DOE awards $8.7M for IT support, with potential for significant growth over 7 years
Contract Overview
Contract Amount: $8,714,488 ($8.7M)
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: $3.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: THE CONTRACTOR SHALL WORK CLOSELY WITH NA-MB TO DEVELOP AND DISTRIBUTE STANDARD AND CUSTOMER DEFINED REPORTS AND DASHBOARDS, AS WELL AS PROVIDE SUPPORT FOR AD HOC REPORTING. THE CONTRACTOR SHALL PERFORM ROUTINE AND RECURRING APPLICATION OPERATIONS A
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042
State: Virginia Government Spending
Plain-Language Summary
Department of Energy obligated $8.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: THE CONTRACTOR SHALL WORK CLOSELY WITH NA-MB TO DEVELOP AND DISTRIBUTE STANDARD AND CUSTOMER DEFINED REPORTS AND DASHBOARDS, AS WELL AS PROVIDE SUPPORT FOR AD HOC REPORTING. THE CONTRACTOR SHALL PERFORM ROUTINE AND RECURRING APPLICATION OPERATIONS A Key points: 1. Contract focuses on IT operations and reporting, crucial for agency data management. 2. Full and open competition suggests a competitive bidding process. 3. Time and Materials contract type introduces potential cost variability. 4. Performance period extends to 2028, indicating a long-term need. 5. Contractor has a significant presence in IT services for government. 6. No small business set-aside noted, potentially limiting small business participation.
Value Assessment
Rating: fair
The contract value of $8.7 million over its initial period appears moderate for IT support services. Benchmarking against similar contracts for IT operations and custom reporting is challenging without more specific service details. However, the Time and Materials (T&M) pricing structure, while flexible, can lead to cost overruns if not closely managed. The long performance period suggests a sustained need, but the value-for-money will depend heavily on efficient service delivery and cost control throughout the contract's life.
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 bids. This suggests a robust bidding environment, which typically leads to better price discovery and potentially more competitive pricing for the government. The number of bidders is not specified, but the open competition framework is a positive sign for market engagement.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.
Public Impact
The Department of Energy (DOE) benefits from enhanced IT operations and reporting capabilities. Services include developing standard and custom reports and dashboards, supporting ad hoc reporting, and performing routine application operations. The geographic impact is primarily within the DOE's operational footprint, likely nationwide. Workforce implications include the need for skilled IT professionals to support DOE's data management and application operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost escalation due to Time and Materials pricing structure.
- Long contract duration requires sustained oversight to ensure continued value.
- Lack of specific performance metrics in the provided data makes objective assessment difficult.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Contractor's established presence in IT services indicates potential for reliable performance.
- Long-term nature of the contract suggests a critical and ongoing need for these services.
Sector Analysis
This contract falls within the broader IT services sector, specifically focusing on computer-related services. The market for government IT support is substantial, with agencies increasingly relying on contractors for specialized skills in data management, application operations, and reporting. Comparable spending benchmarks would typically involve analyzing IT support contracts across various federal agencies, considering factors like service scope, contract type, and duration.
Small Business Impact
The contract data indicates that this was not set aside for small businesses (ss: false, sb: false). This means that large businesses were eligible to compete and potentially win. While this ensures a broad pool of potential contractors, it may limit direct opportunities for small businesses unless they are part of a subcontracting plan. Further analysis would be needed to determine if subcontracting opportunities exist and are being utilized.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Energy's contracting officers and program managers. The Time and Materials (T&M) nature of the contract necessitates close monitoring of labor hours and material costs to ensure compliance and prevent overspending. Transparency is generally facilitated through contract award databases, but detailed performance reporting and audits would be key accountability measures. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Federal IT Services
- Data Management and Analytics
- Application Operations Support
- IT Consulting Services
Risk Flags
- Potential for cost overruns due to T&M contract type.
- Broad NAICS code may lead to scope creep if not well-defined.
- Long contract duration requires sustained oversight.
