Department of Education's $44.4M student aid IT contract awarded to General Dynamics One Source LLC
Contract Overview
Contract Amount: $44,435,244 ($44.4M)
Contractor: General Dynamics ONE Source LLC
Awarding Agency: Department of Education
Start Date: 2018-03-30
End Date: 2020-09-30
Contract Duration: 915 days
Daily Burn Rate: $48.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CT::IGF THE INDEFINITE DELIVERY INDEFINITE QUANTITY CONTRACT TO PROVIDE OPERATION AND MAINTENANCE OF THE APPLICATION AND ELIGIBILITY SYSTEMS (AEDS) FOR CONTRACT YEAR FOUR (CY4). THE PURPOSE OF THIS TASK ORDER IS TO DO AS FOLLOWS; PROVIDE AEDS O&M (OPERATIONS AND MAINTENANCE) SERVICES FOR FEDERAL STUDENT AID (FSA).
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030
State: Virginia Government Spending
Plain-Language Summary
Department of Education obligated $44.4 million to GENERAL DYNAMICS ONE SOURCE LLC for work described as: IGF::CT::IGF THE INDEFINITE DELIVERY INDEFINITE QUANTITY CONTRACT TO PROVIDE OPERATION AND MAINTENANCE OF THE APPLICATION AND ELIGIBILITY SYSTEMS (AEDS) FOR CONTRACT YEAR FOUR (CY4). THE PURPOSE OF THIS TASK ORDER IS TO DO AS FOLLOWS; PROVIDE AEDS O&M (OPERATIONS AND MAINTENANCE)… Key points: 1. Contract provides essential operations and maintenance for the Application and Eligibility Systems (AEDS). 2. The contract duration spans over two years, covering Federal Student Aid (FSA) operations. 3. Awarded under full and open competition, suggesting a competitive bidding process. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. This contract supports the critical function of managing federal student aid eligibility. 6. The contractor, General Dynamics One Source LLC, has a significant presence in federal IT services.
Value Assessment
Rating: good
The contract value of $44.4 million over approximately two years for IT operations and maintenance of a critical federal system appears reasonable. Benchmarking against similar large-scale IT support contracts for government agencies suggests that this pricing is within expected ranges, especially considering the complexity and essential nature of student aid systems. The firm-fixed-price structure provides cost certainty for the government, although it requires careful scope management to avoid change orders.
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. This approach typically fosters a competitive environment, encouraging multiple bidders to present their best pricing and technical solutions. The specific number of bidders is not provided, but the method of competition suggests a robust process aimed at achieving value for the government.
Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers by leveraging market forces.
Public Impact
Benefits millions of students by ensuring the accurate and timely processing of federal student aid. Delivers essential IT operations and maintenance services for the Application and Eligibility Systems (AEDS). Geographic impact is nationwide, supporting the administration of federal student aid across the United States. Workforce implications include support for IT professionals managing and maintaining these critical systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if knowledge transfer is not managed effectively.
- Reliance on a single contractor for critical IT infrastructure could pose risks if performance falters.
Positive Signals
- Firm Fixed Price contract structure provides cost predictability.
- Awarded through full and open competition, indicating a competitive market.
- Contract supports a vital government function with direct impact on student access to education.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on IT services and support for government applications. The market for federal IT support is substantial, with agencies consistently investing in maintaining and modernizing their digital infrastructure. Comparable spending benchmarks for large-scale IT operations and maintenance contracts for federal agencies often run into tens or hundreds of millions of dollars annually, depending on the system's complexity and user base.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, General Dynamics One Source LLC, is a large business, and any subcontracting would be at their discretion.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of Education's contracting officers and program managers. The Inspector General's office for the Department of Education would have jurisdiction to investigate any potential fraud, waste, or abuse related to the contract's performance. Transparency is generally maintained through contract award databases and reporting requirements.
Related Government Programs
- Federal Student Aid (FSA) IT Modernization Efforts
- Department of Education Application and Eligibility Systems (AEDS)
- IT Operations and Maintenance Contracts
- Large-Scale Government IT Support Services
Risk Flags
- Potential for performance degradation impacting student aid processing.
- Cybersecurity risks associated with critical federal systems.
- Risk of cost overruns due to scope creep or unforeseen issues.
- Contractor dependency and potential knowledge transfer gaps.
