Over $102M for Telecom & System Infrastructure Support, awarded to General Dynamics IT

Contract Overview

Contract Amount: $102,357,807 ($102.4M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Agency for International Development

Start Date: 2006-09-15

End Date: 2011-09-14

Contract Duration: 1,825 days

Daily Burn Rate: $56.1K/day

Competition Type: FULL AND OPEN COMPETITION

Sector: IT

Official Description: TELECOMMUNICATIONS AND SYSTEM INFRASTRUCTURE SUPPORT SERVICES

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Agency for International Development obligated $102.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: TELECOMMUNICATIONS AND SYSTEM INFRASTRUCTURE SUPPORT SERVICES Key points: 1. Contract value of $102.4M over 5 years suggests significant investment in telecommunications and IT infrastructure. 2. Awarded via BPA Call, indicating a pre-competed framework agreement was utilized. 3. The contract duration of 1825 days (5 years) points to a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541511 for Custom Computer Programming Services suggests a focus on software development and IT integration. 5. The absence of small business set-aside flags indicates this was not specifically targeted towards smaller enterprises. 6. The contract was awarded to a single vendor, General Dynamics Information Technology, Inc.

Value Assessment

Rating: fair

Benchmarking the value of this $102.4M contract is challenging without specific service details or comparable contract data. However, the duration of 5 years suggests a consistent annual spend of approximately $20.5M. This level of spending for telecommunications and system infrastructure support is substantial and would typically be expected for large-scale government operations. Further analysis would require comparing the scope of services to other similar contracts awarded by the Agency for International Development or other agencies for comparable IT support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION', suggesting that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the use of a BPA Call implies that the underlying BPA itself was competed. This method generally aims to foster competition, but the ultimate level of competition for this specific call order depends on how many vendors participated. A full and open competition is generally favorable for price discovery.

Taxpayer Impact: A full and open competition process is intended to ensure that taxpayers receive the best value by allowing multiple vendors to compete, potentially driving down costs through competitive bidding.

Public Impact

The Agency for International Development (USAID) is the primary beneficiary, receiving critical telecommunications and system infrastructure support. Services likely include network management, system maintenance, software development, and IT security to support USAID's global operations. The geographic impact is likely global, supporting USAID's missions and personnel worldwide. Workforce implications could include the need for skilled IT professionals within General Dynamics IT to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness and value for money.
The total contract value is high, and without detailed breakdowns, it's hard to confirm if it represents optimal pricing.
Reliance on a single vendor for such a critical function could pose risks if the vendor's performance degrades or if there are unforeseen issues.

Positive Signals

Awarded through a full and open competition, suggesting a robust bidding process.
The use of a BPA Call indicates that the initial framework agreement was likely competed, potentially streamlining the procurement process.
The long contract duration implies a stable and ongoing need for these services, suggesting a recognized value by the agency.

Sector Analysis

This contract falls within the Information Technology (IT) and Telecommunications sector, a critical area for government operations. The market for IT and telecommunications support services is vast and highly competitive, with numerous large and small businesses offering specialized solutions. Government spending in this sector is consistently high, reflecting the increasing reliance on digital infrastructure and services. This contract with General Dynamics IT represents a significant portion of spending for telecommunications and system infrastructure support within the Agency for International Development.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the scope and nature of the services required were likely beyond the typical capacity or specialization of many small businesses, or that the competition was open to all qualified vendors regardless of size. Consequently, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, General Dynamics IT, may still engage small businesses as subcontractors at its discretion, depending on the specific needs of the contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID). As a large, multi-year contract, it is likely subject to regular performance reviews, financial audits, and reporting requirements. The specific oversight mechanisms would be detailed in the contract itself, including key performance indicators (KPIs) and reporting frequencies. Transparency would be facilitated through contract award databases and potentially through agency reports on IT spending. The Inspector General for USAID would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

IT Professional Services
Telecommunications Services
System Integration Services
Custom Software Development
IT Infrastructure Management

Risk Flags

Potential for vendor lock-in due to long-term, single-award contract.
Lack of specific performance metrics in summary data makes value assessment difficult.
High contract value requires diligent oversight to ensure cost-effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $102.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. TELECOMMUNICATIONS AND SYSTEM 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 $102.4 million.

What is the period of performance?

Start: 2006-09-15. End: 2011-09-14.

What specific telecommunications and system infrastructure support services were provided under this contract?

The provided data indicates the contract is for 'TELECOMMUNICATIONS AND SYSTEM INFRASTRUCTURE SUPPORT SERVICES' and falls under NAICS code 541511 ('Custom Computer Programming Services'). While specific service details are not enumerated, this suggests a broad scope encompassing network design, implementation, maintenance, and potentially custom software development to support USAID's IT infrastructure. This could include services like network operations, cybersecurity, data center management, cloud integration, and end-user support, all crucial for an agency operating globally. The contract's value and duration point towards a comprehensive, long-term support arrangement rather than discrete, short-term projects.

How does the $102.4 million contract value compare to similar IT support contracts awarded by USAID or other federal agencies?

Without specific details on the scope of services, a direct comparison of the $102.4 million contract value is difficult. However, for a 5-year duration, this represents an average annual spend of approximately $20.5 million. This is a substantial amount, indicative of a large-scale, comprehensive IT support requirement. Large federal agencies often award multi-million dollar contracts for IT infrastructure and services. To provide a precise benchmark, one would need to compare this contract's scope (e.g., number of users supported, geographic reach, specific technologies managed) against other similar contracts for telecommunications and system infrastructure support awarded by agencies like the Department of State, Department of Defense, or other large civilian agencies.

What are the key performance indicators (KPIs) or metrics used to evaluate the performance of General Dynamics Information Technology, Inc. under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or metrics used to evaluate General Dynamics Information Technology, Inc.'s performance. Typically, large IT support contracts include detailed Service Level Agreements (SLAs) and performance standards. These might cover aspects such as network uptime, system response times, incident resolution rates, cybersecurity compliance, and user satisfaction. The Agency for International Development would have established these metrics within the contract to ensure the quality and effectiveness of the services provided. Regular performance reviews would assess adherence to these KPIs, influencing payment and contract continuation.

What is the historical spending pattern for telecommunications and system infrastructure support services at the Agency for International Development?

The provided data only details this specific $102.4 million contract awarded in 2006. To understand the historical spending pattern for telecommunications and system infrastructure support services at USAID, one would need to analyze contract data over a longer period. This would involve examining previous contracts awarded for similar services, their values, durations, and the contractors involved. Such an analysis would reveal trends in spending, identify key vendors, and indicate whether this $102.4 million contract represented an increase, decrease, or consistent level of investment in these critical IT services for USAID's operations.

What risks are associated with awarding a large, 5-year contract for critical IT infrastructure to a single vendor like General Dynamics IT?

Awarding a large, 5-year contract for critical IT infrastructure to a single vendor like General Dynamics IT presents several potential risks. Firstly, there's vendor lock-in, making it difficult and costly to switch providers if performance issues arise or if market innovations offer better solutions. Secondly, over-reliance on one vendor can reduce competitive pressure, potentially leading to complacency or less favorable pricing in future renewals. Thirdly, the vendor's financial stability or strategic shifts could impact service delivery. Finally, a single point of failure exists; if the vendor experiences significant operational disruptions, it could severely impact USAID's ability to function. Robust contract management, clear performance expectations, and contingency planning are essential to mitigate these risks.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 15000 CONFERENCE CENTER DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $109,103,463

Exercised Options: $103,838,887

Current Obligation: $102,357,807

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: AIDIRME000600015

IDV Type: BPA

Timeline