General Dynamics awarded $272.8M for SOF Enterprise IT Services, highlighting a significant investment in mission capabilities

Contract Overview

Contract Amount: $272,780,124 ($272.8M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2020-08-05

End Date: 2025-08-04

Contract Duration: 1,825 days

Daily Burn Rate: $149.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: INITIAL TASK ORDER AWARD. CONTRACTOR WILL PROVIDE THE USG PROGRAM OFFICE WITH A FULL RANGE OF SOF ENTERPRISE IT SERVICES, O&M AND SUPPORT SERVICES TO SITEC J MISSION CAPABILITIES TO INCLUDE SOF IT ENTERPRISE.

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28307

State: North Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $272.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: INITIAL TASK ORDER AWARD. CONTRACTOR WILL PROVIDE THE USG PROGRAM OFFICE WITH A FULL RANGE OF SOF ENTERPRISE IT SERVICES, O&M AND SUPPORT SERVICES TO SITEC J MISSION CAPABILITIES TO INCLUDE SOF IT ENTERPRISE. Key points: 1. The contract focuses on comprehensive IT services, operations, and maintenance for Special Operations Forces (SOF) enterprise IT. 2. Awarded under full and open competition, suggesting a robust market response and potential for competitive pricing. 3. The duration of 1825 days (5 years) indicates a long-term commitment to these critical IT services. 4. The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, balancing flexibility with cost control. 5. The contract is managed by the General Services Administration (GSA), a common agency for IT service procurements. 6. The North Carolina location for service delivery may have implications for regional IT workforce and infrastructure. 7. This award represents a substantial portion of federal spending within the Computer Systems Design Services category.

Value Assessment

Rating: good

The contract value of $272.8 million over five years for comprehensive IT services for SOF is substantial. Benchmarking against similar large-scale IT support contracts for defense or intelligence agencies is necessary for a precise value-for-money assessment. However, the CPFF structure, while offering flexibility, can sometimes lead to higher costs if not managed diligently compared to fixed-price contracts. The number of bidders (3) suggests moderate competition, which could influence pricing.

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. Three bids were received, suggesting a moderate level of competition for this significant IT services requirement. While three bidders is not a large number, it still provides a basis for price discovery and allows the government to select the best value offering.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for the government's investment.

Public Impact

Special Operations Forces (SOF) personnel will benefit from enhanced and reliable IT infrastructure and support. The contract ensures the delivery of a full range of IT services, including operations, maintenance, and support for SOF mission capabilities. Service delivery is primarily located in North Carolina, potentially impacting the local IT job market and economy. The contract supports the technological backbone essential for SOF operations, indirectly benefiting national security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur costs, potentially leading to higher overall expenditures if not closely monitored.
With only three bidders, there's a risk that competition may not have been as robust as possible, potentially impacting price optimization.
The broad scope of 'full range of SOF enterprise IT services' could lead to scope creep if not clearly defined and managed.

Positive Signals

Awarded under full and open competition, maximizing the pool of potential offerors.
The five-year duration provides stability and allows for long-term planning and investment in IT infrastructure.
General Dynamics Information Technology is an established contractor with experience in large-scale government IT projects.
The contract aims to enhance critical mission capabilities for Special Operations Forces, a high-priority area.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader IT services industry. This sector is characterized by high demand for specialized technical expertise, particularly in areas supporting defense and intelligence operations. The market size for government IT services is substantial, with agencies increasingly relying on contractors for complex system design, integration, and maintenance. This award aligns with a trend of outsourcing IT functions to specialized firms to leverage expertise and manage costs effectively.

Small Business Impact

This contract was not set aside for small businesses and General Dynamics Information Technology, Inc. is a large business. There is no explicit mention of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears limited unless subcontracting opportunities arise organically from the prime contractor's execution.

Oversight & Accountability

The contract is managed by the General Services Administration (GSA), which typically has robust oversight mechanisms for its IT procurements. The Cost Plus Fixed Fee (CPFF) structure necessitates careful monitoring of costs incurred by the contractor to ensure adherence to the fixed fee and overall budget. Transparency will depend on GSA's reporting practices and the availability of contract performance data. Inspector General oversight would likely fall under the purview of the Department of Defense or relevant SOF components, given the end-user.

Related Government Programs

SOF IT Enterprise Support
Defense IT Services
IT Operations and Maintenance
Computer Systems Design Services
Federal IT Contracts

Risk Flags

Potential for cost overruns due to CPFF structure
Moderate competition level (3 bidders)
Scope definition and management for 'full range' services
Dependence on contractor performance for critical SOF IT infrastructure

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $272.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. INITIAL TASK ORDER AWARD. CONTRACTOR WILL PROVIDE THE USG PROGRAM OFFICE WITH A FULL RANGE OF SOF ENTERPRISE IT SERVICES, O&M AND SUPPORT SERVICES TO SITEC J MISSION CAPABILITIES TO INCLUDE SOF IT ENTERPRISE.

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $272.8 million.

What is the period of performance?

Start: 2020-08-05. End: 2025-08-04.

