DHS awards $7.3M IT task order for finance operations and maintenance to General Dynamics

Contract Overview

Contract Amount: $7,285,056 ($7.3M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-12

End Date: 2026-09-11

Contract Duration: 729 days

Daily Burn Rate: $10.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OPERATIONS AND MAINTENANCE TASK ORDER FOR OFFICE OF FINANCE

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46249

State: Indiana Government Spending

Plain-Language Summary

Department of Homeland Security obligated $7.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: OPERATIONS AND MAINTENANCE TASK ORDER FOR OFFICE OF FINANCE Key points: 1. Task order supports critical finance operations and maintenance for U.S. Customs and Border Protection. 2. Contract awarded via a Blanket Purchase Agreement (BPA) Call, indicating pre-negotiated terms. 3. Firm Fixed Price contract type suggests cost certainty for the government. 4. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services. 5. Contract duration of 729 days provides a defined period for service delivery. 6. The award value of $7.3M falls within a moderate spending range for IT services.

Value Assessment

Rating: good

The contract value of $7.3M for IT operations and maintenance appears reasonable given the scope of supporting a major agency like U.S. Customs and Border Protection. Benchmarking against similar IT support contracts for federal agencies of this size suggests that this award is within expected parameters. The firm fixed price structure helps control costs, and the BPA call mechanism implies that pricing was likely reviewed and deemed competitive during the initial BPA establishment.

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 use of a BPA Call suggests that the underlying BPA was also competed, and this specific task order was then solicited among the BPA holders. While the exact number of bidders for this specific task order is not provided, the full and open competition framework generally promotes a competitive environment, leading to better price discovery and value for the government.

Taxpayer Impact: Full and open competition ensures that taxpayers benefit from the most competitive pricing and innovative solutions available in the market, as multiple vendors vie for the contract.

Public Impact

Federal finance operations and maintenance services are delivered to U.S. Customs and Border Protection. IT infrastructure and custom programming services are provided to support agency functions. The contract supports the Department of Homeland Security's mission-critical operations. Workforce implications include IT professionals and support staff employed by General Dynamics Information Technology, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the BPA is not re-competed effectively.
Reliance on a single contractor for critical finance IT systems could pose a risk if performance falters.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Awarded under full and open competition, suggesting a competitive process.
General Dynamics Information Technology is an established federal contractor with significant IT experience.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on custom computer programming services and IT operations and maintenance. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract represents a typical expenditure for a large federal agency like DHS to ensure the smooth functioning of its financial systems, aligning with broader government efforts to modernize IT and enhance cybersecurity.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, as a large prime contractor, General Dynamics Information Technology may have its own small business subcontracting goals as part of its broader federal contracting obligations, which are not detailed in this specific award notice.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Customs and Border Protection contracting officer and program managers within the Department of Homeland Security. As a task order under a BPA, the initial BPA likely underwent significant review. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse, with the DHS Office of Inspector General being the relevant body.

Related Government Programs

Department of Homeland Security IT Modernization Initiatives
Customs and Border Protection Financial Management Systems
Federal Civilian IT Operations and Maintenance Contracts
General Services Administration (GSA) IT Schedule Contracts (if applicable to BPA)

Risk Flags

Potential for cost overruns if scope creep occurs despite FFP.
Dependence on a single vendor for critical financial IT systems.
Risk associated with the long-term sustainment of legacy financial systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $7.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. OPERATIONS AND MAINTENANCE TASK ORDER FOR OFFICE OF FINANCE

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 Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $7.3 million.

What is the period of performance?

Start: 2024-09-12. End: 2026-09-11.

What is the historical spending pattern for similar IT operations and maintenance services by U.S. Customs and Border Protection?

Analyzing historical spending by U.S. Customs and Border Protection (CBP) for IT operations and maintenance reveals a consistent and significant investment in these areas. CBP, as a large component of the Department of Homeland Security (DHS), relies heavily on robust IT systems for its vast array of responsibilities, including border security, trade facilitation, and law enforcement. Over the past five fiscal years, CBP has typically allocated hundreds of millions of dollars annually towards IT services, encompassing software development, system maintenance, infrastructure support, and cybersecurity. Task orders for operations and maintenance, similar to the one awarded to General Dynamics Information Technology, often represent a substantial portion of this spending. These awards are frequently made under large indefinite-delivery/indefinite-quantity (IDIQ) contracts or Blanket Purchase Agreements (BPAs), allowing for flexibility and rapid procurement of necessary services. The specific value of $7.3 million for this task order is consistent with the scale of individual support contracts needed to maintain complex financial and operational IT systems within such a large agency.

How does the pricing of this $7.3M task order compare to market rates for similar custom computer programming services?

Assessing the pricing of this $7.3 million task order requires a comparison against market rates for custom computer programming services, particularly within the federal sector. The contract is a Firm Fixed Price (FFP) award, which generally implies that the contractor has taken on the primary cost risk. The NAICS code 541511 indicates custom computer programming. Market rates for such services can vary significantly based on complexity, required skill sets (e.g., cybersecurity expertise, specific programming languages, cloud integration), and geographic location. For federal contracts, rates are often influenced by the Service Contract Act (SCA) wage determinations and the competitive landscape. Given that this was awarded under full and open competition via a BPA Call, it suggests that the pricing was considered competitive at the time of award. Without specific details on the labor categories, hours, and specific deliverables, a precise per-hour rate comparison is difficult. However, federal IT support contracts of this magnitude, especially for established contractors like General Dynamics Information Technology, typically fall within a range that reflects specialized skills and the overhead associated with supporting government operations. The FFP structure aims to provide value by capping costs.

What are the key performance indicators (KPIs) likely used to evaluate the performance of General Dynamics Information Technology on this contract?

For an IT operations and maintenance task order supporting finance functions, key performance indicators (KPIs) would likely focus on system availability, performance, security, and responsiveness. Specific KPIs could include: System Uptime/Availability: Measuring the percentage of time critical finance systems are operational and accessible to users, often with targets of 99.9% or higher. Incident Response Time: The time taken to acknowledge and begin resolving reported IT issues or system outages. Problem Resolution Time: The time taken to fully resolve identified IT problems, categorized by severity. Security Compliance: Adherence to all relevant cybersecurity policies, standards (e.g., NIST), and successful completion of security audits. Data Integrity and Accuracy: Ensuring that financial data processed and maintained by the systems is accurate and free from corruption. User Satisfaction: Feedback from end-users regarding the reliability and performance of the IT services provided. Change Management Success Rate: The percentage of system updates or changes implemented without causing negative impacts or requiring rollback. These KPIs would be formally defined in the contract's Performance Work Statement (PWS) and used for regular performance reviews.

What is the track record of General Dynamics Information Technology, Inc. in performing similar federal IT contracts?

General Dynamics Information Technology, Inc. (GDIT) has a substantial and long-standing track record of performing a wide range of IT services for federal agencies, including the Department of Homeland Security (DHS) and its components like U.S. Customs and Border Protection (CBP). Their experience spans across various domains such as enterprise IT, cloud computing, cybersecurity, data analytics, and mission-critical application development and sustainment. GDIT is a major federal contractor known for handling large, complex programs. They have historically secured and successfully executed numerous contracts involving IT operations and maintenance, system integration, and modernization for defense and civilian agencies. Their performance on previous contracts, often involving similar firm-fixed-price or cost-plus-award-fee structures, generally indicates a capacity to manage significant IT portfolios. While specific performance metrics for all past contracts are not publicly detailed, their continued success in winning competitive bids and maintaining long-term relationships with agencies like DHS suggests a generally positive performance history in delivering complex IT solutions.

What is the potential impact of this contract on the broader IT services market for federal agencies?

This contract, while a specific task order, reflects broader trends and dynamics within the federal IT services market. The award to General Dynamics Information Technology, a large incumbent contractor, highlights the continued reliance of major agencies like DHS on established players for critical operations and maintenance. The use of a Blanket Purchase Agreement (BPA) Call signifies a common procurement strategy that leverages pre-negotiated terms and conditions, promoting efficiency but potentially limiting new entrants if the underlying BPA is not frequently re-competed. The focus on custom computer programming and maintenance aligns with the ongoing need for agencies to modernize legacy systems while ensuring the stability of current operations. This contract's value and scope suggest that agencies are continuing to invest significantly in maintaining their core IT infrastructure. For the broader market, it underscores the demand for specialized IT support, cybersecurity, and system sustainment services, while also indicating that competition for such large-scale, mission-critical contracts often favors large, experienced firms.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $18,435,642

Exercised Options: $7,285,056

Current Obligation: $7,285,056

Actual Outlays: $3,366,700

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $11,600,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70B01C24A00000036

IDV Type: BPA

Timeline