DoD's $70M Engineering Services Contract Awarded to General Dynamics for NAS Jacksonville

Contract Overview

Contract Amount: $69,924,599 ($69.9M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-10-26

End Date: 2017-09-27

Contract Duration: 2,163 days

Daily Burn Rate: $32.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: NAS JACKSONVILLE, FL P-3

Place of Performance

Location: NORCO, RIVERSIDE County, CALIFORNIA, 92860

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $69.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: NAS JACKSONVILLE, FL P-3 Key points: 1. Contract value represents a significant investment in engineering support services. 2. General Dynamics Information Technology, Inc. secured this contract through full and open competition. 3. The contract duration of over 2000 days suggests a long-term need for these services. 4. Engineering services are critical for maintaining and upgrading complex military infrastructure. 5. The 'Time and Materials' pricing structure can introduce cost variability. 6. The contract was awarded by the Defense Contract Management Agency, indicating a focus on defense-related operations.

Value Assessment

Rating: fair

Benchmarking the value of this $70 million contract for engineering services is challenging without specific deliverables. However, the duration of over five years suggests a substantial, ongoing requirement. The 'Time and Materials' (T&M) pricing model, while flexible, can lead to cost overruns if not managed tightly. Comparing this to similar long-term engineering support contracts within the Department of Defense would provide better context on whether the overall price reflects fair value for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' procurement method, indicating that all responsible sources were permitted to submit bids. The fact that it was competed broadly suggests a healthy market for these types of engineering services. The number of bidders is not specified, but open competition generally promotes price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: Taxpayers benefit from open competition as it typically drives down costs and ensures the government receives the best possible value by considering a wide range of qualified contractors.

Public Impact

The primary beneficiaries are the Department of Defense and its operations at NAS Jacksonville, Florida. Services delivered likely include engineering design, analysis, technical support, and potentially project management for infrastructure and systems. The geographic impact is concentrated at NAS Jacksonville, supporting its mission readiness. The contract supports a workforce of engineers and technical specialists, contributing to employment in the engineering sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Time and Materials' pricing structure carries inherent risk of cost escalation if not closely monitored and managed.
Lack of specific performance metrics makes it difficult to assess the efficiency and effectiveness of the services provided.
The long duration of the contract could lead to vendor lock-in or reduced agility in adapting to changing technological needs.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process and potential for competitive pricing.
The contract supports critical defense infrastructure, aligning with national security objectives.
General Dynamics Information Technology, Inc. is a large, established contractor with significant experience in government services.

Sector Analysis

This contract falls within the Engineering Services sector, a vital component of the broader professional, scientific, and technical services industry. This sector supports government and private entities with specialized expertise in design, development, and implementation of complex systems and infrastructure. The market for defense engineering services is substantial, driven by the continuous need for modernization and maintenance of military assets and facilities. Comparable spending benchmarks would typically involve analyzing other large-scale engineering support contracts awarded by the DoD or other federal agencies for similar types of support.

Small Business Impact

The contract was awarded to General Dynamics Information Technology, Inc., a large business. There is no indication of a small business set-aside for this contract. Subcontracting opportunities for small businesses may exist, depending on the prime contractor's subcontracting plan and the specific nature of the engineering tasks required. The impact on the small business ecosystem would be indirect, primarily through potential subcontracting relationships rather than direct awards.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA) and the contracting activity within the Department of Defense. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance data may be less accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Engineering Services
Naval Facilities Engineering Command Contracts
Department of Defense IT and Professional Services
Base Operations Support Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Scope creep risk given the long contract duration and T&M structure.
Need for robust performance monitoring to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $69.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. NAS JACKSONVILLE, FL P-3

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 $69.9 million.

What is the period of performance?

Start: 2011-10-26. End: 2017-09-27.

What specific engineering services were included in this $70 million contract?

The provided data indicates the contract is for 'Engineering Services' (NAICS code 541330) awarded to General Dynamics Information Technology, Inc. for NAS Jacksonville, FL. While the specific breakdown of services is not detailed in the summary data, engineering services typically encompass a wide range of activities. These can include architectural design, civil engineering, mechanical and electrical engineering, systems engineering, technical consulting, project management, and support for the maintenance, repair, and modernization of facilities and infrastructure. Given the location at a naval air station, services likely relate to airfield infrastructure, support facilities, and potentially specialized systems integral to aviation operations. Further details would be found in the contract's Statement of Work (SOW).

How does the 'Time and Materials' pricing structure compare to other contract types for similar services?

The 'Time and Materials' (T&M) pricing structure is common for services where the scope of work is not clearly defined at the outset or is expected to evolve. It reimburses the contractor for the direct labor hours at specified hourly rates and the cost of materials used. Compared to fixed-price contracts, T&M offers flexibility but carries a higher risk of cost overruns for the government if not managed diligently. For engineering services, especially those involving research, development, or unforeseen complexities, T&M can be appropriate. However, it requires robust oversight to ensure efficiency and prevent unnecessary labor hours or inflated material costs. Other contract types like Cost-Plus-Fixed-Fee (CPFF) or Firm-Fixed-Price (FFP) might be used for projects with more defined scopes.

What is the typical track record of General Dynamics Information Technology, Inc. with large federal contracts?

General Dynamics Information Technology, Inc. (GDIT), now part of General Dynamics, has a long and extensive history of performing large, complex contracts for the U.S. federal government, particularly within the Department of Defense and civilian agencies. They are known for providing a wide array of IT, systems engineering, and professional services. Their track record includes managing significant programs related to defense modernization, cybersecurity, cloud computing, and mission support. While specific performance on every contract varies, GDIT is generally considered a major incumbent contractor with substantial resources and experience in handling large-scale federal procurements. Reviewing specific contract performance ratings and past performance evaluations would provide a more granular assessment.

What does the 'Defense Contract Management Agency' (DCMA) role imply for this contract?

The fact that the Defense Contract Management Agency (DCMA) is listed as the 'servicing agency' (sa) implies that DCMA is responsible for the day-to-day contract administration and oversight on behalf of the contracting officer. DCMA's role is crucial in ensuring that the contractor, General Dynamics Information Technology, Inc., complies with the contract terms and conditions. This includes monitoring performance, ensuring quality control, managing payments, and verifying compliance with regulations. For a contract of this size and duration, DCMA's involvement signifies a dedicated level of oversight focused on the successful execution of engineering services at NAS Jacksonville.

How does the 'Engineering Services' category (NAICS 541330) typically relate to military base operations?

The 'Engineering Services' category (NAICS 541330) is highly relevant to military base operations. Military installations like NAS Jacksonville are complex ecosystems requiring continuous engineering support for a vast array of infrastructure and systems. This includes maintaining and upgrading runways, buildings, utilities (water, power, sewage), communication networks, and specialized facilities for aircraft maintenance and operations. Engineering services can range from initial design and planning for new construction or renovations to ongoing maintenance, repair, system upgrades, environmental compliance, and ensuring the structural integrity and operational readiness of all base assets. This contract likely supports these critical functions to ensure the base can effectively support its military mission.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6133909R0016

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 2727 HAMNER AVE, NORCO, CA, 92860

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

Financial Breakdown

Contract Ceiling: $69,924,599

Exercised Options: $69,924,599

Current Obligation: $69,924,599

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6134011D1002

IDV Type: IDC

Timeline