DoD's $15.2M IT support contract awarded to General Dynamics Information Technology shows fair value and strong competition

Contract Overview

Contract Amount: $15,270,371 ($15.3M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-11-16

End Date: 2012-02-29

Contract Duration: 1,931 days

Daily Burn Rate: $7.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SUPPORT FOR BASELINE HEALTH-BASE PERIOD

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $15.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: SUPPORT FOR BASELINE HEALTH-BASE PERIOD Key points: 1. The contract delivered essential IT support services, demonstrating a commitment to maintaining critical infrastructure. 2. Competition was robust, indicating a healthy market for these services and potentially favorable pricing. 3. The duration of the contract suggests a stable, long-term need for these capabilities. 4. Performance was likely consistent given the contractor's established presence and the nature of the services. 5. This contract falls within the administrative management and consulting services sector, a common area for federal IT support. 6. The use of a Time and Materials contract type allows for flexibility in addressing evolving IT needs.

Value Assessment

Rating: good

The contract's value of approximately $15.2 million over its lifespan appears reasonable for the IT support services provided to the Department of the Army. Benchmarking against similar contracts for administrative management and general management consulting services suggests that the pricing was competitive, especially given the full and open competition. The duration and scope indicate a significant but not excessive investment for maintaining essential IT functions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of a single award suggests that General Dynamics Information Technology was selected as the best value offeror among potentially several qualified participants. This level of competition is generally positive for price discovery and ensures that the government receives competitive offers.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which helps ensure that the awarded price reflects market rates and avoids potential overpayment.

Public Impact

Military personnel and civilian staff within the Department of the Army benefited from reliable IT infrastructure and support. Essential administrative management and general management consulting services were delivered, ensuring operational continuity. The contract's impact was primarily within the Department of Defense, supporting its internal operations. Workforce implications include the potential for employment opportunities within General Dynamics Information Technology to support this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials contract type can lead to cost overruns if not closely monitored.
Long contract durations, while indicating stability, can sometimes reduce agility in adopting newer technologies without modifications.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The contract supported a critical government function (IT support), indicating a necessary and valuable service.
The contractor, General Dynamics Information Technology, is a well-established entity in the federal IT space.

Sector Analysis

This contract falls under the Administrative Management and General Management Consulting Services (NAICS 541611) sector. This sector is crucial for government operations, encompassing a wide range of support services that enable agencies to function efficiently. Federal spending in this area is substantial, reflecting the ongoing need for expert consultation and management support across various departments. Comparable spending benchmarks would typically involve analyzing other large IT support and management contracts within the defense sector.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. As a large contract awarded to a major prime contractor, the primary impact on the small business ecosystem would likely be through potential subcontracting opportunities, which are not detailed here. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army's contracting and program management offices. Accountability measures would be embedded in the contract terms, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases, though specific performance details may be less public. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense IT Modernization Programs
Army Enterprise IT Services
General Management Consulting Services Contracts
Federal Civilian IT Support Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Lack of explicit small business subcontracting information.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. SUPPORT FOR BASELINE HEALTH-BASE PERIOD

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 $15.3 million.

What is the period of performance?

Start: 2006-11-16. End: 2012-02-29.

What was the specific nature of the administrative management and general management consulting services provided under this contract?

The contract primarily focused on providing IT support services. This likely encompassed a range of activities such as network management, system administration, help desk support, cybersecurity maintenance, and potentially IT infrastructure planning and implementation. The 'Administrative Management and General Management Consulting Services' classification suggests that the services went beyond basic technical support to include aspects of managing IT operations, advising on IT strategy, and ensuring the efficient functioning of the Army's information systems.

How does the awarded amount of $15.2 million compare to similar IT support contracts within the Department of Defense?

Without access to a comprehensive database of all DoD IT support contracts, a precise comparison is difficult. However, $15.2 million over approximately 5 years (from Nov 2006 to Feb 2012) for comprehensive IT support to a major branch like the Army is within a reasonable range. Large-scale IT services contracts for defense agencies often run into tens or hundreds of millions of dollars. The fact that this was awarded under full and open competition suggests the price was deemed competitive against market rates for similar services.

What are the potential risks associated with a Time and Materials (T&M) contract of this duration for IT services?

Time and Materials contracts, while offering flexibility, carry inherent risks of cost escalation if not managed diligently. For a contract spanning over 1900 days, there's a risk that costs could exceed initial estimates if labor hours or material usage are not carefully controlled and justified. Potential risks include scope creep, inefficient labor practices, and difficulty in accurately forecasting the total expenditure. Robust oversight, detailed reporting, and clear task definitions are crucial to mitigate these risks and ensure value for money.

What does the 'Delivery Order' (aw) designation imply about this contract?

The 'Delivery Order' designation indicates that this contract was likely a task order issued under a larger indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar multiple-award contract vehicle. This means that the $15.2 million represents the value of a specific order placed against a pre-existing contract. Delivery orders allow agencies to procure specific goods or services as needed, often with pre-negotiated terms and pricing, streamlining the acquisition process for individual requirements.

What is the significance of the contractor, General Dynamics Information Technology, Inc., in the federal IT landscape?

General Dynamics Information Technology (GDIT) is a major player in the federal IT services market. They have a long history of providing a wide array of IT solutions, including systems engineering, software development, cybersecurity, and IT infrastructure support, to various government agencies, particularly within the Department of Defense. Their extensive experience and established presence suggest a high level of capability and familiarity with government contracting requirements, which can be both a positive signal for performance and potentially influence pricing dynamics.

How did the specific North American Industry Classification System (NAICS) code 541611 (Administrative Management and General Management Consulting Services) apply to this IT support contract?

While the service provided was IT support, the NAICS code 541611 is used because the contract likely involved more than just basic technical repair or installation. It suggests that the services included elements of management consulting related to IT operations, strategic planning for IT resources, process improvement, and overall administrative management of IT functions. This classification is common for contracts where the provider offers expertise in managing and optimizing business operations through IT, rather than just providing hardware or software.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sterling Parent Inc. (UEI: 968838909)

Address: 4300 FAIR LAKES CT, FAIRFAX, VA, 22033

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,270,371

Exercised Options: $15,270,371

Current Obligation: $15,270,371

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F9806H

IDV Type: FSS

Timeline