DoD's $18.3M contract for engineering services awarded to General Dynamics IT shows potential for cost savings
Contract Overview
Contract Amount: $18,309,320 ($18.3M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-09-30
End Date: 2007-09-30
Contract Duration: 730 days
Daily Burn Rate: $25.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 14
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: 200512!008527!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB007 !A!N! !Y!0131 ! !20050930!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 !+000006032481!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !5!B!M! !A! !20200930!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 $18.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: 200512!008527!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB007 !A!N! !Y!0131 ! !20050930!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. Contract value of $18.3M over 2 years suggests a significant investment in engineering capabilities. 2. Awarded to General Dynamics Information Technology, Inc., a major player in the defense IT sector. 3. The contract's 'Time and Materials' pricing structure warrants scrutiny for potential cost overruns. 4. Performance period of 2 years provides a reasonable timeframe for assessing service delivery. 5. The 'Engineering Services' category indicates a focus on technical expertise and support. 6. Awarded by the Department of the Army, highlighting a specific branch's need for these services.
Value Assessment
Rating: fair
The contract value of $18.3 million over two years averages to approximately $9.15 million per year. Benchmarking this against similar engineering services contracts within the Department of Defense is crucial. The 'Time and Materials' pricing model, while flexible, can sometimes lead to higher costs if not managed diligently, compared to fixed-price contracts. Without specific comparable data, it's difficult to definitively assess value for money, but the pricing structure presents a moderate risk.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 14 bids suggests a healthy level of competition for this requirement. A competitive environment generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: The full and open competition with numerous bidders is beneficial for taxpayers as it likely drove down prices and ensured the government received competitive offers for the engineering services.
Public Impact
The Department of the Army benefits from specialized engineering services to support its operations. The contract likely supports the development, maintenance, or enhancement of critical defense systems. Geographic impact is concentrated within the areas served by the Department of the Army, potentially including various military installations. Workforce implications include employment opportunities for engineers and technical specialists within General Dynamics Information Technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'Time and Materials' pricing structure can lead to cost overruns if not closely monitored.
- Lack of specific performance metrics in the provided data makes it difficult to assess the quality of services delivered.
- The contract duration of two years might be insufficient for very complex, long-term engineering projects.
Positive Signals
- Awarded under full and open competition, suggesting a robust bidding process.
- The significant number of bidders (14) indicates strong market interest and potential for competitive pricing.
- The contractor, General Dynamics Information Technology, is a well-established entity in the defense sector.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the broader professional services market supporting government and commercial clients. The North American Industry Classification System (NAICS) code 541330, Engineering Services, encompasses establishments primarily engaged in providing architectural, engineering, and related services. The federal government is a significant consumer of these services, particularly for defense, infrastructure, and research projects. Spending in this category is often driven by the need for specialized technical expertise that government agencies may not possess internally.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless General Dynamics Information Technology voluntarily engages small businesses for subcontracting opportunities.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense IT Services
- Army Engineering and Technical Support
- Professional Services Contracts
- Systems Engineering Support
Risk Flags
- Time and Materials pricing structure
- Potential for cost overruns
- Need for robust contract oversight
Tags
department-of-defense, department-of-the-army, engineering-services, time-and-materials, full-and-open-competition, general-dynamics-information-technology, professional-services, contract-award, federal-spending, defense-contracting
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. 200512!008527!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB007 !A!N! !Y!0131 ! !20050930!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 !+000006032481!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !5!B!M! !A! !202
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 $18.3 million.
What is the period of performance?
Start: 2005-09-30. End: 2007-09-30.
What is the historical spending pattern for engineering services by the Department of the Army?
The Department of the Army historically spends billions of dollars annually on engineering and technical services. This spending is distributed across various contracts, ranging from large-scale system development to specialized consulting. Factors influencing this spending include modernization efforts, operational support requirements, and research and development initiatives. Analyzing historical data reveals trends in contract types (e.g., T&M vs. fixed-price), dominant contractors, and the specific engineering disciplines most frequently procured. For instance, periods of increased defense spending or new platform development often correlate with a surge in engineering service contracts. Conversely, budget constraints or shifts in strategic priorities can lead to reductions in certain engineering service procurements.
How does the 'Time and Materials' pricing structure compare to other contract types for engineering services in terms of cost-effectiveness?
Time and Materials (T&M) contracts offer flexibility, allowing the government to pay for the actual labor hours and material costs incurred by the contractor. This can be advantageous for projects with uncertain scope or evolving requirements. However, T&M contracts carry a higher risk of cost overruns compared to fixed-price contracts, as the government bears the direct cost of labor and materials. Fixed-price contracts provide greater cost certainty but are less adaptable to scope changes. Best-value trade-off contracts, which consider both technical merit and price, are often used for complex engineering services to balance flexibility with cost control. For engineering services, the cost-effectiveness of T&M depends heavily on robust oversight, clear task definitions, and efficient contractor performance management to prevent scope creep and ensure fair pricing.
What is General Dynamics Information Technology's track record with similar Department of Defense engineering contracts?
General Dynamics Information Technology (GDIT), now part of General Dynamics, has a substantial track record with the Department of Defense (DoD) across a wide array of IT and engineering services. They have historically secured numerous large-scale contracts for systems engineering, integration, and technical support for various military branches. Their performance on these contracts is generally viewed as competent, given their extensive experience and resources. However, like any large contractor, GDIT has faced scrutiny on specific contracts regarding performance, cost management, and delivery timelines. A thorough review of their past performance ratings, any contract disputes, and successful project completions within the engineering services domain for the DoD would provide a more granular understanding of their capabilities and reliability for this specific award.
What are the potential risks associated with a $18.3 million engineering services contract awarded under 'full and open competition'?
While 'full and open competition' is generally favorable, risks can still exist. For a $18.3 million contract, potential risks include the possibility of the lowest bidder not being the best value, leading to performance issues despite a competitive price. The 'Time and Materials' (T&M) pricing structure, even within a competitive award, poses a risk of cost escalation if not managed meticulously. There's also a risk that the competitive pool, while broad, might not have included a vendor with the absolute best-suited specialized expertise for highly niche engineering requirements. Furthermore, the transition period and knowledge transfer from incumbent or previous efforts can present integration challenges. Effective contract administration, vigilant oversight of T&M hours and costs, and clear performance metrics are crucial to mitigate these risks.
How does the $18.3 million contract value compare to the overall federal spending on engineering services?
The $18.3 million contract value represents a relatively modest portion of the overall federal spending on engineering services. The U.S. government, particularly the Department of Defense, procures hundreds of billions of dollars worth of goods and services annually, with engineering and technical services constituting a significant segment. For example, federal agencies routinely award contracts in the billions for research, development, testing, and evaluation, much of which involves engineering expertise. Therefore, while $18.3 million is a substantial sum for a single contract, it is a small fraction when viewed against the backdrop of total federal procurement in the engineering domain. This context suggests the contract addresses a specific need rather than a broad, agency-wide requirement.
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: 2005-09-30
Current End Date: 2007-09-30
Potential End Date: 2007-09-30 00:00:00
Last Modified: 2015-04-16
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