DHS awards $9.8M task order for IT services to General Dynamics, raising value-for-money questions

Contract Overview

Contract Amount: $9,806,025 ($9.8M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-30

End Date: 2026-06-30

Contract Duration: 638 days

Daily Burn Rate: $15.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SPECIAL PROJECTS SPECIFIC 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 $9.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: SPECIAL PROJECTS SPECIFIC TASK ORDER FOR OFFICE OF FINANCE Key points: 1. The contract's time-and-materials pricing structure may lead to cost overruns without strict oversight. 2. Limited competition details suggest potential for suboptimal price discovery. 3. The contractor, General Dynamics Information Technology, has a substantial federal footprint, indicating experience but also potential for complacency. 4. The duration of the contract (nearly two years) requires ongoing scrutiny to ensure performance aligns with objectives. 5. The specific services under this task order are not detailed, making direct performance benchmarking difficult. 6. The contract is not set aside for small businesses, potentially limiting opportunities for smaller IT firms.

Value Assessment

Rating: fair

The $9.8 million award for custom computer programming services is a significant investment. Without detailed performance metrics or a fixed-price structure, assessing value-for-money is challenging. Benchmarking against similar IT services contracts is difficult due to the lack of specific service descriptions. The time-and-materials (T&M) pricing model, while flexible, carries inherent risks of cost escalation if not managed diligently. Compared to fixed-price contracts for comparable IT support, T&M can sometimes result in higher overall costs if the scope is not tightly controlled.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. However, the specific number of bids received and the evaluation process are not detailed in the provided data. Full and open competition is generally expected to foster competitive pricing. The fact that it is a BPA Call suggests it was competed within an existing Best Practices Agreement, which may streamline the process but could also limit the pool of potential bidders to those already on the BPA.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it theoretically drives down prices through market forces. However, the effectiveness depends on the actual number of bids and the rigor of the evaluation.

Public Impact

The primary beneficiary is the U.S. Customs and Border Protection (CBP) within the Department of Homeland Security, which will receive custom computer programming services. These services are expected to support the operational needs of the Office of Finance, likely involving financial systems or data management. The geographic impact is centered in Indiana, where the contract is being performed. The contract supports the federal IT workforce, potentially through direct employment by General Dynamics or its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time-and-materials pricing increases risk of cost overruns without stringent oversight.
Lack of specific service details hinders performance evaluation and value assessment.
Potential for contractor lock-in if services become deeply integrated into CBP operations.
Limited transparency on the competitive bidding process beyond 'full and open'.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Contractor has significant experience in federal IT services.
Task order issued under an existing BPA, potentially indicating pre-vetted capabilities.
Clear end date provides a defined period for service delivery.

Sector Analysis

This contract falls within the Custom Computer Programming Services sector (NAICS 541511), a critical component of the broader IT services market. This sector is characterized by high demand from government agencies for specialized software development, system integration, and IT support. The market is competitive, with both large prime contractors like General Dynamics and numerous smaller, specialized firms. Government spending in this area is substantial, driven by the need to modernize legacy systems, enhance cybersecurity, and develop new digital capabilities. This specific task order likely supports internal financial operations, a common area for IT investment across federal agencies.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates the prime contractor is not a small business. This means that opportunities for small businesses would primarily come through subcontracting. Without specific subcontracting plans detailed, it's unclear how much of this award will flow down to the small business ecosystem. Agencies are encouraged to maximize small business participation, but the absence of a set-aside suggests this contract was not specifically targeted for small business prime awards.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Customs and Border Protection contracting office within DHS. The time-and-materials (T&M) nature of the contract necessitates robust oversight to monitor labor hours, costs, and deliverables to prevent scope creep and ensure fair pricing. Transparency is moderate, as the award is public, but details on performance metrics and specific oversight activities are not readily available. The DHS Inspector General's office may conduct audits or investigations if specific concerns arise regarding performance or financial accountability.

Related Government Programs

Department of Homeland Security IT Modernization Programs
Customs and Border Protection Financial Management Systems
Federal Civilian IT Services Contracts
General Dynamics Information Technology Federal Contracts

Risk Flags

Potential for cost overruns due to T&M pricing.
Lack of detailed performance metrics hinders value assessment.
Limited transparency on competitive bidding outcomes.
Contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $9.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. SPECIAL PROJECTS SPECIFIC 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 $9.8 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-06-30.

