DoD's $166M C4ISR contract to General Dynamics IT shows strong competition and engineering service focus

Contract Overview

Contract Amount: $166,395,526 ($166.4M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2008-09-12

End Date: 2011-12-30

Contract Duration: 1,204 days

Daily Burn Rate: $138.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: C4ISR RSC WORLDWIDE SUPPORT TO PM RUS & PM CM & EOD

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $166.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: C4ISR RSC WORLDWIDE SUPPORT TO PM RUS & PM CM & EOD Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Engineering services sector, with a focus on C4ISR systems, is critical for defense modernization. 3. The contract duration of 1204 days suggests a significant, long-term support requirement. 4. General Dynamics Information Technology Inc. is a major player in defense IT and engineering. 5. The contract's value places it within a significant spending category for defense support services. 6. Delivery order type suggests a flexible approach to fulfilling specific needs within a larger framework.

Value Assessment

Rating: good

The contract value of $166.3 million for engineering services over approximately three years appears reasonable given the scope of C4ISR support. Benchmarking against similar large-scale defense IT and engineering contracts suggests that pricing is likely competitive, especially considering the full and open competition. The Time and Materials (T&M) pricing structure, while offering flexibility, requires diligent oversight to ensure cost control and prevent scope creep. Without specific line-item details, a precise value-for-money assessment is challenging, but the competitive award process provides a positive signal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of two bidders (as indicated by 'no': 2) suggests a moderate level of competition for this specific award. While two bidders are better than one, a higher number of bids typically leads to more aggressive pricing and innovation. The agency likely sought to maximize competition within the available market for these specialized engineering services.

Taxpayer Impact: A full and open competition, even with two bidders, generally benefits taxpayers by driving down costs and encouraging efficiency compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are the Department of the Army and the broader Department of Defense, receiving critical C4ISR support. Services delivered include engineering support for Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) systems. The contract has a worldwide scope, indicating support for global military operations and installations. The contract supports a highly skilled technical workforce, likely including engineers, technicians, and IT specialists, contributing to the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not managed closely.
Limited number of bidders (2) may indicate potential market concentration or high barriers to entry.
The 'MD' (Maryland) state code might suggest a concentration of work or contractor presence in a specific region, potentially limiting broader geographic distribution of funds.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
General Dynamics Information Technology Inc. is a well-established contractor with a significant track record in defense IT.
The contract addresses critical C4ISR capabilities essential for modern military operations.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a vital component of the defense industrial base. The C4ISR market is a significant segment within defense IT and systems integration, characterized by high technological demands and substantial government investment. Spending in this area is driven by the need for advanced communication, intelligence gathering, and battlefield awareness capabilities. Comparable contracts often involve complex system design, integration, and sustainment, with values ranging widely based on scope and duration. The market is dominated by large, specialized defense contractors capable of handling such intricate requirements.

Small Business Impact

The data indicates this contract was not set aside for small businesses ('sb': false). General Dynamics Information Technology Inc. is a large business. While there's no direct indication of small business subcontracting goals from the provided data, large prime contractors are often required to meet specific subcontracting targets for small businesses on major defense contracts. The impact on the small business ecosystem would depend on whether General Dynamics actively seeks out and utilizes small business partners for specialized services or components.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army contracting and program management offices. As a large, multi-year contract, it likely involves regular performance reviews, financial audits, and compliance checks. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General (IG) for the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

C4ISR Systems Support Contracts
Defense IT Services
Engineering and Technical Services
Department of the Army IT Procurement
Global Military Support Contracts

Risk Flags

Potential for cost overruns due to T&M contract type.
Limited competition (2 bidders) may impact price discovery.
Contract performance history for GDIT on similar programs requires review.
Adequacy of government oversight for T&M contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $166.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. C4ISR RSC WORLDWIDE SUPPORT TO PM RUS & PM CM & EOD

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 $166.4 million.

What is the period of performance?

Start: 2008-09-12. End: 2011-12-30.

What is the track record of General Dynamics Information Technology Inc. on similar large-scale defense contracts?

