DoD's $85M Engineering Services Contract Awarded to General Dynamics Information Technology, Inc

Contract Overview

Contract Amount: $84,981,272 ($85.0M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2006-10-03

End Date: 2012-03-31

Contract Duration: 2,006 days

Daily Burn Rate: $42.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: BASE PERIOD

Plain-Language Summary

Department of Defense obligated $85.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: BASE PERIOD Key points: 1. The contract value represents a significant investment in engineering services for the Department of the Army. 2. Competition dynamics for this contract warrant further examination given the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation. 3. The contract's duration and cost-plus-fixed-fee structure may present opportunities for cost overruns if not closely monitored. 4. Performance context is crucial to understand the specific engineering challenges addressed by this award. 5. This contract positions General Dynamics Information Technology, Inc. as a key provider of engineering solutions within the defense sector. 6. The absence of small business set-aside flags suggests a focus on large, specialized capabilities.

Value Assessment

Rating: fair

Benchmarking the value of this $85 million contract requires understanding the specific engineering services rendered and their complexity. As a Cost Plus Fixed Fee (CPFF) contract, the final cost can fluctuate based on actual expenses incurred by the contractor, plus a predetermined fixed fee. This structure can sometimes lead to higher overall costs compared to fixed-price contracts if not managed diligently. Comparing this to similar large-scale engineering service contracts within the Department of Defense would provide better context for value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the competition was intended to be open, certain sources were excluded prior to the solicitation. The exact reasons for exclusion and the number of bidders that participated after this exclusion are critical to understanding the true level of competition. A limited competition, even if initially open, can potentially impact price discovery and may not always yield the most competitive pricing.

Taxpayer Impact: Taxpayers may have received less competitive pricing due to the exclusion of certain sources, potentially leading to a higher overall cost for the engineering services.

Public Impact

The Department of the Army is the primary beneficiary, receiving specialized engineering services. The services delivered likely support critical military infrastructure, systems, or operational requirements. The geographic impact is likely concentrated within areas where the Army operates or requires engineering support. Workforce implications may include the employment of engineers and technical specialists by General Dynamics Information Technology, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep in CPFF contracts if not rigorously overseen.
The 'exclusion of sources' in competition raises questions about the breadth of market engagement.
Lack of transparency on specific engineering deliverables makes value assessment challenging.

Positive Signals

Award to a large, established contractor like General Dynamics suggests a focus on capability and reliability.
The contract duration implies a long-term need for these engineering services, indicating strategic importance.
The definitive contract award suggests a clear understanding of the scope and requirements.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional services market supporting government operations. The defense industry, in particular, relies heavily on specialized engineering firms for complex projects ranging from system design to infrastructure development. The market for defense engineering services is substantial, with significant annual spending by agencies like the Department of Defense. This contract represents a portion of that spending, likely focused on specific technical or operational engineering needs.

Small Business Impact

The 'sb' field is false, indicating that this contract was not set aside for small businesses. Furthermore, the 'ss' field is also false, meaning there is no explicit requirement for small business subcontracting. This suggests that the primary contractor, General Dynamics Information Technology, Inc., is expected to perform the majority of the work with its own resources or through large business subcontractors. The impact on the small business ecosystem is likely minimal, as there are no direct set-aside provisions or mandated subcontracting goals.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. Accountability measures would be tied to the performance metrics outlined in the contract and the fixed fee associated with the CPFF structure. Transparency is often limited in defense contracts, but reporting requirements on cost, schedule, and performance would be in place. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Engineering Services
Army Professional Services Contracts
Cost Plus Fixed Fee Contracts
Information Technology Engineering Support

Risk Flags

Potential for cost overruns due to CPFF structure
Limited competition due to source exclusion
Lack of detailed performance metrics in provided data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $85.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. BASE PERIOD

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 $85.0 million.

What is the period of performance?

Start: 2006-10-03. End: 2012-03-31.

What specific engineering services were procured under this contract, and what were the key performance indicators?

The provided data indicates the contract is for 'Engineering Services' (NAICS code 541330) awarded to General Dynamics Information Technology, Inc. by the Department of the Army. However, the specific nature of these engineering services (e.g., systems engineering, civil engineering, software engineering) and the detailed key performance indicators (KPIs) are not available in the provided snippet. Typically, for a contract of this magnitude and duration (2006-2012), KPIs would focus on factors like on-time delivery of milestones, adherence to technical specifications, quality of deliverables, and cost control within the framework of the Cost Plus Fixed Fee structure. Without access to the contract's statement of work or performance reports, a precise definition of services and KPIs remains elusive.

How does the $85 million contract value compare to similar engineering service contracts awarded by the Department of the Army during the 2006-2012 period?

The $85 million base period value for this contract is substantial, placing it among significant engineering service procurements. During the 2006-2012 period, the Department of the Army, like other branches of the DoD, frequently awarded large contracts for engineering and technical support. Benchmarking this specific contract's value would require analyzing the average and median contract values for similar NAICS codes (like 541330) and service types within the Army during that timeframe. Factors such as contract duration, scope complexity, and the specific engineering discipline would influence comparisons. Without a broader dataset of comparable contracts, it's difficult to definitively state whether $85 million represented a high, low, or average expenditure for the services rendered.

What is the track record of General Dynamics Information Technology, Inc. in performing similar large-scale engineering contracts for the Department of Defense?

General Dynamics Information Technology, Inc. (GDIT), a subsidiary of General Dynamics, has a long and extensive history of performing large-scale IT and engineering contracts for the Department of Defense and other federal agencies. They are a major defense contractor known for providing a wide range of services, including systems engineering, integration, cybersecurity, and IT infrastructure support. Their track record generally includes successful execution of complex programs, though like any large contractor, they may have faced challenges or scrutiny on specific projects. For this particular contract (2006-2012), assessing their performance would involve reviewing contract performance reports, any past performance evaluations, and any documented issues or commendations related to their work with the Army during that period.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for engineering services?

The Cost Plus Fixed Fee (CPFF) contract structure, used here, presents specific risks. The primary risk for the government is that the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee. This can lead to 'cost-plus' incentives where the contractor may not be as motivated to control costs as they would be in a fixed-price contract, as their profit (the fee) is fixed regardless of the total cost. While the fixed fee provides some cost certainty for the contractor's profit, the total contract cost can escalate if costs are not managed effectively. For the government, this necessitates robust oversight, stringent auditing of costs, and clear definition of allowable expenses to mitigate the risk of cost overruns and ensure value for money.

How did the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method impact the competitive landscape and potential pricing?

The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is somewhat contradictory. 'Full and open competition' implies that all responsible sources are permitted to submit offers. However, the 'after exclusion of sources' clause indicates that prior to the solicitation, certain potential bidders were deliberately excluded. The impact on the competitive landscape and pricing depends heavily on the justification and scope of this exclusion. If only a few sources were excluded for valid, documented reasons (e.g., security clearances, specific technical capabilities not widely available), the competition might still be robust among the remaining bidders. Conversely, if significant potential competitors were excluded without clear justification, it could limit competition, potentially leading to higher prices and reduced innovation. Understanding who was excluded and why is key to assessing the true impact.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W91RUS06R0118

Offers Received: 4

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $85,235,739

Exercised Options: $85,235,739

Current Obligation: $84,981,272

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline