DoD's $31.8M professional staffing contract with GDIT shows fair value despite limited competition

Contract Overview

Contract Amount: $31,806,325 ($31.8M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-08-03

End Date: 2016-03-31

Contract Duration: 1,702 days

Daily Burn Rate: $18.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: PROFESSIONAL STAFFING SUPPORT

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $31.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: PROFESSIONAL STAFFING SUPPORT Key points: 1. Contract value of $31.8M over 1702 days suggests a daily burn rate of approximately $18.7K. 2. Competition was full and open, but only 7 bids were received, indicating moderate interest. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed closely. 4. Performance occurred over a significant period (2011-2016), making direct comparisons to current market rates challenging. 5. The services provided fall under Administrative Management and General Management Consulting. 6. The contractor, General Dynamics Information Technology, is a large, established entity in the federal IT space.

Value Assessment

Rating: fair

The contract's total value of $31.8M over nearly five years (1702 days) translates to an average daily expenditure of approximately $18,600. While specific performance metrics are not detailed, the Cost Plus Fixed Fee (CPFF) contract type suggests that costs were reimbursed plus a fixed fee, which can be less price-efficient than fixed-price contracts if not carefully managed. Benchmarking against similar professional staffing contracts is difficult without more granular data on the specific services rendered and the labor mix. However, the duration and scale suggest a substantial, ongoing need for administrative and management consulting services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. However, the receipt of only 7 bids suggests that while the competition was open, the pool of qualified and interested bidders may have been limited. This level of competition is neither exceptionally high nor low, indicating a moderate market response. The presence of multiple bidders generally helps in price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: A moderate number of bidders means taxpayers likely benefited from some level of price competition, preventing a sole-source situation, but potentially not achieving the lowest possible price compared to a more crowded field.

Public Impact

The Department of the Army benefited from professional staffing support to enhance its administrative and management functions. Services delivered likely included strategic planning, process improvement, and general management consulting. The contract's impact was primarily within the Department of Defense, supporting its operational efficiency. Workforce implications would involve the integration of contractor personnel into Army administrative structures.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs if not rigorously monitored.
Limited number of bidders (7) may indicate less competitive pressure than ideal.
The long duration (1702 days) makes direct comparison to current market rates difficult.
Lack of specific performance metrics makes value-for-money assessment challenging.

Positive Signals

Awarded under full and open competition, ensuring a broad initial solicitation.
Contractor (GDIT) is a reputable and experienced provider of federal IT and professional services.
The contract addressed a clear need for administrative and management consulting services within the Army.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is a significant component of federal spending, supporting a wide array of government functions. The market for these services is competitive, with numerous large and small businesses vying for contracts. Federal spending in this area often supports agency efficiency, strategic planning, and operational improvements. Comparable spending benchmarks would depend heavily on the specific nature and duration of the consulting services provided.

Small Business Impact

This contract does not appear to have included a small business set-aside, as indicated by 'sb': false. Furthermore, the 'ss' flag is also false, suggesting no specific small business subcontracting goals were mandated or reported in this data snippet. The prime contractor, General Dynamics Information Technology, is a large business, implying that opportunities for small businesses would primarily arise through subcontracting if GDIT chose to engage them. Without explicit subcontracting plans or reports, the direct impact on the small business ecosystem is unclear but likely minimal unless GDIT proactively sought small business partners.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of the Army contracting and program officials. As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing would be crucial to ensure costs were reasonable and allocable. Transparency is typically facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or alleged during the contract's performance or closeout.

Related Government Programs

Professional Services Schedule (PSS)
Management and Consulting Services
Department of Defense IT Support Contracts
Army Administrative Support Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Moderate competition level may limit optimal price discovery.
Long contract duration necessitates ongoing relevance checks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. PROFESSIONAL STAFFING 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 $31.8 million.

What is the period of performance?

Start: 2011-08-03. End: 2016-03-31.

What was the specific nature of the 'professional staffing support' provided under this contract?

The contract data indicates the service category as 'Administrative Management and General Management Consulting Services' (NAICS 541611). This suggests the support likely involved providing expertise and personnel to assist the Department of the Army in areas such as organizational efficiency, strategic planning, process improvement, program management support, and general administrative operations. Without access to the detailed Statement of Work (SOW) or task orders issued under this contract, the precise nature of the staffing support remains generalized. However, the broad category implies services aimed at enhancing the management and administrative functions of the Army, potentially involving consultants, analysts, or project managers.

How does the $18.7K daily burn rate compare to similar contracts for administrative management consulting?

A daily burn rate of approximately $18,700 for a contract encompassing administrative management and general management consulting services is substantial. However, direct comparisons are challenging without knowing the specific labor mix (e.g., senior consultants vs. junior analysts), the level of expertise required, and the geographic location of the support. Contracts for high-level strategic consulting or specialized program management can command higher daily rates. Conversely, contracts focused on more routine administrative support might have lower rates. Given the contract's duration and the prime contractor's profile (GDIT), it's plausible this rate reflects a mix of senior expertise and significant support personnel engaged in complex Army operations. Further benchmarking would require analyzing contracts with similar SOWs and labor categories.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

The primary risk with a CPFF contract, especially one valued at $31.8M over nearly five years, is the potential for cost escalation. While the 'fixed fee' component provides some predictability for the contractor's profit, the 'cost plus' element means the government reimburses allowable costs. If cost controls are weak or the scope creeps, the total cost to the government can exceed initial estimates. For the contractor, the risk lies in accurately estimating the costs to perform the work within the fixed fee. For the government, effective oversight is paramount to ensure costs are reasonable, allocable, and necessary. The long duration also increases the risk of the contract becoming misaligned with evolving agency needs or technological advancements, potentially leading to inefficiencies if not actively managed and adapted.

Given the contract ended in 2016, what insights can be drawn about GDIT's performance and track record from this engagement?

The data provided does not include specific performance ratings or details about GDIT's execution of this contract. However, the fact that the contract was awarded under full and open competition and completed its full term suggests that GDIT was deemed a capable provider. General Dynamics Information Technology is a large, established federal contractor with a broad portfolio of services. Their continued presence and success in winning subsequent contracts indicate a generally positive track record. To assess performance specifically for this contract, one would need to consult contract performance reports (if available), past performance databases, or agency-specific evaluations, which are not included in the provided data snippet.

How has federal spending on administrative management and general management consulting services evolved since this contract was active (2011-2016)?

Federal spending on administrative management and general management consulting services (NAICS 541611) has generally remained a significant category of expenditure. Since the 2011-2016 period, there has been a continued demand for these services across various agencies, driven by needs for efficiency improvements, strategic planning, IT modernization consulting, and program management support. While specific year-over-year trends fluctuate based on agency budgets and priorities, the overall market has remained robust. Factors like increased focus on cybersecurity consulting, data analytics, and digital transformation have likely shaped the evolution of services within this category. The total federal spend in this area likely saw fluctuations but maintained a substantial baseline, reflecting the ongoing need for external expertise in managing complex government operations.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W91CRB11R0016

Offers Received: 7

Pricing Type: COST PLUS FIXED FEE (U)

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: $40,799,699

Exercised Options: $40,799,699

Current Obligation: $31,806,325

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline