DoD's $144.5M IT contract to General Dynamics awarded via full and open competition

Contract Overview

Contract Amount: $144,544,260 ($144.5M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2014-02-21

End Date: 2015-05-08

Contract Duration: 441 days

Daily Burn Rate: $327.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF ITA LABOR CORE SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20310

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $144.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF ITA LABOR CORE SERVICES Key points: 1. Contract value represents a significant investment in IT infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. Contract duration of 441 days indicates a medium-term service requirement. 4. Fixed-price contract type aims to control costs for the government. 5. Awarded to a large, established IT services provider. 6. Focus on wired telecommunications services within the Department of the Army.

Value Assessment

Rating: fair

The contract value of $144.5 million for wired telecommunications services over approximately 14 months appears substantial. Benchmarking against similar large-scale IT infrastructure contracts within the Department of Defense is necessary to fully assess value for money. The fixed-price nature of the contract provides some cost certainty, but the absence of detailed performance metrics or comparison data makes a definitive value assessment challenging. Without more granular data on the specific services rendered and their market rates, it's difficult to ascertain if the pricing was optimal.

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 6 bidders suggests a reasonably competitive environment, which typically aids in price discovery and can lead to more favorable pricing for the government. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by driving down prices and encouraging innovation among contractors, leading to better value for public funds.

Public Impact

The Department of the Army benefits from enhanced wired telecommunications infrastructure. Military personnel and civilian staff gain access to reliable communication networks. Services are delivered within the District of Columbia. Potential for supporting broader Department of Defense communication needs. Ensures continuity of essential IT services for operational effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess service quality.
Limited transparency on the specific breakdown of costs within the fixed-price contract.
Potential for vendor lock-in if services are highly specialized.
Reliance on a single large contractor for critical infrastructure.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Fixed-price contract type helps manage cost overruns.
Contract awarded to a well-established provider with a track record in government IT.
Clear definition of services related to wired telecommunications.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on telecommunications infrastructure. The market for wired telecommunications services is mature, with significant spending by government agencies to maintain and upgrade their networks. General Dynamics Information Technology is a major player in this space, competing with other large system integrators and telecommunications providers. Comparable spending benchmarks would involve analyzing other large-scale network infrastructure contracts awarded by the DoD and other federal agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large prime contractor. The impact on the small business ecosystem would depend on whether General Dynamics Information Technology utilizes small businesses for subcontracting opportunities, which is not detailed in the provided data. Further investigation into subcontracting plans would be needed to assess the impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are inherent in the fixed-price contract structure, requiring the contractor to deliver specified services. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

DoD IT Modernization Programs
Army Network Modernization
Federal Telecommunications Infrastructure Contracts
Wired Network Services

Risk Flags

Potential for cost overruns if scope creep occurs.
Risk of service degradation if contractor prioritizes profit over quality.
Dependence on a single large vendor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $144.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF ITA LABOR CORE SERVICES

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 $144.5 million.

What is the period of performance?

Start: 2014-02-21. End: 2015-05-08.

What specific wired telecommunications services were included in this $144.5 million contract?

The provided data indicates the contract falls under NAICS code 517110 (Wired Telecommunications Carriers). While specific service details are not enumerated, this typically encompasses the provision, installation, maintenance, and operation of wired communication networks. This could include services such as dedicated data lines, voice over IP (VoIP) infrastructure, local area network (LAN) cabling, wide area network (WAN) connectivity, and related support services essential for the Department of the Army's operations. The contract's duration of 441 days suggests a focus on ongoing service delivery and maintenance rather than a one-time build-out.

How does the awarded amount of $144.5 million compare to similar IT infrastructure contracts within the Department of Defense?

A direct comparison requires access to a broader dataset of DoD IT contracts. However, $144.5 million for a 441-day contract focused on wired telecommunications is a significant sum, indicative of a large-scale, mission-critical requirement. Large federal IT contracts often range from tens to hundreds of millions of dollars, depending on scope, duration, and technology. For context, major network backbone upgrades or enterprise-wide communication system deployments can easily exceed this amount. The value suggests a substantial scope of work, potentially supporting a significant number of users or facilities within the National Capital Region, given the awardee's location.

What are the key risks associated with a fixed-price contract of this magnitude for telecommunications services?

A primary risk with fixed-price contracts is that the contractor may cut corners on quality or service to maximize profit if costs exceed initial estimates, potentially impacting network reliability or performance. Conversely, if the government's requirements change significantly, change orders can become costly and complex to negotiate. Another risk is that the fixed price might not reflect true market value if competition was not sufficiently robust or if the government lacked adequate cost estimation capabilities. For telecommunications, ensuring the contractor maintains up-to-date technology and security protocols within the fixed price can also be a challenge.

What is the track record of General Dynamics Information Technology (GDIT) in delivering large federal IT contracts?

General Dynamics Information Technology (GDIT) is a major federal IT contractor with a long history of delivering complex solutions across various government agencies, including the Department of Defense. They have a substantial portfolio of contracts related to IT infrastructure, cybersecurity, cloud services, and telecommunications. GDIT has managed numerous large-scale, multi-year contracts, demonstrating experience in handling significant budgets and complex technical requirements. While specific performance details for every contract are not always public, their continued success in winning large competitive bids suggests a generally positive track record in meeting government needs, though like any large contractor, they may have faced challenges on specific projects.

How does the 'full and open competition' award mechanism impact the potential for cost savings for taxpayers?

Full and open competition is generally considered the most effective mechanism for achieving cost savings for taxpayers. By allowing all responsible sources to compete, it fosters a robust bidding environment where multiple companies vie for the contract. This competition typically drives down prices as contractors offer their best terms to win the award. Furthermore, it encourages innovation and efficiency, as contractors seek to differentiate themselves not only on price but also on the value and quality of their proposed solutions. The presence of 6 bidders in this specific case suggests a healthy level of competition, likely contributing to a more favorable price outcome compared to sole-source or limited competition scenarios.

What are the implications of awarding a wired telecommunications contract to a single large entity like General Dynamics?

Awarding a large contract to a single entity like General Dynamics Information Technology can lead to economies of scale and streamlined service delivery, potentially benefiting the government through simplified management and consistent service. However, it also concentrates risk; if the contractor underperforms or faces financial difficulties, the government's critical telecommunications infrastructure could be jeopardized. It may also limit opportunities for smaller, specialized firms to participate directly in such large-scale projects. The government's ability to negotiate favorable terms and ensure competitive pricing in future procurements could also be influenced by the contractor's market position.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

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

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 3150 FAIRVIEW PARK DR STE 100, 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: $144,544,260

Exercised Options: $144,544,260

Current Obligation: $144,544,260

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $4,172,604

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06D0012

IDV Type: IDC

Timeline