General Dynamics One Source LLC awarded $33M for Education Eligibility Systems O&M, with a 5-year duration
Contract Overview
Contract Amount: $32,986,287 ($33.0M)
Contractor: General Dynamics ONE Source LLC
Awarding Agency: Department of Education
Start Date: 2015-02-27
End Date: 2016-10-31
Contract Duration: 612 days
Daily Burn Rate: $53.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CT::IGF THE INDEFINITE DELIEVERY INDEFINITE QUANTITY CONTRACT IS TO PROVIDE OPERATION AND MAINTENANCE OF THE APPLICATION AND ELGILBILITY SYSTEMS (AEDS). THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE AEDS OPERATIONS AND MAINTENANCE SUPPORT SERVICES FOR THE PERIOD OF 2/27/2015 THROUGH 3/31/2016 AND FUNDING.
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030
State: Virginia Government Spending
Plain-Language Summary
Department of Education obligated $33.0 million to GENERAL DYNAMICS ONE SOURCE LLC for work described as: IGF::CT::IGF THE INDEFINITE DELIEVERY INDEFINITE QUANTITY CONTRACT IS TO PROVIDE OPERATION AND MAINTENANCE OF THE APPLICATION AND ELGILBILITY SYSTEMS (AEDS). THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE AEDS OPERATIONS AND MAINTENANCE SUPPORT SERVICES FOR THE PERIOD OF 2/27/2015… Key points: 1. Contract value of $32.99M for a 5-year period suggests a moderate annual spend. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. Fixed-price contract type may limit cost overruns but could also reduce contractor flexibility. 4. The task order covers operations and maintenance for application and eligibility systems. 5. The contract's duration of 612 days (approx. 1.7 years) seems short for the stated funding amount. 6. The contract is for IT services, specifically computer-related services. 7. The contract was awarded by the Department of Education. 8. The contract was awarded as a Delivery Order under an IDIQ contract.
Value Assessment
Rating: fair
The contract value of $32.99M over approximately 1.7 years results in an annual spend of roughly $19.4M. Benchmarking this against similar IT operations and maintenance contracts for large federal systems is difficult without more specific details on the scope of the 'application and eligibility systems'. However, the fixed-price nature suggests an attempt to control costs. The relatively short duration for the funding amount warrants further investigation into whether this represents a full lifecycle cost or a specific phase.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' which implies that all responsible sources were permitted to submit bids. This typically leads to a more competitive environment, potentially resulting in better pricing and value for the government. The number of bidders is not specified, but the designation suggests a robust competition.
Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring the government receives the best possible value for its investment.
Public Impact
The Department of Education benefits from the continued operation and maintenance of its critical application and eligibility systems. Students, educational institutions, and administrators likely benefit from the reliable functioning of these systems, which are crucial for program access and management. The contract supports IT professionals and potentially other roles involved in system operations and maintenance. The geographic impact is primarily within the federal government's IT infrastructure, with potential downstream effects on federal education program beneficiaries nationwide.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The duration of the contract (612 days) appears short relative to the awarded funding ($32.99M), raising questions about the total lifecycle cost or if this is a partial funding award.
- Lack of specific details on the 'application and eligibility systems' makes it difficult to fully assess the scope and complexity of the work performed.
- The fixed-price contract type, while controlling costs, might limit flexibility if unforeseen technical challenges arise during operations and maintenance.
Positive Signals
- Awarded under full and open competition, suggesting a competitive process that should yield good value.
- The contract is for essential operations and maintenance, ensuring the continuity of critical government IT systems.
- The contractor, General Dynamics One Source LLC, is a known entity in federal contracting, potentially bringing established expertise.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems operations and maintenance. The IT services market for federal agencies is substantial, with significant spending on software, hardware, and related support. Contracts for maintaining critical eligibility and application systems are common across various federal departments, ensuring the smooth functioning of public services. Benchmarks for similar IT O&M contracts vary widely based on system complexity, user base, and security requirements.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The prime contractor, General Dynamics One Source LLC, is a large business, and any subcontracting opportunities would be at their discretion, not mandated by a set-aside program.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Education's contracting and program management offices. As an IDIQ task order, it is subject to the terms of the parent IDIQ contract's oversight provisions. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract. Transparency is generally facilitated through contract databases like FPDS, where award details are reported.
