Commerce awards $15.4M cloud computing contract to General Dynamics IT for NOAA systems

Contract Overview

Contract Amount: $15,429,268 ($15.4M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Commerce

Start Date: 2024-10-01

End Date: 2026-09-30

Contract Duration: 729 days

Daily Burn Rate: $21.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TO 53 CLOUD COMPUTING FY24

Place of Performance

Location: PRINCETON, MIDDLESEX County, NEW JERSEY, 08540

State: New Jersey Government Spending

Plain-Language Summary

Department of Commerce obligated $15.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: TO 53 CLOUD COMPUTING FY24 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Delivery order for cloud computing services indicates a need for scalable and modern IT infrastructure. 3. The contract duration of approximately two years points to a medium-term need for these services. 4. General Dynamics Information Technology, Inc. is a large, established federal contractor. 5. The contract type is Time and Materials, which can pose cost control challenges if not managed closely. 6. Services are for the National Oceanic and Atmospheric Administration (NOAA), supporting critical data and research functions.

Value Assessment

Rating: good

The contract value of $15.4 million over two years for cloud computing services appears reasonable given the scope. Benchmarking against similar cloud services contracts awarded by agencies like the Department of Defense or NASA would provide a more precise value-for-money assessment. The Time and Materials pricing structure necessitates careful monitoring to ensure costs remain within expected parameters and do not escalate due to inefficiencies or scope creep. Without specific performance metrics or detailed service level agreements, a definitive value assessment is challenging, but the competitive award suggests a baseline level of fair pricing.

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. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which is expected to drive down prices and encourage innovation. The agency's decision to use full and open competition suggests confidence in the market's ability to provide suitable solutions and that no specific restrictions limited the pool of potential offerors.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a wider range of innovative solutions, as multiple companies vie for the contract. This process helps ensure that government funds are used efficiently by leveraging market forces.

Public Impact

The primary beneficiaries are the National Oceanic and Atmospheric Administration (NOAA) and its scientific and operational staff, who will receive enhanced cloud computing capabilities. Services delivered will support NOAA's mission-critical functions, likely including data storage, processing, analysis, and dissemination for weather, climate, oceans, and coasts. The contract's geographic impact is primarily focused on supporting NOAA's national operations, with potential implications for data accessibility and research conducted across the United States. Workforce implications may include the need for specialized IT personnel within NOAA or reliance on contractor personnel with expertise in cloud architecture and management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not strictly managed, as it pays for labor hours and materials used rather than a fixed price.
Lack of specific performance metrics or Service Level Agreements (SLAs) in the provided data makes it difficult to assess the contractor's performance incentives and potential for value.
The contract's duration of approximately two years might require follow-on procurements, potentially leading to transition costs or vendor lock-in if not planned strategically.

Positive Signals

Awarded through full and open competition, which typically results in better pricing and a wider selection of qualified vendors.
General Dynamics Information Technology, Inc. is a large, experienced federal contractor with a significant presence in IT services, suggesting a lower risk of performance failure.
The contract supports NOAA, a critical agency, indicating the importance and potential positive impact of the cloud services on national scientific and environmental initiatives.

Sector Analysis

This contract falls within the broader IT services sector, specifically cloud computing, which is a rapidly growing segment of federal IT spending. The federal government is increasingly migrating services to the cloud to enhance flexibility, scalability, and cost-efficiency. Comparable spending benchmarks for cloud services vary widely based on scope, provider, and service level agreements, but agencies like the Department of Defense and the General Services Administration award numerous large-scale cloud contracts annually. This $15.4 million award represents a moderate investment for a specific agency's needs within this expansive market.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, it does not directly contribute to small business prime contracting goals. However, the prime contractor, General Dynamics Information Technology, Inc., may engage small businesses as subcontractors to fulfill portions of the contract requirements. The extent of small business subcontracting will depend on the contractor's internal policies and the specific nature of the cloud services required.

