DoD's $10.7M IT Services Contract with General Dynamics Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $10,666,359 ($10.7M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-12-27
End Date: 2010-12-31
Contract Duration: 1,100 days
Daily Burn Rate: $9.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COMBINATION (TWO OR MORE)
Sector: IT
Official Description: OPERATIONS AND MAINTENANCE
Place of Performance
Location: PEACHTREE CITY, FAYETTE County, GEORGIA, 30269
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $10.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: OPERATIONS AND MAINTENANCE Key points: 1. The contract awarded to General Dynamics Information Technology, Inc. for Computer Systems Design Services is for $10.7 million. 2. Awarded under full and open competition, the contract's value and effectiveness warrant further examination. 3. The lack of small business participation is a notable concern. 4. The IT services sector is highly competitive, suggesting potential for better pricing.
Value Assessment
Rating: fair
The contract's total value of $10.7 million for IT services over three years appears moderate. However, without specific performance metrics or comparison to similar contracts, assessing its true value is difficult. The benchmark of $9.7 million suggests the awarded price was within a reasonable range, but not exceptionally low.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the specific details of the bidding process and the number of bids received are not provided, making it hard to fully assess the competitive pressure on pricing.
Taxpayer Impact: While competition was utilized, the lack of small business involvement may mean taxpayers are not benefiting from the full range of innovative and potentially cost-effective solutions available in the market.
Public Impact
Taxpayers may not be receiving the best value due to potential inefficiencies or lack of competitive pressure despite full and open competition. The absence of small business participation limits opportunities for smaller, potentially more agile, and cost-effective providers. The Department of the Army's reliance on a single large contractor for these services could indicate a missed opportunity for broader market engagement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation
- Limited insight into specific performance metrics
- Potential for uncaptured cost savings
Positive Signals
- Awarded under full and open competition
- Contract value is moderate for the period
Sector Analysis
The IT services sector, particularly computer systems design, is dynamic and competitive. Benchmarks vary widely based on service scope and complexity. A $10.7 million contract over three years for these services is within a typical range, but efficiency and innovation are key differentiators.
Small Business Impact
The contract explicitly states no small business participation (ss: false, sb: false). This indicates a missed opportunity to leverage the capabilities of small businesses, which can often provide specialized services at competitive prices and foster innovation.
Oversight & Accountability
The contract was awarded in 2007 and ended in 2010. Oversight effectiveness would depend on post-award performance reviews and contract modifications, which are not detailed here. The 'GA' award type suggests it was a task order under a larger contract.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of small business participation
- Limited performance data
- Potential for uncaptured cost savings
- Ambiguity in specific services provided
Tags
computer-systems-design-services, department-of-defense, ga, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. OPERATIONS AND MAINTENANCE
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 $10.7 million.
What is the period of performance?
Start: 2007-12-27. End: 2010-12-31.
What specific computer systems design services were rendered, and how did their performance compare to industry standards or similar government contracts during the period?
The provided data lacks specific details on the services rendered beyond 'Computer Systems Design Services' and their performance metrics. To assess value, a comparison with contracts for similar services, considering factors like complexity, duration, and specific deliverables, would be necessary. Without this, it's difficult to determine if the $10.7 million was justified by exceptional performance or if standard service delivery occurred.
Given the full and open competition, why did small businesses not participate, and could their exclusion have led to higher costs or reduced innovation?
The exclusion of small businesses from this contract is a significant concern. While awarded under full and open competition, the lack of small business participation suggests potential barriers to entry or a focus on large prime contractors. This could limit the government's access to specialized expertise, innovative solutions, and potentially lower costs that small businesses often provide, ultimately impacting taxpayer value.
How effective was the competition process in driving down costs for these IT services, and are there indications of potential cost savings that were not realized?
The contract was awarded under 'full and open competition,' which theoretically should drive down costs. However, the data does not reveal the number of bids received or the pricing strategies of competitors. The benchmark price being slightly lower than the awarded amount ($9.7M vs $10.7M) might suggest some missed savings, but without more context on the specific services and market conditions, it's hard to definitively conclude on the effectiveness of the competition in maximizing cost savings.
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
Pricing Type: COMBINATION (TWO OR MORE) (2)
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 3211 JERMANTOWN RD, FAIRFAX, VA, 11
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $34,227,357
Exercised Options: $32,382,333
Current Obligation: $10,666,359
Parent Contract
Parent Award PIID: GS09K99BHD0001
IDV Type: GWAC
Timeline
Start Date: 2007-12-27
Current End Date: 2010-12-31
Potential End Date: 2010-12-31 00:00:00
Last Modified: 2011-04-12
More Contracts from General Dynamics Information Technology, Inc.
- Global Security Engineering&supply Chain Services — $1.5B (Department of State)
- THE Purpose of This Action IS to Establish a NEW Contract With General Dynamics Information Technology for Global Supply Chain Management, Logistics and Technology Development Services to Support the Department of State. the Initial Funding Associated With This Contract IS $22,304,578.00. the Overall Contract Value IS $2,200,000,000.00 — $1.2B (Department of State)
- Cloud Products&tools (CPT) — $902.0M (Department of Health and Human Services)
- Beneficiary Contact Center Operations — $879.1M (Department of Health and Human Services)
- Award of Task Order 47qfca210051-Nawcad Wolf Ship and AIR C5isr Systems Support — $832.3M (General Services Administration)
View all General Dynamics Information Technology, Inc. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)