DoD's $81.7M contract for engineering services awarded to General Dynamics IT shows potential value concerns
Contract Overview
Contract Amount: $81,774,239 ($81.8M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2004-01-09
End Date: 2008-01-09
Contract Duration: 1,461 days
Daily Burn Rate: $56.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 14
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: 200404!002061!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB007 !A!N! !Y!0037 ! !20040109!20070130!043991108!043991108!009581091!N!COMPUTER SCIENCES CORPORATION !3160 FAIRVIEW PARK DRIVE !FALLS CHURCH !VA!22042!27200!610!51!FALLS CHURCH !FALLS CHURCH (CITY) !VIRGINIA !+000001431865!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !5!B!M! !A! !99990909!B! ! !A! !A!N!Y!2!014!B! !C!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: EATONTOWN, MONMOUTH County, NEW JERSEY, 07724, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $81.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: 200404!002061!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB007 !A!N! !Y!0037 ! !20040109!20070130!043991108!043991108!009581091!N!COMPUTER SCIENCES CORPORATION !3160 FAIRVIEW PARK DRIVE !FALLS CHURCH !VA!22042!27200!610!51!FALLS CHURCH !FALL… Key points: 1. The contract's value appears high relative to its duration and the number of bids received. 2. Competition was robust, suggesting a potentially competitive pricing environment. 3. The contract's duration and cost warrant scrutiny for potential cost overruns or scope creep. 4. Performance context is limited, making it difficult to assess the true value delivered. 5. This contract falls within the broader 'Engineering Services' sector, characterized by significant government spending. 6. The absence of small business set-asides may limit opportunities for smaller firms in this contract.
Value Assessment
Rating: fair
The total award amount of $81.7 million over approximately four years for engineering services appears substantial. Benchmarking against similar contracts is challenging without more specific service details. However, the average annual cost is around $20.4 million. Given that this was a full and open competition with 14 bids, the pricing should ideally reflect competitive pressures. Further analysis would be needed to determine if the price paid was indeed competitive or if there were opportunities for better value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. A total of 14 bids were received, suggesting a healthy level of interest and competition for this requirement. This broad competition is generally a positive sign for price discovery and potentially achieving a fair market price.
Taxpayer Impact: The high number of bidders in this full and open competition suggests that taxpayers likely benefited from a competitive bidding process, which should have driven down costs and ensured a reasonable price for the engineering services.
Public Impact
The primary beneficiary of this contract is the Department of Defense, specifically the Department of the Army, receiving essential engineering services. The services delivered are categorized under 'Engineering Services,' likely encompassing technical support, system design, integration, or maintenance. The geographic impact is centered around the contractor's location in Falls Church, VA, and potentially the operational areas of the Army units supported. Workforce implications include employment opportunities for engineers and technical professionals within General Dynamics Information Technology and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns given the contract's duration and total value.
- Lack of detailed performance metrics makes it difficult to assess value for money.
- The 'Time and Materials' contract type can sometimes lead to higher costs if not closely managed.
Positive Signals
- Awarded under full and open competition with a significant number of bidders.
- Contractor, Computer Sciences Corporation (now part of General Dynamics IT), has a substantial presence in government contracting.
- The contract has a defined period of performance, allowing for periodic review and potential renegotiation.
Sector Analysis
This contract falls within the broader 'Engineering Services' sector, which is a significant component of government contracting, particularly for defense and technology agencies. The market for engineering services is competitive, with numerous firms offering specialized expertise. Government spending in this area often supports complex system development, maintenance, and operational support. Comparable spending benchmarks would depend on the specific nature of the engineering services provided, but overall government expenditure on engineering services runs into billions annually.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss=false, sb=false). This means the competition was open to all eligible firms, including large businesses. While this maximizes the pool of potential bidders, it may limit direct subcontracting opportunities for small businesses unless they are part of the larger prime contractor's supply chain. The absence of a specific small business subcontracting plan noted in the provided data warrants further investigation into how small businesses might participate.
Oversight & Accountability
Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of the Army. The contract type (Time and Materials) necessitates diligent oversight to ensure costs are reasonable and allocable to the contract. Inspector General (IG) jurisdiction may apply if fraud, waste, or abuse is suspected. Transparency is facilitated by contract databases like FPDS, but detailed performance reports and audits are typically internal.
Related Government Programs
- Department of Defense IT Services
- Army Systems Engineering Support
- Information Technology Professional Services
- Engineering and Technical Services Contracts
- Defense Information Technology Contracting
Risk Flags
- Contract Type Risk (Time and Materials)
- Potential for Cost Overruns
- Limited Performance Data Availability
Tags
defense, department-of-defense, department-of-the-army, engineering-services, time-and-materials, full-and-open-competition, general-dynamics-information-technology, csc, systems-engineering, usa, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $81.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. 200404!002061!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB007 !A!N! !Y!0037 ! !20040109!20070130!043991108!043991108!009581091!N!COMPUTER SCIENCES CORPORATION !3160 FAIRVIEW PARK DRIVE !FALLS CHURCH !VA!22042!27200!610!51!FALLS CHURCH !FALLS CHURCH (CITY) !VIRGINIA !+000001431865!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !5!B!M! !A! !999
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 $81.8 million.
What is the period of performance?
Start: 2004-01-09. End: 2008-01-09.
What specific engineering services were provided under this contract, and how do they align with the Army's mission requirements?
The contract identifies the service as 'SYSTEMS ENGINEERING SERVICES' (nd: 'Engineering Services') under the Product Service Code (PSC) R414. This typically involves providing expertise in the design, integration, testing, and management of complex systems. For the Department of the Army, these services could range from supporting the development of new communication or weapon systems to ensuring the interoperability and lifecycle management of existing platforms. Without access to the detailed statement of work (SOW), it's difficult to ascertain the precise alignment with specific Army mission requirements, but it generally supports the technological backbone and operational capabilities of the force.
How does the awarded amount of $81.7 million compare to the contract's duration of approximately 4 years (1461 days)?
The total award of $81.7 million spread over roughly four years results in an average annual value of approximately $20.4 million. This figure needs to be assessed in the context of the specific engineering services rendered. For complex, high-level systems engineering support, particularly in defense, such annual figures can be within a reasonable range, especially if they involve specialized expertise or significant personnel deployment. However, without knowing the scope, complexity, and deliverables, it's challenging to definitively state if this is high or low. The 'Time and Materials' contract type also means the final cost could fluctuate based on actual hours worked and material costs incurred, making the initial award amount an estimate.
What is the track record of Computer Sciences Corporation (now General Dynamics Information Technology) in delivering similar engineering services to the DoD?
Computer Sciences Corporation (CSC), prior to its merger with SRA International to form General Dynamics Information Technology (GDIT), had a long and extensive history as a major government contractor, including significant work with the Department of Defense. CSC was known for providing a wide array of IT and engineering services. GDIT continues this legacy, holding numerous large contracts across various federal agencies. While specific performance metrics for this particular contract are not detailed here, GDIT's general track record suggests substantial experience in large-scale engineering and IT support for defense clients. A deeper dive into past performance evaluations and contract close-outs for CSC/GDIT on similar DoD contracts would provide more granular insights.
Given the 14 bids received, what does this indicate about the competitiveness and potential for price savings for taxpayers?
Receiving 14 bids under a full and open competition is a strong indicator of a competitive marketplace for these engineering services. A larger number of bids generally increases the likelihood that the government receives competitive pricing, as contractors vie for the award. This suggests that the pricing proposed by the winning bidder, General Dynamics Information Technology, was likely favorable compared to what might have been achieved with fewer bidders. Taxpayers generally benefit from such robust competition through potentially lower prices, better quality, and innovative solutions, as contractors are incentivized to offer their best value propositions.
Are there any specific risk indicators associated with the 'Time and Materials' (PT: TIME AND MATERIALS) contract type used here?
Yes, the 'Time and Materials' (T&M) contract type carries inherent risks, primarily related to cost control. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This means the total cost is not predetermined and can fluctuate based on the effort expended. The primary risk for the government is that costs could escalate beyond initial estimates if the work takes longer than anticipated or if labor rates are high. Effective oversight, detailed tracking of hours and materials, and clear task definitions are crucial to mitigate these risks and ensure the government receives good value.
How does this contract's spending compare to other engineering services contracts within the Department of the Army or DoD?
The $81.7 million award is a significant sum, but within the context of the Department of the Army and the broader Department of Defense, it represents a mid-to-large-sized contract for engineering services. The DoD procures billions of dollars worth of engineering and technical services annually across numerous programs and platforms. To provide a precise comparison, one would need to analyze spending trends for similar PSCs (like R414) and NAICS codes (like 541330) within the Army over the contract's performance period (2004-2008). However, it's safe to say that while substantial, this contract is one among many supporting the vast technological and operational needs of the armed forces.
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: 14
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Computer Sciences Corporation (UEI: 009581091)
Address: 15 CHRISTOPHER WAY, EATONTOWN, NJ, 07724
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAB0703DB007
IDV Type: IDC
Timeline
Start Date: 2004-01-09
Current End Date: 2008-01-09
Potential End Date: 2008-01-09 00:00:00
Last Modified: 2015-04-13
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