DoD's $35.5M IGF WAN/MAN/CAN/LAN/VPN Services contract awarded to General Dynamics IT shows strong competition

Contract Overview

Contract Amount: $35,479,422 ($35.5M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-04-01

End Date: 2017-03-31

Contract Duration: 364 days

Daily Burn Rate: $97.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF WAN/MAN/CAN/LAN/VPN SERVICES - CONUS

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $35.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::CT::IGF WAN/MAN/CAN/LAN/VPN SERVICES - CONUS Key points: 1. Value for money appears reasonable given the competitive award. 2. Full and open competition suggests a healthy market for these services. 3. Contract duration of one year limits long-term financial exposure. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Awarded to a large, established IT services provider. 6. Geographic focus on CONUS aligns with operational needs.

Value Assessment

Rating: good

The contract value of approximately $35.5 million for a one-year period for WAN/MAN/CAN/LAN/VPN services appears to be within a reasonable range for enterprise-level network services. Benchmarking against similar large-scale network infrastructure contracts awarded by the Department of Defense or other federal agencies would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract suggests that the contractor is responsible for managing costs to meet the agreed-upon price, which can be advantageous for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 5 bidders suggests a competitive environment for these types of network services. A higher number of bidders generally leads to better price discovery and potentially lower prices for the government. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.

Taxpayer Impact: The full and open competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. It ensures that the government receives the best possible value by leveraging the market's capabilities.

Public Impact

This contract directly supports the U.S. Special Operations Command's mission by providing essential network connectivity. It ensures reliable and secure communication infrastructure for critical operations within the continental United States (CONUS). The services delivered are fundamental to the daily operations and command and control capabilities of special operations forces. Workforce implications are primarily within the IT and network engineering sectors, supporting the contractor's personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively procured.
Reliance on a single large contractor could limit future flexibility.
Scope creep could increase costs if not managed tightly.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests competitive pricing.
Award to an experienced IT provider like General Dynamics IT.
Defined one-year period of performance limits long-term commitment.
Services are critical for operational effectiveness.

Sector Analysis

The Information Technology sector, specifically network services, is a significant area of federal spending. This contract falls under the broader category of IT services, which includes the design, implementation, and maintenance of Wide Area Networks (WAN), Metropolitan Area Networks (MAN), Campus Area Networks (CAN), Local Area Networks (LAN), and Virtual Private Networks (VPN). The market for these services is robust, with numerous large and small businesses capable of providing them. Federal spending in this area is driven by the need for secure, reliable, and high-speed connectivity to support diverse agency missions across the globe.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, General Dynamics Information Technology, Inc., is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. The lack of a small business set-aside for this particular contract means that opportunities for small businesses to directly participate in this specific award are limited, though they may still be involved in the broader IT services market or as subcontractors to larger firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Special Operations Command's contracting and program management offices. Accountability measures are embedded within the firm fixed-price contract terms, requiring the contractor to deliver specified network services within the agreed-upon budget and timeframe. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

DoD Enterprise IT Services
Network Infrastructure Services
Telecommunications Services
Special Operations Command IT Support
CONUS Network Operations

Risk Flags

Contract awarded as Delivery Order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.
The contract is Firm Fixed Price, which can sometimes lead to less flexibility for scope changes.
No small business set-aside was utilized for this award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::CT::IGF WAN/MAN/CAN/LAN/VPN SERVICES - CONUS

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 (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $35.5 million.

What is the period of performance?

Start: 2016-04-01. End: 2017-03-31.

What is the track record of General Dynamics Information Technology, Inc. in delivering similar network services to the federal government?

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record of delivering complex IT services, including network infrastructure, telecommunications, and cybersecurity solutions, to various federal agencies, including the Department of Defense. They have historically managed large-scale contracts involving WAN, LAN, and VPN services, often supporting critical mission operations. Their experience includes deploying and managing secure network environments, often under stringent performance requirements and security protocols. GDIT's past performance on similar contracts would be a key factor in their selection for this award, indicating a level of confidence from the U.S. Special Operations Command in their ability to meet the demanding requirements of providing robust network services within CONUS.

How does the awarded price of approximately $35.5 million compare to similar network service contracts for the U.S. Special Operations Command or other DoD components?

Without access to specific, contemporaneous contract data for comparable network services within the U.S. Special Operations Command (SOCOM) or other Department of Defense (DoD) components, a precise comparison is challenging. However, a $35.5 million award for a one-year period for comprehensive WAN/MAN/CAN/LAN/VPN services for a significant command like SOCOM suggests a competitive market price, especially given the firm fixed-price nature. Larger, more complex network deployments or those with longer durations or international scope could easily exceed this figure. The fact that it was awarded under full and open competition with five bidders further supports the likelihood that the price reflects market value and was not excessively high.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks associated with this contract include potential performance issues (e.g., network outages, slow speeds, security breaches), cost overruns if the firm fixed-price contract is not managed effectively by the contractor, and potential vendor lock-in if follow-on procurements are not handled competitively. Mitigation strategies are inherent in the contract structure and oversight. The firm fixed-price nature shifts cost risk to General Dynamics IT. Performance risks are mitigated through defined service level agreements (SLAs), monitoring, and potential penalties for non-performance. The one-year base period limits long-term commitment, and the requirement for full and open competition on future needs helps prevent vendor lock-in. Active contract management by SOCOM is crucial for ongoing risk mitigation.

How effective is the current network infrastructure in supporting the evolving mission requirements of the U.S. Special Operations Command?

The effectiveness of the network infrastructure provided under this contract in supporting the evolving mission requirements of the U.S. Special Operations Command (SOCOM) is directly tied to the performance of General Dynamics Information Technology (GDIT) and the specific capabilities deployed. SOCOM's missions are dynamic and often require high-bandwidth, secure, and resilient communication capabilities that can adapt rapidly. While the contract award itself suggests a perceived capability to meet these needs, ongoing performance monitoring, user feedback, and periodic reviews of the network's capacity and security posture against emerging threats and operational demands are essential to gauge true effectiveness. The contract's one-year term allows SOCOM to reassess and adjust network strategies as requirements evolve.

What has been the historical spending trend for similar network services by the U.S. Special Operations Command over the past five years?

Analyzing the historical spending trend for similar network services by the U.S. Special Operations Command (SOCOM) over the past five years would require access to detailed federal procurement databases. However, it is generally understood that SOCOM, like other major defense components, relies heavily on robust network infrastructure to support its global operations. Spending in this area is likely to be consistent, with potential increases driven by technological advancements, evolving cyber threats, and the expansion or modification of operational requirements. Contracts for enterprise-wide network services can range from tens to hundreds of millions of dollars annually, depending on scope, duration, and the specific technologies employed. This $35.5 million award represents a portion of SOCOM's overall IT and network expenditure.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: H9222210R0032

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 3211 JERMANTOWN RD, FAIRFAX, VA, 22030

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,479,422

Exercised Options: $35,479,422

Current Obligation: $35,479,422

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $776,438

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9222211D0006

IDV Type: IDC

Timeline