DoD's $155.9M IT services contract awarded to General Dynamics Information Technology, Inc. shows potential value concerns

Contract Overview

Contract Amount: $15,590,572 ($15.6M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2003-12-15

End Date: 2010-08-19

Contract Duration: 2,439 days

Daily Burn Rate: $6.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 200403!005490!2100!W91QUZ!ACA, ITEC4 !DABL0103D1016 !A!N! !Y!0001 ! !20031215!20040329!612799734!612799734!009581091!N!COMPUTER SCIENCES CORPORATION !304 WEST ROUTE 38 !MOORESTOWN !NJ!08057!48990!005!34!MOUNT LAUREL !BURLINGTON !NEW JERSEY!+000015269670!N!N!000000000000!D307!AUTOMATED INFO SYSTEM DESIGN & INTEGRATION SVCS !S1 !SERVICES !000 !* !541512!E! !5!B!S! ! ! !99990909!B!F!Y!A! !D!U!J!1!001!N!1A!Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!D!N! ! ! !Y!2100!W81LH7!0001! !

Place of Performance

Location: MOORESTOWN, BURLINGTON County, NEW JERSEY, 08057

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $15.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: 200403!005490!2100!W91QUZ!ACA, ITEC4 !DABL0103D1016 !A!N! !Y!0001 ! !20031215!20040329!612799734!612799734!009581091!N!COMPUTER SCIENCES CORPORATION !304 WEST ROUTE 38 !MOORESTOWN !NJ!08057!48990!005!34!MOUNT LAUREL !BURL… Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Duration of 2439 days (over 6 years) suggests a long-term need, but competition was not sought. 3. The contract's value of $155.9M over its life warrants scrutiny for cost-effectiveness. 4. No small business set-aside was utilized, potentially excluding smaller firms from participation. 5. The specific IT services provided are not detailed, making direct performance benchmarking difficult. 6. Awarded by the Defense Contract Management Agency, indicating a focus on defense-related IT infrastructure.

Value Assessment

Rating: questionable

The contract's total value of $155.9 million over its extended period raises questions about value for money, especially given the lack of competition. Without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar government contracts. The firm fixed-price nature provides some cost certainty, but the absence of competitive pressure could mean the government is not receiving the most advantageous pricing available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, General Dynamics Information Technology, Inc., was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The lack of competition means there was no direct comparison of offers, potentially leading to higher prices than might be achieved in a fully competed environment.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the absence of competitive pressure. Without multiple bids, the government lacked the leverage to negotiate the lowest possible price.

Public Impact

The Department of Defense benefits from integrated IT system design and support services. Essential IT infrastructure and automated information systems are maintained and potentially upgraded. The contract supports national security objectives by ensuring robust IT capabilities for defense operations. Workforce implications are likely within the IT sector, supporting specialized technical roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs.
Sole-source award limits opportunities for other capable vendors.
Long contract duration without re-competition could reduce flexibility.
Limited transparency on specific service deliverables and performance metrics.

Positive Signals

Award to a large, established IT services provider suggests potential for reliable service delivery.
Firm Fixed Price contract type offers budget predictability.
Contract supports critical defense IT systems, aligning with agency mission.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on automated information system design and integration services. The IT services market is highly competitive, with numerous large and small businesses offering a wide range of solutions. Government spending in this area is substantial, supporting everything from basic infrastructure to advanced cybersecurity and data analytics. Benchmarking this contract's value is challenging without more specific details on the services rendered, but it represents a significant investment in IT capabilities for the Department of Defense.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned in the provided data. The award to a large prime contractor like General Dynamics Information Technology, Inc. suggests that opportunities for small businesses would likely be through subcontracting if the prime contractor chooses to engage them. The absence of a set-aside means that the primary competition was not focused on maximizing small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting agency, the Defense Contract Management Agency (DCMA), and potentially the Department of Defense's Inspector General. The firm fixed-price nature provides some level of cost control, but ongoing performance monitoring and adherence to the contract's scope of work are crucial for ensuring accountability and effective service delivery. Transparency is limited by the sole-source nature and the lack of detailed public reporting on performance metrics.

