-technical-and-trade-schools, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $59.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. RTS-MED TRAINING, MAINTENANCE, AND ADMINISTRATIVE SUPPORT SERVICES
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 $59.6 million.
What is the period of performance?
Start: 2012-11-01. End: 2018-02-28.
What was the specific scope of work and key performance indicators (KPIs) for this contract, and how did they evolve over its duration?
The scope included training, maintenance, and administrative support services. Specific KPIs are not detailed in the provided data. Understanding these metrics is crucial for assessing whether the contractor met performance expectations and if the firm-fixed-price was justified by the delivered outcomes. Without this, evaluating true value for money is challenging.
Were there any contract modifications or change orders issued during the contract period, and what was their financial impact?
The data does not specify contract modifications. Significant changes could alter the initial pricing assessment and potentially indicate scope creep or unforeseen requirements. Analyzing modifications is key to understanding the total cost evolution and whether the original competitive pricing remained relevant throughout the contract's life.
How did the actual costs incurred by General Dynamics Information Technology, Inc. compare to the firm-fixed-price, and were there any cost savings or overruns?
As a firm-fixed-price contract, the government pays the agreed-upon price regardless of the contractor's actual costs, assuming performance is met. However, understanding the contractor's internal cost management and profitability could reveal insights into the competitiveness of the bid and potential for future pricing adjustments.
Industry Classification
NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W81K0412R0026
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 2727 HAMNER AVE, NORCO, CA, 92860
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $60,508,686
Exercised Options: $60,508,686
Current Obligation: $59,563,218
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $4,190,644
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2012-11-01
Current End Date: 2018-02-28
Potential End Date: 2018-02-28 00:00:00
Last Modified: 2019-09-05
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