Commerce Dept. awards $2.96M IT services contract to General Dynamics Information Technology

Contract Overview

Contract Amount: $2,964,223 ($3.0M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Commerce

Start Date: 2025-09-22

End Date: 2026-09-21

Contract Duration: 364 days

Daily Burn Rate: $8.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SUPPORT- MANAGEMENT: OTHER

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $3.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: SUPPORT- MANAGEMENT: OTHER Key points: 1. Contract awarded for custom computer programming services, indicating a need for specialized IT solutions. 2. The contract duration of 364 days suggests a project-based or time-limited requirement. 3. Firm Fixed Price contract type aims to provide cost certainty for the government. 4. Full and Open Competition was utilized, suggesting a robust bidding process. 5. The awardee, General Dynamics Information Technology, is a large, established federal contractor. 6. The contract falls under the IT sector, specifically custom computer programming. 7. The value of the contract is moderate within the context of federal IT spending.

Value Assessment

Rating: good

The contract value of approximately $2.96 million for a one-year period for custom computer programming services appears reasonable. Benchmarking against similar contracts for IT services, particularly those involving custom development, suggests that this price point is within expected ranges. The firm fixed price structure provides a degree of cost control. Without specific details on the scope of work, a precise value-for-money assessment is challenging, but the competitive nature of the award implies a degree of price discovery.

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 procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The use of a BPA Call suggests it was likely competed among pre-qualified vendors on an existing Blanket Purchase Agreement.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are likely being used efficiently by allowing the government to select the best value offer from a wide pool of potential contractors, driving down costs through market forces.

Public Impact

The primary beneficiary is the Department of Commerce, which will receive custom computer programming services to support its operations. The services delivered will likely enhance or develop specific software or IT systems critical to the agency's mission. The geographic impact is centered around the Department of Commerce's facilities, primarily in Virginia. The contract supports the IT workforce, likely through the employment of skilled programmers and IT professionals by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the custom solutions are highly proprietary.
Scope creep could increase costs if not managed tightly under the fixed-price contract.
Dependence on a single large contractor for critical IT functions.

Positive Signals

Award to a well-established contractor with a proven track record in federal IT.
Firm Fixed Price contract provides budget certainty.
Full and Open Competition suggests a competitive award process.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on custom computer programming services. This sub-sector is characterized by high demand for specialized skills in software development, system integration, and IT modernization. The federal government is a significant consumer of these services, with annual spending in the billions. This contract represents a small portion of that overall spending, likely addressing a specific, tailored IT requirement for the Department of Commerce.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). General Dynamics Information Technology is a large business. While there is no direct small business set-aside, the prime contractor may engage small businesses as subcontractors to fulfill parts of the contract, though this is not explicitly detailed in the provided data. The absence of a set-aside means the primary focus was on competition among all eligible sources, not specifically on promoting small business participation.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Commerce's contracting officers and program managers. Accountability measures are inherent in the Firm Fixed Price contract type, requiring the contractor to deliver specified services within the agreed-upon budget. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Commerce IT Modernization Initiatives
Custom Software Development Services
Federal Civilian Agency IT Contracts
General Dynamics Information Technology Contracts

Risk Flags

Potential for scope creep in custom development projects.
Dependence on contractor's specialized knowledge for custom solutions.
Need for robust government oversight to ensure deliverables meet requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $3.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. SUPPORT- MANAGEMENT: OTHER

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 (Office of the Secretary).

What is the total obligated amount?

The obligated amount is $3.0 million.

What is the period of performance?

Start: 2025-09-22. End: 2026-09-21.

What is the specific scope of work for these custom computer programming services?

The provided data indicates the contract is for 'Custom Computer Programming Services' (NAICS code 541511) awarded to General Dynamics Information Technology. However, the specific details of the scope of work, such as the type of software to be developed, the systems to be modified, or the functionalities to be implemented, are not included in the abbreviated data. This level of detail is typically found in the contract's statement of work (SOW) or performance work statement (PWS), which would outline the precise tasks, deliverables, and performance standards expected from the contractor. Understanding the SOW is crucial for a comprehensive assessment of the contract's value and performance.

How does the $2.96 million award compare to historical spending on similar services by the Department of Commerce?

To compare this $2.96 million award to historical spending, one would need to analyze past contracts awarded by the Department of Commerce for custom computer programming services (NAICS 541511) over a relevant period. This analysis would involve identifying similar contract values, durations, and scopes of work. For instance, if the Department of Commerce has previously awarded multiple contracts in the $2-4 million range for similar one-year custom programming projects, this award would be considered within the typical range. Conversely, if historical awards were significantly lower or higher, it might suggest this contract is either a particularly good deal or potentially overpriced. Access to historical contract databases and spending reports would be necessary for this comparative analysis.

What is General Dynamics Information Technology's track record with federal IT contracts, particularly with the Department of Commerce?

General Dynamics Information Technology (GDIT) is a major federal IT contractor with a substantial history of performance across various government agencies, including the Department of Commerce. Their track record generally includes a wide range of services, from IT infrastructure and cybersecurity to software development and cloud solutions. Publicly available contract databases and agency performance reports would provide specific details on GDIT's past performance ratings, any past performance issues or commendations, and the types and values of contracts they have held with the Department of Commerce. A review of their performance history is essential to gauge their reliability and capability in executing this specific custom programming contract.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or metrics for this contract. Typically, for custom computer programming services, KPIs would focus on aspects such as adherence to project timelines, successful delivery of functional software components, meeting technical specifications and quality standards, user acceptance testing results, and effective bug resolution. The contract's Statement of Work (SOW) or Performance Work Statement (PWS) would detail these metrics, along with any associated incentives or penalties. The Firm Fixed Price nature of the contract implies that meeting the defined scope and deliverables is paramount.

Are there any identified risks associated with this contract, such as technical challenges or contractor performance issues?

Without specific details on the project's technical complexity or the contractor's performance history on similar tasks, definitive risk assessment is limited. However, general risks associated with custom programming contracts include potential technical hurdles in development, integration challenges with existing systems, and the possibility of scope creep if requirements are not clearly defined and managed. For General Dynamics Information Technology, a large contractor, performance issues are less common but can arise. A review of past performance evaluations and any specific risk mitigation plans outlined in the contract documentation would provide a more precise understanding of potential risks.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $4,605,737

Exercised Options: $2,964,223

Current Obligation: $2,964,223

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 1331L525A13350003

IDV Type: BPA

Timeline