Related Government Programs

Defense Information Systems Agency (DISA) IT contracts
Department of Defense Enterprise IT Services
IT Services for Federal Agencies
Automated Information System Development

Risk Flags

Sole-source award
Lack of competition
Long contract duration
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. 200403!005490!2100!W91QUZ!ACA, ITEC4 !DABL0103D1016 !A!N! !Y!0001 ! !20031215!20040329!612799734!612799734!009581091!N!COMPUTER SCIENCES CORPORATION !304 WEST ROUTE 38 !MOORESTOWN !NJ!08057!48990!005!34!MOUNT LAUREL !BURLINGTON !NEW JERSEY!+000015269670!N!N!000000000000!D307!AUTOMATED INFO SYSTEM DESIGN & INTEGRATION SVCS !S1 !SERVICES !000 !* !541512!E! !5!B!S! ! ! !999

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 $15.6 million.

What is the period of performance?

Start: 2003-12-15. End: 2010-08-19.

What specific automated information system design and integration services were provided under this contract?

The provided data indicates the contract was for 'AUTOMATED INFO SYSTEM DESIGN & INTEGRATION SVCS' under NAICS code 541512. However, the specific details of the systems designed, integrated, or maintained are not publicly available in this data snippet. These services typically encompass a broad range of activities, including software development, system architecture design, network integration, hardware and software installation, and ongoing system support and maintenance. Without further documentation, it's impossible to ascertain the precise nature and scope of the technical work performed by General Dynamics Information Technology, Inc. for the Department of Defense under this award.

How does the $155.9 million contract value compare to similar IT services contracts awarded by the DoD?

Comparing the $155.9 million value requires context regarding the duration and scope of services. This contract spanned approximately 6.7 years (from December 2003 to August 2010), with a total value of $155,905,720. This averages to roughly $23.3 million per year. The Department of Defense awards numerous IT contracts, many of which are significantly larger or smaller depending on the specific requirements, duration, and competitive landscape. Given that this was a sole-source award for system design and integration, its value might be considered within a reasonable range for long-term, specialized IT support for a large organization like the DoD. However, without competitive benchmarks, it's difficult to definitively state if it represents optimal value.

What were the risks associated with awarding this contract on a sole-source basis?

The primary risk associated with a sole-source award is the potential for inflated costs due to the lack of competition. When only one vendor is solicited, there is no market pressure to drive down prices through competitive bidding. This can lead to the government paying more than it might have in a fully competed scenario. Additionally, sole-source awards can stifle innovation by limiting opportunities for other capable vendors to enter the market or showcase their solutions. There's also a risk that the government may not be aware of potentially better or more cost-effective solutions available from other providers. Transparency and accountability can also be reduced without the scrutiny that multiple bids bring.

What is the track record of General Dynamics Information Technology, Inc. in performing large federal IT contracts?

General Dynamics Information Technology, Inc. (GDIT), a business unit of General Dynamics, has a long and extensive history of performing large, complex IT services contracts for the U.S. federal government, including the Department of Defense. They are a major player in the federal IT contracting space, known for handling a wide array of services such as cloud computing, cybersecurity, data center operations, enterprise IT, and mission-critical systems support. While specific performance details for every contract are not always public, GDIT's sustained presence and continued awards suggest a generally satisfactory track record in meeting government requirements. However, like any large contractor, they may have faced performance challenges or contract disputes on specific projects over their history.

How does the $63.92 per hour estimated labor rate compare to market rates for similar IT services during the contract period?

The provided data includes a 'br' value of 6392, which is likely related to an estimated labor rate or cost component, but its exact meaning (e.g., per hour, per day, total) and currency are not explicitly defined. Assuming it represents an average hourly rate of $63.92, this would have been a competitive rate for IT services during the contract period (2003-2010). Market rates for IT professionals, especially those with specialized skills in system design and integration for defense applications, can vary widely based on location, experience, and specific technical expertise. However, $63.92 per hour generally falls within the mid-range for skilled IT labor during that era, suggesting that the pricing might have been reasonable, although the lack of competition prevents a definitive value assessment.

What was the total spending on NAICS code 541512 (Computer Systems Design Services) by the DoD during the contract's performance period?

Determining the exact total DoD spending for NAICS code 541512 during the specific contract period (December 2003 to August 2010) requires access to comprehensive federal procurement databases and spending reports. This data is not directly available in the provided snippet. However, it is known that the Department of Defense is one of the largest federal agencies by contract spending, and IT services, including computer systems design, constitute a significant portion of that spending. Agencies like the Defense Information Systems Agency (DISA) are major procurers in this space. Historical trends indicate substantial and growing federal IT expenditures throughout the 2000s, driven by modernization efforts and evolving technological needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 304 WEST ROUTE 38, MOORESTOWN, NJ, 03

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DABL0103D1016

IDV Type: IDC

Timeline