VA awards $65.1M contract to General Dynamics for IT services, focusing on intake and communication

Contract Overview

Contract Amount: $65,132,603 ($65.1M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-09-23

End Date: 2026-09-22

Contract Duration: 1,460 days

Daily Burn Rate: $44.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TO FROM MULTIPLE AWARD IDIQ CONTRACT FOR THE VETERANS INTAKE, CONVERSION, AND COMMUNICATION SERVICES (VICCS) PROGRAM. INCORPORATE DCMA APPROVED NOVATION AGREEMENT.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $65.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: TO FROM MULTIPLE AWARD IDIQ CONTRACT FOR THE VETERANS INTAKE, CONVERSION, AND COMMUNICATION SERVICES (VICCS) PROGRAM. INCORPORATE DCMA APPROVED NOVATION AGREEMENT. Key points: 1. Contract aims to improve veterans' intake, conversion, and communication processes through IT solutions. 2. General Dynamics Information Technology, Inc. is the primary awardee for this critical program. 3. The contract is structured as a Firm Fixed Price delivery order under an IDIQ. 4. Performance is concentrated in the District of Columbia, impacting local VA operations. 5. The duration of 1460 days suggests a significant, multi-year commitment to these services. 6. This award is part of a broader effort to modernize VA's service delivery infrastructure.

Value Assessment

Rating: good

The contract value of $65.1 million over approximately four years represents a substantial investment in IT services for the VA. Benchmarking against similar large-scale IT service contracts within federal agencies suggests this pricing is within a reasonable range, though specific performance metrics and deliverables would be needed for a precise value-for-money assessment. The use of a Firm Fixed Price contract type indicates a defined scope and budget, which can help control costs if managed effectively. The award to a large, established contractor like General Dynamics suggests a focus on reliability and proven capability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of two bids suggests a competitive environment, though the exact number of interested parties and the rigor of the evaluation process are not detailed here. Full and open competition generally promotes price discovery and encourages contractors to offer competitive terms to win the award.

Taxpayer Impact: Taxpayers benefit from the assurance that the contract was awarded through a process designed to identify the best value, potentially leading to more efficient use of public funds.

Public Impact

Veterans will benefit from improved intake, conversion, and communication services, leading to a more streamlined experience with the VA. The contract supports the modernization of critical IT infrastructure within the Department of Veterans Affairs. Services are primarily delivered in the District of Columbia, impacting regional VA facilities and personnel. The contract may lead to employment opportunities within the IT sector, particularly for those supporting federal contracts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not clearly defined.
Dependence on a single large contractor could pose risks if performance issues arise.
Ensuring effective transition and integration with existing VA systems is crucial.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
General Dynamics is an established contractor with significant experience in federal IT services.
Firm Fixed Price contract type provides cost certainty for the VA.

Sector Analysis

The IT services sector for federal agencies is highly competitive, with numerous large and small businesses vying for contracts. This award falls within the broader category of IT infrastructure and support services, which are essential for government operations. The market size for federal IT spending is in the hundreds of billions annually, with agencies like the VA consistently investing in technology to improve service delivery. This contract represents a portion of that investment, specifically targeting improvements in how veterans interact with the VA system.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, General Dynamics Information Technology, Inc., is a large corporation. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem appears limited for this specific award, though large prime contractors often engage small businesses for specialized support on such contracts.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. The contract's duration and value suggest regular performance reviews and reporting requirements. Given the nature of IT services, adherence to security protocols and data privacy regulations will be a key area of oversight. The Inspector General's office for the VA may also conduct audits or investigations if performance concerns or potential fraud are identified.

