General Dynamics awarded $19.2M for cybersecurity support to DOE's Corporate Business Systems
Contract Overview
Contract Amount: $19,188,686 ($19.2M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Energy
Start Date: 2020-08-19
End Date: 2028-01-21
Contract Duration: 2,711 days
Daily Burn Rate: $7.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: THE CONTRACTOR SHALL PROVIDE CYBER-SECURITY SUPPORT, AS REQUIRED AND DIRECTED BY THE FEDERAL PROJECT MANAGER, IN THE OPERATIONS AND MAINTENANCE (O&M) OF THE CORPORATE BUSINESS SYSTEMS (CBS) APPLICATIONS. IN ADDITION, THE CONTRACTOR SHALL PROVI
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042
State: Virginia Government Spending
Plain-Language Summary
Department of Energy obligated $19.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: THE CONTRACTOR SHALL PROVIDE CYBER-SECURITY SUPPORT, AS REQUIRED AND DIRECTED BY THE FEDERAL PROJECT MANAGER, IN THE OPERATIONS AND MAINTENANCE (O&M) OF THE CORPORATE BUSINESS SYSTEMS (CBS) APPLICATIONS. IN ADDITION, THE CONTRACTOR SHALL PROVI Key points: 1. Contract focuses on essential cybersecurity for critical business systems, indicating a need for ongoing protection. 2. The contract type (Time and Materials) can lead to cost overruns if not closely managed. 3. A long performance period (nearly 7 years) suggests a stable, long-term requirement for these services. 4. The award was made under a Blanket Purchase Agreement (BPA) Call, implying pre-negotiated terms and potentially streamlined acquisition. 5. Cybersecurity is a high-priority area for federal agencies, especially for managing sensitive business data.
Value Assessment
Rating: fair
The contract's value of $19.2 million over nearly seven years suggests an average annual spend of approximately $2.7 million. Without specific benchmarks for similar cybersecurity O&M contracts for large federal business systems, a precise value-for-money assessment is difficult. However, the Time and Materials (T&M) pricing structure carries inherent risks of cost escalation if not meticulously monitored against established labor categories and rates. The absence of a fixed ceiling or detailed task order breakdown within the provided data makes it challenging to compare directly to market rates or similar government contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit offers. The data does not specify the number of bidders, which is crucial for understanding the true level of competition. A robust competition typically drives down prices and encourages innovation. If only a few bids were received, it might suggest market limitations or specific technical requirements that narrowed the field, potentially impacting price discovery.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a competitive process. However, the ultimate benefit depends on the number of responsive bids received and the effectiveness of the evaluation process.
Public Impact
Federal employees and contractors managing the Department of Energy's business operations benefit from secure and reliable systems. Ensures the continuity of essential business functions, including financial management, human resources, and procurement. The services are primarily delivered within Virginia, supporting the operational needs of the Department of Energy. The contract supports IT professionals and cybersecurity specialists, potentially creating or sustaining jobs in these fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) contract type can lead to uncontrolled cost growth if not managed diligently.
- Lack of specific performance metrics or deliverables in the summary makes it hard to gauge effectiveness.
- Long contract duration may reduce flexibility to adapt to evolving cybersecurity threats or technologies.
Positive Signals
- Awarded under Full and Open Competition, suggesting a competitive process was utilized.
- Focus on cybersecurity for critical business systems addresses a vital government need.
- Long-term nature of the contract provides stability for essential IT support.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on cybersecurity and operations & maintenance for business applications. The federal IT services market is substantial, with agencies increasingly relying on contractors for specialized support. Cybersecurity spending is a significant component of this market due to the persistent threat landscape. Comparable spending benchmarks would typically involve analyzing other federal contracts for similar IT O&M and cybersecurity support services, particularly those supporting large-scale enterprise resource planning (ERP) or business system suites.
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. The primary contractor, General Dynamics Information Technology, Inc., is a large business. While not a set-aside, large prime contractors are often encouraged or required to have small business subcontracting plans, but this detail is not available in the summary data.
Oversight & Accountability
Oversight for this contract would primarily reside with the Federal Project Manager at the Department of Energy, as indicated in the contract description. The Time and Materials nature of the contract necessitates close monitoring of labor hours, rates, and expenditures to ensure compliance and prevent cost overruns. Transparency is facilitated through contract reporting mechanisms, and the Department of Energy's Inspector General would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award.
Related Government Programs
- Federal Cybersecurity Programs
- IT Operations and Maintenance Contracts
- Department of Energy IT Services
- Enterprise Resource Planning (ERP) Support Contracts
- General Dynamics IT Contracts
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Long contract duration may limit adaptability to rapidly evolving cybersecurity threats.
- Lack of specific performance metrics in summary data hinders effectiveness assessment.
Tags
it-services, cybersecurity, operations-and-maintenance, department-of-energy, general-dynamics-information-technology, time-and-materials, full-and-open-competition, blanket-purchase-agreement, virginia, it-support, business-systems
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $19.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. THE CONTRACTOR SHALL PROVIDE CYBER-SECURITY SUPPORT, AS REQUIRED AND DIRECTED BY THE FEDERAL PROJECT MANAGER, IN THE OPERATIONS AND MAINTENANCE (O&M) OF THE CORPORATE BUSINESS SYSTEMS (CBS) APPLICATIONS. IN ADDITION, THE CONTRACTOR SHALL PROVI
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 Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $19.2 million.
What is the period of performance?
Start: 2020-08-19. End: 2028-01-21.
What is the track record of General Dynamics Information Technology, Inc. with the Department of Energy for similar cybersecurity services?
General Dynamics Information Technology, Inc. (GDIT) has a significant history of providing IT services to various federal agencies, including the Department of Energy (DOE). While the provided data focuses on a single contract, GDIT's broader portfolio includes extensive experience in cybersecurity, IT infrastructure management, and application support for large government systems. Their past performance with DOE likely encompasses a range of services related to system maintenance, security operations, and modernization efforts. A deeper analysis would involve reviewing specific past performance evaluations, contract histories, and any documented issues or commendations related to GDIT's work with the DOE on similar critical business systems to fully assess their suitability and reliability for this specific cybersecurity support role.
How does the estimated annual cost of $2.7 million compare to similar cybersecurity O&M contracts for federal business systems?
Estimating the annual cost at approximately $2.7 million ($19.2M / ~7 years), this figure needs context within the federal IT services market. Cybersecurity Operations and Maintenance (O&M) for large, complex business systems can vary widely based on the system's size, criticality, user base, and the specific services required (e.g., threat detection, incident response, vulnerability management, patching). Without knowing the specific 'Corporate Business Systems (CBS)' applications supported, it's difficult to benchmark precisely. However, for enterprise-level systems within large agencies, this annual spend might be considered moderate. Contracts for similar comprehensive cybersecurity O&M support for major federal business suites often range from a few million to tens of millions annually, depending on scope. The Time and Materials nature of this contract adds a layer of uncertainty to the final cost compared to fixed-price arrangements.
What are the primary risks associated with a Time and Materials (T&M) contract for cybersecurity support?
The primary risk with a Time and Materials (T&M) contract for cybersecurity support is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual labor hours and materials used, plus a fixed fee or percentage. If the scope of work is not clearly defined, or if project management is weak, contractors may incur more hours or use more expensive resources than anticipated, leading to costs exceeding initial estimates. For cybersecurity, this could mean extended incident response times, prolonged system maintenance, or unforeseen complexities in securing applications. Effective oversight, detailed tracking of hours, and robust approval processes for all expenditures are critical to mitigate these risks and ensure the government receives good value.
What is the significance of this contract being awarded under a Blanket Purchase Agreement (BPA) Call?
