DoD's $21.8M IT services contract awarded to General Dynamics Information Technology, Inc. faced limited competition

Contract Overview

Contract Amount: $21,869,443 ($21.9M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2013-06-17

End Date: 2014-05-31

Contract Duration: 348 days

Daily Burn Rate: $62.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENT OPS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $21.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: ENT OPS Key points: 1. The contract's value appears reasonable given the scope of IT services provided. 2. Limited competition may have impacted the final price, potentially leading to less favorable terms for the government. 3. The firm fixed-price contract type mitigates cost overrun risks for the government. 4. Performance duration was approximately one year, suggesting a focused scope of work. 5. This contract falls within the broader IT services sector, a significant area of federal spending. 6. The award was made to a large, established contractor with a history of federal work.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without more detailed service descriptions. However, the $21.8 million for approximately one year of IT services for the Department of the Army is within a typical range for large-scale IT support. The firm fixed-price structure suggests a defined scope, which aids in price predictability. Compared to similar large IT support contracts, the pricing appears to be in line, though a more granular analysis of the specific services rendered would be needed for a definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed on a full and open basis, indicating that the solicitation was likely restricted to a specific set of pre-qualified vendors or through a limited source justification. The data indicates it was 'NOT COMPETED', suggesting a sole-source or limited competition scenario. The lack of broad competition means fewer vendors had the opportunity to bid, potentially limiting the government's ability to secure the most competitive pricing and innovative solutions.

Taxpayer Impact: The limited competition for this contract means taxpayers may not have benefited from the full range of potential cost savings that a more robust bidding process could have yielded. This could translate to a higher overall expenditure for the services received.

Public Impact

The Department of the Army benefited from the IT services provided, ensuring operational continuity. Essential IT support and related computer services were delivered to facilitate military operations. The geographic impact is primarily within the Army's operational areas, likely supporting personnel and infrastructure. The contract supported IT professionals and potentially other roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential overpayment and lack of innovation.
Lack of detailed service breakdown makes it difficult to assess true value for money.
The contract duration of just over a year might indicate a need for ongoing, potentially re-competed services.

Positive Signals

Award to a large, established contractor like General Dynamics suggests a degree of reliability and experience.
Firm fixed-price contract type offers cost certainty to the government.
The contract was awarded to a single entity, simplifying management and oversight.

Sector Analysis

The Information Technology (IT) sector represents a substantial portion of federal spending, encompassing a wide array of services from software development to network management and cybersecurity. This contract, focused on 'Other Computer Related Services,' fits within this broad category. The federal government is a major consumer of IT services, with agencies like the Department of Defense requiring robust and reliable technological infrastructure to support their missions. Spending in this area is often driven by the need for modernization, operational efficiency, and maintaining a technological edge.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, General Dynamics Information Technology, Inc., is a large business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. Therefore, this award is unlikely to have a direct positive impact on the small business ecosystem, and opportunities for small business participation may be limited unless they are lower-tier subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. As a definitive contract, it would be subject to standard federal procurement regulations and oversight mechanisms. Transparency is generally maintained through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Services
Computer Related Services
Department of Defense IT Contracts
General Dynamics Federal Contracts
Army IT Support

Risk Flags

Limited competition may have resulted in higher costs.
Lack of detailed service description hinders value assessment.
Contractor is a large business, potentially limiting small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. ENT OPS

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 $21.9 million.

What is the period of performance?

Start: 2013-06-17. End: 2014-05-31.

What specific 'Other Computer Related Services' were included in this contract?

The provided data summary does not detail the specific 'Other Computer Related Services' encompassed by this contract. The NAICS code 541519 is broad, covering services like computer facilities management, IT support, and disaster recovery. Without access to the full contract statement of work, it is impossible to ascertain the precise nature of the services rendered. This lack of specificity hinders a thorough assessment of the contract's value and performance effectiveness. Further investigation would require accessing the contract document itself or related performance reports.

How does the $21.8 million award compare to similar IT services contracts awarded by the Department of the Army?

Comparing the $21.8 million award requires context regarding the duration and scope of services. For a contract lasting approximately one year (348 days), this amount is substantial and suggests a significant scope of IT support. The Department of the Army procures numerous IT services contracts annually, ranging from small, specialized tasks to large enterprise-wide solutions. Without knowing the specific services (e.g., help desk, network management, cybersecurity, software development), a direct comparison is difficult. However, large-scale IT support contracts for major commands often fall within this multi-million dollar range, especially when involving a large contractor like General Dynamics.

What were the risks associated with awarding this contract to General Dynamics Information Technology, Inc.?

Awarding contracts to large, established companies like General Dynamics Information Technology, Inc. generally carries lower performance risk due to their proven track record and resources. However, potential risks can include complacency, higher overhead costs compared to smaller firms, and the possibility of vendor lock-in if the services are highly specialized. In this specific case, the primary risk highlighted by the data is the limited competition, which could lead to suboptimal pricing and reduced incentive for the contractor to innovate or provide exceptional value. Ensuring robust oversight and clear performance metrics are crucial to mitigate these risks.

What is the historical spending pattern for 'Other Computer Related Services' by the Department of the Army?

Historical spending patterns for 'Other Computer Related Services' (NAICS 541519) by the Department of the Army are substantial and have generally trended upwards over the years, reflecting the increasing reliance on IT infrastructure and services. The Army, like other branches of the DoD, invests heavily in maintaining and upgrading its complex IT systems. This includes outsourcing various support functions to specialized contractors. While specific year-over-year figures for this exact contract's category are not provided, the overall federal IT spending, particularly within defense, indicates a consistent and significant allocation of resources to this sector.

Were there any performance issues or contract modifications during the contract's lifecycle?

The provided summary data does not include information on contract modifications, performance issues, or disputes related to this specific contract. Typically, such details would be found in contract modification logs, performance evaluation reports (e.g., CPARS), or litigation records. The data only indicates the award date, period of performance, and contract type. To assess performance and identify any issues or modifications, one would need to consult more detailed contract administration records or agency performance management systems.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sterling Parent Inc.

Address: 4300 FAIR LAKES CT, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $21,869,443

Exercised Options: $21,869,443

Current Obligation: $21,869,443

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline