DoD's $86M contract for mission support services awarded to General Dynamics Information Technology Inc

Contract Overview

Contract Amount: $86,265,326 ($86.3M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2011-03-25

End Date: 2013-01-03

Contract Duration: 650 days

Daily Burn Rate: $132.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: B.9 OPTION 8 LOT IX CONTRACTED MISSION

Place of Performance

Location: DALEVILLE, DALE County, ALABAMA, 36322

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $86.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: B.9 OPTION 8 LOT IX CONTRACTED MISSION Key points: 1. The contract's value of $86.2 million over its period of performance suggests a significant investment in mission support. 2. Awarded under full and open competition, this contract likely benefited from a competitive bidding process to ensure fair pricing. 3. The firm fixed-price contract type indicates that the contractor assumes the risk for cost overruns, potentially benefiting the government. 4. The contract was awarded to General Dynamics Information Technology Inc., a large, established government contractor. 5. The duration of the contract, approximately 650 days, points to a medium-term need for these support services. 6. The contract's focus on 'All Other Support Services' is broad, requiring a deeper dive into the specific deliverables.

Value Assessment

Rating: good

The contract value of $86.2 million for approximately two years of service appears reasonable for comprehensive mission support. Benchmarking against similar large-scale support contracts within the Department of Defense would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for the government, as it shifts cost overrun risks to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this significant contract. While more bidders could potentially drive prices lower, two bidders still provide a basis for price comparison and negotiation.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are likely military personnel and operations supported by the mission services provided under this contract. The services delivered are broadly categorized as 'All Other Support Services,' which could encompass a wide range of functions critical to mission readiness. The contract was awarded to a company with operations in Alabama, suggesting potential workforce implications and economic impact in that state. The specific nature of the mission support will determine the direct impact on operational effectiveness and personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The broad categorization of 'All Other Support Services' may obscure specific performance metrics and potential areas of underperformance.
Without detailed task orders, it is difficult to assess the precise value delivered for the $86.2 million expenditure.
The contract's duration of approximately two years means that ongoing performance monitoring is crucial to ensure continued value.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
The firm fixed-price contract type aligns incentives for cost control with the contractor.
General Dynamics Information Technology Inc. is a large, experienced contractor with a significant presence in the federal IT and support services market.

Sector Analysis

This contract falls within the broader IT and support services sector, a significant area of federal spending. The market for mission support services is competitive, with numerous large and small businesses vying for these types of contracts. General Dynamics Information Technology Inc. is a major player in this space, often competing for large-scale, complex service contracts. Comparable spending benchmarks would involve looking at other large support service contracts awarded by the Department of Defense or other federal agencies.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside consideration (ss: false, sb: false). While General Dynamics Information Technology Inc. may utilize small businesses for subcontracting, there is no explicit requirement or set-aside noted in this data. This suggests that the primary award was not focused on small business development, and the impact on the small business ecosystem would depend on the subcontracting plans of the prime contractor.

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. Performance monitoring, invoicing review, and compliance checks are standard oversight mechanisms. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense IT Services Contracts
Federal Support Services Contracts
General Dynamics Information Technology Inc. Contracts
Army Mission Support Contracts

Risk Flags

Broad service category may obscure specific performance issues.
Need for detailed review of Statement of Work (SOW) to understand deliverables.
Contract duration requires ongoing performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $86.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. B.9 OPTION 8 LOT IX CONTRACTED MISSION

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 $86.3 million.

What is the period of performance?

Start: 2011-03-25. End: 2013-01-03.

What specific mission support services were included under this contract?

The provided data categorizes this contract under 'All Other Support Services' (na: 561990), which is a broad classification. To understand the specific services, one would need to review the contract's statement of work (SOW) or task orders. These services could range from administrative support, logistics, facility management, technical support, or other operational functions essential for mission execution. Without the SOW, it's impossible to detail the exact deliverables, but the 'All Other' designation implies a catch-all for support functions not fitting into more specific service categories.

How does the $86.2 million contract value compare to similar mission support contracts awarded by the Department of the Army?

The $86.2 million contract value for approximately two years of service represents a substantial investment. To benchmark this, one would compare it against other large-scale mission support or general support services contracts awarded by the Department of the Army or similar DoD components. Factors like contract duration, scope of services, and the specific operational context are crucial for a meaningful comparison. For instance, contracts supporting large combatant commands or major training exercises might be in a similar value range, while smaller, localized support contracts would be significantly less. A detailed analysis would require access to historical contract data for comparable services.

What is General Dynamics Information Technology Inc.'s track record with large federal support service contracts?

General Dynamics Information Technology Inc. (GDIT) has a long and extensive track record of performing large, complex federal IT and support service contracts across various government agencies, including the Department of Defense. They are a major prime contractor known for handling significant portions of agency operations, IT infrastructure, and mission-critical support. Their history includes numerous multi-billion dollar contracts. While this specific $86.2 million contract is of moderate size relative to their largest awards, it aligns with their core capabilities. A review of their past performance ratings and any significant contract disputes or successes would provide further insight into their reliability for such services.

What are the potential risks associated with a firm fixed-price contract of this magnitude?

The primary risk with a firm fixed-price (FFP) contract, especially of this magnitude ($86.2 million), is that the contractor, General Dynamics Information Technology Inc., bears the financial risk if costs exceed the agreed-upon price. This can incentivize cost-cutting measures by the contractor, potentially impacting service quality or delivery if not closely monitored. Conversely, if the contractor significantly underbids or manages costs exceptionally well, they could realize substantial profit. For the government, the risk lies in ensuring the contractor maintains adequate performance and quality throughout the contract duration, as the price is fixed regardless of potential unforeseen challenges or scope creep that isn't formally addressed through contract modification.

How does the 'full and open competition' award mechanism impact taxpayer value for this contract?

Awarding this contract through 'full and open competition' is generally beneficial for taxpayers. It allows any responsible vendor to bid, fostering a competitive environment that typically drives down prices and encourages innovation. With two bidders identified, there was at least a basic level of competition, providing a basis for price negotiation and comparison. This contrasts with sole-source or limited competition scenarios, where the government may pay a premium due to a lack of market pressure. Therefore, the competitive nature of the award process increases the likelihood that the $86.2 million expenditure represents a fair market price for the services rendered.

What is the historical spending trend for 'All Other Support Services' within the Department of the Army?

Analyzing historical spending trends for 'All Other Support Services' (NAICS 561990) within the Department of the Army requires access to comprehensive federal procurement data over multiple fiscal years. Generally, spending in this broad category can fluctuate based on evolving operational needs, shifts in outsourcing strategies, and the availability of specific service providers. Large agencies like the Army often have significant and consistent spending in support services to maintain readiness and operational effectiveness. Understanding the trend would involve looking at the total dollar value awarded under this NAICS code year-over-year, identifying major contract vehicles, and noting any significant increases or decreases that might correlate with specific defense initiatives or budget cycles.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 3160 FAIRVIEW PARK DRIVE, FALLS CHURCH, VA, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $86,265,326

Exercised Options: $86,265,326

Current Obligation: $86,265,326

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N6133903D0014

IDV Type: IDC

Timeline