DoD's $703M Engineering Services Contract with General Dynamics: A Decade of Spending
Contract Overview
Contract Amount: $703,070,156 ($703.1M)
Contractor: General Dynamics Information Technology Inc.
Awarding Agency: Department of Defense
Start Date: 2006-09-08
End Date: 2013-06-30
Contract Duration: 2,487 days
Daily Burn Rate: $282.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: SERVICES TAS::21 2020::TAS
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $703.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: SERVICES TAS::21 2020::TAS Key points: 1. Significant contract value of over $703 million awarded to a single large business. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. Contract duration spans nearly 8 years, indicating a long-term need for these services. 4. The contract falls under Engineering Services, a critical sector for defense operations.
Value Assessment
Rating: fair
The total award value is substantial. Without specific per-unit cost data or comparison points for similar engineering services contracts, it's difficult to definitively assess value for money. The time and materials pricing structure can sometimes lead to cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive indicator for price discovery. However, the long duration and specific nature of engineering services may limit the number of truly competitive bids received over its lifespan.
Taxpayer Impact: Taxpayer funds are being utilized for essential engineering services. The competitive award process aims to ensure reasonable pricing, but the long-term nature and T&M structure warrant ongoing scrutiny to maximize value.
Public Impact
Defense capabilities are supported by these engineering services, impacting national security. The significant contract value represents a substantial allocation of federal resources. Long-term contracts can provide stability for contractors but require consistent oversight to ensure performance and cost control.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Potential for cost creep with Time and Materials pricing over a long duration.
- Lack of specific performance metrics or outcomes makes value assessment challenging.
- Limited visibility into sub-contracting or small business participation.
Positive Signals
- Awarded through full and open competition.
- Services provided by a well-established contractor in the defense sector.
- Contract supports critical Department of Defense engineering needs.
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for the Department of Defense's infrastructure, research, and development activities. Spending benchmarks for engineering services can vary widely based on complexity and duration, but a $703 million award over nearly eight years suggests a significant and ongoing requirement.
Small Business Impact
The data indicates that this contract was not set aside for small businesses and the primary awardee is a large corporation. There is no explicit information on small business subcontracting, which is a missed opportunity for leveraging smaller, specialized firms within the defense supply chain.
Oversight & Accountability
The contract was awarded via a delivery order under a larger contract, suggesting a structured procurement process. However, the long duration and Time and Materials nature necessitate robust oversight from the Department of Defense to manage costs, ensure quality, and verify necessity of services rendered.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration.
- Time and Materials pricing.
- Lack of specific performance metrics.
- No clear indication of small business utilization.
Tags
engineering-services, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $703.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. SERVICES TAS::21 2020::TAS
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 $703.1 million.
What is the period of performance?
Start: 2006-09-08. End: 2013-06-30.
What was the average annual spend on this contract, and how does it compare to similar engineering service contracts awarded by the DoD?
The total award of $703,070,156.17 over approximately 2487 days (roughly 6.8 years) averages to about $103 million per year. Comparing this to similar engineering service contracts requires access to a broader dataset of DoD procurements. Factors like contract scope, complexity, and specific engineering disciplines involved would be crucial for a meaningful benchmark analysis.
Given the Time and Materials pricing structure and the contract's duration, what mechanisms were in place to mitigate the risk of cost overruns and ensure efficient use of funds?
While the provided data doesn't detail specific mitigation mechanisms, effective management of T&M contracts typically involves strict labor hour tracking, defined ceiling prices, regular audits, and clear task order definitions. The Department of Defense would need robust program management and financial oversight to control costs and ensure that the services procured align with evolving mission requirements.
How effectively did the 'full and open competition' process ensure competitive pricing and optimal value for these engineering services over the contract's lifespan?
Full and open competition is designed to maximize the pool of potential bidders, fostering price competition. However, for specialized engineering services with long-term requirements, the initial competition might yield fewer bids over time as the market evolves. Continuous monitoring of contract performance and pricing against market rates would be necessary to ensure sustained value realization.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W15P7T06R0012
Offers Received: 4
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 3170 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $1,321,568,504
Exercised Options: $756,949,418
Current Obligation: $703,070,156
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T06DE404
IDV Type: IDC
Timeline
Start Date: 2006-09-08
Current End Date: 2013-06-30
Potential End Date: 2013-06-30 12:06:00
Last Modified: 2018-09-27
More Contracts from General Dynamics Information Technology Inc.
- Global Security Engineering&supply Chain Services — $1.5B (Department of State)
- THE Purpose of This Action IS to Establish a NEW Contract With General Dynamics Information Technology for Global Supply Chain Management, Logistics and Technology Development Services to Support the Department of State. the Initial Funding Associated With This Contract IS $22,304,578.00. the Overall Contract Value IS $2,200,000,000.00 — $1.2B (Department of State)
- Cloud Products&tools (CPT) — $902.0M (Department of Health and Human Services)
- Beneficiary Contact Center Operations — $879.1M (Department of Health and Human Services)
- Award of Task Order 47qfca210051-Nawcad Wolf Ship and AIR C5isr Systems Support — $832.3M (General Services Administration)
View all General Dynamics Information Technology Inc. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)