Related Government Programs
- Federal IT Operations and Maintenance Contracts
- Department of Education IT Spending
- Application and Systems Support Services
- Indefinite Delivery Indefinite Quantity (IDIQ) Contracts
- Eligibility Determination Systems
Risk Flags
- Duration vs. Funding Mismatch
- Lack of System Specificity
- Potential for Scope Creep (Fixed-Price)
Tags
it-services, operations-and-maintenance, department-of-education, delivery-order, full-and-open-competition, firm-fixed-price, general-dynamics-one-source-llc, application-systems, eligibility-systems, federal-contracting, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $33.0 million to GENERAL DYNAMICS ONE SOURCE LLC. IGF::CT::IGF THE INDEFINITE DELIEVERY INDEFINITE QUANTITY CONTRACT IS TO PROVIDE OPERATION AND MAINTENANCE OF THE APPLICATION AND ELGILBILITY SYSTEMS (AEDS). THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE AEDS OPERATIONS AND MAINTENANCE SUPPORT SERVICES FOR THE PERIOD OF 2/27/2015 THROUGH 3/31/2016 AND FUNDING.
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS ONE SOURCE LLC.
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $33.0 million.
What is the period of performance?
Start: 2015-02-27. End: 2016-10-31.
What is the specific nature and complexity of the 'application and eligibility systems' being maintained?
The provided data does not specify the exact nature or complexity of the 'application and eligibility systems' (AEDs). These systems are crucial for the Department of Education's operations, likely involving student financial aid, grant programs, or other eligibility verification processes. Without more detailed documentation, it's challenging to ascertain the technical architecture, user base size, data sensitivity, and integration points, which are critical factors in assessing the scope and value of operations and maintenance services. Understanding these specifics would allow for a more precise comparison to industry benchmarks and a better evaluation of the contract's value proposition.
How does the annual cost of this contract compare to similar IT O&M contracts within the federal government?
The annual cost for this contract is approximately $19.4 million ($32.99M / ~1.7 years). Comparing this to similar IT O&M contracts requires detailed knowledge of the specific systems being maintained, their criticality, user base, and the scope of services (e.g., 24/7 support, cybersecurity, software updates, hardware maintenance). General Dynamics One Source LLC is a large contractor, and their pricing is often competitive but can vary. Without a direct comparison of system complexity and service level agreements for comparable federal IT O&M contracts, it is difficult to definitively state whether this represents a high, low, or average cost. However, for critical federal systems, such spending levels are not uncommon.
What is the track record of General Dynamics One Source LLC on similar federal IT contracts?
General Dynamics One Source LLC, as part of the larger General Dynamics Corporation, has a significant history of performing IT services for the federal government. While specific performance data for this particular task order is limited in the provided snippet, the company generally has experience with large-scale IT operations, maintenance, and system integration projects across various agencies. Their track record would typically be assessed through past performance evaluations in subsequent contract bids and through contract performance reports. Agencies often consider a contractor's history of meeting deadlines, managing budgets, and delivering quality services when awarding new contracts.
What are the potential risks associated with the fixed-price contract type for this O&M task order?
The primary risk associated with a fixed-price contract for operations and maintenance (O&M) is the potential for scope creep or unforeseen technical challenges that could strain the contractor's resources. If the 'application and eligibility systems' require more extensive maintenance, updates, or troubleshooting than initially anticipated, the contractor might incur losses or be incentivized to cut corners on service quality to maintain profitability. Conversely, if the work is less demanding than estimated, the government might have overpaid. Effective contract management, clear performance metrics, and a well-defined scope are crucial to mitigate these risks.
How does the duration of the task order (612 days) align with the funding amount ($32.99M)?
The duration of 612 days (approximately 1.7 years) for a funding amount of $32.99 million suggests a significant annual expenditure of roughly $19.4 million. This ratio could indicate a high-demand system requiring substantial resources for operation and maintenance, or it might represent a specific phase of a larger project where this funding is allocated. It is also possible that the task order represents a portion of a larger IDIQ contract's potential value, and this specific funding is for a defined period. Further clarification on whether this funding covers the entire lifecycle of the task order or is just an initial allocation is needed for a complete assessment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 3211 JERMANTOWN ROAD, FAIRFAX, VA, 22030
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,986,287
Exercised Options: $32,986,287
Current Obligation: $32,986,287
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: EDFSA15D0001
IDV Type: IDC
Timeline
Start Date: 2015-02-27
Current End Date: 2016-10-31
Potential End Date: 2016-10-31 00:00:00
Last Modified: 2020-09-29
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