DoD's $11.15M IT contract to General Dynamics Information Technology, Inc. for computer facilities management

Contract Overview

Contract Amount: $11,154,113 ($11.2M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-07-01

End Date: 2006-06-30

Contract Duration: 364 days

Daily Burn Rate: $30.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Place of Performance

Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28542

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $11.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: Key points: 1. Contract awarded to a large, established IT services provider. 2. The contract type is Firm Fixed Price, which shifts risk to the contractor. 3. Duration of 364 days suggests a focused, short-term need. 4. Awarded by the Department of the Air Force, indicating a defense-specific IT requirement. 5. The North American Industry Classification System (NAICS) code 541513 points to computer systems design services. 6. No small business set-aside was utilized, suggesting the scope may not have been tailored for smaller entities.

Value Assessment

Rating: fair

The award amount of $11.15 million for computer facilities management services over approximately one year appears within a reasonable range for large-scale IT support contracts. Benchmarking against similar contracts for facilities management within the Department of Defense would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for the government when scope is well-defined, as it caps costs.

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 offers. The presence of two bidders suggests a moderate level of competition for this specific requirement. While two bidders are better than one, a higher number of competitors typically leads to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of companies to bid, potentially driving down costs through competitive pricing and fostering innovation.

Public Impact

The primary beneficiaries are the Department of the Air Force personnel who rely on stable and efficient computer facilities. Services delivered include the management and maintenance of critical IT infrastructure. The geographic impact is likely concentrated at the Air Force installation(s) where the facilities are located. Workforce implications may involve the utilization of skilled IT professionals by the contractor to fulfill the service requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Reliance on a single contractor for critical IT infrastructure could pose a risk if performance degrades.

Positive Signals

Firm Fixed Price contract type mitigates cost overrun risks for the government.
Full and open competition suggests a market-driven price was likely achieved.
Award to a large, established contractor like General Dynamics may indicate a higher likelihood of successful performance due to experience.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer facilities management. The IT services market is highly competitive, with significant government spending allocated to maintaining and upgrading its technological infrastructure. Contracts of this nature are crucial for ensuring the operational readiness of defense agencies. Comparable spending benchmarks for IT facilities management within the federal government can vary widely based on scope, location, and specific services required.

Small Business Impact

The contract was not set aside for small businesses, and the awardee is a large corporation. This suggests that the scope of work was likely too broad or complex for a small business set-aside. There is no explicit information on subcontracting plans for small businesses, which could represent a missed opportunity to engage the small business ecosystem in supporting this requirement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Accountability measures are inherent in the firm fixed-price contract type, which penalizes the contractor for cost overruns. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Infrastructure Management
Computer Systems Design Services
Defense IT Support
Facilities Operations and Maintenance

Risk Flags

Potential for performance issues impacting critical IT services.
Risk of security breaches in managed computer facilities.
Contract scope ambiguity could lead to cost disputes or unmet needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. See the official description on USAspending.

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 Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $11.2 million.

What is the period of performance?

Start: 2005-07-01. End: 2006-06-30.

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

General Dynamics Information Technology, Inc. (GDIT) has a long and extensive history of providing IT services, including facilities management, to the Department of Defense and other federal agencies. They are a major government contractor with a broad portfolio of services. Analyzing GDIT's past performance on similar contracts would involve reviewing contract databases for awards, performance evaluations (if available), and any reported issues or successes. Their size and experience suggest a capacity to handle complex IT infrastructure needs, but specific performance on comparable contracts would be needed for a definitive assessment of their suitability for this particular requirement.

How does the $11.15 million award compare to the market rate for similar computer facilities management services?

Determining the precise market rate for this contract requires detailed comparison with similar services procured by other agencies or within the private sector, considering factors like scope, duration, geographic location, and specific service level agreements. However, $11.15 million for a year of comprehensive IT facilities management for a defense agency is generally within the expected range for large-scale contracts. The firm fixed-price nature suggests that the government sought to cap costs. Without access to detailed service requirements and performance metrics, a definitive benchmark is challenging, but the award appears to be a significant investment in essential IT infrastructure support.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential performance failures by the contractor leading to IT disruptions, cost overruns if the fixed-price scope is poorly defined, and security vulnerabilities within the managed facilities. Mitigation strategies are embedded in the contract structure: the firm fixed-price nature incentivizes the contractor to manage costs efficiently. The Department of the Air Force's oversight, through a Contracting Officer's Representative (COR), is crucial for monitoring performance and ensuring adherence to service level agreements. Security protocols and background checks for personnel would also be standard mitigation measures for defense IT contracts.

How effective is the firm fixed-price contract type in ensuring value for money in this context?

The firm fixed-price (FFP) contract type is generally considered effective for ensuring value for money when the scope of work is well-defined and unlikely to change significantly. It shifts the risk of cost overruns to the contractor, incentivizing them to perform efficiently to maintain profitability. For computer facilities management, where many operational tasks are predictable, FFP can provide cost certainty for the government. However, if the requirements are ambiguous or subject to frequent changes, FFP can lead to contractor resistance to necessary modifications or disputes, potentially undermining value.

What is the historical spending pattern for computer facilities management services by the Department of the Air Force?

The Department of the Air Force, like other branches of the military, consistently allocates substantial funding towards IT infrastructure and services, including facilities management. Historical spending patterns reveal a continuous need for maintaining and upgrading complex computing environments to support mission-critical operations. This spending is often characterized by a mix of large, long-term contracts for core services and smaller, more specialized contracts for specific projects or technologies. Analyzing past expenditures would show a trend of significant, ongoing investment in this area, reflecting the critical role of IT in modern defense.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 77 A STREET, NEEDHAM, MA, 04

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: F0960303D0095

IDV Type: IDC

Timeline