EPA awards $18.76M contract for environmental consulting services to General Dynamics Information Technology

Contract Overview

Contract Amount: $18,764,149 ($18.8M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2002-08-15

End Date: 2007-08-18

Contract Duration: 1,829 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Place of Performance

Location: VIRGINIA

State: Virginia Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $18.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 5 years indicates a significant, long-term need for these services. 3. The Cost Plus Fixed Fee (CPFF) contract type can present cost control challenges if not managed closely. 4. General Dynamics Information Technology, a large established contractor, is well-positioned to handle complex environmental projects. 5. The specific North American Industry Classification System (NAICS) code 541620 points to specialized environmental consulting expertise. 6. The contract's value of $18.76 million places it within a substantial spending category for environmental services.

Value Assessment

Rating: good

The contract value of $18.76 million over five years averages approximately $3.75 million annually. Benchmarking this against similar large-scale environmental consulting contracts awarded by federal agencies suggests this is within a reasonable range for comprehensive services. The CPFF structure requires careful oversight to ensure costs remain controlled and that the fixed fee adequately compensates the contractor for their expertise and effort without excessive profit margins. Without specific per-unit cost data, a direct value-for-money assessment is challenging, but the competitive award process provides some assurance of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which is expected to drive down prices and encourage innovation. The agency likely issued a detailed Request for Proposal (RFP) outlining specific requirements, allowing multiple firms to propose solutions. The competitive nature of this award suggests that the selected contractor, General Dynamics Information Technology, offered the best value proposition among the competing entities.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it maximizes the potential for obtaining services at the most competitive price, thereby ensuring efficient use of public funds.

Public Impact

The Environmental Protection Agency (EPA) is the primary beneficiary, receiving essential environmental consulting services. Services delivered likely include technical assistance, data analysis, regulatory support, and program management related to environmental protection. The geographic impact is national, supporting EPA's mission across the United States. The contract supports a workforce of environmental scientists, engineers, and consultants, contributing to specialized job creation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not meticulously managed.
Lack of specific per-unit cost data makes granular value assessment difficult.
The long duration of the contract requires sustained oversight to ensure continued performance and relevance.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
General Dynamics Information Technology is a large, experienced contractor with a proven track record.
The contract supports critical environmental protection missions of the EPA.

Sector Analysis

Environmental consulting services fall under the broader professional, scientific, and technical services sector. This sector is characterized by specialized expertise and often involves complex analytical and advisory roles. The market size for federal environmental consulting is substantial, driven by regulatory requirements and the need for scientific expertise across various agencies. This contract fits within the EPA's core mission of environmental stewardship and compliance, representing a significant investment in maintaining and improving environmental quality. Comparable spending benchmarks would typically involve analyzing the average cost of similar consulting engagements for regulatory support, scientific research, and environmental impact assessments.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses. General Dynamics Information Technology is a large business, suggesting that the primary focus was on securing the most capable provider for complex environmental consulting services. The absence of small business set-aside provisions means that opportunities for small businesses to directly participate in this specific contract may be limited, though they could potentially engage as subcontractors if opportunities arise and are pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily reside with the Environmental Protection Agency's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and managing payments. The CPFF structure necessitates rigorous financial oversight to track costs and ensure the fixed fee remains appropriate. Transparency is generally maintained through contract databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Environmental Consulting Services
Professional, Scientific, and Technical Services
EPA Contract Vehicles
Environmental Remediation Support
Regulatory Compliance Services

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent cost monitoring.
Long contract duration necessitates ongoing performance evaluation.
Potential for scope creep over the 5-year period.
Reliance on a single large contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $18.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $18.8 million.

What is the period of performance?

Start: 2002-08-15. End: 2007-08-18.

What is the historical spending pattern for environmental consulting services by the EPA?

The EPA consistently allocates significant funding towards environmental consulting services, reflecting the agency's broad mandate. Historical data indicates a steady demand for expertise in areas such as regulatory analysis, scientific research, policy development, and technical assistance. Spending in this category can fluctuate based on emerging environmental issues, legislative changes, and the prioritization of specific programs. For instance, increased focus on climate change initiatives or new pollution control regulations could lead to higher spending on related consulting services. Analyzing multi-year spending trends for NAICS code 541620 within the EPA reveals the agency's long-term commitment to leveraging external expertise to achieve its environmental protection goals. This particular contract, valued at $18.76 million over five years, aligns with the typical scale of major environmental consulting engagements undertaken by the agency.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other pricing structures for similar services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is well-defined but the exact costs are difficult to estimate precisely beforehand. In this structure, the contractor is reimbursed for allowable costs incurred, plus a predetermined fixed fee representing their profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government if requirements change, but it carries a higher risk of cost overruns if not managed diligently. Conversely, it provides more cost certainty for the contractor than a Cost-Plus-Incentive-Fee (CPIF) contract, which ties profit more directly to performance metrics. For specialized environmental consulting, where unforeseen scientific challenges or regulatory shifts can occur, CPFF can be a suitable choice, provided the government maintains strong oversight to control costs and ensure the fixed fee remains fair for the work performed.

What is General Dynamics Information Technology's track record with federal environmental consulting contracts?

General Dynamics Information Technology (GDIT), now part of General Dynamics, has a substantial track record in providing a wide array of IT and professional services to various federal agencies, including those related to environmental programs. While their primary strength is often recognized in IT solutions, their capabilities extend to complex program management and technical support that can encompass environmental domains. They have historically secured and executed large-scale federal contracts. Assessing their specific performance on environmental consulting contracts would involve reviewing past performance evaluations, contract modifications, and any documented issues or successes. Given their size and experience, it is likely they possess the necessary infrastructure and expertise to manage significant environmental consulting efforts, though the specifics of their environmental-focused project history would require deeper investigation into their contract portfolio.

What are the potential risks associated with a $18.76 million, 5-year environmental consulting contract?

Several risks are associated with a contract of this magnitude and duration. Firstly, the Cost Plus Fixed Fee (CPFF) structure inherently carries a risk of cost escalation if the government's oversight is insufficient to control the contractor's incurred costs. Secondly, the long performance period (5 years) increases the risk of scope creep, where the project's objectives may expand beyond the original intent without adequate adjustments to cost and schedule. There's also a risk related to contractor performance; if General Dynamics Information Technology fails to deliver the expected quality or expertise, it could impede the EPA's environmental protection efforts. Furthermore, changes in environmental regulations or scientific understanding during the contract term could render some of the consulting services less relevant or require significant adaptation, posing a risk to the contract's overall effectiveness and value.

How does the competition level for this contract influence its value for taxpayers?

The fact that this contract was awarded under 'full and open competition' is a significant positive indicator for taxpayers. This procurement method ensures that a wide range of qualified companies are invited to bid, fostering a competitive environment. When multiple companies vie for a contract, they are incentivized to offer their best pricing and most innovative solutions to win the award. This competitive pressure typically leads to lower prices than would be achieved through sole-source or limited competition awards. For taxpayers, this means that the $18.76 million allocated for these environmental consulting services is more likely to represent a fair market price and provide better overall value. The agency's commitment to open competition demonstrates responsible stewardship of public funds.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Environmental Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: SRA International, Inc. (UEI: 606261683)

Address: 4300 FAIR LAKES CT, FAIRFAX, VA, 11

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

Financial Breakdown

Contract Ceiling: $7,145,010

Exercised Options: $17,827,736

Current Obligation: $18,764,149

Timeline