What is the specific nature of the 'SPECIAL PROJECTS SPECIFIC TASK ORDER FOR OFFICE OF FINANCE' being procured?

The provided data identifies the contract as 'SPECIAL PROJECTS SPECIFIC TASK ORDER FOR OFFICE OF FINANCE' and categorizes the service under NAICS code 541511 (Custom Computer Programming Services). While the exact nature of the 'special projects' is not detailed, it implies a need for tailored software development, system enhancements, or IT support related to the financial operations of U.S. Customs and Border Protection (CBP). This could range from developing new financial reporting tools, integrating existing financial systems, enhancing data security for financial information, or providing specialized IT support for financial applications. The 'Office of Finance' context suggests the projects are critical for CBP's internal fiscal management and accounting functions.

How does the $9.8 million value compare to similar IT services contracts awarded by CBP or DHS?

Comparing the $9.8 million value requires context on the scope and duration. For custom computer programming services (NAICS 541511), this amount is moderate for a task order, especially if it covers nearly two years (638 days). CBP and DHS frequently award IT contracts, with many ranging from a few million to tens of millions of dollars for larger projects or longer durations. For instance, larger system development or integration projects could easily exceed $50 million. Smaller, more focused programming tasks might be in the $1-5 million range. Without knowing the specific deliverables, it's hard to definitively benchmark, but $9.8 million for specialized IT projects over approximately 21 months appears within a plausible range for federal agencies of CBP's size and complexity, assuming the scope is substantial.

What are the primary risks associated with the Time and Materials (T&M) contract type for this task order?

The primary risk with a Time and Materials (T&M) contract type is the potential for cost overruns and a lack of defined cost ceiling if not managed meticulously. Unlike fixed-price contracts, T&M agreements pay the contractor for the direct labor hours at specified hourly rates and for the actual cost of materials. This structure can incentivize longer project durations or less efficient work if oversight is weak. For the government, it shifts much of the cost risk to the buyer. Effective risk mitigation requires robust government oversight, including detailed tracking of labor hours, validation of material costs, and clear definition and control of the scope of work to prevent 'scope creep' that inflates costs without proportional benefit.

What is General Dynamics Information Technology's track record with federal IT contracts, particularly within DHS?

General Dynamics Information Technology (GDIT) is a major federal IT contractor with a long history of performance across numerous civilian and defense agencies, including significant work with the Department of Homeland Security (DHS). They have held numerous large contracts involving IT services, systems integration, cybersecurity, and mission support. Their track record is generally characterized by experience with complex, large-scale projects. However, like any large contractor, they have also faced scrutiny and performance challenges on specific contracts over the years. For DHS, GDIT has been involved in critical areas such as border security technology, immigration systems, and cybersecurity initiatives. Their extensive experience suggests a high likelihood of possessing the technical capabilities required for this task order.

How does the $15,370 'BR' value factor into the overall assessment of this contract?

The 'BR' value, listed as 15370, likely represents a 'Base Reward' or a similar metric related to the contract's value or structure, possibly an initial funding amount or a baseline value before adjustments. In the context of a $9.8 million contract, a value of $15,370 is extremely small and likely represents an administrative or initial allocation rather than the total contract value. It's possible this is a placeholder, an initial funding increment for a larger contract vehicle (like a BPA), or a specific component value that is not representative of the overall task order's financial scope. Without further definition of what 'BR' specifically signifies in this dataset's schema, its direct impact on the overall assessment is minimal, given the much larger total award amount.

What are the implications of this contract being performed in Indiana?

The performance location in Indiana (SN: INDIANA) indicates that the work will be carried out by General Dynamics Information Technology or its subcontractors within that state. This has several implications: it directs federal spending towards the Indiana economy, potentially creating or sustaining jobs in the IT sector within that region. It may also mean that the contracting officers and technical monitors overseeing the contract are geographically closer to the performance site, which can sometimes facilitate communication and oversight. For the contractor, it implies leveraging existing infrastructure or establishing new resources in Indiana to fulfill the contract requirements. The specific impact on Indiana's workforce and businesses depends on the extent of local hiring and subcontracting.

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: TIME AND MATERIALS (Y)

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: $9,806,025

Exercised Options: $9,806,025

Current Obligation: $9,806,025

Actual Outlays: $7,062,013

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $4,686,837

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70B01C24A00000036

IDV Type: BPA

Timeline