DoD's $217M DODIN Cybersecurity Contract Awarded to General Dynamics Faces Scrutiny

Contract Overview

Contract Amount: $217,271,531 ($217.3M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-07-01

End Date: 2026-05-31

Contract Duration: 2,526 days

Daily Burn Rate: $86.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: ARMY DEPARTMENT OF DEFENSE INFORMATION NETWORK (DODIN)CYBERSECURITY AND NETWORK OPERATIONS MISSION SUPPORT (ADCNOMS)SERVICES

Place of Performance

Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85613

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $217.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: ARMY DEPARTMENT OF DEFENSE INFORMATION NETWORK (DODIN)CYBERSECURITY AND NETWORK OPERATIONS MISSION SUPPORT (ADCNOMS)SERVICES Key points: 1. The contract, valued at $217.27 million, is for cybersecurity and network operations support. 2. General Dynamics Information Technology, Inc. is the sole awardee under full and open competition. 3. The contract's cost-plus-fixed-fee structure warrants careful monitoring for potential cost overruns. 4. This award falls within the IT sector, specifically computer systems design services.

Value Assessment

Rating: fair

The cost-plus-fixed-fee (CPFF) pricing structure can lead to higher costs if not managed tightly. Benchmarking against similar CPFF contracts for IT support services is recommended to ensure fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific impact on price discovery for this particular service requires further analysis of the proposals received.

Taxpayer Impact: Taxpayer funds are being utilized for essential cybersecurity and network operations, aiming to enhance national defense capabilities.

Public Impact

Ensures continued cybersecurity and network operations for the Department of Defense. Supports critical infrastructure for military communications and data protection. Potential for job creation within the IT and cybersecurity sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost-plus-fixed-fee contract type can incentivize higher spending.
  • Lack of specific performance metrics in the provided data.
  • Potential for scope creep in complex IT projects.

Positive Signals

  • Awarded under full and open competition.
  • Supports critical national defense infrastructure.
  • Long-term contract provides stability for services.

Sector Analysis

This contract is within the Information Technology sector, specifically Computer Systems Design Services. Spending in this area is crucial for modernizing defense systems and maintaining operational readiness. Benchmarks for similar cybersecurity support contracts are essential for evaluating cost-effectiveness.

Small Business Impact

The provided data does not indicate any specific set-asides or subcontracting requirements for small businesses on this contract. Further investigation is needed to determine the extent of small business participation.

Oversight & Accountability

Oversight will be critical to manage the cost-plus-fixed-fee structure effectively and ensure the contractor meets all performance requirements. Regular performance reviews and audits are recommended to maintain accountability.

Related Government Programs

  • Computer Systems Design Services
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Cost-plus-fixed-fee pricing structure.
  • Potential for scope creep in IT services.
  • Limited visibility into specific performance metrics.
  • No explicit small business participation noted.

Tags

computer-systems-design-services, department-of-defense, az, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $217.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. ARMY DEPARTMENT OF DEFENSE INFORMATION NETWORK (DODIN)CYBERSECURITY AND NETWORK OPERATIONS MISSION SUPPORT (ADCNOMS)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 $217.3 million.

What is the period of performance?

Start: 2019-07-01. End: 2026-05-31.

What is the estimated cost per unit for the cybersecurity and network operations services provided under this contract?

The provided data does not include a specific per-unit cost. The contract is a Cost Plus Fixed Fee (CPFF) type, meaning the final cost is based on actual allowable costs plus a negotiated fixed fee. To assess value, a detailed breakdown of the services and their associated costs would be necessary, along with benchmarks from similar contracts.

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

The primary risk with CPFF is the potential for cost overruns, as the contractor is reimbursed for allowable costs. This can incentivize less cost-conscious behavior if not rigorously overseen. For cybersecurity, scope creep is also a risk, where requirements expand beyond the initial agreement, increasing costs and potentially delaying delivery without clear justification.

How effectively does this contract ensure the delivery of essential cybersecurity and network operations for the Department of Defense?

The contract's effectiveness hinges on the contractor's performance and the government's oversight. While the award signifies confidence in General Dynamics, continuous monitoring of service delivery, adherence to security protocols, and achievement of performance metrics are crucial. The long duration suggests a need for robust performance management to ensure sustained effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

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: $241,189,637

Exercised Options: $241,189,637

Current Obligation: $217,271,531

Actual Outlays: $1,137,054

Subaward Activity

Number of Subawards: 29

Total Subaward Amount: $26,055,782

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCK18D0003

IDV Type: GWAC

Timeline

Start Date: 2019-07-01

Current End Date: 2026-05-31

Potential End Date: 2026-05-31 00:00:00

Last Modified: 2025-12-23

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