General Dynamics IT awarded $30.4M for Army IT services, with a significant portion allocated to computer systems design

Contract Overview

Contract Amount: $30,442,360 ($30.4M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-01-09

End Date: 2024-07-31

Contract Duration: 2,030 days

Daily Burn Rate: $15.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF FEM TECHNICAL SERVICES

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $30.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF FEM TECHNICAL SERVICES Key points: 1. The contract value of $30.4 million represents a substantial investment in IT infrastructure and support for the Department of the Army. 2. Competition dynamics indicate a full and open process, suggesting a robust market for these services. 3. The contract duration of 2030 days (approximately 5.5 years) points to a long-term need for sustained IT support. 4. The primary service category, Computer Systems Design Services, highlights a focus on modernizing and maintaining complex IT environments. 5. The firm-fixed-price contract type suggests that the government has a clear understanding of the scope and aims to control costs. 6. The award was made to General Dynamics Information Technology, Inc., a major player in the federal IT services market.

Value Assessment

Rating: good

The contract value of $30.4 million for computer systems design services over approximately 5.5 years appears reasonable given the scope and duration. Benchmarking against similar large-scale IT support contracts for defense agencies suggests this pricing is within expected ranges. The firm-fixed-price structure helps mitigate cost overrun risks for the government, provided the scope was well-defined at the outset. Further analysis would require detailed task order breakdowns and comparison to specific service delivery metrics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it was competed broadly suggests a healthy market for these types of IT services. While the number of bidders is not specified, a full and open competition generally leads to more competitive pricing and a wider selection of qualified contractors.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and ensures the government receives the best value by considering a wide range of potential providers.

Public Impact

The Department of the Army benefits from enhanced and sustained IT infrastructure and support services. End-users within the Army will receive reliable IT systems and technical assistance, crucial for operational effectiveness. The contract supports the modernization and maintenance of critical computer systems, ensuring data integrity and system availability. The geographic impact is likely concentrated within Army installations where these IT services are deployed, potentially across various stateside and overseas locations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not precisely defined, leading to cost increases.
Dependence on a single large contractor for critical IT functions could pose risks if performance falters.
Ensuring effective knowledge transfer and continuity of services throughout the contract lifecycle.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
Full and open competition suggests a competitive environment that should yield good value.
The long contract duration allows for stable, long-term IT support and planning.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design and related services. The federal IT services market is vast, with significant annual spending by defense and civilian agencies. General Dynamics Information Technology, Inc. is a prominent contractor in this space, often competing for large-scale, complex IT modernization and support contracts. This award is consistent with broader government trends towards consolidating IT support and leveraging specialized expertise from large system integrators.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large prime contract awarded through full and open competition, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specified within the task orders. The primary impact on the small business ecosystem would be indirect, through potential competition for future, smaller-scale IT support needs or by smaller firms acting as potential subcontractors to larger prime contractors like General Dynamics.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program/technical representatives within the Department of the Army. Performance monitoring, quality assurance surveillance plans (QASPs), and regular reviews are standard mechanisms to ensure contractor compliance and service delivery. Transparency is generally maintained through contract databases like FPDS-NG, though detailed performance metrics and specific oversight activities are often internal to the agency.

Related Government Programs

IT Support Services
Computer Systems Design
Defense IT Modernization
Information Technology Professional Services
General Dynamics IT Contracts

Risk Flags

Long contract duration may increase risk of obsolescence or changing requirements.
Firm-fixed-price contracts can be risky if scope is not well-defined.
Dependence on a single large contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF FEM TECHNICAL SERVICES

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 $30.4 million.

What is the period of performance?

Start: 2019-01-09. End: 2024-07-31.

What is the historical spending trend for General Dynamics Information Technology, Inc. with the Department of the Army for similar IT services?

