DoD's $82.4M ENCORE II contract for R&D services awarded to General Dynamics Information Technology Inc

Contract Overview

Contract Amount: $82,410,565 ($82.4M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2009-09-01

End Date: 2014-08-31

Contract Duration: 1,825 days

Daily Burn Rate: $45.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: ENCORE II LABOR

Place of Performance

Location: CHAMBERSBURG, FRANKLIN County, PENNSYLVANIA, 17201

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $82.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: ENCORE II LABOR Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract's duration of 1825 days (5 years) indicates a long-term need for these R&D services. 3. Fixed-price contract type aims to control costs by setting a predetermined price. 4. Research and Development in Physical, Engineering, and Life Sciences (except Biotechnology) is a critical sector for defense innovation. 5. The contract was awarded as a delivery order under a larger IDIQ vehicle, suggesting it's part of a broader procurement strategy. 6. The base award amount of $45.1M represents a significant portion of the total potential value, indicating substantial initial commitment.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the R&D performed. The fixed-price nature suggests an attempt to manage costs, but the total potential value of $82.4M over five years requires scrutiny. Comparing this to similar R&D contracts within the DoD for comparable services would be necessary to assess if the pricing is competitive and represents good value for money. The base award of $45.1M indicates a substantial initial investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders (no.) suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred for maximizing price discovery and ensuring fair access to government contracts, the number of bidders can influence the intensity of that competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality services. However, the actual savings depend on the number and capability of the bidders.

Public Impact

The Department of Defense benefits from advanced research and development services to maintain technological superiority. This contract supports the development of new technologies and solutions within the physical, engineering, and life sciences sectors. The geographic impact is primarily within Pennsylvania, where the contractor is located, but the R&D outcomes could have national defense implications. The contract likely supports a workforce of scientists, engineers, and researchers, contributing to specialized employment in the R&D field.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of R&D proves more complex than initially estimated, despite the fixed-price structure.
Risk of R&D outcomes not meeting the DoD's evolving requirements or technological advancements.
Dependence on a single contractor for critical R&D services could pose a risk if performance issues arise.

Positive Signals

Fixed-price contract type helps to establish cost certainty for the government.
Awarded under a competitive process, which generally leads to better value.
The long-term nature of the contract suggests a sustained commitment to critical R&D areas.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a crucial area for defense innovation, enabling the military to maintain a technological edge. The market for defense R&D is characterized by high barriers to entry due to specialized knowledge and security requirements. Comparable spending benchmarks would involve analyzing other DoD contracts for similar R&D services, potentially under larger IDIQ vehicles like ENCORE II.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). General Dynamics Information Technology Inc. is a large business. There is no explicit information on subcontracting plans for small businesses within this specific delivery order. The absence of a small business set-aside suggests that the primary focus was on obtaining specialized R&D capabilities from larger, established firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA). The fixed-price nature of the contract provides a degree of cost control. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. The delivery order structure under a larger IDIQ implies that the initial IDIQ vehicle likely had its own oversight mechanisms.

Related Government Programs

ENCORE II IDIQ Contract
Department of Defense Research and Development Programs
Information Technology Services Contracts
Defense Science and Technology

Risk Flags

Potential for scope creep in R&D projects
Uncertainty of R&D outcomes
Reliance on contractor's technical expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $82.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. ENCORE II LABOR

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 Information Systems Agency).

What is the total obligated amount?

The obligated amount is $82.4 million.

What is the period of performance?

Start: 2009-09-01. End: 2014-08-31.

What specific research and development activities were undertaken under this contract?

The provided data identifies the contract's North American Industry Classification System (NAICS) code as 541712, which corresponds to 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'. However, the data does not detail the specific projects or research areas pursued under this particular delivery order. General Dynamics Information Technology Inc. would have been tasked with conducting research, experimentation, analysis, and development activities aligned with the Department of Defense's strategic objectives in these scientific and engineering domains. Further details would typically be found in the contract statement of work (SOW) or task directives associated with the delivery order.

How does the awarded amount compare to similar R&D contracts within the DoD?

Comparing the $82.4 million total potential value of this ENCORE II delivery order to similar DoD R&D contracts requires access to a broader dataset of contracts within the 'Research and Development in the Physical, Engineering, and Life Sciences' category. The ENCORE II IDIQ vehicle itself was designed to provide a range of IT and technical support services, including R&D, to DoD agencies. Without specific details on the scope and duration of comparable contracts, a direct value comparison is difficult. However, $82.4 million over five years for specialized R&D suggests a significant investment, likely for complex or critical technological advancements.

What are the key performance indicators (KPIs) used to evaluate General Dynamics Information Technology Inc.'s performance on this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for R&D contracts, performance is evaluated based on milestones achieved, technical progress, adherence to research methodologies, timely delivery of reports and prototypes, and the successful application of research findings. For a fixed-price contract, meeting the defined scope of work within the agreed-upon price and schedule would be paramount. The contracting officer's representative (COR) would likely monitor progress against the contract's statement of work and any specific performance metrics outlined therein.

What is the historical spending pattern for R&D services under the ENCORE II IDIQ contract vehicle?

The ENCORE II IDIQ contract vehicle was a significant procurement vehicle for the Department of Defense, intended to provide a wide array of IT and technical support services. Historical spending under ENCORE II would reflect the aggregate value of all delivery orders issued across various service categories, including R&D. To understand the specific spending pattern for R&D under ENCORE II, one would need to analyze all delivery orders associated with NAICS code 541712 (or similar R&D codes) issued against the ENCORE II contract. This would reveal the total investment in R&D through this vehicle and potentially identify trends in demand for such services.

What is the risk associated with the contractor's track record in delivering complex R&D projects?

General Dynamics Information Technology Inc. (GDIT) is a large, established government contractor with a broad portfolio of services, including extensive experience in research and development for defense and civilian agencies. While specific performance details for this particular delivery order are not provided, GDIT's overall track record suggests a capacity to handle complex R&D projects. However, the inherent risks in R&D—such as technical challenges, evolving requirements, and the unpredictable nature of scientific discovery—always exist. A thorough risk assessment would involve reviewing GDIT's past performance on similar defense R&D contracts, including any past performance evaluations or disputes.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Csra LLC (UEI: 080011988)

Address: 3160 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: $82,410,565

Exercised Options: $82,410,565

Current Obligation: $82,410,565

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102808D2017

IDV Type: IDC

Timeline