VA Awards $72M IT Service Management Contract to General Dynamics for 2 Years
Contract Overview
Contract Amount: $72,046,166 ($72.0M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Veterans Affairs
Start Date: 2022-07-01
End Date: 2024-12-31
Contract Duration: 914 days
Daily Burn Rate: $78.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TIER 0/TIER 1 INFORMATION TECHNOLOGY SERVICE MANAGEMENT INCIDENT AND SERVICE LEVEL AGREEMENT THRESHOLDS. THESE SERVICES WILL INCLUDE TECHNICAL, LOGISTICAL, AND PROGRAMMATIC SERVICES TO FULFILL THE REQUIREMENTS OF THE PERFORMANCE WORK STATEMENT.
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042
State: Virginia Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $72.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: TIER 0/TIER 1 INFORMATION TECHNOLOGY SERVICE MANAGEMENT INCIDENT AND SERVICE LEVEL AGREEMENT THRESHOLDS. THESE SERVICES WILL INCLUDE TECHNICAL, LOGISTICAL, AND PROGRAMMATIC SERVICES TO FULFILL THE REQUIREMENTS OF THE PERFORMANCE WORK STATEMENT. Key points: 1. Contract focuses on IT service management, incident response, and SLA thresholds. 2. General Dynamics Information Technology, Inc. is the awardee. 3. The contract is a Delivery Order under a larger IDIQ, indicating potential for follow-on work. 4. The sector is IT, specifically Computer Systems Design Services.
Value Assessment
Rating: good
The contract value of $72M over approximately 2.5 years suggests a moderate investment for IT service management. Benchmarking against similar large-scale IT service contracts would provide a clearer picture of its cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value.
Public Impact
Ensures continued IT support for the Department of Veterans Affairs. Supports critical incident management and service level agreements for VA systems. Potential impact on veterans' access to services if IT support falters.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Contract duration extends into late 2024, requiring ongoing monitoring.
- Reliance on a single awardee for critical IT services.
Positive Signals
- Awarded through full and open competition.
- Clear performance work statement requirements.
- Firm Fixed Price contract type provides cost certainty.
Sector Analysis
This contract falls within the IT sector, specifically Computer Systems Design Services. Spending in this area is crucial for government operations, with benchmarks varying widely based on service scope and complexity.
Small Business Impact
The data indicates this contract was not set aside for small businesses and the awardee is General Dynamics Information Technology, Inc., a large business. There is no indication of small business subcontracting in the provided data.
Oversight & Accountability
As a Delivery Order under a larger IDIQ, oversight is likely managed by the contracting activity within the VA. Monitoring performance against SLAs and the PWS is key to accountability.
Related Government Programs
- Computer Systems Design Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Contract duration
- Potential for vendor lock-in
- Reliance on a single large business awardee
- Complexity of IT service management
Tags
computer-systems-design-services, department-of-veterans-affairs, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $72.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. TIER 0/TIER 1 INFORMATION TECHNOLOGY SERVICE MANAGEMENT INCIDENT AND SERVICE LEVEL AGREEMENT THRESHOLDS. THESE SERVICES WILL INCLUDE TECHNICAL, LOGISTICAL, AND PROGRAMMATIC SERVICES TO FULFILL THE REQUIREMENTS OF THE PERFORMANCE WORK STATEMENT.
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 Veterans Affairs (Department of Veterans Affairs).
What is the total obligated amount?
The obligated amount is $72.0 million.
What is the period of performance?
Start: 2022-07-01. End: 2024-12-31.
What specific IT service management capabilities are included in the Performance Work Statement?
The Performance Work Statement (PWS) outlines requirements for technical, logistical, and programmatic services. This includes managing IT incidents, ensuring service level agreements (SLAs) are met, and providing overall IT service management support to the Department of Veterans Affairs.
What are the primary risks associated with this IT service management contract?
Key risks include potential disruptions to VA IT services if the contractor underperforms, challenges in managing the contract's scope over its duration, and the inherent risk of vendor lock-in for critical IT functions. Ensuring robust performance monitoring and contingency planning is vital.
How does this contract contribute to the VA's overall mission effectiveness?
This contract is essential for maintaining the operational integrity of the VA's IT infrastructure, which underpins all services provided to veterans. Reliable IT service management ensures that systems are available, incidents are resolved promptly, and service levels are met, directly impacting the efficiency and effectiveness of veteran care.
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 - END USER
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: T4NG-0636
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
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: $72,046,166
Exercised Options: $72,046,166
Current Obligation: $72,046,166
Actual Outlays: $54,453,684
Subaward Activity
Number of Subawards: 13
Total Subaward Amount: $27,900,268
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: VA11816D1016
IDV Type: IDC
Timeline
Start Date: 2022-07-01
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2025-04-14
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