DoD's $38.3M Data Center Support Contract Awarded to General Dynamics via Not Competed Method
Contract Overview
Contract Amount: $38,336,003 ($38.3M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-12-22
End Date: 2011-12-31
Contract Duration: 374 days
Daily Burn Rate: $102.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DATA CENTER SUPPORT
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: DATA CENTER SUPPORT Key points: 1. Significant contract value of $38.3 million for data center support. 2. Sole-source award to General Dynamics Information Technology, Inc. raises competition concerns. 3. Risk associated with lack of competitive bidding potentially impacting price and innovation. 4. IT sector spending on computer systems design services is substantial.
Value Assessment
Rating: questionable
The contract value of $38.3 million for computer systems design services is substantial. Without competitive benchmarking, it's difficult to assess if this price is optimal compared to similar government or commercial contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and may lead to higher costs for taxpayers as there was no competitive pressure to drive down prices.
Taxpayer Impact: The lack of competition likely resulted in a higher price than could have been achieved through a competitive bidding process, impacting taxpayer funds.
Public Impact
Taxpayers may have overpaid due to the absence of a competitive bidding process. Limited transparency into the justification for a sole-source award. Potential for reduced innovation and service quality without market competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Contract awarded to established IT provider
Sector Analysis
This contract falls under the IT sector, specifically computer systems design services. Government spending in this area is consistently high, with agencies relying on specialized firms for critical infrastructure support.
Small Business Impact
The contract was awarded to General Dynamics Information Technology, Inc., a large business. There is no indication that small businesses were involved as subcontractors or partners in this sole-source award.
Oversight & Accountability
The 'NOT COMPETED' status suggests a lack of robust oversight in the procurement process, potentially bypassing standard competitive procedures. Further review of the justification for this sole-source award is warranted.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Potential for vendor lock-in.
- Limited transparency in procurement justification.
- Risk of suboptimal service delivery without competitive pressure.
Tags
computer-systems-design-services, department-of-defense, ga, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. DATA CENTER SUPPORT
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: 2010-12-22. End: 2011-12-31.
What was the specific justification for awarding this contract on a sole-source basis, and was it adequately documented?
The provided data indicates the contract was 'NOT COMPETED,' suggesting a sole-source award. A thorough review of the contract file would be necessary to ascertain the specific justification, such as unique capabilities or urgent need. Without this documentation, it's impossible to definitively assess the validity of the sole-source determination and its impact on value for money.
How does the $38.3 million contract value compare to industry benchmarks for similar data center support services over a one-year period?
Comparing the $38.3 million contract value to industry benchmarks for one year of data center support is challenging without more specific service details. However, for a contract of this magnitude, it would be expected that the government would have conducted market research to ensure the price was fair and reasonable, especially given the sole-source nature.
What mechanisms are in place to ensure the effectiveness and quality of services provided by General Dynamics under this sole-source contract?
Effectiveness and quality are typically ensured through performance metrics, service level agreements (SLAs), and regular performance reviews outlined in the contract. Given it's a sole-source award, the government must be particularly diligent in monitoring performance to ensure the contractor meets all obligations and delivers value commensurate with the significant investment.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W9124710R0028
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
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, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $38,985,511
Exercised Options: $38,985,511
Current Obligation: $38,336,003
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $23,376,973
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2010-12-22
Current End Date: 2011-12-31
Potential End Date: 2011-12-31 00:00:00
Last Modified: 2014-03-04
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)