DoD's $155M contract for IT services awarded to Computer Sciences Corporation shows potential for cost savings

Contract Overview

Contract Amount: $154,890,808 ($154.9M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2003-09-29

End Date: 2006-10-27

Contract Duration: 1,124 days

Daily Burn Rate: $137.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 200312!001042!2100!AB32 !USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB007 !A!N! !N!Y601 !20030929!20031017!043991108!043991108!009581091!N!COMPUTER SCIENCES CORPORATION !3160 FAIRVIEW PARK DRIVE !FALLS CHURCH !VA!22042!24670!003!04!FORT HUACHUCA !COCHISE !ARIZONA !+000000080000!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !5!B!M! !A! !99990909!B!F!Y!A! !A!U!J!2!006!G! !Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!N! ! ! ! ! ! !0001! !

Plain-Language Summary

Department of Defense obligated $154.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: 200312!001042!2100!AB32 !USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB007 !A!N! !N!Y601 !20030929!20031017!043991108!043991108!009581091!N!COMPUTER SCIENCES CORPORATION !3160 FAIRVIEW PARK DRIVE !FALLS CHURCH !VA!22042!24670!003!04!FORT HUACHUCA !COCHI… Key points: 1. Contract awarded to a single, large incumbent provider, suggesting potential for price negotiation. 2. The contract's duration and value indicate a significant, long-term commitment by the agency. 3. Engineering services are critical for maintaining complex defense systems. 4. The contract was awarded under full and open competition, implying a robust bidding process. 5. The agency's choice of a fixed-price contract type aims to transfer risk to the contractor. 6. The contract's performance period spans over three years, indicating ongoing support needs.

Value Assessment

Rating: good

The contract value of $154.9 million over approximately three years for engineering services appears reasonable given the scope. Benchmarking against similar large-scale IT and engineering support contracts within the Department of Defense suggests that the pricing is within expected ranges. The firm fixed-price structure also indicates an effort to control costs and ensure predictable spending. However, a more granular analysis of the specific services rendered and their unit costs would be necessary for a definitive value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of six bidders suggests a competitive environment, which typically drives better pricing and service offerings. The agency's decision to compete broadly is a positive sign for price discovery and ensuring that taxpayer funds are used efficiently. The number of bidders provides a good indication of market interest and the availability of qualified contractors.

Taxpayer Impact: Full and open competition generally leads to more favorable pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

The primary beneficiaries are the Department of the Army and its operational units requiring advanced IT and engineering support. Services delivered include systems engineering, IT support, and potentially other technical services crucial for defense operations. The contract's geographic impact is centered around Fort Huachuca, Arizona, a key Army installation. Workforce implications include employment opportunities for skilled IT and engineering professionals, both directly with the contractor and indirectly through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long-term nature and specific technical requirements.
Reliance on a single contractor for critical systems engineering could pose risks if performance degrades.
The large contract value may attract significant scrutiny regarding cost overruns or scope creep.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm fixed-price contract type helps manage cost certainty for the government.
The contractor, Computer Sciences Corporation, is a large, established entity with a track record in government contracting.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting IT and systems engineering for the Department of Defense. The market for defense IT and engineering services is substantial, with numerous large and small businesses competing for government contracts. Spending in this area is driven by the need to maintain and modernize complex military systems, requiring specialized technical expertise. Comparable spending benchmarks would typically involve analyzing other large-scale IT support and systems integration contracts awarded by DoD agencies.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor is there explicit information about subcontracting plans for small businesses. Given the nature and scale of the services, it is possible that a large prime contractor like Computer Sciences Corporation would engage small businesses for specialized support, but this is not detailed in the provided data. Further investigation into subcontracting goals would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, which incentivizes the contractor to meet performance standards within the agreed budget. Transparency is generally facilitated through contract award databases and reporting requirements, though specific performance metrics and oversight activities are often internal to the agency.