Tags
it-services, department-of-energy, computer-related-services, time-and-materials, full-and-open-competition, general-dynamics-information-technology, it-operations, reporting-and-dashboards, application-support, federal-contract, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $8.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. THE CONTRACTOR SHALL WORK CLOSELY WITH NA-MB TO DEVELOP AND DISTRIBUTE STANDARD AND CUSTOMER DEFINED REPORTS AND DASHBOARDS, AS WELL AS PROVIDE SUPPORT FOR AD HOC REPORTING. THE CONTRACTOR SHALL PERFORM ROUTINE AND RECURRING APPLICATION OPERATIONS A
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 $8.7 million.
What is the period of performance?
Start: 2020-08-19. End: 2028-01-21.
What is the historical spending pattern for this specific contract or similar services at the Department of Energy?
The provided data indicates a current contract award of $8,714,487.97 with an estimated completion date of January 21, 2028, and a start date of August 19, 2020. This suggests a total duration of approximately 7.4 years. Without access to historical contract databases or specific procurement histories for the Department of Energy (DOE), it is difficult to provide a precise historical spending pattern for this exact service. However, the contract value and duration suggest a significant, ongoing investment in IT support. To establish a pattern, one would typically look at prior contracts awarded to General Dynamics Information Technology, Inc. (or its predecessors) for similar services at DOE, or analyze overall DOE spending on IT operations and reporting over the past 5-10 years to identify trends in contract values, types, and service providers.
How does the pricing structure (Time and Materials) compare to other IT support contracts of similar scope?
Time and Materials (T&M) contracts are common for IT support services where the scope of work can be variable or difficult to define precisely upfront. Compared to Firm-Fixed-Price (FFP) contracts, T&M offers flexibility but carries a higher risk of cost overruns for the government if not managed diligently. Many IT support contracts utilize a hybrid approach, perhaps with FFP for defined tasks and T&M for emergent or undefined requirements. For services like routine application operations and ad hoc reporting, T&M can be appropriate. However, agencies often prefer FFP for well-defined projects to ensure cost certainty. Benchmarking would involve comparing the loaded labor rates and material markups in this contract against prevailing market rates and similar government T&M contracts, considering the skill sets required and the geographic location of service delivery.
What is General Dynamics Information Technology's track record with the Department of Energy and similar federal agencies?
General Dynamics Information Technology, Inc. (GDIT) is a major federal IT contractor with a substantial track record across numerous government agencies, including the Department of Energy (DOE). They have historically secured and performed on large-scale IT services contracts, encompassing areas such as infrastructure management, cybersecurity, application development, and data analytics. Their experience often includes supporting complex mission requirements within defense, intelligence, and civilian agencies. For DOE specifically, GDIT has likely been involved in various IT modernization and support initiatives. A comprehensive assessment of their track record would involve reviewing past performance evaluations (e.g., CPARS reports), contract awards, and any documented issues or successes on similar contracts to gauge their reliability, technical capability, and past performance quality.
What are the key performance indicators (KPIs) for this contract, and how is performance being measured?
The provided data snippet does not explicitly detail the Key Performance Indicators (KPIs) or the specific performance measurement framework for this contract. However, for a contract focused on IT operations, reporting, and application support, typical KPIs would likely include metrics related to system uptime and availability, response times for ad hoc requests, report generation accuracy and timeliness, security compliance, and user satisfaction. Performance is usually measured through contractor self-reporting, government acceptance testing, and formal performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS). The effectiveness of oversight and accountability hinges on clearly defined, measurable, and achievable KPIs that align with the DOE's mission objectives.
What is the potential risk associated with the 'Other Computer Related Services' NAICS code (541519)?
The NAICS code 541519, 'Other Computer Related Services,' is broad and encompasses a wide range of IT services not classified under more specific codes. This breadth can introduce risk if the scope of work is not clearly defined, potentially leading to scope creep or disputes over service delivery. For the government, the risk lies in ensuring that the contractor is providing the specific services intended and that the pricing is appropriate for the actual services rendered. From a contractor perspective, the risk involves accurately estimating resources and costs for a potentially diverse set of tasks. Effective risk mitigation requires detailed contract language, clear statements of work, and robust government oversight to ensure the services procured align with the agency's needs and are delivered at a fair price.
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: $11,319,212
Exercised Options: $11,319,212
Current Obligation: $8,714,488
Actual Outlays: $7,453,426
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $1,535,677
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: 2028-01-22 00:00:00
Last Modified: 2026-02-26
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