Commerce awards $6.2M for IT maintenance, equipment, and supplies to General Dynamics

Contract Overview

Contract Amount: $6,205,759 ($6.2M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Commerce

Start Date: 2024-09-19

End Date: 2031-06-03

Contract Duration: 2,448 days

Daily Burn Rate: $2.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TO50 MAINTENANCE, EQUIPMENT & SUPPLIES FOR NESCC FY24

Place of Performance

Location: FAIRMONT, MARION County, WEST VIRGINIA, 26554

State: West Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $6.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: TO50 MAINTENANCE, EQUIPMENT & SUPPLIES FOR NESCC FY24 Key points: 1. Contract awarded on a firm-fixed-price basis, providing cost certainty. 2. Long performance period of 2448 days suggests a need for sustained IT support. 3. Competition was full and open, indicating a potentially competitive bidding process. 4. The contract is for computer systems design services, a critical IT function. 5. No small business set-aside was utilized, potentially limiting small business participation. 6. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $6.2 million over approximately 6.8 years (2448 days) translates to an average annual spend of roughly $912,600. Without specific benchmarks for NESCC IT maintenance and equipment, a direct value-for-money assessment is challenging. However, the firm-fixed-price structure helps control costs. Further analysis would require comparing this to similar NOAA or Commerce IT support contracts and understanding the scope of services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally promotes a competitive environment, which can lead to better pricing and service offerings for the government. The agency's choice of full and open competition indicates confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for cost savings through a robust bidding process.

Public Impact

The National Oceanic and Atmospheric Administration (NOAA) will benefit from sustained IT support. Services include maintenance, equipment, and supplies essential for IT operations. The contract has a geographic impact in West Virginia, where the contractor is located. This contract supports the IT infrastructure necessary for NOAA's scientific and environmental missions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the scope is narrowly defined and difficult to transition.
Reliance on a single contractor for critical IT infrastructure could pose risks if performance falters.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Long-term nature of the contract allows for stable IT support and planning.
Full and open competition suggests a potentially competitive pricing environment.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a crucial component of the IT industry. This sector encompasses a wide range of services, including IT consulting, systems integration, and IT support. The market for these services is substantial, driven by the ongoing need for organizations to maintain, upgrade, and secure their technological infrastructure. This specific contract appears to support the operational needs of a government agency's IT environment.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of a small business subcontracting plan being a requirement. This suggests that opportunities for small businesses may be limited to direct subcontracting roles, if any, rather than prime contract awards. Further investigation into the contractor's subcontracting practices would be needed to assess the full impact on the small business ecosystem.

Oversight & Accountability

As a delivery order under a larger contract vehicle, oversight would likely be managed by the contracting officer at NOAA. The firm-fixed-price nature of the contract provides a degree of financial oversight by establishing a set cost. Transparency is generally maintained through contract award databases, but detailed performance metrics and specific oversight activities are not publicly disclosed.

Related Government Programs

IT Support Services
Computer Systems Design Services
NOAA IT Contracts
Department of Commerce IT Spending

Risk Flags

Long contract duration may not keep pace with technological advancements.
Potential for vendor lock-in due to extended reliance on a single provider.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $6.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. TO50 MAINTENANCE, EQUIPMENT & SUPPLIES FOR NESCC FY24

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 Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $6.2 million.

What is the period of performance?

Start: 2024-09-19. End: 2031-06-03.

What is the specific scope of 'maintenance, equipment & supplies' covered under this contract?

The provided data indicates the contract is for 'TO50 MAINTENANCE, EQUIPMENT & SUPPLIES FOR NESCC FY24' and falls under NAICS code 541512 (Computer Systems Design Services). While the specific details of 'maintenance, equipment & supplies' are not fully elaborated in the summary data, it typically encompasses the upkeep of existing IT systems, the procurement of necessary hardware and software, and consumable IT supplies. For NESCC (National Environmental Satellite, Data, and Information Service), this likely includes servers, networking equipment, workstations, software licenses, and related support services to ensure the operational continuity of their IT infrastructure. The duration of the contract (over 6 years) suggests a comprehensive and ongoing need for these IT resources.

How does the $6.2 million contract value compare to similar IT support contracts within NOAA or the Department of Commerce?

Benchmarking the $6.2 million contract value requires access to comparable contract data for IT support services within NOAA and the broader Department of Commerce. Without specific details on the scope, duration, and service levels of other contracts, a direct comparison is difficult. However, given the contract's duration of approximately 6.8 years, the annual average spend is around $912,600. This figure should be compared against other IT maintenance and support contracts of similar scope and complexity within federal agencies. Factors like the number of users supported, criticality of systems, and specific technologies involved would influence the benchmark. A full and open competition award suggests the agency sought competitive pricing, which could indicate a reasonable value, but detailed analysis requires more granular data.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided summary data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a contract of this nature (IT maintenance, equipment, and supplies), typical KPIs would likely focus on system uptime, response times for maintenance requests, equipment delivery timelines, and the successful resolution of IT issues. Service Level Agreements would define the expected standards for these metrics, often with associated penalties for non-performance or incentives for exceeding targets. The firm-fixed-price nature of the contract suggests that the scope of services and expected outcomes are clearly defined to manage costs and performance expectations.

What is General Dynamics Information Technology's track record with similar federal IT contracts?

General Dynamics Information Technology (GDIT) is a major federal contractor with a substantial track record in providing IT services across various government agencies. They have historically secured numerous large-scale contracts for IT support, systems integration, cybersecurity, and cloud services. Their experience often includes managing complex IT infrastructures for agencies similar to NOAA. A review of federal procurement databases (like SAM.gov or FPDS) would reveal GDIT's past performance on contracts with the Department of Commerce, NOAA, and other civilian agencies. This would allow for an assessment of their performance history, including any past issues or commendations related to similar IT maintenance and support services.

What is the potential risk associated with the long contract duration (over 6 years)?

The long contract duration of approximately 6.8 years (2448 days) presents several potential risks. Firstly, technology evolves rapidly; a contract spanning this period might not adequately account for future technological advancements or obsolescence, potentially leading to the need for costly modifications or scope changes. Secondly, there's a risk of vendor lock-in, where the agency becomes heavily reliant on GDIT, making it difficult and expensive to switch providers or adopt new solutions. Thirdly, long-term contracts can sometimes lead to complacency in performance if not rigorously overseen. Finally, changes in agency priorities or budget constraints over such a long period could impact the contract's relevance or funding, although the firm-fixed-price nature provides some cost certainty.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1305M424R0048

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3150 FAIRVIEW PARK DR STE 100, 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: $6,205,759

Exercised Options: $6,205,759

Current Obligation: $6,205,759

Actual Outlays: $3,372,496

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $3,785,456

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOCST133018CQ0073

IDV Type: IDC

Timeline