What is General Dynamics Information Technology's track record with similar large-scale IT service contracts for defense or intelligence agencies?

General Dynamics Information Technology, Inc. (GDIT) has a significant and extensive track record of performing large-scale IT service contracts for various U.S. federal agencies, including defense and intelligence communities. They are known for providing a wide array of services such as enterprise IT infrastructure management, cybersecurity, cloud computing, data center operations, and application development. GDIT has held numerous prime contracts with the Department of Defense (DoD), including significant work with the Army, Navy, and Air Force, as well as intelligence agencies. Their experience often involves complex, mission-critical systems requiring high levels of security and reliability. While specific performance metrics for past contracts are not detailed here, their consistent award of large federal contracts suggests a generally positive performance history and capability to meet demanding government requirements. However, like any large contractor, they may have faced specific challenges or criticisms on individual contracts, which would require deeper investigation into contract performance reports and oversight findings.

How does the $272.8 million value compare to similar SOF or defense IT support contracts awarded over the past five years?

The $272.8 million total contract value over five years, averaging approximately $54.5 million annually, is substantial but falls within the expected range for comprehensive IT enterprise support for a major government entity like Special Operations Forces (SOF). Large-scale IT service contracts for defense and intelligence agencies often range from tens of millions to hundreds of millions of dollars annually, depending on the scope, complexity, and number of users supported. For instance, similar contracts for enterprise IT modernization, network operations, or cybersecurity services for branches of the military or intelligence community can easily exceed this value. Contracts supporting specialized units like SOF, which require highly secure and advanced technological capabilities, may command premium pricing due to the unique requirements and expertise involved. Without specific comparable contract identifiers, a precise benchmark is difficult, but this award appears consistent with the scale of IT support required for high-priority national security missions.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this scope of services?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for comprehensive IT services like this is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs incurred, plus a predetermined fixed fee representing profit. While the fixed fee provides some incentive for the contractor to control costs (as their profit is capped), the reimbursement of costs means the government bears the financial risk if actual costs exceed initial estimates. This can lead to the contract exceeding its ceiling if not managed diligently. Potential risks include scope creep, inefficient resource management by the contractor, or unforeseen technical challenges that drive up costs. Effective oversight, detailed cost tracking, and robust contract administration by the government are crucial to mitigate these risks and ensure the government receives good value for its investment.

What does the 'full range of SOF enterprise IT services' entail, and how is performance measured?

The 'full range of SOF enterprise IT services' typically encompasses a broad spectrum of IT support critical for Special Operations Forces' mission success. This includes, but is not limited to: network operations and maintenance, cybersecurity services (threat detection, incident response, vulnerability management), system administration, help desk support, hardware and software lifecycle management, data management, potentially cloud services integration, and IT infrastructure design and implementation. Performance measurement for such a contract is usually governed by a Performance Work Statement (PWS) and a Quality Assurance Surveillance Plan (QASP). Key Performance Indicators (KPIs) might include system uptime percentages, response times for help desk tickets, cybersecurity incident resolution times, successful patch deployment rates, and user satisfaction surveys. The government's contracting officer's representative (COR) and quality assurance personnel would monitor these metrics to ensure the contractor meets the required service levels and objectives.

How does the geographic location (North Carolina) impact the delivery of these IT services for SOF?

The specified service delivery location in North Carolina primarily impacts the logistical and workforce aspects of the contract. It suggests that a significant portion of the contractor's personnel and potentially infrastructure supporting these SOF IT services will be based in or operate from North Carolina. This could involve establishing or utilizing data centers, operations centers, or administrative offices within the state. From a workforce perspective, it implies job creation and economic activity in North Carolina's IT sector. It may also influence recruitment strategies, as the contractor will likely leverage the local talent pool. For SOF, if operations are geographically dispersed, having a key support hub in North Carolina could streamline certain support functions, provided it aligns with operational needs and security protocols. The specific impact depends on whether SOF personnel or assets are co-located or frequently interact with the North Carolina-based support team.

What is the significance of the contract type 'Computer Systems Design Services' (NAICS 541512) in the context of federal IT spending?

The NAICS code 541512, 'Computer Systems Design Services,' signifies that the contract's primary focus is on integrating computer hardware and software products and systems for clients. This includes designing and developing systems, planning and designing computer systems that integrate hardware, software, and communication technologies, providing technical consulting services, and performing feasibility studies and system evaluations. In the context of federal IT spending, this category is crucial as it underpins the modernization and operational efficiency of government IT infrastructure. Agencies frequently contract for these services to design and implement new systems, upgrade existing ones, or integrate disparate technologies to meet evolving mission requirements. Spending within this category reflects the government's investment in its technological capabilities, encompassing everything from network architecture to specialized software solutions, and is a significant portion of the overall federal IT budget.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3211 JERMANTOWN RD, FAIRFAX, VA, 22030

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $364,099,529

Exercised Options: $355,194,382

Current Obligation: $272,780,124

Actual Outlays: $-212,148

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $12,381,243

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: 47QTCK18D0003

IDV Type: GWAC

Timeline