Analyzing historical spending for General Dynamics Information Technology, Inc. (GDIT) with the Department of the Army reveals a consistent and substantial relationship. GDIT has been a significant recipient of Army contracts, particularly in the IT services domain, over the past decade. Their awards often span various categories including IT support, systems integration, cybersecurity, and cloud services. The $30.4 million awarded here is within the range of their larger prime contracts, but the Army's overall IT spending with GDIT can fluctuate year-to-year based on specific program needs, contract renewals, and new procurements. For instance, in years with major system upgrades or infrastructure overhauls, spending could be considerably higher. Conversely, periods focused on sustainment might see lower, but still significant, award values. Understanding the specific nature of this $30.4M award (e.g., new system development vs. ongoing maintenance) is key to comparing it accurately with past expenditures.

How does the awarded amount of $30.4 million compare to the average contract value for Computer Systems Design Services within the Department of Defense?

The awarded amount of $30.4 million for Computer Systems Design Services by the Department of the Army is a substantial figure, indicative of a large-scale, long-term engagement. When compared to the average contract value for similar services within the broader Department of Defense (DoD), this contract likely sits in the upper quartile. The DoD procures a vast array of IT services, ranging from small, specialized support tasks to massive enterprise-wide system integrations. Contracts exceeding $10 million are generally considered significant, and those in the $30 million range often involve complex system design, implementation, and sustainment over multiple years. The average might be pulled down by numerous smaller contracts, making this particular award notable for its size and scope. It suggests a critical need for advanced computer systems design expertise to support Army operations.

What are the primary risks associated with a firm-fixed-price contract of this magnitude and duration?

A firm-fixed-price (FFP) contract of this magnitude ($30.4 million) and duration (over 5 years) carries specific risks, primarily centered around scope definition and contractor performance. For the government, the main risk is that the initial scope may not perfectly capture all future requirements, potentially leading to change orders or the need for a new contract if significant deviations occur. If the scope is too narrowly defined, the contractor might be unwilling or unable to adapt to evolving needs without substantial price adjustments. For the contractor, the risk lies in underestimating the effort or encountering unforeseen technical challenges, which could erode profit margins or lead to performance issues if they cut corners to stay within budget. Given the long duration, ensuring the contractor maintains adequate resources, expertise, and motivation throughout the contract term is also a key consideration.

What does the 'Computer Systems Design Services' (NAICS 541512) classification imply about the nature of the work performed under this contract?

The classification of 'Computer Systems Design Services' (NAICS code 541512) indicates that the primary focus of this contract is on the design, development, integration, and implementation of complex computer systems. This goes beyond simple IT support or maintenance. It typically involves analyzing a client's needs, designing hardware and software solutions, integrating different systems, and ensuring they work together effectively. This could include designing networks, developing custom software applications, planning for system upgrades, or architecting entire IT infrastructures. For the Department of the Army, this suggests the contract is aimed at building, enhancing, or significantly overhauling their computing capabilities, potentially for command and control, logistics, intelligence, or other critical operational functions. It implies a need for specialized technical expertise in system architecture and engineering.

Are there any specific performance indicators or metrics typically associated with contracts for Computer Systems Design Services that would be relevant here?

For contracts involving Computer Systems Design Services (NAICS 541512), key performance indicators (KPIs) often revolve around the successful design, development, and integration of systems according to specified requirements. Relevant metrics could include adherence to project timelines and milestones, the number and severity of defects found during testing phases, system uptime and availability post-implementation, user satisfaction surveys, and the successful integration of new components with existing infrastructure. For a contract of this scale and duration with the Army, metrics related to security compliance, scalability of the designed systems, and the efficiency of the implemented solutions (e.g., processing speed, resource utilization) would also be critical. The firm-fixed-price nature suggests that meeting these defined performance standards within the agreed budget is paramount.

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

Solicitation ID: W912DY18R0032

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,837,448

Exercised Options: $34,609,418

Current Obligation: $30,442,360

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,595,411

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSN316201200023W

IDV Type: GWAC

Timeline