General Dynamics awarded $127.5M for flight school simulation training, extending a long-standing contract

Contract Overview

Contract Amount: $127,517,466 ($127.5M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2020-03-19

End Date: 2021-03-31

Contract Duration: 377 days

Daily Burn Rate: $338.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ISSUING TASK ORDER (TO) FOR LOT YEAR XVIII IN SUPPORT OF FLIGHT SCHOOL XXI SIMULATION TRAINING SERVICES, UNDER CONTRACT N61339-03-D-0014.

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $127.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: ISSUING TASK ORDER (TO) FOR LOT YEAR XVIII IN SUPPORT OF FLIGHT SCHOOL XXI SIMULATION TRAINING SERVICES, UNDER CONTRACT N61339-03-D-0014. Key points: 1. This task order represents a significant investment in maintaining critical flight training capabilities. 2. The contract has been active for many years, suggesting a stable but potentially mature service. 3. Pricing appears to be firm-fixed-price, which shifts risk to the contractor. 4. The award was made under full and open competition, indicating a broad search for qualified vendors. 5. The duration of this task order is over a year, ensuring continuity of services. 6. The issuing agency is the Department of the Army, highlighting the defense sector focus.

Value Assessment

Rating: good

The total value of this task order is $127.5 million over approximately 1.25 years. Benchmarking this against similar long-term simulation training contracts is challenging without more specific service details. However, the firm-fixed-price structure suggests the government has negotiated a set price, which can be advantageous if the contractor's costs remain within expectations. The historical nature of the parent contract (N61339-03-D-0014) implies a potentially optimized cost structure over time, but also raises questions about whether more innovative or cost-effective solutions have emerged.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, suggesting that the Department of the Army sought proposals from all responsible sources. The specific number of bidders is not provided, but the designation implies a competitive process was undertaken. This level of competition is generally expected to drive better pricing and service offerings as vendors vie for the contract.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it increases the likelihood of obtaining the best value through a robust bidding process, potentially leading to lower overall costs compared to sole-source or limited competition awards.

Public Impact

Pilots and aircrew will benefit from continued access to advanced simulation training, enhancing their operational readiness. The services delivered are critical for maintaining the proficiency of military aviation personnel. The geographic impact is likely concentrated around training facilities, primarily in Virginia where the contractor is located. This contract supports specialized roles within the defense industry, potentially involving skilled technicians and instructors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long-standing nature of the parent contract.
Risk of service stagnation if innovation is not actively encouraged within the contract.
Dependency on a single contractor for a critical training function.

Positive Signals

Proven performance history of the contractor under the existing contract.
Firm-fixed-price contract shifts cost overrun risk to the contractor.
Full and open competition suggests a deliberate effort to ensure value.

Sector Analysis

This contract falls within the broader defense sector, specifically supporting training and simulation services. The market for defense simulation and training is substantial, driven by the need for realistic and cost-effective training solutions that reduce reliance on live-fire exercises. General Dynamics Information Technology is a major player in this space, competing with other large defense contractors. Spending in this niche is often characterized by long-term contracts due to the specialized nature of the technology and the need for continuity in training programs.

Small Business Impact

The data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in this award notice. The primary awardee is a large corporation, indicating that the direct benefits to the small business ecosystem from this specific task order may be limited unless significant subcontracting occurs.

Oversight & Accountability

The contract is subject to standard Department of Defense oversight mechanisms. As a firm-fixed-price delivery order under a larger contract, performance is monitored against defined requirements. Transparency is provided through contract award databases like FPDS. Accountability rests with General Dynamics Information Technology to meet the terms of the contract, with potential recourse for the government if performance is deficient. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Training and Simulation Programs
Military Flight Training Services
Contract N61339-03-D-0014 (Parent Contract)
Department of the Army Aviation Support

Risk Flags

Long-term contract dependency
Potential for service stagnation without explicit innovation clauses

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $127.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. ISSUING TASK ORDER (TO) FOR LOT YEAR XVIII IN SUPPORT OF FLIGHT SCHOOL XXI SIMULATION TRAINING SERVICES, UNDER CONTRACT N61339-03-D-0014.

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 $127.5 million.

What is the period of performance?

Start: 2020-03-19. End: 2021-03-31.

What is the historical spending trend for the parent contract N61339-03-D-0014?

The parent contract, N61339-03-D-0014, has a long history, with its initial award likely dating back to the early 2000s. Over its lifespan, it has seen numerous task orders and modifications, accumulating significant cumulative spending. While the specific total value is not provided here, the issuance of Lot Year XVIII suggests sustained funding and ongoing need for the services. Analyzing the historical spending patterns would reveal the average annual spend, the frequency and value of previous task orders, and any significant fluctuations that might indicate changes in program requirements or funding priorities. This context is crucial for understanding the $127.5 million task order within the broader financial trajectory of the program.

How does the per-unit cost of simulation hours under this contract compare to industry benchmarks?

Determining the precise per-unit cost for simulation hours is not possible with the provided data, as the total award amount is for a bundle of services over a specific period, not itemized by unit. To perform this comparison, one would need to know the exact number of simulation hours or training events covered by the $127.5 million. Industry benchmarks for flight simulation vary widely based on aircraft type, simulator fidelity (e.g., Level D), and duration. Generally, high-fidelity simulators can cost thousands of dollars per hour to operate and maintain. Without specific metrics on the quantity of services delivered, a direct comparison to market rates or similar contracts is speculative. However, the firm-fixed-price nature suggests the government has negotiated a rate it deems acceptable.

What is General Dynamics Information Technology's track record with similar defense training contracts?

General Dynamics Information Technology (GDIT) has a substantial track record in providing IT and simulation services to the Department of Defense and other federal agencies. They are a frequent recipient of contracts for complex training solutions, including simulation, virtual environments, and learning management systems. Their experience often spans various military branches and platforms. GDIT's performance on similar contracts would typically be assessed through past performance evaluations during the bidding process. While this specific task order is under a long-standing contract, GDIT's broader portfolio includes numerous large-scale training and simulation awards, indicating a capacity to manage such requirements. Reviewing their past performance ratings and any documented issues on prior defense training contracts would provide further insight.

What are the key performance indicators (KPIs) for this simulation training service, and how is performance measured?

The specific Key Performance Indicators (KPIs) for this task order are not detailed in the provided award notice. However, for simulation training services, typical KPIs often include metrics related to simulator availability and uptime, training completion rates, trainee proficiency scores, adherence to training schedules, and system reliability. Performance is generally measured through contractor reporting, government acceptance of training outcomes, and potentially through user feedback. The firm-fixed-price nature of the contract implies that GDIT is responsible for meeting these performance standards to receive full payment. The Department of the Army would have established specific metrics and quality assurance surveillance plans (QASP) as part of the contract to monitor and evaluate GDIT's performance throughout the period of performance.

Are there any identified risks associated with the contractor's ability to deliver these specialized simulation services?

Based on the information provided, there are no explicit risk flags regarding General Dynamics Information Technology's ability to deliver these specialized simulation services. GDIT is a large, established contractor with extensive experience in defense IT and training solutions. The fact that this is a task order under a long-standing, mature contract (N61339-03-D-0014) suggests a history of successful delivery. However, potential risks inherent in any long-term, complex service contract could include contractor performance degradation over time, unforeseen technical challenges, or shifts in government requirements that the contractor may struggle to adapt to. A comprehensive risk assessment would typically involve reviewing past performance data, financial stability, and any specific technical challenges associated with the simulation systems.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

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: $127,517,466

Exercised Options: $127,517,466

Current Obligation: $127,517,466

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N6133903D0014

IDV Type: IDC

Timeline