DoD's $306M Medical Equipment Provisioning Contract Awarded to General Dynamics

Contract Overview

Contract Amount: $306,212,549 ($306.2M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-11-23

End Date: 2013-09-30

Contract Duration: 1,407 days

Daily Burn Rate: $217.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST NO FEE

Sector: Defense

Official Description: MEDICAL EQUIPMENT PROVISIONING

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $306.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: MEDICAL EQUIPMENT PROVISIONING Key points: 1. Contract value of $306.2M over its period of performance. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. The contract type is a Definitive Contract, indicating a clear scope and terms. 4. Performance period spanned over 3 years, from late 2009 to late 2013. 5. The NAICS code 541712 points to Research and Development in Physical, Engineering, and Life Sciences. 6. The contract was managed by the Defense Contract Management Agency. 7. No small business set-aside was utilized for this contract.

Value Assessment

Rating: fair

Benchmarking the value of this $306.2 million contract for medical equipment provisioning is challenging without specific performance metrics or comparable contract data. The 'COST NO FEE' contract type suggests that the contractor's costs were reimbursed, but profit was not a separate line item, which can sometimes lead to less incentive for cost control compared to fixed-price contracts. However, the absence of a fee might indicate a specific type of service or relationship where profit is managed differently. Further analysis would require understanding the specific services rendered and the market rates for similar provisioning efforts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This typically suggests a competitive environment where multiple companies vied for the contract. The presence of 5 bids (no: 5) further supports this, implying that the government received a range of proposals. A competitive process like this is generally expected to drive better pricing and value for the government, as contractors aim to offer the most attractive terms to win the award.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider selection of qualified vendors. This process helps ensure that the government is not overpaying for goods or services and that taxpayer funds are used efficiently.

Public Impact

The primary beneficiaries of this contract are likely military personnel and facilities requiring medical equipment. The contract facilitated the provisioning of essential medical equipment, crucial for healthcare delivery within the Department of Defense. The geographic impact would primarily be on military bases and operational areas where the Department of Defense provides healthcare services. Workforce implications could include roles in logistics, procurement, and technical support related to medical equipment management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST NO FEE' contract type can sometimes reduce contractor incentive for aggressive cost management if not properly overseen.
Lack of specific performance metrics makes it difficult to fully assess the value-for-money achieved.
The long performance period (over 3 years) requires sustained oversight to ensure continued compliance and effectiveness.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
The definitive contract type suggests a well-defined scope of work and clear contractual terms.
The contract supported critical medical equipment needs for the Department of Defense.

Sector Analysis

This contract falls within the broader 'Research and Development in the Physical, Engineering, and Life Sciences' sector, specifically related to medical equipment. The defense sector heavily relies on advanced medical technologies and provisioning systems to maintain the health and readiness of its personnel. Spending in this area is critical for ensuring that medical facilities, both domestically and in deployed environments, are equipped to handle a wide range of medical needs. Comparable spending benchmarks would typically be found within other large-scale defense or federal healthcare procurement contracts for similar equipment and services.

Small Business Impact

This contract did not include a small business set-aside, as indicated by 'sb: false'. This means that the competition was open to all eligible businesses, regardless of size. Consequently, there are no direct subcontracting requirements specifically mandated for small businesses under this particular award. The impact on the small business ecosystem is neutral in terms of direct set-aside benefits, though larger prime contractors may still engage small businesses as subcontractors if it aligns with their supply chain strategy.

Oversight & Accountability

Oversight for this contract would have been managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor compliance with contract terms and performance standards. Accountability measures are inherent in the definitive contract structure, requiring adherence to the defined scope and deliverables. Transparency is generally facilitated through contract award databases, though specific operational details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Medical Materiel Modernization Programs
Defense Health Agency Procurement
Medical Readiness and Logistics Support
Federal Supply Schedule (FSS) Medical Contracts

Risk Flags

Contract type 'COST NO FEE' requires diligent cost oversight.
Long performance duration necessitates sustained monitoring.
Lack of explicit performance metrics in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $306.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. MEDICAL EQUIPMENT PROVISIONING

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $306.2 million.

