General Dynamics awarded $38.3M for data center operations, highlighting IT service needs

Contract Overview

Contract Amount: $38,336,014 ($38.3M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-03-01

End Date: 2007-12-31

Contract Duration: 670 days

Daily Burn Rate: $57.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OPERATE DATA CENTER

Place of Performance

Location: PEACHTREE CITY, FAYETTE County, GEORGIA, 30269

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $38.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: OPERATE DATA CENTER Key points: 1. Contract value represents a significant investment in maintaining critical IT infrastructure. 2. Competition dynamics suggest a robust market for data center operations services. 3. Performance context is crucial for ensuring operational continuity and data security. 4. Sector positioning indicates the ongoing reliance on specialized IT support for defense operations. 5. Value for money will be assessed against service delivery and uptime metrics.

Value Assessment

Rating: good

The contract value of $38.3 million for data center operations over its period appears reasonable given the scope of IT services typically required. Benchmarking against similar contracts for large-scale data center management would provide a clearer picture of value. Factors such as the complexity of the systems managed, security requirements, and uptime guarantees influence the overall cost-effectiveness. Without specific performance metrics or comparisons to industry benchmarks for similar services, a definitive value assessment is challenging, but the amount is within expected ranges for such critical infrastructure support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of a single award delivery order suggests that while competition was open, General Dynamics Information Technology, Inc. was selected as the best value. The level of competition, though not explicitly detailed by the number of bidders, generally leads to more competitive pricing and a wider range of technical solutions being considered by the agency.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and ensures the government receives the best possible services for its investment.

Public Impact

The Department of the Army benefits from reliable and secure data center operations. Essential IT services supporting military operations and administrative functions are delivered. The geographic impact is primarily within the operational sphere of the Department of the Army. Workforce implications include the need for skilled IT professionals to manage and maintain the data center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if transition planning is inadequate.
Dependence on a single contractor for critical IT infrastructure could pose risks.
Ensuring continuous service delivery and performance requires robust oversight.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm fixed-price contract type helps control costs and manage budget.
Long-term contract indicates a stable and reliable service provider.

Sector Analysis

The IT services sector, particularly data center operations, is a critical component of modern government and commercial operations. This contract falls within the Computer Systems Design Services category, which encompasses a broad range of IT support. The market for these services is highly competitive, with numerous large and small businesses vying for government contracts. Spending in this area is substantial across federal agencies, reflecting the increasing digitization of government functions and the need for secure, reliable IT infrastructure.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a small business set-aside, the prime contractor, General Dynamics Information Technology, Inc., may engage small businesses for subcontracting opportunities. The extent of small business participation would depend on the specific requirements of the data center operations and the prime contractor's subcontracting plan. Analysis of subcontracting data would be needed to determine the actual impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. Accountability measures are established through the contract's performance work statement, which outlines deliverables, service levels, and reporting requirements. Transparency is generally maintained through contract award databases and reporting, though specific operational details may be sensitive. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Infrastructure Support Services
Data Center Management
Cloud Computing Services
Cybersecurity Services
Information Technology Professional Services

Risk Flags

Potential for vendor lock-in
Dependence on single provider for critical infrastructure
Need for robust performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. OPERATE DATA CENTER

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 $38.3 million.

What is the period of performance?

Start: 2006-03-01. End: 2007-12-31.

What is the historical spending trend for data center operations by the Department of the Army?

Historical spending on data center operations by the Department of the Army has been substantial and is likely to remain significant, reflecting the ongoing need for secure and reliable IT infrastructure. While specific figures for this particular contract are provided, a broader analysis would involve examining annual spending reports, contract databases, and budget allocations over several fiscal years. Trends may indicate shifts towards cloud migration, consolidation of facilities, or increased investment in modernization. Understanding these patterns is crucial for forecasting future IT infrastructure needs and budget requirements, and for identifying potential areas for cost savings or efficiency improvements through technological advancements or strategic sourcing.

How does the per-unit cost of this contract compare to industry benchmarks for data center operations?

Determining the precise per-unit cost for this contract is challenging without a detailed breakdown of services and their associated quantities. Data center operations encompass a wide array of services, including power, cooling, physical security, network connectivity, hardware maintenance, and IT support. Benchmarking would require comparing specific metrics such as cost per server, cost per rack, or cost per square foot against industry standards from organizations like the Uptime Institute or IT consulting firms. Given the federal context and potential security requirements, government contracts may sometimes reflect higher costs due to stringent compliance and security protocols. A comprehensive analysis would necessitate access to detailed service level agreements and pricing structures.

What are the key performance indicators (KPIs) used to evaluate the performance of General Dynamics Information Technology, Inc. under this contract?

Key Performance Indicators (KPIs) for a data center operations contract typically focus on service availability, performance, and security. Common KPIs include uptime percentages (e.g., 99.999% availability for critical systems), response times for incident resolution, system performance metrics (e.g., processing speed, latency), adherence to security protocols and compliance standards, and successful completion of scheduled maintenance. The contract's Performance Work Statement (PWS) would explicitly define these KPIs, along with acceptable performance levels and any associated remedies or incentives for meeting or exceeding them. Regular performance reviews and reporting would track progress against these metrics.

What is the track record of General Dynamics Information Technology, Inc. in managing large-scale federal IT infrastructure contracts?

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record in managing large-scale federal IT infrastructure contracts across various agencies, including the Department of Defense. They are known for providing a wide range of IT services, from enterprise IT operations and cybersecurity to cloud solutions and data center management. Their experience often includes supporting complex, mission-critical systems that require high levels of reliability, security, and performance. Past performance evaluations and contract awards databases would provide specific details on their success in delivering similar services, managing budgets, and meeting performance requirements for government clients. GDIT's extensive portfolio suggests a capacity to handle significant IT infrastructure responsibilities.

What are the potential risks associated with relying on a single contractor for critical data center operations?

Relying on a single contractor for critical data center operations presents several potential risks. Foremost among these is the risk of service disruption if the contractor experiences financial difficulties, operational failures, or decides not to renew the contract. Vendor lock-in can also be a concern, making it difficult and costly to switch providers. Furthermore, a lack of competition can reduce the incentive for the incumbent contractor to innovate or offer cost reductions over time. To mitigate these risks, agencies often implement robust contract management, performance monitoring, and contingency planning, including developing transition-in/transition-out strategies and maintaining strong relationships with alternative service providers.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 3211 JERMANTOWN RD, FAIRFAX, VA, 22030

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

Financial Breakdown

Contract Ceiling: $66,301,621

Exercised Options: $66,301,621

Current Obligation: $38,336,014

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS09K99BHD0001

IDV Type: GWAC

Timeline