Related Government Programs

Veterans Health Administration IT Services
Department of Veterans Affairs Core IT Modernization
Federal Civilian Agency IT Support Contracts
IDIQ Contract Vehicles for IT Services

Risk Flags

Contract Performance Risk
Cybersecurity Risk
Integration Risk
Cost Overrun Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $65.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. TO FROM MULTIPLE AWARD IDIQ CONTRACT FOR THE VETERANS INTAKE, CONVERSION, AND COMMUNICATION SERVICES (VICCS) PROGRAM. INCORPORATE DCMA APPROVED NOVATION AGREEMENT.

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 $65.1 million.

What is the period of performance?

Start: 2022-09-23. End: 2026-09-22.

What is the track record of General Dynamics Information Technology, Inc. with the Department of Veterans Affairs?

General Dynamics Information Technology, Inc. (GDIT) has a substantial history of working with the Department of Veterans Affairs (VA) on various IT initiatives. They have been involved in numerous contracts ranging from electronic health record modernization to infrastructure support and data management. Their experience includes managing large-scale IT projects, demonstrating a capacity to handle complex federal requirements. Past performance reviews and contract histories with the VA would provide a more detailed picture of their reliability, responsiveness, and success in delivering services that meet VA's specific needs and timelines. Analyzing their performance on similar VICCS-related or veteran-facing programs would be particularly insightful.

How does the $65.1 million contract value compare to similar VA IT service contracts?

The $65.1 million contract value for the VICCS program is a significant but not unprecedented amount for large IT service contracts within the VA. The VA consistently awards multi-million dollar contracts for IT modernization, infrastructure, and support services. For instance, contracts related to the VA's Electronic Health Record (EHR) modernization or enterprise-wide cloud migration efforts often run into hundreds of millions or even billions of dollars over their lifecycle. When compared to other contracts focused on specific service areas like intake, communication, or data conversion, $65.1 million over four years suggests a substantial scope. A direct comparison would require identifying contracts with similar objectives and durations, but it falls within the expected range for a program of this nature and importance to the VA's operational efficiency.

What are the primary risks associated with this contract for the VA?

Key risks for the VA with this contract include potential performance issues from the contractor, General Dynamics Information Technology, Inc., which could lead to delays in improving veteran services or system inefficiencies. There's also a risk of cost overruns if the Firm Fixed Price structure is not managed tightly or if unforeseen technical challenges arise. Integration risks with existing VA IT systems are significant, as seamless data flow and user experience are critical for the VICCS program's success. Furthermore, cybersecurity threats and data breaches are an inherent risk with any IT contract handling sensitive veteran information, requiring robust security measures and constant vigilance. Finally, vendor lock-in or over-reliance on a single large contractor could pose long-term strategic risks.

How effective is the 'full and open competition' approach likely to be for this specific contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring fair pricing and identifying the best value for the government. For this $65.1 million VA IT contract, it means that any qualified vendor could bid, fostering a competitive environment. This process encourages multiple vendors to propose innovative solutions and competitive pricing to win the award. The fact that two bids were received indicates a level of competition, though understanding the number of proposals solicited and the specific evaluation criteria would provide a clearer picture of its effectiveness. A robust competition typically leads to better price discovery and a higher likelihood that the VA secures a capable contractor at a reasonable cost, maximizing taxpayer value.

What are the historical spending patterns for similar IT services at the VA?

The Department of Veterans Affairs has consistently been a major federal spender on IT services, with annual expenditures often reaching billions of dollars. Historical spending patterns show a significant allocation towards IT modernization, electronic health records, data management, cybersecurity, and cloud computing. Contracts for IT support, infrastructure, and software development are perennial. The VA's spending in these areas has been driven by the need to update legacy systems, improve data sharing across its vast network, enhance veteran-facing digital services, and meet evolving cybersecurity mandates. The VICCS program's $65.1 million award aligns with these ongoing trends of investing in IT to improve operational efficiency and service delivery to veterans.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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, 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: $89,653,070

Exercised Options: $65,132,603

Current Obligation: $65,132,603

Actual Outlays: $52,691,078

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $60,728,514

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10E19D0015

IDV Type: IDC

Timeline