Over $83.6M for IT infrastructure support services, awarded competitively to General Dynamics IT

Contract Overview

Contract Amount: $83,600,338 ($83.6M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Agency for International Development

Start Date: 2009-10-01

End Date: 2014-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $45.8K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INFRASTRUCTURE SUPPORT SERVICES

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Agency for International Development obligated $83.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: INFRASTRUCTURE SUPPORT SERVICES Key points: 1. Contract awarded competitively, suggesting potential for good value. 2. IT infrastructure support is a critical function for agency operations. 3. Long contract duration (5 years) may indicate a stable, ongoing need. 4. Firm Fixed Price contract type helps control costs and manage risk. 5. Contractor has a significant presence in IT services. 6. Awarded as a delivery order under a larger contract vehicle.

Value Assessment

Rating: good

The total value of $83.6 million over five years averages to approximately $16.7 million annually. Benchmarking this against similar IT infrastructure support contracts is challenging without more specific service details. However, the competitive award suggests that the pricing was deemed reasonable at the time of award. The firm fixed-price structure provides cost certainty for the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. The presence of two bids suggests a moderate level of competition. While more than one bidder is positive, a higher number of bids typically leads to more robust price discovery and potentially better value for the government.

Taxpayer Impact: A competitive award generally benefits taxpayers by fostering a market where contractors must offer competitive pricing to win business.

Public Impact

Benefits the Agency for International Development by ensuring the continuity and performance of its IT infrastructure. Delivers essential computer systems design and integration services. Services are geographically focused within Virginia, supporting agency operations. Impacts the IT workforce through employment opportunities with the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term contract duration could lead to vendor lock-in if not managed carefully.
Reliance on a single contractor for critical IT infrastructure poses a risk if performance degrades.
Potential for scope creep over the 5-year period if not tightly managed.

Positive Signals

Competitive award process suggests a fair market approach.
Firm Fixed Price contract type offers cost predictability.
Contractor is a large, established IT services provider with significant resources.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design and related services. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading federal IT infrastructure. This contract represents a portion of the broader federal spending on IT support, which is crucial for agency operations and modernization efforts.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the contractor, General Dynamics Information Technology Inc., is a large corporation. There is no explicit information on subcontracting plans for small businesses within this specific delivery order. Therefore, the direct impact on the small business ecosystem from this particular award appears limited, though larger prime contractors often engage small businesses in their supply chains.

Oversight & Accountability

As a delivery order issued under a larger contract vehicle, oversight would likely be managed through the terms and conditions of that parent contract, as well as specific task orders. The Agency for International Development is responsible for monitoring performance and ensuring compliance. Transparency is generally facilitated through contract databases, though detailed performance metrics are often internal.

Related Government Programs

IT Infrastructure Modernization Programs
Agency-Specific IT Support Contracts
Computer Systems Design Services Contracts
Federal Civilian Agency IT Spending

Risk Flags

Long contract duration
Potential for technological obsolescence
Reliance on a single vendor for critical infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $83.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. INFRASTRUCTURE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY INC..

Which agency awarded this contract?

Awarding agency: Agency for International Development (Agency for International Development).

What is the total obligated amount?

The obligated amount is $83.6 million.

What is the period of performance?

Start: 2009-10-01. End: 2014-09-30.

What is the track record of General Dynamics Information Technology Inc. with the Agency for International Development on similar contracts?

General Dynamics Information Technology Inc. (GDIT) has a substantial history of working with various federal agencies, including the Agency for International Development (USAID). Their engagements often involve providing a wide range of IT services, from infrastructure management and cybersecurity to application development and cloud migration. For USAID specifically, GDIT has been involved in supporting critical IT systems that enable the agency's global development missions. Analyzing their past performance on contracts with USAID, particularly those involving infrastructure support, would involve reviewing past performance evaluations, any documented issues or successes, and the overall value and duration of previous awards. A consistent record of meeting or exceeding performance expectations and delivering within budget on prior USAID contracts would be a positive indicator for this current delivery order.

How does the average annual cost of this contract compare to similar IT infrastructure support contracts awarded by USAID or other agencies?

The average annual cost for this contract is approximately $16.7 million ($83.6M / 5 years). To benchmark this effectively, one would need to compare it against contracts for similar scope and complexity, such as IT infrastructure design, implementation, and maintenance services. Factors like the number of users supported, the criticality of the systems, geographic scope, and specific technologies deployed significantly influence pricing. Without detailed service level agreements and technical specifications for this particular contract, a precise comparison is difficult. However, general market data for large-scale IT infrastructure support for federal agencies can provide a range. If this contract's cost falls within the typical range for comparable services, it suggests reasonable value. Deviations significantly above or below the norm would warrant further investigation into the underlying reasons, such as unique requirements or exceptional service levels.

What are the primary risks associated with a 5-year contract for IT infrastructure support, and how are they mitigated?

A significant risk with a 5-year IT infrastructure support contract is technological obsolescence; the technology landscape can change rapidly, potentially making the contracted solutions outdated before the contract ends. Another risk is vendor lock-in, where the agency becomes overly dependent on the contractor, making it difficult or costly to switch providers. Performance degradation over time is also a concern. Mitigation strategies typically include robust performance monitoring and Service Level Agreements (SLAs) with clear remedies for non-performance. Contract clauses allowing for periodic reviews, technology refreshes, or modifications can address obsolescence. Furthermore, maintaining strong internal agency expertise and fostering a competitive environment through clear exit strategies can help mitigate vendor lock-in.

What is the potential impact of this contract on the Agency for International Development's ability to achieve its mission objectives?

This contract directly supports the Agency for International Development's (USAID) mission by ensuring the reliable operation and maintenance of its critical IT infrastructure. A robust and secure IT environment is fundamental for modern government operations, enabling efficient communication, data management, program execution, and reporting. By outsourcing the complex task of IT infrastructure support to a specialized contractor like General Dynamics IT, USAID can focus its internal resources on its core development and humanitarian aid programs. The effectiveness of this contract in achieving mission objectives hinges on the contractor's ability to deliver high-quality services, maintain system uptime, ensure data security, and adapt to evolving technological needs, thereby facilitating USAID's global operations.

How has federal spending on computer systems design services (NAICS 541512) evolved over the past decade, and where does this contract fit in?

Federal spending on computer systems design services (NAICS 541512) has generally seen a consistent upward trend over the past decade, driven by the increasing digitization of government operations, the need for cybersecurity enhancements, and modernization initiatives. Agencies across the government rely heavily on these services for everything from designing new IT architectures to integrating complex software systems and managing existing infrastructure. This specific $83.6 million delivery order, awarded in 2009 for a 5-year period, represents a significant but not extraordinary investment within this category during its contract term. It reflects the ongoing demand for specialized IT support to maintain and improve the operational capabilities of agencies like USAID, fitting into the broader pattern of federal investment in IT infrastructure.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3170 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $652,824,025

Exercised Options: $152,432,620

Current Obligation: $83,600,338

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00T99ALD0203

IDV Type: GWAC

Timeline