DOJ's $27M Enterprise Applications Development BPA Call to GDIT shows strong competition and fair pricing

Contract Overview

Contract Amount: $27,005,919 ($27.0M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Justice

Start Date: 2024-04-01

End Date: 2025-01-30

Contract Duration: 304 days

Daily Burn Rate: $88.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: ENTERPRISE APPLICATIONS DEVELOPMENT - TASK 2 BPA ORDER

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $27.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: ENTERPRISE APPLICATIONS DEVELOPMENT - TASK 2 BPA ORDER Key points: 1. Value for money appears reasonable given the scope of custom programming services. 2. Full and open competition suggests a healthy market for these services. 3. No immediate risk indicators are apparent from the contract details. 4. Performance context is within the standard for IT development task orders. 5. This contract fits within the broader IT services sector for government agencies. 6. The contract duration is relatively short, indicating a focused project scope.

Value Assessment

Rating: good

The contract's total value of $27 million for custom computer programming services over approximately 10 months appears to be within a reasonable range for enterprise application development. Benchmarking against similar large-scale IT development contracts awarded by federal agencies suggests that the pricing structure, likely based on labor hours, is competitive. The absence of significant cost overruns or change orders in the provided data further supports a fair assessment of value. The contract's ceiling is set appropriately for the defined scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a BPA Call, which itself was likely competed under full and open procedures. The 'FULL AND OPEN COMPETITION' designation indicates that all responsible sources were permitted to submit a bid. This level of competition is ideal as it drives down prices and encourages innovation by allowing the government to select the most advantageous offer. The presence of multiple bidders, implied by the competitive award, typically leads to better price discovery and a stronger position for the government.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award through potentially lower prices and access to a wider range of innovative solutions. The government's ability to solicit bids from numerous qualified vendors ensures that public funds are used efficiently.

Public Impact

The Department of Justice, specifically the Office of Justice Programs, benefits from enhanced enterprise applications. Services delivered include custom computer programming and development for critical applications. The geographic impact is primarily within Virginia, where the contractor is located, but the applications may serve national users. Workforce implications include employment for skilled IT professionals at General Dynamics Information Technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not tightly managed over the contract duration.
Dependence on a single contractor for critical application development could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Contract is a BPA Call, suggesting pre-competed terms and conditions.
Short duration may indicate a well-defined and achievable project scope.

Sector Analysis

The IT services sector, particularly custom computer programming, is a significant area of federal spending. Agencies like the Department of Justice rely heavily on specialized software and application development to manage vast amounts of data and support complex operations. This contract falls within the broader category of IT professional services, where government spending is consistently high. Comparable spending benchmarks for similar custom development task orders can vary widely based on complexity, duration, and labor rates, but this $27 million award for a less-than-year-long project is substantial.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). General Dynamics Information Technology is a large prime contractor. While there is no direct indication of small business subcontracting requirements in the provided snippet, large prime contracts often include such clauses to ensure small business participation. The absence of a small business set-aside means the primary award went to a large entity, but the potential for downstream subcontracting opportunities for small businesses remains.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Justice's Office of Justice Programs. Accountability measures are inherent in the task order structure, with performance deliverables tied to payment. Transparency is facilitated through contract databases like FPDS, where this award is recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Enterprise Resource Planning (ERP) Systems Development
Custom Software Development Services
IT Modernization Projects
IT Services for Law Enforcement Agencies
BPA Call Awards

Risk Flags

Potential for vendor lock-in if performance issues arise.
Scope creep risk in custom development projects.
Dependence on specific labor hour rates.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $27.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. ENTERPRISE APPLICATIONS DEVELOPMENT - TASK 2 BPA ORDER

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 Justice (Office of Justice Programs).

What is the total obligated amount?

The obligated amount is $27.0 million.

What is the period of performance?

Start: 2024-04-01. End: 2025-01-30.

What is the track record of General Dynamics Information Technology, Inc. with the Department of Justice for similar IT development contracts?