Tags
it-services, operations-and-maintenance, application-development, eligibility-systems, federal-student-aid, department-of-education, general-dynamics-one-source-llc, firm-fixed-price, full-and-open-competition, virginia, large-contract, it-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $44.4 million to GENERAL DYNAMICS ONE SOURCE LLC. IGF::CT::IGF THE INDEFINITE DELIVERY INDEFINITE QUANTITY CONTRACT TO PROVIDE OPERATION AND MAINTENANCE OF THE APPLICATION AND ELIGIBILITY SYSTEMS (AEDS) FOR CONTRACT YEAR FOUR (CY4). THE PURPOSE OF THIS TASK ORDER IS TO DO AS FOLLOWS; PROVIDE AEDS O&M (OPERATIONS AND MAINTENANCE) SERVICES FOR FEDERAL STUDENT AID (FSA).
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS ONE SOURCE LLC.
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $44.4 million.
What is the period of performance?
Start: 2018-03-30. End: 2020-09-30.
What is the track record of General Dynamics One Source LLC with federal IT contracts, particularly those involving student aid systems?
General Dynamics One Source LLC, as a subsidiary or division of a larger entity, likely has a substantial track record in providing IT services to the federal government. Their experience would encompass various aspects of IT operations, maintenance, and system support. Specific to student aid systems, their performance on this contract (CY4) suggests a continued need and satisfaction with their services. A deeper dive would involve reviewing past performance evaluations, contract awards, and any reported issues or successes on similar projects within the Department of Education or other agencies managing large-scale, sensitive data systems. Their ability to secure a multi-year contract for essential services indicates a generally positive performance history, though specific details on past performance metrics would require access to more granular contract data.
How does the value of this contract compare to similar IT operations and maintenance contracts for federal student aid systems?
The contract value of approximately $44.4 million over roughly two years for IT operations and maintenance of the Application and Eligibility Systems (AEDS) for Federal Student Aid (FSA) appears to be in line with the scale of such critical government IT infrastructure. Large-scale IT support contracts for agencies dealing with millions of users and sensitive data often require significant investment. For context, other federal agencies managing large citizen-facing systems (e.g., IRS, Social Security Administration) award multi-million dollar contracts for similar O&M services. Without direct comparative data on AEDS specifically, this value suggests a substantial undertaking, reflecting the complexity and importance of ensuring the continuous availability and functionality of student financial aid processing systems.
What are the primary risks associated with this contract, and how are they being mitigated?
Primary risks include potential performance failures impacting student aid processing, cybersecurity vulnerabilities within the AEDS, and cost overruns if the firm-fixed-price contract is not managed tightly. Mitigation strategies likely involve robust Service Level Agreements (SLAs) with performance metrics, regular security audits and compliance checks, and strong contract oversight by the Department of Education. The firm-fixed-price nature shifts some cost risk to the contractor, but scope creep through change orders remains a concern. Additionally, reliance on a single contractor for critical systems poses a risk; mitigation might involve contingency planning and ensuring knowledge transfer protocols are in place.
How effective has this contract been in ensuring the reliable operation of the Application and Eligibility Systems (AEDS)?
The fact that this contract is in its fourth contract year (CY4) and represents a task order for ongoing services suggests a degree of effectiveness and continued need for the services provided by General Dynamics One Source LLC. Reliable operation of AEDS is crucial for the timely disbursement of federal student aid, impacting millions of students annually. While specific performance metrics are not detailed here, the renewal and continuation of services imply that the contractor has met the essential operational requirements. Further assessment of effectiveness would require examining performance reports, uptime statistics, and user feedback related to the AEDS.
What are the historical spending patterns for IT operations and maintenance within the Department of Education's Federal Student Aid (FSA) program?
Historical spending on IT operations and maintenance for FSA programs has been substantial, reflecting the critical nature of systems like AEDS. Agencies like FSA require continuous investment to maintain aging infrastructure, implement necessary upgrades, and ensure compliance with evolving federal IT mandates. Spending patterns typically show a consistent allocation for O&M, often comprising a significant portion of the overall IT budget. The value of this specific contract ($44.4M over ~2 years) fits within a broader trend of significant, ongoing federal investment in maintaining and operating essential IT systems that support large-scale public services like student financial aid.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 3211 JERMANTOWN ROAD, FAIRFAX, VA, 22030
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $44,458,550
Exercised Options: $44,458,550
Current Obligation: $44,435,244
Actual Outlays: $4,788,891
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: EDFSA15D0001
IDV Type: IDC
Timeline
Start Date: 2018-03-30
Current End Date: 2020-09-30
Potential End Date: 2020-09-30 00:00:00
Last Modified: 2025-09-24
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