DoD awards $51M contract for Engineering Services to Computer Sciences Corporation, raising value concerns

Contract Overview

Contract Amount: $51,143,450 ($51.1M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-09-23

End Date: 2008-10-22

Contract Duration: 1,490 days

Daily Burn Rate: $34.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 14

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: 200412!009248!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB007 !A!N! !Y!0079 ! !20040923!20110129!043991108!043991108!009581091!N!COMPUTER SCIENCES CORPORATION !3160 FAIRVIEW PARK DRIVE !FALLS CHURCH !VA!22042!27200!610!51!FALLS CHURCH !FALLS CHURCH (CITY) !VIRGINIA !+000000806103!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

State: New Jersey Government Spending

Plain-Language Summary

Department of Defense obligated $51.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: 200412!009248!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB007 !A!N! !Y!0079 ! !20040923!20110129!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 value of $51.14M for engineering services appears high for a 5-year period. 2. General Dynamics Information Technology, Inc. was a competitor, suggesting potential for better pricing. 3. The 'Time and Materials' contract type carries inherent risk of cost overruns. 4. The sector is IT/Electronics, a common area for significant federal spending.

Value Assessment

Rating: questionable

The contract value of $51.14M over approximately 5 years for engineering services warrants scrutiny. Benchmarking against similar contracts for systems engineering and IT support is recommended to assess if the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery. However, the final awardee and price suggest that competitive pressures may not have yielded the lowest possible cost.

Taxpayer Impact: Taxpayers may have overpaid due to the contract type and potential lack of aggressive pricing from competitors.

Public Impact

Significant taxpayer funds allocated for engineering services. Potential for cost overruns due to contract type. Competition existed, but final price may not reflect best value. Contract supports Department of Defense operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract type (T&M) increases cost risk.
High contract value for the duration.
Potential for unoptimized pricing despite competition.

Positive Signals

Awarded under full and open competition.
Contract supports critical defense needs.

Sector Analysis

This contract falls within the IT and Engineering Services sector, which sees substantial federal investment. Benchmarks for similar engineering services contracts within the DoD are typically in the tens of millions, but the specific nature of 'Systems Engineering Services' requires detailed comparison.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The primary awardee, Computer Sciences Corporation, is a large business, suggesting limited direct benefit to small businesses from this specific contract award.

Oversight & Accountability

The contract was awarded by the Department of the Army, a component of the Department of Defense. Standard oversight mechanisms for DoD contracts would apply, but the specific effectiveness of oversight in managing this T&M contract is not detailed.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Contract Type Risk (Time & Materials)
Potential for Overpricing
Lack of Detailed Scope Justification
Limited Small Business Participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. 200412!009248!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB007 !A!N! !Y!0079 ! !20040923!20110129!043991108!043991108!009581091!N!COMPUTER SCIENCES CORPORATION !3160 FAIRVIEW PARK DRIVE !FALLS CHURCH !VA!22042!27200!610!51!FALLS CHURCH !FALLS CHURCH (CITY) !VIRGINIA !+000000806103!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 $51.1 million.

What is the period of performance?

Start: 2004-09-23. End: 2008-10-22.

Was the 'Time and Materials' contract type the most appropriate for these engineering services, or could a fixed-price contract have provided better value?

The 'Time and Materials' (T&M) contract type is often used when the scope of work is not clearly defined or is expected to change. However, it shifts significant cost risk to the government. For well-defined engineering services, a firm-fixed-price contract typically offers better value and cost certainty for the taxpayer. The choice of T&M here warrants justification regarding the unpredictability of the required services.

How did the final awarded price compare to the bids of other competitors, particularly General Dynamics Information Technology, Inc.?

While the contract was awarded under full and open competition, the specific details of the price comparison between Computer Sciences Corporation and General Dynamics Information Technology, Inc. are not provided in this data. Understanding the bid spread and the government's evaluation criteria would be crucial to determine if the government effectively leveraged competition to achieve the best possible price for these engineering services.

What specific 'Systems Engineering Services' were procured, and how does their complexity justify the contract's value and T&M structure?

The data identifies the service as 'SYSTEMS ENGINEERING SERVICES' but lacks specifics on the project's complexity or deliverables. Understanding the technical requirements, the level of innovation needed, and the potential for unforeseen technical challenges would be necessary to assess if the $51.14M value and the T&M contract type were justified. Without this context, the value appears high and the contract type risky.

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