DoD's DFISS III contract awarded to General Dynamics for $35.9M for IT services

Contract Overview

Contract Amount: $35,878,965 ($35.9M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2010-06-27

End Date: 2011-07-29

Contract Duration: 397 days

Daily Burn Rate: $90.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: DFISS III MC TSO-KC LABOR YR 4

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64197

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $35.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: DFISS III MC TSO-KC LABOR YR 4 Key points: 1. The contract was awarded on a time and materials basis, which can pose risks if not managed closely. 2. The contract's duration of 397 days suggests a focused scope of work. 3. The award was made under full and open competition, indicating a competitive bidding process. 4. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services. 5. The contract was awarded to a single vendor, General Dynamics Information Technology Inc. 6. The contract's value of approximately $35.9 million falls within a moderate spending range for IT services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns and performance metrics. However, the award amount of $35.9 million for custom computer programming services over approximately one year appears within a reasonable range for large-scale IT projects. Further analysis would require comparing the specific services rendered against industry standards and the contractor's historical performance on similar engagements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition process, suggesting that multiple vendors had the opportunity to bid. The fact that it was competed openly is a positive sign for price discovery and potentially achieving a fair market price. However, the number of bids received is not specified, which would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better value for government services.

Public Impact

The primary beneficiaries of this contract are the Department of Defense and its various components, which receive custom computer programming services. The services delivered likely support critical defense finance and accounting operations, ensuring the efficient management of military financial resources. The geographic impact is primarily within the United States, supporting defense operations nationwide. The contract supports a workforce of IT professionals and programmers, contributing to employment in the technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not carefully monitored and managed.
Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the services provided.
The contract was awarded to a single entity, raising questions about the extent of competition and potential for vendor lock-in.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contractor, General Dynamics Information Technology Inc., is a large and established entity with significant experience in government IT services.
The contract supports critical defense functions, aligning with national security objectives.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. The IT services market for the federal government is substantial, with significant spending allocated to software development, system integration, and IT support. This contract represents a portion of that broader spending, likely supporting specialized defense financial systems.

Small Business Impact

The 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 set-aside provision. However, as a large prime contract, there may be opportunities for small businesses to participate as subcontractors to General Dynamics, depending on the prime contractor's subcontracting plan.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Finance and Accounting Service (DFAS) and the Department of Defense. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and payment schedules. Transparency is facilitated through contract award databases, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DFAS IT Support Contracts
DoD Financial Management Systems
Custom Software Development for Government
IT Services for Defense Agencies

Risk Flags

Potential for cost overruns due to T&M contract type.
Lack of detailed performance metrics in award data.
Single awardee may limit future competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. DFISS III MC TSO-KC LABOR YR 4

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 Finance and Accounting Service).

What is the total obligated amount?

The obligated amount is $35.9 million.

What is the period of performance?

Start: 2010-06-27. End: 2011-07-29.

What is the track record of General Dynamics Information Technology Inc. on similar government contracts?

General Dynamics Information Technology Inc. (GDIT) has a long and extensive history of performing IT services for the U.S. government, including numerous contracts with the Department of Defense and its various agencies. They are a major federal IT contractor known for providing a wide range of services, including software development, systems integration, cybersecurity, and IT support. Their track record generally includes managing large, complex programs. However, like any large contractor, they have faced scrutiny and reviews on specific contracts regarding performance, cost, and adherence to requirements. A detailed analysis of GDIT's performance on comparable DFAS or DoD financial systems contracts would be necessary to fully assess their suitability and past success for this specific type of work.

How does the value of this contract compare to other custom computer programming services contracts awarded by the DoD?

The award value of approximately $35.9 million for DFISS III MC TSO-KC LABOR YR 4 places it within a moderate to significant spending bracket for custom computer programming services within the Department of Defense. The DoD procures a vast array of IT services, with contract values ranging from small, specialized projects to multi-billion dollar enterprise-wide solutions. Contracts for custom programming, especially those supporting critical functions like financial management, often require substantial investment. Without a direct comparison of the specific scope, duration, and complexity of services rendered, it's difficult to definitively benchmark this contract. However, it is not an outlier in terms of value for a substantial IT development or support effort within a large federal agency.

What are the primary risks associated with a Time and Materials (T&M) contract for custom computer programming?

Time and Materials (T&M) contracts, like the one used for DFISS III MC TSO-KC LABOR YR 4, carry inherent risks, primarily related to cost control. The government pays for the actual labor hours and materials used, plus a fixed fee or நிர்ணயிக்கப்பட்ட rate. The main risk is that without stringent oversight, the contractor may not be incentivized to control costs or complete the work efficiently, potentially leading to cost overruns. For custom computer programming, this can manifest as extended development times, scope creep that isn't effectively managed, or inefficient use of developer hours. To mitigate these risks, the government must implement robust oversight, closely monitor labor hours and material costs, establish clear performance metrics, and define ceiling prices to prevent unlimited spending.

What is the expected program effectiveness based on the contract details?

The contract details provided (DFISS III MC TSO-KC LABOR YR 4, awarded to General Dynamics Information Technology Inc. for custom computer programming services) suggest the program aims to enhance or maintain critical IT systems for the Defense Finance and Accounting Service (DFAS). The effectiveness hinges on the quality of the custom programming delivered, its integration with existing systems, and its ability to meet the evolving needs of DFAS operations. Given the 'full and open competition' award and the contractor's experience, there's a baseline expectation of competent execution. However, true program effectiveness cannot be fully assessed from award data alone; it requires ongoing performance monitoring, user feedback, and evaluation of whether the delivered solutions achieve their intended operational and financial management objectives for the DoD.

How has historical spending on DFAS IT support evolved, and does this contract fit the pattern?

Historical spending on IT support for the Defense Finance and Accounting Service (DFAS) has been substantial and consistent, reflecting the critical nature of its financial operations. DFAS manages complex payroll, accounting, and financial reporting systems for the U.S. military, requiring continuous investment in IT infrastructure, software development, and maintenance. Contracts for services like those under DFISS III are typical components of this ongoing spending. While specific historical spending figures for DFAS IT support would require detailed analysis of past contract awards, it is reasonable to assume that DFAS consistently allocates significant funds to IT. This $35.9 million contract for custom programming services appears to be a standard allocation within that broader pattern of sustained IT investment to support defense financial management.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 3160 FAIRVIEW PARK DR, FALLS CHURCH, VA, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $35,878,965

Exercised Options: $35,878,965

Current Obligation: $35,878,965

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ042507A0002

IDV Type: IDC

Timeline