What is the period of performance?

Start: 2009-11-23. End: 2013-09-30.

What was the specific nature of the 'medical equipment provisioning' under this contract?

The contract data indicates 'MEDICAL EQUIPMENT PROVISIONING' as the service. While the specific details are not fully elaborated in the provided data, this typically involves the acquisition, management, distribution, and potentially maintenance of medical equipment for military healthcare facilities. This could range from basic medical supplies and consumables to complex diagnostic and treatment machinery. The NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences) suggests that the provisioning might have included advanced or newly developed medical technologies, or services related to their research and integration into military healthcare systems. The 'COST NO FEE' contract type implies that the government reimbursed the contractor for allowable costs incurred in performing these provisioning services, without a separate profit margin added by the contractor.

How does the $306.2 million contract value compare to other similar medical equipment contracts within the DoD?

Without access to a comprehensive database of all DoD medical equipment contracts, a direct comparison of the $306.2 million value is difficult. However, this figure represents a significant investment, suggesting a large-scale or long-term provisioning effort. Large contracts for medical equipment and services within federal agencies can range from tens of millions to billions of dollars, depending on the scope, duration, and criticality of the need. For instance, contracts awarded by the Defense Health Agency or Veterans Affairs for medical supplies and equipment often fall into this multi-million dollar category. The 'full and open competition' aspect suggests that this value was arrived at through a competitive process, which theoretically should align it with market-driven pricing for similar services.

What were the key performance indicators (KPIs) or metrics used to evaluate the success of this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or metrics used to evaluate the success of this contract. Typically, for medical equipment provisioning, KPIs might include metrics such as on-time delivery rates, equipment availability and readiness rates, inventory accuracy, cost savings achieved, equipment uptime, and user satisfaction. The 'COST NO FEE' contract type might influence the specific performance expectations, potentially focusing more on operational efficiency and availability rather than direct cost reduction targets from the contractor's perspective. Effective oversight by the Defense Contract Management Agency would have involved monitoring these types of performance aspects throughout the contract's duration.

What is the significance of the 'COST NO FEE' contract type in this context?

The 'COST NO FEE' (CNF) contract type is relatively uncommon and typically used in specific circumstances, often when the contractor is an entity with a mission-oriented purpose or when the government is providing significant resources or direction. In this case, it means the contractor, General Dynamics Information Technology, Inc., was reimbursed for its allowable costs associated with provisioning medical equipment, but did not receive a separate profit margin. This could imply that the contractor's compensation or overall business model for this service was structured differently, perhaps with profit realized through other related contracts or as part of a broader strategic objective. It places a strong emphasis on the government's oversight to ensure costs are reasonable and necessary, as the contractor has less direct financial incentive to minimize them compared to a fixed-price or cost-plus-incentive-fee contract.

What is the historical spending trend for medical equipment provisioning by the Department of Defense?

Analyzing the historical spending trend for medical equipment provisioning by the Department of Defense requires access to historical budget data and contract databases over multiple fiscal years. This specific $306.2 million contract, awarded in 2009 and ending in 2013, represents a snapshot within that trend. DoD spending on medical equipment is influenced by factors such as operational tempo, troop deployments, modernization initiatives, and healthcare system upgrades. Generally, defense spending on healthcare and related equipment tends to be substantial and can fluctuate based on geopolitical events and strategic priorities. To understand the trend, one would need to examine aggregate spending on medical materiel and provisioning services across various DoD components over a longer period, looking for patterns of increase, decrease, or stability.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W81XWH09R0018

Offers Received: 5

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 3150 FAIRVIEW PARK DR STE 100, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $324,303,122

Exercised Options: $324,303,122

Current Obligation: $306,212,549

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline