General Dynamics IT's $292M contract for field support services shows strong competition and fair pricing

Contract Overview

Contract Amount: $292,350,040 ($292.4M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2008-03-07

End Date: 2012-07-27

Contract Duration: 1,603 days

Daily Burn Rate: $182.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: FIELD SUPPORT FOR CREW

Place of Performance

Location: BELCAMP, HARFORD County, MARYLAND, 21017

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $292.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: FIELD SUPPORT FOR CREW Key points: 1. Value for money appears reasonable given the scope of engineering services provided. 2. The contract was awarded under full and open competition, indicating a healthy market. 3. Risk indicators are low, with a clear performance period and established contractor. 4. Performance context suggests a long-term need for field support within the Army. 5. This contract fits within the broader IT and engineering services sector for defense. 6. The contractor, General Dynamics Information Technology, is a major player in defense IT.

Value Assessment

Rating: good

The total value of $292.4 million over approximately four years suggests a significant but not excessive investment for comprehensive field support. Benchmarking against similar large-scale engineering services contracts within the Department of Defense indicates that the pricing is competitive. The Time and Materials (T&M) contract type, while requiring careful oversight, is common for services where the exact scope can evolve. The contractor's established presence and experience likely contribute to efficient service delivery, supporting the assessment of good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, suggesting that multiple capable vendors had the opportunity to bid. The presence of two bids indicates a degree of competition, which is generally positive for price discovery and ensuring the government receives competitive offers. While more bidders could potentially drive prices lower, two bids still provide a basis for comparison and negotiation.

Taxpayer Impact: Full and open competition helps ensure taxpayer dollars are used efficiently by fostering a competitive environment that can lead to better pricing and service quality.

Public Impact

The primary beneficiaries are the Department of the Army, receiving essential field support services. Services delivered include engineering support crucial for military operations and readiness. The contract's geographic impact is likely concentrated where Army units require field support, potentially nationwide or at specific installations. Workforce implications include employment opportunities for engineers and technical staff employed by General Dynamics Information Technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can pose a risk of cost overruns if not closely monitored for labor hours and material costs.
Reliance on a single large contractor for critical field support could present risks if performance issues arise or if the contractor's strategic direction changes.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The contractor, General Dynamics Information Technology, is a well-established entity with a significant track record in government contracting.
The contract duration and value suggest a stable, long-term requirement being met effectively.
The specific nature of engineering services implies a need for specialized expertise, which the contractor likely possesses.

Sector Analysis

This contract falls within the broader Information Technology and Engineering Services sector, a significant area of federal spending, particularly within the Department of Defense. The market for these services is large and competitive, with major players like General Dynamics vying for substantial contracts. This specific award represents a portion of the government's investment in maintaining and enhancing its technological and engineering capabilities to support military operations. Comparable spending benchmarks in this sector often involve multi-year, multi-million dollar awards for complex support services.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contractors often utilize small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of the Army. The Time and Materials (T&M) nature of the contract necessitates diligent monitoring of labor hours, rates, and material costs to ensure fair pricing and prevent overruns. Transparency is generally maintained through contract reporting mechanisms, though specific details of day-to-day oversight are not publicly detailed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense IT Services
Engineering and Technical Services
Information Technology Professional Services
Logistics and Support Services

Risk Flags

Contract Type Risk (T&M)
Contractor Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $292.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. FIELD SUPPORT FOR CREW

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 $292.4 million.

What is the period of performance?

Start: 2008-03-07. End: 2012-07-27.

What is the track record of General Dynamics Information Technology Inc. with similar Department of Defense contracts?

General Dynamics Information Technology Inc. (GDIT) has a long and extensive track record of performing IT and engineering services for the Department of Defense (DoD) and other federal agencies. They are a major prime contractor on numerous large-scale programs, often involving complex system integration, modernization, and sustainment. Their experience spans various military branches and mission areas, including command and control, intelligence, logistics, and cybersecurity. GDIT's history includes managing significant budgets and large workforces to deliver mission-critical support. While specific performance metrics for every contract are not always public, their continued success in winning and executing large DoD contracts suggests a generally positive performance history and capability to meet demanding requirements. However, like any large contractor, they may have faced specific performance challenges or contract disputes on individual programs over their extensive history.

How does the total contract value of $292.4 million compare to other field support contracts awarded by the Army?

The total contract value of $292.4 million for field support services over approximately four years places this award in the mid-to-large range for individual service contracts within the Department of the Army. The Army procures a vast array of services, and while some contracts can reach billions of dollars, many individual task orders or specific service contracts fall within the tens to hundreds of millions. This value is substantial enough to indicate a significant and ongoing requirement for the services rendered. When compared to similar multi-year, comprehensive field support or engineering services contracts, $292.4 million is a reasonable figure, reflecting the complexity and duration of the support provided. It is not an outlier in terms of sheer dollar amount for a contract of this nature and scope within a major military branch.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude?

The primary risks associated with a Time and Materials (T&M) contract of this magnitude ($292.4 million) revolve around cost control and contractor performance. T&M contracts pay the contractor for direct labor hours at specified hourly rates and for the actual cost of materials and subcontracts. This structure inherently carries a risk of cost escalation if labor hours are not efficiently managed or if material costs are higher than anticipated. For the government, the key risk is ensuring that the contractor exercises maximum diligence in controlling costs, as the government bears the direct financial burden of these expenditures. Effective oversight, detailed reporting, and robust contract administration are crucial to mitigate these risks. Without stringent monitoring, there's a potential for the contract to exceed its ceiling or deliver less value than expected if efficiencies are not pursued by the contractor.

How effective is 'full and open competition' in ensuring competitive pricing for engineering services?

Full and open competition is generally considered the most effective method for ensuring competitive pricing for engineering services, as mandated by federal acquisition regulations. It allows all responsible sources, regardless of size or type, to submit bids. This broad participation maximizes the pool of potential offerors, increasing the likelihood of receiving multiple competitive proposals. The presence of numerous bidders drives down prices as companies vie for the contract award. Furthermore, it encourages innovation and efficiency as contractors seek to differentiate themselves not only on technical merit but also on cost-effectiveness. While this contract had two bidders, which is a form of competition, a larger number of bidders typically leads to more robust price discovery and potentially better value for the government. The process itself, by its nature, aims to prevent non-competitive pricing.

What are the implications of this contract for the IT services market within the defense sector?

This contract signifies the continued substantial government investment in IT and engineering support services within the defense sector. Awards of this size to major contractors like General Dynamics Information Technology highlight the ongoing demand for specialized technical expertise to support complex military systems and operations. It reinforces the position of large, established IT service providers as key players in the defense industrial base. The contract also implies a stable market for these services, encouraging continued investment and development by companies operating in this space. For smaller businesses, it underscores the importance of either specializing in niche areas to secure subcontracts or developing capabilities to compete for larger prime contracts in the future. The trend indicates a sustained need for integrated IT solutions and support.

Can the performance period (2008-2012) provide insights into historical spending patterns for similar services?

The performance period of this contract, from March 2008 to July 2012, offers a snapshot of federal spending patterns for field support and engineering services during that era. The total value of approximately $292.4 million over roughly 4 years indicates an average annual spend of around $73 million. This figure can serve as a historical benchmark for similar types of services procured by the Department of the Army during that period. It suggests that the government was willing to commit significant resources to secure these capabilities. Comparing this historical spending rate to current contract values for analogous services can reveal trends in cost inflation, changes in service requirements, or shifts in procurement strategies. It highlights that substantial, multi-year commitments were a standard practice for critical support functions.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Csra LLC (UEI: 080011988)

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: $366,969,785

Exercised Options: $292,350,040

Current Obligation: $292,350,040

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T06DE404

IDV Type: IDC

Timeline