General Dynamics Information Technology Inc. (GDIT) has a substantial and long-standing track record of performance on large-scale defense contracts, particularly in IT services, C4ISR, and systems integration. They are a prime contractor on numerous significant programs across various military branches. Historically, GDIT has demonstrated capability in delivering complex solutions, managing large workforces, and meeting demanding performance requirements. However, like many large contractors, they have also faced scrutiny and performance challenges on specific contracts, which are typically documented in performance evaluations and contract databases. Their extensive experience suggests a high likelihood of meeting the technical requirements of this C4ISR contract, but diligent oversight remains crucial to ensure consistent performance and value.

How does the $166M value compare to other C4ISR support contracts awarded by the DoD?

The $166 million value for this C4ISR RSC Worldwide Support contract is significant but falls within a common range for large, multi-year engineering and support services contracts within the Department of Defense. Major C4ISR programs and sustainment efforts can easily reach hundreds of millions or even billions of dollars over their lifecycle. For instance, contracts for developing and maintaining complex radar systems, communication networks, or intelligence analysis platforms often exceed this amount. This particular contract's value suggests a substantial scope of work, likely encompassing system integration, technical support, and potentially hardware/software sustainment over its duration. It represents a considerable investment in maintaining and enhancing critical defense capabilities.

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

The primary risk associated with a Time and Materials (T&M) contract of this magnitude ($166M) is the potential for cost overruns due to a lack of a fixed ceiling on labor hours and material costs. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual time and materials expended. If not managed rigorously, this can lead to inefficiencies, scope creep, and inflated costs, as the contractor may have less incentive to control hours or find cost-saving measures. Effective oversight, detailed tracking of labor hours, strict adherence to the Statement of Work (SOW), and robust reporting mechanisms are critical to mitigate these risks and ensure the government receives good value for its investment. The flexibility of T&M is beneficial for uncertain scopes, but it places a higher burden on government program managers.

How effective is 'full and open competition' in ensuring value for taxpayer money in the defense sector?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in the defense sector, as mandated by federal acquisition regulations. It maximizes the pool of potential bidders, fostering a competitive environment that drives down prices, encourages innovation, and promotes efficiency. By allowing all responsible sources to compete, the government increases its chances of finding the best technical solution at the most reasonable cost. However, the effectiveness can be influenced by factors such as the complexity of the requirement, the number of capable bidders in the market, and the clarity of the solicitation. While it provides the best framework for value, diligent proposal evaluation and contract administration are still essential to realize these benefits fully.

What does the 'Delivery Order' (aw: DELIVERY ORDER) designation imply for contract flexibility and cost control?

The 'Delivery Order' designation indicates that this contract is likely a type of indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar vehicle where specific tasks or quantities are ordered incrementally through individual delivery orders. This structure provides significant flexibility for the agency to order services or supplies as needed over the contract's period of performance, aligning with evolving operational requirements. For cost control, each delivery order typically has its own ceiling or estimated cost, allowing for management at a more granular level. However, the overall contract value ($166M) represents the potential total obligation. Effective management requires careful planning and justification for each order to ensure it aligns with the overall program goals and budget, preventing uncontrolled spending across multiple orders.

What is the significance of the PSC (Product Service Code) and NAICS code (541330) for understanding this contract's purpose?

The Product Service Code (PSC) is currently blank in the provided data, which typically categorizes the type of product or service being procured. However, the North American Industry Classification System (NAICS) code 541330, 'Engineering Services,' is highly significant. It clearly defines the primary nature of the contract as providing professional engineering services. This includes activities like design, development, consulting, and project management related to engineering. For this contract, it specifies that the $166 million expenditure is directed towards specialized engineering expertise, likely focused on the design, integration, testing, or sustainment of C4ISR systems, rather than the procurement of raw materials or standard commercial products.

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: $238,174,680

Exercised Options: $166,395,526

Current Obligation: $166,395,526

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T06DE404

IDV Type: IDC

Timeline