Oversight & Accountability

Oversight for this contract will primarily reside with the contracting officers and program managers within the National Oceanic and Atmospheric Administration (NOAA) and the Department of Commerce. The Time and Materials (T&M) nature of the contract necessitates rigorous oversight of labor hours, material costs, and adherence to the Statement of Work (SOW) to prevent cost overruns. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

General Services Administration (GSA) Cloud IT Schedule
NASA SEWP (Solutions for Enterprise-Wide Procurement)
Department of Defense Cloud Computing Strategy
Federal Risk and Authorization Management Program (FedRAMP)

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Need for robust oversight to ensure efficient performance and prevent scope creep.
Dependence on contractor expertise for critical cloud infrastructure management.
Potential challenges in measuring specific performance outcomes without detailed SLAs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $15.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. TO 53 CLOUD COMPUTING 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 $15.4 million.

What is the period of performance?

Start: 2024-10-01. End: 2026-09-30.

What is the track record of General Dynamics Information Technology, Inc. with similar cloud computing contracts for NOAA or other federal agencies?

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record in providing IT services, including cloud solutions, to various federal agencies. While specific contract details for NOAA are not detailed here, GDIT has held numerous large-scale contracts for IT modernization, cloud migration, and managed services across departments like Defense, Health and Human Services, and Homeland Security. Their experience often involves complex infrastructure management, cybersecurity, and application hosting. A deeper dive into FPDS or agency-specific contract databases would reveal the volume, value, and performance history of their cloud-related awards, including any past performance evaluations or issues encountered on similar projects.

How does the $15.4 million value compare to other NOAA cloud computing procurements or similar agency contracts?

The $15.4 million value for a two-year cloud computing delivery order is a moderate-sized award within the federal IT landscape. NOAA itself likely has other, potentially larger or smaller, cloud-related contracts supporting different functions or infrastructure components. Comparing this to contracts from agencies with similar data-intensive missions, such as NASA or the National Science Foundation, or even larger agencies like the Department of Defense for specific cloud services, would provide better context. For instance, major cloud service providers (AWS, Azure, Google Cloud) often have multi-billion dollar agreements with the federal government, but this contract is for IT services *related* to cloud computing, likely involving integration, management, or specific application hosting rather than raw cloud infrastructure provision from a hyperscaler.

What are the primary risks associated with a Time and Materials (T&M) contract for cloud computing services?

The primary risk with a Time and Materials (T&M) contract for cloud computing is the potential for cost escalation if not managed diligently. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. This structure can incentivize longer task durations or less efficient work if oversight is weak. For cloud services, this could mean higher-than-expected labor costs for system administration, troubleshooting, or configuration. To mitigate this, the government must implement strong oversight, closely monitor all billable hours and material costs, establish clear task limits, and ensure the contractor is performing efficiently and effectively against the defined scope of work.

How does this contract contribute to NOAA's overall mission effectiveness and modernization efforts?

This contract is crucial for NOAA's mission effectiveness by providing essential cloud computing infrastructure and services. Modernizing NOAA's IT systems through cloud adoption allows for greater scalability to handle vast amounts of environmental data (weather, climate, oceans), improved processing power for complex modeling and analysis, enhanced data accessibility for researchers and the public, and increased resilience and disaster recovery capabilities. By leveraging cloud technologies, NOAA can potentially reduce its own data center footprint and operational costs while gaining access to cutting-edge technologies, ultimately supporting its core functions of understanding and predicting changes in climate, weather, oceans, and coasts.

What is the historical spending trend for cloud computing services at the Department of Commerce or NOAA?

Historical spending on cloud computing services at the Department of Commerce and NOAA has generally been on an upward trend, mirroring the broader federal government's push towards cloud adoption. Agencies are increasingly shifting workloads from on-premises data centers to cloud environments to leverage benefits like scalability, cost-efficiency, and agility. While specific historical dollar amounts for NOAA's cloud spending require detailed analysis of past contract awards (e.g., via FPDS), it's evident that investments in cloud infrastructure, platforms, and services have become a significant part of agency IT budgets over the last decade. This $15.4 million award represents a continuation and likely an expansion of that trend.

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: 1305M424R0053

Pricing Type: TIME AND MATERIALS (Y)

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: $28,918,788

Exercised Options: $15,429,268

Current Obligation: $15,429,268

Actual Outlays: $7,431,823

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $12,559,225

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