DoD's $12M contract for administrative services awarded to General Dynamics Information Technology, Inc

Contract Overview

Contract Amount: $12,052,658 ($12.1M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-05-01

End Date: 2013-10-31

Contract Duration: 2,009 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONTRACT AWARD. INCREMENTALLY FUNDED CLIN PORTION OF THE LABOR CLINS, FULLY FUNDED ODC AND TRAVEL CLINS.

Place of Performance

Location: FORT EUSTIS, NEWPORT NEWS CITY County, VIRGINIA, 23604

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $12.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: CONTRACT AWARD. INCREMENTALLY FUNDED CLIN PORTION OF THE LABOR CLINS, FULLY FUNDED ODC AND TRAVEL CLINS. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for administrative services, a common but critical function within the Department of Defense. 3. Incremental funding was used for labor, with full funding for other direct costs and travel, indicating phased resource allocation. 4. The contract duration spans over five years, from May 2008 to October 2013. 5. The award value of over $12 million suggests a significant scope of services required. 6. The contract was awarded to General Dynamics Information Technology, Inc., a large and established government contractor.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or detailed service descriptions. The firm-fixed-price structure aims to control costs, but the incremental funding approach for labor could introduce complexities. Comparing it to similar administrative service contracts within the DoD would require access to more granular data on service scope and pricing models. The total award value of $12 million over five years averages to approximately $2.4 million annually, which needs to be assessed against the specific services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the Department of Defense solicited bids from all responsible sources. The presence of 6 bidders suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The Department of Defense benefits from the provision of essential administrative support services. This contract supports the operational efficiency of military and civilian personnel within the Air Force. The services delivered likely encompass a range of office administrative functions, contributing to the smooth running of various units. The geographic impact is primarily within the Department of the Air Force's operational areas, potentially across multiple bases or commands. The contract supports a workforce of administrative professionals, contributing to employment in the government contracting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Incremental funding for labor may lead to budget uncertainty if not managed carefully.
The long duration of the contract could pose risks if requirements change significantly over time.
Reliance on a single large contractor for administrative services might limit flexibility in adapting to new needs.

Positive Signals

Firm-fixed-price contract type helps to control costs and provides predictability.
Full and open competition suggests a robust selection process and potential for cost savings.
Award to an established contractor like General Dynamics Information Technology, Inc. may indicate a track record of successful performance.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative and support services. The market for these services is large and competitive, with numerous firms capable of providing such support to government agencies. The Department of Defense is a significant consumer of these services, utilizing them across various branches and functions to maintain operational readiness and efficiency. Comparable spending benchmarks would typically involve analyzing the average cost of administrative support per employee or per unit within similar large organizations.

Small Business Impact

The contract was not set aside for small businesses, and the awardee, General Dynamics Information Technology, Inc., is a large corporation. This suggests that small businesses were not specifically targeted for this prime contract. However, there may be opportunities for small businesses to participate as subcontractors to General Dynamics, depending on the company's subcontracting plan and the specific services required.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer within the Department of the Air Force. Performance monitoring, invoicing review, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract databases and reporting requirements. The Inspector General's office may conduct audits or investigations if specific concerns regarding waste, fraud, or abuse arise.

Related Government Programs

Defense Administrative Support Services
General Services Administration (GSA) Schedules
Professional and Technical Services Contracts
Department of Defense IT and Support Services

Risk Flags

Incremental Funding
Long-Term Contract Duration
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. CONTRACT AWARD. INCREMENTALLY FUNDED CLIN PORTION OF THE LABOR CLINS, FULLY FUNDED ODC AND TRAVEL CLINS.

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 Air Force).

What is the total obligated amount?

The obligated amount is $12.1 million.

What is the period of performance?

Start: 2008-05-01. End: 2013-10-31.

What was the specific scope of administrative services provided under this contract?

The provided data indicates the contract was for administrative services (NAICS code 561110) awarded to General Dynamics Information Technology, Inc. by the Department of the Air Force. While the specific tasks are not detailed in the summary, administrative services typically encompass a broad range of functions essential for organizational operations. These can include, but are not limited to, personnel support, financial administration, logistical coordination, records management, secretarial support, and general office management. The incremental funding for labor and full funding for other direct costs and travel suggest that labor was the primary component, with specific project-based or travel-related expenses being fully accounted for upfront. The contract's duration of over five years implies a sustained need for these services.

How does the $12 million award value compare to similar administrative service contracts within the DoD?

Comparing the $12 million award value to similar administrative service contracts within the DoD requires access to a broader dataset of contracts with comparable scopes and durations. However, as an average annual spend of approximately $2.4 million ($12M / 5 years), this falls within a moderate range for large-scale administrative support contracts. The Department of Defense is a vast organization with significant administrative needs across its branches. Contracts of this magnitude are not uncommon for providing comprehensive support services to major commands or installations. Factors influencing the value include the number of personnel supported, the complexity of tasks, geographic locations, and the specific service level agreements. Without more granular data on the specific services rendered and the number of personnel supported, a precise benchmark is difficult.

What are the key performance indicators (KPIs) used to assess the performance of General Dynamics Information Technology, Inc. on this contract?

The provided summary data does not specify the Key Performance Indicators (KPIs) used to assess General Dynamics Information Technology, Inc.'s performance. Typically, for administrative service contracts, KPIs would focus on aspects such as timeliness of service delivery, accuracy of work, responsiveness to requests, adherence to procedures, and overall client satisfaction. For a firm-fixed-price contract, meeting the defined scope of work within the agreed-upon schedule and quality standards is paramount. The Department of the Air Force would have established specific metrics and reporting requirements within the contract's Performance Work Statement (PWS) to monitor contractor performance and ensure mission requirements were met effectively.

What is the historical spending pattern for administrative services by the Department of the Air Force?

The provided data focuses on a single contract award from 2008-2013. To understand the historical spending pattern for administrative services by the Department of the Air Force (DoD), a broader analysis of contract data over multiple fiscal years would be necessary. This would involve aggregating spending across various contracts, contractors, and service types categorized under administrative support. Generally, the DoD consistently allocates significant resources to administrative functions to support its vast personnel and operational requirements. Spending patterns can fluctuate based on defense budgets, strategic priorities, force structure changes, and the increasing reliance on contracted services for non-core functions. Analyzing trends would reveal whether spending has increased, decreased, or remained stable over time.

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

A firm-fixed-price (FFP) contract aims to provide cost certainty for the government. However, for a contract valued at $12 million over five years, risks can still emerge. One primary risk is that the contractor may cut corners on quality or service delivery to maximize profit if the initial pricing was too aggressive or if unforeseen cost increases occur. Conversely, if the initial pricing was too high, the government may overpay. Scope creep, where the government requests additional services beyond the original agreement without a formal modification, can strain the FFP structure. Furthermore, if the contract's requirements are not clearly defined, disputes over deliverables and performance can arise. The incremental funding for labor also introduces a layer of financial management complexity that requires diligent oversight to ensure funds are used as intended and that the overall budget remains controlled.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912SU07R0009

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3211 JERMANTOWN RD, FAIRFAX, VA, 22030

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,052,658

Exercised Options: $12,052,658

Current Obligation: $12,052,658

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline