General Dynamics IT awarded $22M for IT infrastructure at Fort Drum, NY

Contract Overview

Contract Amount: $21,967,476 ($22.0M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-07-18

End Date: 2015-07-31

Contract Duration: 1,108 days

Daily Burn Rate: $19.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DELIVERY ORDER AWARD FOR INTALLATION INFORMATION INFRASTRUCTURE PROGRAM (I3MP) AT FT. DRUM, NEW YORK.

Place of Performance

Location: FORT DRUM, JEFFERSON County, NEW YORK, 13602

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $22.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: DELIVERY ORDER AWARD FOR INTALLATION INFORMATION INFRASTRUCTURE PROGRAM (I3MP) AT FT. DRUM, NEW YORK. Key points: 1. Contract value appears reasonable for a multi-year IT infrastructure project. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type mitigates cost overrun risk for the government. 4. Project duration of nearly three years indicates a substantial scope of work. 5. The award falls within the broader category of defense IT spending.

Value Assessment

Rating: good

The $21.97 million award for IT infrastructure installation at Fort Drum appears to be a fair price for the scope and duration. While specific benchmarks for this exact type of installation are not readily available, similar multi-year, firm-fixed-price IT infrastructure projects for military bases often fall within this general cost range. The fixed-price nature of the contract helps control costs for the Department of the Army, as the contractor assumes the risk for cost overruns. The duration of the contract (over 1100 days) suggests a comprehensive installation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of multiple bidders (4 indicated) suggests a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and can lead to more cost-effective solutions for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value and pricing for essential IT infrastructure upgrades at a military installation.

Public Impact

The primary beneficiaries are the U.S. Army personnel and operations at Fort Drum, New York, who will receive enhanced IT infrastructure. The contract delivers installation and support for information infrastructure, crucial for modern military communication and operations. The geographic impact is localized to Fort Drum, New York. The project likely involves a workforce of IT specialists and technicians, potentially creating or sustaining jobs in the IT services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on support is not competitively procured.
Scope creep could be a risk if not managed tightly, despite fixed-price terms.

Positive Signals

Firm-fixed-price contract type limits the government's exposure to cost increases.
Full and open competition suggests a robust selection process.
Award to a known entity (General Dynamics IT) may indicate a track record of performance.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on infrastructure and telecommunications equipment. The market for defense IT infrastructure is substantial, driven by the military's continuous need for secure and advanced communication systems. General Dynamics Information Technology is a major player in this space, providing a wide range of IT services to government agencies. Comparable spending benchmarks for military base IT upgrades vary widely based on size and complexity, but this award appears consistent with projects of significant scope.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). General Dynamics Information Technology is a large prime contractor. While there is no direct information on subcontracting plans, large prime contracts often include provisions for small business participation. The absence of a specific small business set-aside means that opportunities for small businesses would likely be through subcontracting, if pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a firm-fixed-price contract, oversight would focus on ensuring deliverables meet specifications and timelines. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Base Information Technology Modernization Programs
Military Communications Infrastructure Upgrades
Department of Defense Telecommunications Services
Fort Drum Installation Support Contracts

Risk Flags

Potential for vendor lock-in on future support.
Scope management critical for fixed-price contract success.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. DELIVERY ORDER AWARD FOR INTALLATION INFORMATION INFRASTRUCTURE PROGRAM (I3MP) AT FT. DRUM, NEW YORK.

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 Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $22.0 million.

What is the period of performance?

Start: 2012-07-18. End: 2015-07-31.

What is General Dynamics Information Technology's track record with similar IT infrastructure contracts for the Department of Defense?

General Dynamics Information Technology (GDIT), now part of General Dynamics, has a long history of supporting the Department of Defense (DoD) with a wide array of IT services, including infrastructure modernization, network management, and cybersecurity. They have been awarded numerous contracts across various military branches for projects ranging from enterprise-wide IT system deployments to specific base or facility upgrades. Their experience often includes working with complex, secure environments characteristic of military installations. While specific performance metrics for individual contracts are not always publicly detailed, GDIT's continued success in winning large DoD contracts suggests a generally positive track record and capability in delivering complex IT solutions. However, a deeper dive into past performance reviews and any documented issues on prior similar contracts would provide a more comprehensive assessment.

