DoD's $13.3M IT support contract awarded to General Dynamics Information Technology, Inc. shows fair value
Contract Overview
Contract Amount: $13,311,247 ($13.3M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-09-25
End Date: 2013-06-30
Contract Duration: 1,739 days
Daily Burn Rate: $7.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: SUBJECT MATTER EXPERT (SME) SUPPORT
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $13.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: SUBJECT MATTER EXPERT (SME) SUPPORT Key points: 1. Contract provides essential IT support services to the Department of the Army. 2. Awarded through full and open competition, suggesting a competitive pricing environment. 3. Performance period of nearly five years indicates a stable, long-term need for these services. 4. The contract type (Time and Materials) can pose cost control risks if not managed diligently. 5. General Dynamics Information Technology, Inc. is a large, established federal contractor. 6. Spending aligns with typical IT support services for large government agencies.
Value Assessment
Rating: fair
The contract's total value of $13.3 million over approximately five years suggests a moderate annual spend for IT support. Benchmarking against similar contracts for administrative management and general management consulting services is challenging without more specific service details. However, the Time and Materials pricing structure, while common, can lead to costs exceeding initial estimates if not closely monitored. The absence of a specific ceiling price or detailed performance metrics makes a definitive value-for-money assessment difficult.
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 offers. This typically fosters a competitive environment, encouraging bidders to offer their best pricing and technical solutions. The fact that it was a single award delivery order suggests that while competition was open, one offeror was ultimately selected as the best value.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices and encouraging innovation, leading to more efficient use of public funds.
Public Impact
The Department of the Army benefits from consistent and reliable IT support, crucial for its operational effectiveness. Services delivered likely include help desk support, network maintenance, and system administration. Geographic impact is primarily within the Army's operational footprint, likely concentrated in areas with significant Army presence. Workforce implications include the potential for direct employment by General Dynamics Information Technology, Inc. and its subcontractors to fulfill the contract requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost overruns if not managed effectively.
- Lack of specific performance metrics makes it difficult to assess contractor efficiency and effectiveness.
- Potential for scope creep without clear deliverables and milestones.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Long performance period indicates a stable and ongoing need for services.
- Contractor is a large, experienced provider of IT services to the federal government.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on IT management and consulting services. The federal IT services market is substantial, with agencies across all branches investing heavily in maintaining and upgrading their technological infrastructure. This contract represents a portion of the Department of Defense's broader IT spending, which is often characterized by complex requirements and significant investments in cybersecurity, cloud computing, and data management.
Small Business Impact
The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). As a large contract awarded to a major prime contractor, there may be subcontracting opportunities for small businesses, but this is not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on whether General Dynamics Information Technology, Inc. actively seeks out and utilizes small business subcontractors for specialized IT support tasks.
Oversight & Accountability
Oversight for this contract would typically reside with the contracting officer and the relevant program management office within the Department of the Army. Accountability measures would be tied to the contract's terms and conditions, including performance standards and delivery schedules. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Defense IT Modernization Programs
- Army Enterprise IT Services
- General Management Consulting Services
- Federal Civilian IT Support Contracts
Risk Flags
- Time and Materials contract type carries inherent cost overrun risk.
- Lack of specific performance metrics hinders objective evaluation.
- Potential for scope creep without stringent oversight.
Tags
it-services, department-of-defense, department-of-the-army, administrative-management-consulting, general-management-consulting, full-and-open-competition, time-and-materials, delivery-order, general-dynamics-information-technology, virginia, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. SUBJECT MATTER EXPERT (SME) SUPPORT
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 $13.3 million.
What is the period of performance?
Start: 2008-09-25. End: 2013-06-30.
What is the historical spending trend for similar IT support services within the Department of the Army?
Historical spending on IT support services within the Department of the Army has generally been substantial and consistent, reflecting the critical role of technology in military operations. Agencies like the Army often award multi-year contracts for services such as network management, cybersecurity, help desk support, and software maintenance. Spending patterns can fluctuate based on modernization initiatives, budget allocations, and evolving technological requirements. For instance, periods of increased spending might coincide with major system upgrades or the implementation of new defense strategies requiring advanced IT capabilities. Conversely, budget constraints or shifts in procurement strategies could lead to temporary reductions. Analyzing specific historical data for contracts under NAICS code 541611 (Administrative Management and General Management Consulting Services) and related IT service codes would reveal trends in contract values, durations, and the types of services procured, providing context for the $13.3 million award to General Dynamics Information Technology, Inc.
How does the pricing of this contract compare to market rates for similar IT support services?
Assessing the precise pricing competitiveness of this $13.3 million contract is challenging without detailed breakdowns of labor categories, hours, and specific service rates. However, the contract was awarded under full and open competition, which generally pressures contractors to offer competitive pricing. The Time and Materials (T&M) pricing structure, while common for IT support where the scope can evolve, inherently carries a risk of higher costs compared to fixed-price contracts if not managed diligently. Market rates for IT support services vary significantly based on geographic location, skill sets required, and the complexity of the systems supported. General Dynamics Information Technology, Inc., as a large incumbent contractor, likely has established labor rates. A thorough comparison would involve benchmarking these rates against industry surveys and other government contracts for comparable services, considering factors like overhead, profit margins, and the specific technical expertise required.
What are the key performance indicators (KPIs) used to evaluate the performance of General Dynamics Information Technology, Inc. under this contract?
The provided data does not explicitly list the Key Performance Indicators (KPIs) used to evaluate General Dynamics Information Technology, Inc.'s performance on this contract. However, for IT support services, typical KPIs often include metrics related to response times for help desk tickets, resolution rates for technical issues, system uptime and availability, network performance, and user satisfaction. For administrative and management consulting aspects, KPIs might focus on project completion timelines, adherence to budget, quality of deliverables, and client feedback. The effectiveness of oversight and accountability hinges on clearly defined and measurable KPIs outlined in the contract's Performance Work Statement (PWS). Without these specific metrics, it is difficult to objectively assess the contractor's performance beyond the general contract completion.
What is the track record of General Dynamics Information Technology, Inc. in delivering similar IT support services to the federal government?
General Dynamics Information Technology, Inc. (GDIT) has a substantial track record of delivering a wide range of IT and professional services to the federal government, including the Department of Defense. They are a major player in the federal IT contracting space, known for handling large-scale, complex projects. Their experience spans areas such as enterprise IT, cloud computing, cybersecurity, data analytics, and mission support. GDIT has held numerous prime contracts with various federal agencies, demonstrating their capability to manage significant budgets and deliver critical services. While specific performance details for every contract are not publicly available, their continued success in winning and performing on large federal contracts suggests a generally positive track record. However, like any large contractor, they may have faced performance challenges or disputes on specific contracts, which would be reflected in contract performance ratings and historical data if accessible.
What are the potential risks associated with the Time and Materials (T&M) contract type for this IT support service?
The primary risk associated with a Time and Materials (T&M) contract type, such as the one awarded to General Dynamics Information Technology, Inc. for IT support, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fixed fee or profit. This structure provides flexibility, especially when the scope of work is not clearly defined or is expected to change. However, it places a significant burden on the government to closely monitor contractor effort and ensure that hours billed are reasonable and necessary. Without robust oversight, contractors may be incentivized to extend task durations or use more expensive resources than strictly required, leading to costs exceeding initial estimates or the contract's ceiling. Effective management, including detailed tracking of labor hours and regular reviews, is crucial to mitigate these risks.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 3211 JERMANTOWN RD, FAIRFAX, VA, 22030
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $13,311,247
Exercised Options: $13,311,247
Current Obligation: $13,311,247
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS23F8049H
IDV Type: FSS
Timeline
Start Date: 2008-09-25
Current End Date: 2013-06-30
Potential End Date: 2013-06-30 00:00:00
Last Modified: 2025-12-31
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