HHS awards $126M to General Dynamics for ORR/OTIP mission support, raising concerns about marketing consulting services

Contract Overview

Contract Amount: $126,379,207 ($126.4M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-09-22

End Date: 2025-09-21

Contract Duration: 1,460 days

Daily Burn Rate: $86.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: MISSION SUPPORT SERVICES FOR OFFICE OF REFUGEE RESETTLEMENT (ORR) AND THE OFFICE ON TRAFFICKING IN PERSONS (OTIP)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $126.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: MISSION SUPPORT SERVICES FOR OFFICE OF REFUGEE RESETTLEMENT (ORR) AND THE OFFICE ON TRAFFICKING IN PERSONS (OTIP) Key points: 1. Contract awarded to General Dynamics Information Technology, Inc. for mission support services. 2. The contract value is $126,379,206.81, with a duration of 1460 days. 3. NAICS code 541613 (Marketing Consulting Services) is unusual for mission support, suggesting potential scope creep or misclassification. 4. The contract was awarded under full and open competition, but the specific services require further scrutiny.

Value Assessment

Rating: questionable

The contract value of $126M for marketing consulting services is high. Benchmarking against similar contracts for mission support is difficult due to the unusual NAICS code. Further analysis is needed to determine if the pricing is justified for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a competitive bidding process. However, the use of NAICS 541613 for mission support services raises questions about the effectiveness of the competition in ensuring the best value for these specific services.

Taxpayer Impact: The significant contract value suggests a substantial impact on taxpayer funds. Scrutiny of the service scope and pricing is crucial to ensure efficient use of these funds.

Public Impact

Taxpayers may be overpaying if marketing consulting is not the core need for refugee and trafficking support. The broad scope of 'mission support' could lead to unmonitored or unnecessary expenditures. Lack of clarity on specific deliverables for 'marketing consulting' hinders public understanding and oversight. Potential for funds to be diverted from direct service provision to less critical support functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Unusual NAICS code for mission support
High contract value for marketing consulting
Potential for scope creep

Positive Signals

Awarded under full and open competition

Sector Analysis

The IT and professional services sector sees significant government spending. However, the application of marketing consulting services to mission support for refugee and trafficking programs is atypical and warrants close examination to ensure alignment with program goals and efficient use of funds.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of small business participation. This represents a missed opportunity for small businesses to contribute to these critical mission support services.

Oversight & Accountability

Oversight is crucial given the unusual NAICS code and high value. The Administration for Children and Families (ACF) must ensure strict adherence to the contract's scope and performance metrics to prevent misuse of funds and ensure accountability.

Related Government Programs

Marketing Consulting Services
Department of Health and Human Services Contracting
Administration for Children and Families Programs

Risk Flags

Unusual NAICS code for the stated purpose.
High contract value without clear justification for marketing services.
Potential for services to be misaligned with core mission objectives.
Lack of small business participation.
Limited transparency on specific deliverables.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $126.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. MISSION SUPPORT SERVICES FOR OFFICE OF REFUGEE RESETTLEMENT (ORR) AND THE OFFICE ON TRAFFICKING IN PERSONS (OTIP)

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 Health and Human Services (Administration for Children and Families).

What is the total obligated amount?

The obligated amount is $126.4 million.

What is the period of performance?

Start: 2021-09-22. End: 2025-09-21.

What specific marketing consulting services are being provided under this contract, and how do they directly support the mission of the Office of Refugee Resettlement and the Office on Trafficking in

The contract specifies NAICS code 541613 (Marketing Consulting Services) for mission support. However, the exact nature of these services in relation to refugee resettlement and anti-trafficking efforts is unclear. It is essential to understand if these services involve public awareness campaigns, stakeholder engagement strategies, or internal process optimization, and how they directly contribute to the core missions of ORR and OTIP.

Given the high contract value and the unusual service classification, what are the primary risks associated with this award, and how are they being mitigated?

The primary risks include potential overpayment for services not directly aligned with mission needs, scope creep beyond intended marketing consulting, and a lack of transparency in service delivery. Mitigation strategies should involve rigorous performance monitoring, clear deliverable tracking, and regular reviews to ensure services remain essential and cost-effective for ORR and OTIP's objectives.

How does the use of marketing consulting services, rather than more traditional IT or program support, ensure the most effective and efficient use of taxpayer funds for ORR and OTIP?

The effectiveness hinges on the precise definition and execution of the marketing consulting services. If these services are strategically designed to enhance outreach, improve program communication, or increase public awareness of critical resources, they could be highly effective. However, if they are misaligned with core operational needs, they risk being inefficient and diverting funds from direct services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Marketing Consulting 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

Solicitation ID: 75ACF121Q00013

Offers Received: 1

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: $126,379,207

Exercised Options: $126,379,207

Current Obligation: $126,379,207

Actual Outlays: $117,065,088

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $2,332,064

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F057CA

IDV Type: FSS

Timeline