A Blanket Purchase Agreement (BPA) is a simplified way to fill anticipated repetitive needs for supplies or services. A BPA Call (also known as a BPA Order) is a specific order placed against an existing BPA. Awarding this contract via a BPA Call suggests that the Department of Energy (DOE) likely had a pre-established BPA in place with General Dynamics Information Technology, Inc. (GDIT) for IT services, possibly covering cybersecurity. This method streamlines the acquisition process, potentially reducing administrative burden and lead time compared to a new, standalone contract. It implies that terms, conditions, and possibly pricing structures were already negotiated, allowing for quicker procurement of necessary cybersecurity support.
How does the long performance period (ending Jan 2028) impact the cybersecurity strategy for DOE's business systems?
A long performance period, extending nearly seven years from the start date, provides continuity and stability for the cybersecurity support of DOE's Corporate Business Systems (CBS). This allows the contractor to develop deep institutional knowledge of the systems and the evolving threat landscape. However, it also presents challenges. Cybersecurity is a rapidly evolving field, and technologies or threats present today may be obsolete or significantly different by 2028. The contract's success will depend on mechanisms within the agreement (or contractor's internal processes) that allow for adaptation, incorporation of new security measures, and potential technology refreshes. Without clear provisions for adapting to future threats and technologies, a long-term contract could risk supporting outdated security protocols.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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
Pricing Type: TIME AND MATERIALS (Y)
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: $26,783,680
Exercised Options: $26,783,680
Current Obligation: $19,188,686
Actual Outlays: $17,143,384
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $376,432
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 89303020ACF000009
IDV Type: BPA
Timeline
Start Date: 2020-08-19
Current End Date: 2028-01-21
Potential End Date: 2028-01-21 00:00:00
Last Modified: 2026-04-08
More Contracts from General Dynamics Information Technology, Inc.
- Global Security Engineering&supply Chain Services — $1.5B (Department of State)
- THE Purpose of This Action IS to Establish a NEW Contract With General Dynamics Information Technology for Global Supply Chain Management, Logistics and Technology Development Services to Support the Department of State. the Initial Funding Associated With This Contract IS $22,304,578.00. the Overall Contract Value IS $2,200,000,000.00 — $1.2B (Department of State)
- Cloud Products&tools (CPT) — $902.0M (Department of Health and Human Services)
- Beneficiary Contact Center Operations — $879.1M (Department of Health and Human Services)
- Award of Task Order 47qfca210051-Nawcad Wolf Ship and AIR C5isr Systems Support — $832.3M (General Services Administration)
View all General Dynamics Information Technology, Inc. federal contracts →
Other Department of Energy Contracts
- Federal Contract — $48.1B (Lockheed Martin Corp)
- ,Ct::igf Contract Award De-Na0003525 to the National Technology&engineering Solutions of Sandia, LLC (ntess) for the Management and Operation of the Department of Energy, National Nuclear Security Administration's Sandia National Laboratories (SNL) — $41.7B (National Technology & Engineering Solutions of Sandia, LLC)
- Management and Operation of the OAK Ridge National Laboratory — $40.8B (Ut-Battelle LLC)
- TAS::89 0240::TAS This Performance-Based Management Contract (pbmc) IS for the Management and Operation of the Lawrence Livermore National Laboratory (llnl). the Contractor Shall, in Accordance With the Provisions of This Contract, Accomplish the Missions and Programs Assigned by the U.S. Department of Energy (DOE) and Manage and Operate the Laboratory. the Laboratory IS ONE of Does Office of Defense Program Multi-Program Laboratories. the Laboratory IS a Federally Funded Research and Development Institution (established in Accordance With the Federal Acquisition Regulation (FAR) Part 35 and Operated Under This Management and Operating (M&O) Contract, AS Defined in FAR 17.6 and Dear 917.6 — $40.8B (Lawrence Livermore National Security, LLC)
- M&O of Lanl BR of U of CA — $35.3B (Regents of the University of California, the)