How does the $21.97 million cost compare to similar IT infrastructure installations at other military bases?

Benchmarking the $21.97 million cost for this specific delivery order requires understanding the full scope of work, including the type and scale of infrastructure installed (e.g., network cabling, server rooms, wireless access points, security systems) and the specific requirements of Fort Drum. However, for context, large-scale IT infrastructure modernization projects at military installations can range from tens of millions to hundreds of millions of dollars, depending on the base's size, existing infrastructure, and modernization goals. A firm-fixed-price contract for nearly three years of work, as seen here, suggests a significant undertaking. Without detailed breakdowns of the services provided and the quantity of equipment, a precise comparison is difficult. However, the award amount appears within a plausible range for a substantial IT infrastructure project at a major military installation, especially considering the fixed-price nature which shifts risk to the contractor.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential scope creep if requirements are not clearly defined and managed, technical challenges during installation, and potential delays impacting the operational readiness of Fort Drum. Given that this is a delivery order under a larger contract, the initial scope and requirements should be well-defined. The mitigation strategy is primarily embedded in the contract type: Firm Fixed Price (FFP). This means General Dynamics Information Technology bears the financial risk of cost overruns, incentivizing them to manage scope and technical execution efficiently. The government's mitigation involves robust project management, regular progress reviews, and adherence to the defined deliverables and schedule. The contract duration of over 1100 days also implies a phased approach, allowing for risk management at different stages.

What is the expected impact of this contract on the operational effectiveness of Fort Drum?

The expected impact of this contract on the operational effectiveness of Fort Drum is significant and positive. By upgrading and installing new information infrastructure, the contract aims to enhance the reliability, speed, and security of communication and data systems. This directly supports the daily operations of base personnel, including command and control, logistics, training, and administrative functions. Modernized IT infrastructure is critical for deploying advanced military technologies, ensuring seamless information flow, and maintaining situational awareness. Improved network performance and stability can reduce downtime, increase productivity, and ultimately bolster the overall mission readiness and effectiveness of the forces stationed at Fort Drum.

How has spending on IT infrastructure at Fort Drum evolved over time, and does this contract represent a significant shift?

Analyzing the historical spending evolution specifically for IT infrastructure at Fort Drum requires access to detailed historical contract data beyond this single award. However, it is generally understood that military installations undergo periodic IT infrastructure upgrades to keep pace with technological advancements and evolving security requirements. This $21.97 million award, covering a period of nearly three years, suggests a substantial investment in modernizing the base's IT backbone. It likely represents a significant upgrade or replacement cycle rather than routine maintenance. Without comparative data on previous large-scale IT infrastructure investments at Fort Drum, it's difficult to definitively state if it represents a 'significant shift,' but the dollar amount and duration indicate a major project aimed at enhancing capabilities.

What are the implications of awarding this contract to General Dynamics Information Technology in terms of market concentration within defense IT services?

Awarding this contract to General Dynamics Information Technology (GDIT) contributes to the ongoing trend of market concentration within the defense IT services sector, where a few large, established companies hold a significant share of the market. GDIT is a major player, and contracts of this size reinforce their position. While full and open competition was utilized, the ability of large companies like GDIT to bid on and win such substantial contracts often stems from their extensive resources, established relationships, security clearances, and proven past performance. This can sometimes create barriers to entry for smaller, innovative firms. However, large primes also often subcontract to smaller businesses, potentially distributing some of the work and fostering a broader ecosystem, though the primary benefit accrues to the large awardee.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Telephone Apparatus Manufacturing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 77 A STREET, NEEDHAM, MA, 02494

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

Financial Breakdown

Contract Ceiling: $21,967,476

Exercised Options: $21,967,476

Current Obligation: $21,967,476

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06D0025

IDV Type: IDC

Timeline