DoD awards $18.2M for Metering Data Management Systems operations and maintenance to General Dynamics

Contract Overview

Contract Amount: $18,246,888 ($18.2M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-09-12

End Date: 2025-03-13

Contract Duration: 913 days

Daily Burn Rate: $20.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: METERING DATA MANAGEMENT SYSTEMS (MDMS) OPERATIONS AND MAINTENANCE III

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35816

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $18.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: METERING DATA MANAGEMENT SYSTEMS (MDMS) OPERATIONS AND MAINTENANCE III Key points: 1. Contract value appears reasonable given the duration and scope of IT operations and maintenance. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, indicating a structured procurement approach. 4. Fixed-price contract type shifts performance risk to the contractor. 5. The contract supports critical IT infrastructure for the Department of the Army. 6. Geographic focus on Alabama for service delivery.

Value Assessment

Rating: good

The contract value of approximately $18.2 million over roughly 30 months (September 2022 to March 2025) for IT operations and maintenance services appears to be within a reasonable range for a federal contract of this nature. Benchmarking against similar IT support contracts for large government agencies suggests that the per-year cost is competitive. The firm fixed-price structure also provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the nature of the competition suggests that multiple companies likely vied for this award. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, leading to better value for public funds.

Public Impact

The Department of the Army benefits from the continued operation and maintenance of its Metering Data Management Systems. Essential IT services are delivered to support military operations and administrative functions. The primary geographic impact is within Alabama, where the services are likely performed or managed. The contract supports a workforce skilled in IT operations, system maintenance, and data management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system is highly specialized and difficult to transition.
Reliance on a single contractor for critical IT infrastructure could pose a risk if performance degrades.
Scope creep could occur if requirements are not clearly defined and managed throughout the contract period.

Positive Signals

Firm fixed-price contract type provides cost predictability.
Full and open competition suggests a robust selection process.
Contract duration allows for stable support of critical systems.
General Dynamics is a large, established defense contractor with significant IT capabilities.

Sector Analysis

The contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. This sector encompasses a wide range of services, including IT operations, maintenance, and system integration. Federal spending in this area is substantial, driven by the need to maintain and modernize complex IT infrastructures across various agencies. General Dynamics Information Technology, Inc. is a major player in this market, often competing for large-scale government IT contracts.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. As a large contract awarded to a major prime contractor, the direct impact on the small business ecosystem may be limited unless General Dynamics actively engages small businesses as subcontractors. Further review of the contract's subcontracting plan would be necessary to assess its full impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army. Performance monitoring, quality assurance, and adherence to contract terms are key oversight functions. As a delivery order under a larger IDIQ, the underlying IDIQ contract likely has established oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational details may be sensitive.

Related Government Programs

Defense-wide IT Modernization Programs
Army Enterprise Resource Planning (ERP) Systems
Cloud Computing Services for DoD
Cybersecurity Support Contracts
IT Infrastructure Operations and Maintenance

Risk Flags

Contract awarded as a Delivery Order under an IDIQ
Potential for performance issues impacting critical systems
Cybersecurity risks associated with data management systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. METERING DATA MANAGEMENT SYSTEMS (MDMS) OPERATIONS AND MAINTENANCE III

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 $18.2 million.

What is the period of performance?

Start: 2022-09-12. End: 2025-03-13.

What is the track record of General Dynamics Information Technology, Inc. with similar IT operations and maintenance contracts for the Department of Defense?

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record with the Department of Defense (DoD) and other federal agencies for providing IT operations and maintenance services. They are a large, established contractor frequently awarded prime contracts for complex IT systems, including enterprise resource planning (ERP), network management, cybersecurity, and data center operations. Their experience often spans many years and includes managing large-scale, mission-critical systems. Historical data from contract databases generally shows a pattern of successful performance on similar contracts, though like any large contractor, they may have faced occasional performance issues or contract disputes on specific awards. A detailed review of their past performance ratings and any contract disputes related to IT O&M would provide a more granular understanding of their specific capabilities and reliability for this type of work.

How does the awarded value compare to similar Metering Data Management Systems (MDMS) contracts?

Direct comparisons for Metering Data Management Systems (MDMS) operations and maintenance contracts can be challenging due to the specificity of the systems and the varying scope of services (e.g., software maintenance, hardware support, data analytics, integration). However, the awarded value of approximately $18.2 million over roughly 30 months, translating to an annual cost of about $7.3 million, appears competitive for a large federal IT operations and maintenance contract. Similar contracts for managing complex data systems within large organizations often fall within a similar cost range, depending on the number of users, data volume, system criticality, and required service levels. The firm fixed-price nature of this contract also suggests that the contractor has priced in the expected costs and risks, and the full and open competition should have helped ensure a reasonable market price was achieved.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential performance issues from the contractor (General Dynamics Information Technology, Inc.), leading to disruptions in MDMS operations; cybersecurity threats targeting the managed data; and the risk of cost overruns if the firm fixed-price contract is not managed effectively or if scope creep occurs. Mitigation strategies are embedded within the contract structure and oversight. The firm fixed-price type shifts financial risk to the contractor. The full and open competition process aims to select a capable vendor. The Department of the Army's contracting officer and COR will provide oversight, monitoring performance against contract requirements and service level agreements (SLAs). Cybersecurity requirements are mandated by federal regulations and likely detailed within the contract's statement of work. Clear definition and management of scope are crucial to prevent cost increases.

What is the historical spending trend for MDMS operations and maintenance within the Department of the Army?

Analyzing historical spending trends for Metering Data Management Systems (MDMS) operations and maintenance within the Department of the Army (DoA) requires access to detailed federal procurement data over several fiscal years. While this specific contract award is for $18.2 million, understanding the broader trend would involve looking at previous contracts for MDMS or similar data management systems, including their values, durations, and awarded contractors. Trends might indicate increasing or decreasing investment in such systems, shifts towards cloud-based solutions, or consolidation of contracts. Without specific historical data for MDMS O&M within the DoA, it's difficult to establish a precise trend. However, generally, federal spending on IT operations and maintenance, especially for critical data management systems, has remained substantial, often fluctuating based on modernization initiatives, budget allocations, and evolving technological needs.

How does the 'Computer Systems Design Services' NAICS code (541512) typically align with the scope of MDMS operations and maintenance?

The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' broadly encompasses establishments primarily engaged in planning and designing computer systems that integrate hardware, software, and communication technologies. This includes the design of network systems, the design of data systems, and the integration of diverse computer systems. Operations and maintenance (O&M) of Metering Data Management Systems (MDMS) often falls under this umbrella because it involves ensuring the continued functionality, performance, and security of complex, integrated computer systems. This can include software updates, system monitoring, troubleshooting, data backup and recovery, and ensuring the system meets evolving operational requirements, all of which are extensions of the initial system design and integration principles.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912DY19R0022

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

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: $21,363,468

Exercised Options: $21,363,468

Current Obligation: $18,246,888

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY19D0007

IDV Type: IDC

Timeline