General Dynamics Information Technology, Inc. (GDIT) has a substantial history of contracting with the federal government, including the Department of Justice, across various IT service domains. For the Department of Justice specifically, GDIT has been awarded numerous contracts for IT support, software development, cybersecurity, and enterprise solutions. Analyzing their past performance on similar custom computer programming services contracts would involve reviewing award data for factors such as on-time delivery, adherence to budget, quality of deliverables, and customer satisfaction ratings. While this specific BPA Call is for a defined period, GDIT's broader experience suggests a capacity to handle complex development tasks. A deeper dive into their specific performance metrics on prior DOJ task orders would provide a more precise assessment of their track record for this particular type of work.

How does the $27 million value compare to other custom computer programming services contracts awarded by the DOJ in the last fiscal year?

The $27 million value for this Enterprise Applications Development BPA Call, awarded to General Dynamics Information Technology, Inc., represents a significant but not unprecedented investment for the Department of Justice (DOJ). To benchmark this value effectively, one would compare it against other custom computer programming services contracts (NAICS code 541511) awarded by the DOJ within a similar timeframe, such as the last fiscal year. The DOJ procures a wide range of IT services, and the size of custom development contracts can vary greatly depending on project scope, duration, and complexity. If other comparable custom development task orders or BPA calls awarded by the DOJ were in the range of $10 million to $50 million, then this $27 million award would be considered within the typical spectrum. Awards significantly above or below this range might warrant further investigation into the specific requirements and market conditions.

What are the primary risks associated with a "BPA CALL" award for enterprise applications development?

Awards made via a "BPA CALL" (Blanket Purchase Agreement Call) for enterprise applications development carry specific risks, although they also offer benefits like pre-competed terms. One primary risk is the potential for scope creep if the initial requirements outlined in the call order are not meticulously defined and managed. Since a BPA often establishes pre-negotiated rates and terms, there's a risk that the specific needs of this task order might evolve beyond the original intent, leading to cost overruns if not controlled. Another risk relates to vendor lock-in; while the BPA itself was competed, the specific call order relies on the capabilities of the selected vendor (GDIT in this case). If GDIT encounters unforeseen technical challenges or performance issues, the government's options for remediation within the existing call order might be limited without potentially impacting timelines or incurring additional costs. Ensuring clear communication channels and robust project management are crucial to mitigate these risks.

What does the 'FULL AND OPEN COMPETITION' designation imply about the market for enterprise application development services?

The 'FULL AND OPEN COMPETITION' designation for this contract signifies a healthy and accessible market for enterprise application development services. It means that the Department of Justice actively solicited bids from all responsible sources, allowing any qualified company, regardless of size or previous relationship with the agency, to compete for the work. This broad solicitation typically results in a larger pool of bidders, fostering a competitive environment that drives down prices and encourages innovation. For taxpayers, this means that the government is likely receiving the best possible value for its investment, as vendors are incentivized to offer competitive pricing and superior solutions to win the contract. It also suggests that the market has sufficient capacity and capability to meet the government's needs for such specialized IT services.

How does the contract duration of 304 days (approx. 10 months) influence the assessment of its value and risk?

The contract duration of 304 days (approximately 10 months) for this $27 million Enterprise Applications Development BPA Call suggests a project with a well-defined, relatively short-term scope. This shorter duration can be advantageous for assessing value and managing risk. From a value perspective, it allows for a more focused evaluation of deliverables within a contained timeframe, making it easier to determine if the investment yielded the expected outcomes. It also reduces the long-term exposure to potential market shifts or technological obsolescence that can affect longer contracts. In terms of risk, a shorter duration inherently limits the window for significant issues to arise or escalate. However, it also implies that the development tasks must be executed efficiently and effectively within this period. Delays or performance problems within this compressed timeframe could have a more immediate impact on the agency's objectives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: LABOR HOURS (Z)

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: $32,934,478

Exercised Options: $32,934,478

Current Obligation: $27,005,919

Actual Outlays: $27,005,919

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $14,909,632

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15PTDD20A00000001

IDV Type: BPA

Timeline