Interior Dept. awards $36.7M IT contract to General Dynamics for computer systems design

Contract Overview

Contract Amount: $36,693,513 ($36.7M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of the Interior

Start Date: 2024-02-12

End Date: 2025-08-06

Contract Duration: 541 days

Daily Burn Rate: $67.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: CONTRACT MANAGEMENT AND PROGRAM SUPPORT

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $36.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: CONTRACT MANAGEMENT AND PROGRAM SUPPORT Key points: 1. Contract focuses on essential IT management and program support services. 2. General Dynamics, a large established contractor, secured this award. 3. The contract duration is over 1.5 years, indicating a medium-term need. 4. Services are categorized under Computer Systems Design, a common IT function. 5. The award was made via a delivery order under an existing contract. 6. The contract type is Time and Materials, which can pose cost control challenges.

Value Assessment

Rating: fair

The contract value of $36.7 million over approximately 1.5 years suggests a significant investment in IT support. Benchmarking this against similar contracts for Computer Systems Design Services requires access to a broader dataset of comparable awards. The Time and Materials pricing structure, while flexible, can lead to higher costs if not closely managed, making a direct value-for-money assessment challenging without detailed labor rates and hours data. The base award amount of $6.78 million provides an initial benchmark, with the total value representing potential task orders.

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 specific competition dynamics, such as the number of bids received and the evaluation process, are not detailed in the provided data. However, full and open competition generally promotes a competitive environment, which can lead to better pricing and service offerings for the government.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it maximizes the pool of potential offerors, fostering a competitive environment that can drive down costs and improve service quality.

Public Impact

The Department of the Interior benefits from enhanced IT management and program support. Federal agencies relying on Interior's IT infrastructure will experience improved stability and performance. The contract supports IT professionals and potentially other roles within General Dynamics. Geographic impact is likely concentrated around Interior Department facilities, primarily in Maryland. Improved IT systems can indirectly support a wide range of public services managed by the Interior.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not diligently monitored.
Lack of specific performance metrics in the provided data makes it difficult to assess service quality.
The base award amount is significantly lower than the total potential value, requiring careful management of task orders.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
General Dynamics is a large, experienced contractor with a significant presence in government IT services.
The contract addresses essential IT management and program support functions critical for agency operations.

Sector Analysis

This contract falls within the Information Technology sector, specifically Computer Systems Design Services. This is a large and competitive market segment supporting government operations across all agencies. Spending in this area is driven by the need for modernizing IT infrastructure, cybersecurity, data management, and general IT support. Comparable spending benchmarks would involve analyzing IT services contracts across various federal agencies, particularly those with similar operational scopes to the Department of the Interior.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major IT provider, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specified within the detailed contract terms. The focus is on a large prime contractor, suggesting minimal direct impact on the small business IT ecosystem through this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Interior. Accountability measures are usually embedded in the contract's performance work statement and delivery schedules. Transparency is facilitated through contract databases like FPDS, where basic award information is published. The Inspector General's office for the Department of the Interior would have jurisdiction over potential fraud, waste, or abuse related to this contract.

Related Government Programs

IT Management Support Services
Computer Systems Design
Program Management Support
Cloud Computing Services
Cybersecurity Services

Risk Flags

Time and Materials contract type requires diligent oversight to control costs.
Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single large contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $36.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. CONTRACT MANAGEMENT AND PROGRAM SUPPORT

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 the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $36.7 million.

What is the period of performance?

Start: 2024-02-12. End: 2025-08-06.

What is the historical spending pattern of the Department of the Interior on Computer Systems Design Services?

Analyzing the historical spending of the Department of the Interior on Computer Systems Design Services (NAICS code 541512) would reveal trends in IT investment and support needs. This includes identifying peak spending periods, major contract vehicles used, and the primary contractors awarded these types of services. Understanding this pattern helps contextualize the current $36.7 million award, indicating whether it represents an increase, decrease, or continuation of previous spending levels. It also highlights the department's reliance on external vendors for critical IT functions and provides a baseline for evaluating future contract values and durations.

How does the pricing structure of this Time and Materials contract compare to fixed-price contracts for similar IT services?

Time and Materials (T&M) contracts, like this one, offer flexibility by reimbursing the contractor for direct labor hours at specified rates and for the cost of materials. This contrasts with fixed-price contracts, where the price is set regardless of the actual effort expended. While T&M can be advantageous for projects with undefined scopes or evolving requirements, it carries a higher risk of cost overruns for the government if not managed stringently. Benchmarking T&M rates against fixed-price equivalents for similar IT services requires detailed analysis of labor categories, hourly rates, and overhead. Generally, T&M can be more expensive than fixed-price if the contractor's efficiency is low or if the scope expands significantly beyond initial estimates.

What is General Dynamics Information Technology's track record with the Department of the Interior and similar agencies?

General Dynamics Information Technology (GDIT) is a major federal IT contractor with a substantial history of serving various government agencies, including the Department of the Interior. Their track record typically involves providing a wide range of IT services, from infrastructure management and cybersecurity to software development and cloud solutions. Examining GDIT's past performance with the Interior Department would involve reviewing previous contract awards, performance evaluations (if publicly available), and any reported issues or successes. A strong past performance record with the agency or similar entities generally indicates a lower risk for the government in terms of project execution and reliability.

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

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for a contract focused on 'CONTRACT MANAGEMENT AND PROGRAM SUPPORT' and 'Computer Systems Design Services,' typical KPIs would likely include metrics related to system uptime and availability, response times for IT support requests, project completion rates within defined timelines, adherence to budget, and successful implementation of new systems or upgrades. Performance would also be assessed against the requirements outlined in the Performance Work Statement (PWS). Effective oversight would involve regular reviews of these KPIs to ensure the contractor is meeting or exceeding expectations.

What is the potential impact of the 'Delivery Order' (aw: DELIVERY ORDER) nature of this award on overall IT program stability?

The fact that this award is a 'Delivery Order' indicates it was issued under a pre-existing indefinite-delivery/indefinite-quantity (IDIQ) or similar master contract. This approach allows agencies to procure services incrementally as needed, offering flexibility. For IT program stability, this means that the services provided by General Dynamics can be scaled up or down based on evolving requirements. While this flexibility is beneficial, it also means that the total scope and duration might not be fixed upfront, requiring continuous monitoring by the Department of the Interior to ensure consistent support and alignment with long-term IT strategies. The stability hinges on the underlying master contract's structure and the agency's consistent tasking.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 3150 FAIRVIEW PARK DR, 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: $37,293,513

Exercised Options: $37,293,513

Current Obligation: $36,693,513

Actual Outlays: $34,923,156

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $14,797,956

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140D0424D0001

IDV Type: IDC

Timeline