VA awards $9M contract for mail processing to General Dynamics IT, a 2-year delivery order

Contract Overview

Contract Amount: $9,035,317 ($9.0M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-08-08

End Date: 2026-08-07

Contract Duration: 729 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CONSOLIDATED INTAKE OF AND PROCESSING OF MAIL

Place of Performance

Location: EATONTOWN, MONMOUTH County, NEW JERSEY, 07724

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $9.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: CONSOLIDATED INTAKE OF AND PROCESSING OF MAIL Key points: 1. Contract value is $9.04M over 2 years. 2. General Dynamics IT is the sole awardee. 3. The contract is for computer systems design services. 4. This is a delivery order under a larger contract. 5. The contract type is Firm Fixed Price.

Value Assessment

Rating: fair

The contract value of $9.04M over two years for mail processing services appears reasonable given the scope. Benchmarking against similar IT service contracts is difficult without more specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, as a delivery order, the specific pricing was likely negotiated within the terms of a pre-existing contract.

Taxpayer Impact: Taxpayer funds are being used for essential administrative services. The competitive award process aims to ensure value for money.

Public Impact

Ensures continued processing of mail for VA operations. Supports the Department of Veterans Affairs' administrative functions. General Dynamics IT, a large contractor, will perform the services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under IT services, specifically computer systems design. The IT services sector is vast, with significant government spending. Benchmarks vary widely based on service type and complexity.

Small Business Impact

The awardee, General Dynamics Information Technology, Inc., is a large business. There is no indication that small businesses were involved in this specific delivery order.

Oversight & Accountability

As a delivery order, oversight is likely managed by the contracting officer for the parent contract. The VA should ensure performance metrics are met and documented.

Related Government Programs

Risk Flags

Tags

computer-systems-design-services, department-of-veterans-affairs, nj, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $9.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. CONSOLIDATED INTAKE OF AND PROCESSING OF MAIL

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 $9.0 million.

What is the period of performance?

Start: 2024-08-08. End: 2026-08-07.

What specific IT systems or processes are being consolidated and processed under this contract?

The data indicates 'CONSOLIDATED INTAKE OF AND PROCESSING OF MAIL' as the service description. This likely involves digital mailroom solutions, scanning, indexing, and routing of incoming physical and electronic mail for the Department of Veterans Affairs. The specific IT systems would encompass document management software, scanning hardware, and workflow automation tools.

What is the risk of vendor lock-in given this is a delivery order?

The risk of vendor lock-in exists if the parent contract under which this delivery order was issued is also with General Dynamics IT and lacks clear exit strategies or competitive re-competition clauses. If the parent contract is nearing its end, the VA should plan for competitive procurement of future mail processing needs.

How does the $9M value compare to the efficiency gains expected from mail consolidation?

Without detailed metrics on the previous mail processing costs and the projected efficiencies from consolidation, a direct comparison is difficult. However, $9M over two years ($4.5M annually) for a large agency like the VA suggests a significant volume of mail. The value should be assessed against reduced manual labor, faster processing times, and improved document accessibility.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

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: $18,221,700

Exercised Options: $9,035,317

Current Obligation: $9,035,317

Actual Outlays: $1,365,754

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $9,960,516

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: 2024-08-08

Current End Date: 2026-08-07

Potential End Date: 2029-08-07 00:00:00

Last Modified: 2026-03-09

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