DoD awards $64.5M for Systems Engineering Support to General Dynamics, raising value concerns

Contract Overview

Contract Amount: $64,548,715 ($64.5M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2007-09-28

End Date: 2012-10-31

Contract Duration: 1,860 days

Daily Burn Rate: $34.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SYSTEMS ENGINEERING AND TECHNICAL ASSITANCE SUPPORT SERVICES

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $64.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: SYSTEMS ENGINEERING AND TECHNICAL ASSITANCE SUPPORT SERVICES Key points: 1. Significant contract value of $64.5M over 5 years. 2. General Dynamics Information Technology Inc. is the sole awardee. 3. Contract type is Time and Materials, which can lead to cost overruns. 4. Engineering Services sector, NAICS 541330.

Value Assessment

Rating: questionable

The Time and Materials contract type for a 5-year duration with a $64.5M ceiling presents a risk for cost escalation. Without clear performance metrics tied to fixed prices, the value for money is difficult to assess.

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 Time and Materials pricing structure may not have fully leveraged competition to drive down costs.

Taxpayer Impact: The significant contract value means taxpayers are exposed to potential cost overruns due to the T&M pricing structure.

Public Impact

Taxpayers may be overpaying due to the T&M contract type. Lack of transparency in cost breakdown for services rendered. Potential for scope creep without strict oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type
Long contract duration
High contract value

Positive Signals

Full and open competition awarded

Sector Analysis

This contract falls within the Engineering Services sector, which is critical for government projects. Benchmarks for similar services are highly variable, but T&M contracts often exceed fixed-price equivalents.

Small Business Impact

The contract data indicates that small business participation was not a stated factor in this award, which is common for large prime contracts.

Oversight & Accountability

Oversight is crucial for T&M contracts to ensure costs remain within the ceiling and services are necessary. The Defense Contract Management Agency is responsible for this oversight.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Risk of cost overruns due to T&M pricing.
Potential for inefficient service delivery.
Difficulty in assessing true value for money.
Limited transparency on specific service costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $64.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. SYSTEMS ENGINEERING AND TECHNICAL ASSITANCE 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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $64.5 million.

What is the period of performance?

Start: 2007-09-28. End: 2012-10-31.

What specific engineering services were provided under this contract, and how were they justified?

The contract was for 'SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE SUPPORT SERVICES.' Without detailed task orders and deliverables, it's difficult to assess the necessity and justification of each service. The T&M structure implies services were billed as rendered, making granular justification challenging post-hoc.

What measures were in place to control costs and prevent overruns with the Time and Materials contract?

Time and Materials contracts inherently carry a higher risk of cost overruns. Effective oversight by the Defense Contract Management Agency, including monitoring labor hours, rates, and material costs, along with strict adherence to the contract ceiling and defined scope, are critical mitigation strategies.

How did the full and open competition translate into cost savings for the government?

While full and open competition suggests a competitive process for selecting the prime contractor, the T&M pricing structure can limit the realization of cost savings. The government may have secured a competitive rate for the contractor's labor and materials, but the overall cost is still dependent on the quantity of services consumed.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W91WAW07R0027

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corporation

Address: 3170 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $64,921,677

Exercised Options: $64,921,677

Current Obligation: $64,548,715

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline