DoD's $37M General Dynamics IT contract for security cooperation support services shows fair value with moderate competition

Contract Overview

Contract Amount: $37,028,496 ($37.0M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-03-24

End Date: 2020-10-31

Contract Duration: 2,048 days

Daily Burn Rate: $18.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CT::IGF DASA DE&C CONSOLIDATED SECURITY COOPERATION SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $37.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::CT::IGF DASA DE&C CONSOLIDATED SECURITY COOPERATION SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. Pricing appears reasonable when benchmarked against similar administrative management consulting services. 3. The contract duration of over 2000 days indicates a long-term need for these services. 4. Performance is rated as satisfactory, with no significant performance issues reported. 5. The contractor, General Dynamics Information Technology, has a substantial track record with the federal government. 6. This contract falls within the administrative management and general management consulting services sector.

Value Assessment

Rating: good

The contract's total value of approximately $37 million over its period of performance appears reasonable given the scope of services. Benchmarking against similar administrative management and general management consulting services contracts awarded by the Department of Defense suggests that the pricing is within an acceptable range. While specific cost breakdowns are not publicly available, the overall value proposition seems fair, especially considering the long-term nature of the support provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded using full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of two bids suggests a moderate level of competition for this requirement. While more bidders could potentially drive prices lower, the full and open nature of the competition provides a degree of assurance that the government received a competitive offer.

Taxpayer Impact: The use of full and open competition generally benefits taxpayers by fostering a market where contractors are incentivized to offer competitive pricing to win awards.

Public Impact

The Department of the Army benefits from consistent and reliable administrative management and general management consulting services. Services provided likely support the execution of security cooperation initiatives, enhancing diplomatic and military relationships. The contract's impact is primarily within the Department of Defense, supporting strategic objectives. Workforce implications include the employment of consultants and administrative staff by General Dynamics Information Technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns given the Cost Plus Fixed Fee (CPFF) contract type, although oversight should mitigate this.
Reliance on a single large contractor for critical support services could pose a risk if performance degrades.
The long contract duration might lead to vendor lock-in if not managed proactively.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Contractor has a strong past performance record with the government.
Services are critical to supporting security cooperation, a key national security objective.
The contract is rated as satisfactory, suggesting adequate performance to date.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is characterized by a wide range of services supporting government operations and strategic initiatives. The market size for these services is substantial, with numerous large and small businesses competing for federal contracts. This specific contract supports the Department of the Army's security cooperation efforts, a vital component of national defense and foreign policy.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific small business subcontracting requirements in the provided data. The award to a large prime contractor like General Dynamics Information Technology suggests that small businesses are unlikely to be direct beneficiaries of this specific award, though they may participate as subcontractors if opportunities arise.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army. Performance monitoring, invoice review, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Security Cooperation Programs
Administrative Management and General Management Consulting Services
IT and Professional Services Contracts
Department of the Army Support Services

Risk Flags

Contract Type Risk (CPFF)
Long Contract Duration
Potential for Vendor Lock-in

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::CT::IGF DASA DE&C CONSOLIDATED SECURITY COOPERATION SUPPORT SERVICES

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 $37.0 million.

What is the period of performance?

Start: 2015-03-24. End: 2020-10-31.

What is the track record of General Dynamics Information Technology with the federal government, particularly in similar service areas?

General Dynamics Information Technology (GDIT), a subsidiary of General Dynamics, has an extensive history of contracting with the U.S. federal government across various agencies and departments. They are a major provider of IT and professional services, including management consulting, systems integration, and support services. Their federal contract portfolio is substantial, encompassing defense, intelligence, civilian, and health sectors. GDIT has consistently received significant contract awards, demonstrating a strong capacity to manage large and complex federal requirements. Their track record generally includes satisfactory to excellent performance ratings on many contracts, although like any large contractor, specific contract performance can vary. For this particular contract, the 'satisfactory' rating indicates acceptable performance.

How does the value of this contract compare to other similar administrative management consulting contracts?

The total contract value of approximately $37 million over its duration (roughly 2048 days, or about 5.6 years) translates to an average annual value of around $6.6 million. When compared to other administrative management and general management consulting services contracts, particularly those supporting defense agencies, this value falls within a moderate range. Larger, more complex consulting engagements or those with extensive IT components can reach hundreds of millions or even billions of dollars. Smaller, more focused consulting tasks might be in the tens or hundreds of thousands. Given the scope implied by 'security cooperation support services' for the Department of the Army, the $37 million total value appears to be a fair and competitive price point for the services rendered over the contract's life.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract, like this one, is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. If the contractor's costs exceed projections, the government still pays those costs, though the fee remains fixed. This can lead to the government paying more than initially anticipated if costs escalate. However, the fixed fee provides the contractor with an incentive to control costs to maximize their profit margin. Effective oversight by the government, including rigorous cost monitoring and auditing, is crucial to mitigate this risk and ensure that costs remain reasonable and allocable to the contract.

How effective are security cooperation support services in achieving broader U.S. foreign policy and national security goals?

Security cooperation support services are designed to strengthen relationships with partner nations, enhance their capacity to address shared security challenges, and promote stability. These services can range from training and advising to facilitating joint exercises and providing technical assistance. When effectively implemented, they contribute significantly to U.S. foreign policy objectives by building alliances, deterring adversaries, and preventing conflicts. They are a critical tool in a comprehensive national security strategy, enabling the U.S. to project influence and address threats more effectively through partnerships rather than unilateral action. The success of these services often depends on clear objectives, cultural understanding, and sustained commitment from both the U.S. and partner nations.

What is the historical spending trend for administrative management and general management consulting services within the Department of the Army?

Historical spending trends for administrative management and general management consulting services within the Department of the Army (and the broader Department of Defense) have generally shown a consistent demand for these services. Agencies frequently rely on external expertise for strategic planning, organizational improvement, process optimization, and specialized support functions that may not be available internally or require specialized skills. Spending in this category often fluctuates based on budgetary priorities, specific program needs, and the overall geopolitical environment. While specific year-over-year data for this exact contract is not provided, the sustained need for such services suggests that spending in this domain remains a significant component of the Army's overall contracting budget.

What does the 'satisfactory' performance rating imply for the government and the contractor?

A 'satisfactory' performance rating indicates that the contractor, General Dynamics Information Technology, has met the contract's requirements and objectives in a generally acceptable manner. For the government, it means the services delivered have been adequate and have fulfilled the intended purpose, though perhaps without exceptional distinction. This rating suggests that the contracting officer's representative (COR) has not identified significant deficiencies or areas requiring major corrective action. For the contractor, a satisfactory rating is typically sufficient to receive payment and maintain eligibility for future contracts, but it may not position them as a top-tier performer for future competitive bids where exceptional performance could be a differentiating factor. It implies the contract is on track without major issues.

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: W91CRB14R0028

Offers Received: 2

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: $40,606,565

Exercised Options: $40,606,565

Current Obligation: $37,028,496

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $12,175,351

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline