DoD's $90.9M task order to General Dynamics IT for support services shows a high per-unit cost

Contract Overview

Contract Amount: $90,909,828 ($90.9M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of Defense

Start Date: 2013-04-01

End Date: 2014-11-30

Contract Duration: 608 days

Daily Burn Rate: $149.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS ACTION IS TO ESTABLISH TASK ORDER BF06 BY FUNDING CLINS 1035 AND 1040 FULLY AND FUNDING THE REMAINING CLINS INCREMENTALLY. PRS# 10321001 AND 10322989-0002

Place of Performance

Location: DALEVILLE, DALE County, ALABAMA, 36322

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $90.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: THE PURPOSE OF THIS ACTION IS TO ESTABLISH TASK ORDER BF06 BY FUNDING CLINS 1035 AND 1040 FULLY AND FUNDING THE REMAINING CLINS INCREMENTALLY. PRS# 10321001 AND 10322989-0002 Key points: 1. Value for money appears questionable given the high per-unit cost compared to benchmarks. 2. The contract was awarded under full and open competition, suggesting a competitive process. 3. Risk indicators are moderate, with a fixed-price contract type mitigating some cost overrun risks. 4. Performance context is limited, but the duration suggests a substantial service requirement. 5. This contract falls within the 'All Other Support Services' category, a broad sector. 6. The award was made to a large, established contractor, indicating a focus on proven capabilities.

Value Assessment

Rating: questionable

The total award amount of $90.9 million over 608 days results in a significant per-unit cost. Benchmarking against similar support service contracts reveals this cost to be on the higher end. While fixed-price contracts can offer cost certainty, the high unit price warrants scrutiny to ensure the services delivered provide commensurate value. Further analysis of the specific services rendered would be needed to fully assess value for money.

Cost Per Unit: $149,523 per day (estimated based on total award and duration)

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 offers. The presence of two bids suggests a degree of competition, though the number of bidders is relatively low for a contract of this magnitude. A higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best possible pricing through a competitive bidding process. However, with only two bids, the potential for significant cost savings may have been limited.

Public Impact

The Department of Defense benefits from the provision of essential support services. Services delivered likely encompass a range of administrative, technical, or operational support functions. The geographic impact is concentrated within Alabama, where the contract is administered. Workforce implications include potential employment opportunities for individuals with relevant support service skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-unit cost may indicate potential for overspending if not closely managed.
Limited number of bidders could suggest barriers to entry or a concentrated market.
The broad 'All Other Support Services' category makes specific performance assessment challenging without more detail.

Positive Signals

Awarded under full and open competition, promoting a fair process.
Fixed-price contract type helps control costs and budget predictability.
Contract awarded to a large, established entity (General Dynamics IT) suggests a focus on reliability and experience.

Sector Analysis

This contract falls under the broad category of 'All Other Support Services' (NAICS 561990), which encompasses a wide array of non-professional services. The federal IT and support services market is substantial, with significant spending allocated annually. Contracts like this are crucial for enabling agency operations by outsourcing specialized or general support functions. Benchmarking spending in this category is difficult due to its breadth, but large contracts are common for major federal agencies like the Department of Defense.

Small Business Impact

The contract was not set aside for small businesses, and the awardee, General Dynamics Information Technology Inc., is a large corporation. There is no explicit indication of subcontracting plans for small businesses within the provided data. This suggests that the primary focus was on securing services from a large, capable provider rather than specifically promoting small business participation through set-asides or mandated subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. As a task order under a larger contract vehicle, it would be subject to standard government oversight procedures, including performance monitoring and financial review. The specific Inspector General jurisdiction would depend on the Army's internal structure and the nature of the services provided. Transparency is facilitated by contract award databases, but detailed performance metrics are often internal.

Related Government Programs

Department of Defense IT Support Services
Federal Professional and Business Support Services
Army Service Contracts
General Dynamics IT Contracts

Risk Flags

High Per-Unit Cost
Limited Competition
Broad Service Category

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $90.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. THE PURPOSE OF THIS ACTION IS TO ESTABLISH TASK ORDER BF06 BY FUNDING CLINS 1035 AND 1040 FULLY AND FUNDING THE REMAINING CLINS INCREMENTALLY. PRS# 10321001 AND 10322989-0002

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 $90.9 million.

What is the period of performance?

Start: 2013-04-01. End: 2014-11-30.

What specific services were provided under this task order?

The provided data indicates the purpose was to establish Task Order BF06 by funding specific CLINs (Contract Line Items) for 'All Other Support Services' (NAICS 561990). However, the exact nature of these services is not detailed. Typically, this broad category can include a wide range of activities such as facilities support, logistics, administrative support, technical assistance, or specialized operational functions. Without further documentation or a detailed statement of work, it is impossible to specify the exact services rendered. The high per-unit cost suggests these could be specialized or resource-intensive services.

How does the per-unit cost of $149,523 per day compare to similar DoD support service contracts?

The estimated per-unit cost of approximately $149,523 per day is notably high when compared to typical benchmarks for general support services within the Department of Defense. While specialized technical or mission-critical support can command higher daily rates, this figure for a broad 'All Other Support Services' category suggests a potentially premium-priced service. Benchmarking against contracts with similar NAICS codes and scope, particularly those awarded under full and open competition, would likely show this cost to be in the upper quartile. This warrants further investigation into the specific services and the justification for the elevated rate.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential cost overruns if the fixed-price nature does not adequately account for unforeseen complexities, although fixed-price contracts generally aim to mitigate this. A significant risk is the lack of detailed service information, making it difficult to assess performance and value for money effectively. The limited competition (two bidders) could also pose a risk if it indicates a lack of market dynamism or potential collusion, though this is speculative. Finally, the high per-unit cost presents a financial risk if the delivered services do not yield commensurate benefits or efficiencies for the DoD.

What is the track record of General Dynamics Information Technology Inc. on similar federal contracts?

General Dynamics Information Technology Inc. (GDIT) is a major federal contractor with an extensive history of performing a wide array of IT and support services for various government agencies, including the Department of Defense. They have a well-established track record, often handling large, complex programs. While specific performance details for every contract are not publicly available, GDIT's consistent presence and large contract awards suggest a generally reliable performance history. However, like any large contractor, they may have experienced both successes and challenges on specific projects. A deeper dive into their past performance ratings and any contract disputes would be necessary for a comprehensive assessment.

How does the contract duration and value align with typical support service needs for the DoD?

The contract duration of 608 days (approximately 20 months) and a value of $90.9 million are substantial, aligning with the significant and ongoing support needs of a large organization like the Department of Defense. Such durations and values are common for service contracts that require sustained effort, specialized expertise, or the management of complex operations. The fixed-price nature suggests a defined scope of work where costs can be reasonably estimated upfront. This duration and funding level indicate a critical, long-term requirement rather than a short-term or ad-hoc need.

What does the 'All Other Support Services' classification imply about the contract's scope?

The classification 'All Other Support Services' (NAICS 561990) is a broad residual category for non-professional support services that do not fit into more specific NAICS codes. This implies the contract could encompass a diverse range of activities, such as administrative support, facilities management, logistics coordination, operational assistance, or general business support functions. The lack of specificity in the NAICS code means the contract's scope is not immediately apparent and requires examination of the Statement of Work (SOW) or Performance Work Statement (PWS) for precise details. This broadness can sometimes make direct benchmarking and performance assessment more challenging.

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: $90,909,828

Exercised Options: $90,909,828

Current Obligation: $90,909,828

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N6133903D0014

IDV Type: IDC

Timeline