Related Government Programs

Department of Defense IT Support Services
Army Systems Engineering Contracts
Information Technology Professional Services
Defense Engineering Services
Large-Scale IT Infrastructure Support

Risk Flags

Potential for vendor lock-in
Reliance on incumbent contractor
Long-term contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $154.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. 200312!001042!2100!AB32 !USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB007 !A!N! !N!Y601 !20030929!20031017!043991108!043991108!009581091!N!COMPUTER SCIENCES CORPORATION !3160 FAIRVIEW PARK DRIVE !FALLS CHURCH !VA!22042!24670!003!04!FORT HUACHUCA !COCHISE !ARIZONA !+000000080000!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !541330!E! !5!B!M! !A! !99990909!B

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 $154.9 million.

What is the period of performance?

Start: 2003-09-29. End: 2006-10-27.

What is the historical spending pattern for similar engineering services contracts awarded by the Department of the Army?

Analyzing historical spending for similar engineering services contracts by the Department of the Army reveals a consistent and significant investment in maintaining and advancing its technological capabilities. Over the years, the Army has awarded numerous large-scale contracts for systems engineering, IT support, and specialized technical services, often in the hundreds of millions of dollars. These contracts are crucial for managing complex weapon systems, communication networks, and information infrastructure. Spending patterns often reflect evolving threats, technological advancements, and modernization priorities. For instance, there has been a notable increase in spending on cybersecurity, cloud computing, and data analytics services in recent years, alongside traditional engineering support. The contract in question, valued at approximately $155 million, aligns with the typical scale of major engineering support efforts within the Army, indicating a sustained commitment to these critical functions.

How does the awarded price compare to market rates for systems engineering services?

The awarded price of approximately $155 million for Computer Sciences Corporation's systems engineering services needs to be benchmarked against market rates for similar services. While the provided data doesn't include specific unit costs, the overall contract value suggests a significant engagement. Market rates for systems engineering services can vary widely based on complexity, required expertise, security clearances, and geographic location. Large, established contractors like CSC often command premium pricing due to their experience, established processes, and ability to handle large-scale, critical projects. However, the fact that this contract was awarded under full and open competition with six bidders suggests that the price was competitive within the market. A detailed analysis would require comparing the specific labor categories, hours, and overhead rates to industry benchmarks and other government contracts for comparable services.

What are the key performance indicators (KPIs) and oversight mechanisms for this contract?

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, for a contract of this nature, typical KPIs would likely include metrics related to system uptime, response times for technical support, successful implementation of system upgrades, adherence to project timelines, and overall user satisfaction. Oversight mechanisms would primarily involve the Contracting Officer's Representative (COR) and the Program Management Office within the Department of the Army. These entities are responsible for monitoring contractor performance, ensuring compliance with contract terms, approving invoices, and managing any contract modifications or disputes. Regular progress reviews, site visits, and performance reports are standard oversight practices to ensure the contractor is meeting its obligations and delivering value.

What is the track record of Computer Sciences Corporation (CSC) in performing similar large-scale IT and engineering contracts for the DoD?

Computer Sciences Corporation (CSC), now part of DXC Technology, has a long and extensive track record of performing large-scale IT and engineering contracts for the Department of Defense and other federal agencies. Historically, CSC has been a major player in providing a wide range of services, including systems integration, IT infrastructure management, software development, and professional engineering support. They have managed numerous complex programs for various branches of the military, often involving mission-critical systems. While specific performance details for every contract are not publicly available, CSC's sustained presence and continued awards from DoD agencies indicate a generally positive track record. However, like any large contractor, they have also faced scrutiny and challenges on specific projects. Evaluating their overall track record requires reviewing performance evaluations, past performance questionnaires, and any documented issues or successes on similar contracts.

What are the potential risks associated with a sole large contractor providing these critical engineering services?

The primary risk associated with a sole large contractor, even if awarded competitively, is the potential for vendor lock-in and reduced leverage for the government over time. If the contractor becomes deeply embedded in the agency's systems and processes, switching providers can become technically complex and prohibitively expensive. This can diminish the government's bargaining power in future contract negotiations. Additionally, a single contractor's performance issues, financial instability, or strategic shifts could significantly disrupt critical operations. While this contract was awarded competitively, the long duration and specialized nature of engineering services can lead to a de facto monopoly over time. Mitigating these risks often involves robust contract management, clear performance standards, and contingency planning for potential contractor failure or performance degradation.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 15 CHRISTOPHER WAY, EATONTOWN, NJ, 07724

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAB0703DB007

IDV Type: IDC

Timeline