DoD's $248M IT Services Contract Awarded to General Dynamics for Automated Info System Design & Integration

Contract Overview

Contract Amount: $24,812,377 ($24.8M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-09-30

End Date: 2010-09-30

Contract Duration: 1,826 days

Daily Burn Rate: $13.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 200608!610652!2100!W912PE!RCO SECHENHEIM !GS35F4357D !C!N! !Y!W912PE05F7105!P00004!20060307!20060930!067641597!067641597!099312725!N!ANTEON CORPORATION !3211 JERMANTOWN ROAD !FAIRFAX !VA!22030!26496!600!51!FAIRFAX !FAIRFAX (CITY) !VIRGINIA !+000000023000!N!N!000000000000!D307!AUTOMATED INFO SYSTEM DESIGN & INTEGRATION SVCS !S1 !SERVICES !000 !NOT DISCERNABLE !518111!E! !6! ! !D! ! !99990909!B!F!Y! ! !A! ! ! !000! ! ! ! ! ! ! ! !C!N! ! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !

Plain-Language Summary

Department of Defense obligated $24.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: 200608!610652!2100!W912PE!RCO SECHENHEIM !GS35F4357D !C!N! !Y!W912PE05F7105!P00004!20060307!20060930!067641597!067641597!099312725!N!ANTEON CORPORATION !3211 JERMANTOWN ROAD !FAIRFAX !VA!22030!26496!600!51!FAIRFAX !FAIR… Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $248M over its duration indicates a significant investment in IT infrastructure. 3. The primary service category is Automated Info System Design & Integration, crucial for modern defense operations. 4. The contract duration of 5 years (1826 days) suggests a long-term need for these IT services. 5. The awardee, General Dynamics Information Technology, Inc., is a major player in the federal IT contracting space. 6. The contract was issued as a Delivery Order under a larger contract vehicle, indicating a phased approach to procurement.

Value Assessment

Rating: good

The contract value of $248M over five years averages to approximately $49.6M annually. Benchmarking this against similar large-scale IT system design and integration contracts within the Department of Defense is challenging without more specific service details. However, the award to a major contractor like General Dynamics suggests a competitive process that likely yielded a fair market price. The fixed-price nature of the contract 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 data does not specify the number of bidders, but full and open competition generally fosters a robust bidding environment, which can lead to better pricing and innovation. The use of a delivery order under a contract vehicle suggests that the initial competition for the vehicle itself was comprehensive.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and ensures that the government receives the best value by considering a wide range of qualified contractors.

Public Impact

The Department of the Army benefits from enhanced automated information systems, crucial for operational efficiency and decision-making. Services delivered include design and integration of complex IT systems, supporting various military functions. The geographic impact is likely concentrated within Department of Defense facilities, but the systems supported could have broader national security implications. Workforce implications may include the need for specialized IT professionals within the Army and potentially within the contractor's organization to support system development and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the integrated systems become highly proprietary.
Risk of cost overruns if the scope of system integration proves more complex than initially defined.
Dependence on a single large contractor for critical IT infrastructure.

Positive Signals

Award to a reputable contractor with a strong track record in federal IT.
The use of a delivery order under a competitive contract vehicle suggests a structured procurement process.
Fixed-price contract type provides cost predictability.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on system design and integration services. The federal IT market is substantial, with agencies heavily reliant on technology for operations, intelligence, and logistics. Contracts of this magnitude are common for major system overhauls or the implementation of new enterprise-wide solutions. Benchmarking against similar contracts requires detailed analysis of the specific IT services procured, but the $248M value places it among significant IT investments.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major prime contractor, there may be opportunities for small businesses to participate as subcontractors. However, the extent of small business subcontracting is not detailed in this data. The focus on a large prime contractor may limit direct opportunities for small businesses to compete for the prime contract itself.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting officers and program managers. The contract's fixed-price nature provides a degree of financial oversight. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Defense-wide IT Modernization Programs
Army Enterprise Resource Planning (ERP) Systems
Command and Control Systems Development
Information Assurance and Cybersecurity Services
Cloud Migration and Integration Services

Risk Flags

Potential for scope creep in complex system integration projects.
Risk of technology obsolescence over the contract duration.
Dependence on a single prime contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. 200608!610652!2100!W912PE!RCO SECHENHEIM !GS35F4357D !C!N! !Y!W912PE05F7105!P00004!20060307!20060930!067641597!067641597!099312725!N!ANTEON CORPORATION !3211 JERMANTOWN ROAD !FAIRFAX !VA!22030!26496!600!51!FAIRFAX !FAIRFAX (CITY) !VIRGINIA !+000000023000!N!N!000000000000!D307!AUTOMATED INFO SYSTEM DESIGN & INTEGRATION SVCS !S1 !SERVICES !000 !NOT DISCERNABLE !518111!E! !6! ! !D! ! !999

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 $24.8 million.

What is the period of performance?

Start: 2005-09-30. End: 2010-09-30.

What is the specific nature of the 'Automated Info System Design & Integration Services' being procured under this contract?

The contract description 'AUTOMATED INFO SYSTEM DESIGN & INTEGRATION SVCS' suggests services related to the creation, modification, and implementation of computer systems and software. This could encompass a wide range of activities, including requirements gathering, system architecture design, software development, hardware integration, testing, deployment, and ongoing maintenance. Given the Department of the Army as the customer, these systems likely support critical military operations, logistics, personnel management, or intelligence functions. Without more granular data on the specific systems or projects, the exact scope remains broad but points to foundational IT infrastructure development.

How does the $248M contract value compare to historical spending on similar IT services by the Department of the Army?

The $248M contract value represents a significant investment over its five-year period. To compare this to historical spending, one would need to analyze the Army's IT budget and contract awards for similar system design and integration services over previous fiscal years. The Army, like other branches of the DoD, consistently spends billions on IT annually. This particular contract's value, averaging nearly $50M per year, is substantial but likely fits within the broader pattern of large-scale IT procurements necessary for maintaining and modernizing complex defense systems. A detailed historical analysis would involve querying contract databases for comparable awards by the Army in the same or similar Product Service Codes (PSCs) and North American Industry Classification System (NAICS) codes.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for 'Automated Info System Design & Integration Services,' typical KPIs would likely include system performance metrics (e.g., uptime, response time, processing speed), adherence to project timelines and milestones, successful integration of system components, user satisfaction, defect rates, and achievement of specified functional requirements. For a fixed-price contract, meeting the defined scope within budget and schedule is paramount. The government would likely have a Quality Assurance Surveillance Plan (QASP) to monitor contractor performance against these metrics.

What is the track record of General Dynamics Information Technology, Inc. in delivering similar large-scale IT integration projects for the federal government?

General Dynamics Information Technology, Inc. (GDIT) has a long and extensive track record of delivering large-scale IT services and solutions to various U.S. federal agencies, including the Department of Defense. They are a major prime contractor on numerous complex programs involving system design, integration, cybersecurity, cloud services, and IT modernization. Their history includes significant work with the Department of the Army, Navy, Air Force, and other civilian agencies. While specific project successes and challenges would require detailed review, GDIT's consistent presence and substantial contract awards indicate a generally recognized capability to handle major IT integration efforts.

Are there any identified risks associated with the technology or integration approach outlined in this contract?

Without access to the specific technical details or Statement of Work (SOW) for this contract, identifying precise risks is difficult. However, general risks associated with large IT system design and integration projects include technological obsolescence (the chosen technology becoming outdated before deployment), integration challenges (difficulty making disparate systems work together), cybersecurity vulnerabilities introduced during design or integration, scope creep (uncontrolled expansion of project requirements), and potential performance issues if the system does not meet operational needs. The complexity of integrating systems within a large organization like the Department of the Army inherently carries risks that require robust project management and technical oversight.

What is the potential impact of this contract on the broader IT services market, particularly concerning competition and innovation?

Awarding a contract of this size to a major player like General Dynamics can have a dual impact on the IT services market. On one hand, it signifies a substantial commitment to IT modernization within the DoD, potentially driving innovation within the awarded company and its partners. On the other hand, large, full-and-open contracts, while competitive initially, can sometimes lead to market concentration if only a few large firms possess the capabilities to bid and perform. The success of this contract could encourage further investment in advanced IT capabilities by large integrators. However, ensuring ongoing innovation and opportunities for smaller, specialized firms often requires specific subcontracting goals or separate, more targeted procurements.

Industry Classification

NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores

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)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 3211 JERMANTOWN RD, FAIRFAX, VA, 22030

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4357D

IDV Type: FSS

Timeline