DoD's $189M contract for ADP input/output devices awarded to GTE Government Systems shows mixed value and competition
Contract Overview
Contract Amount: $400,111,722 ($400.1M)
Contractor: General Dynamics Mission Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 1996-11-04
End Date: 2005-07-31
Contract Duration: 3,191 days
Daily Burn Rate: $125.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 199712!2100!0064!AB07 !USA COMM-ELECTRONICS COMMAND !DAAB0794CN853 !A!*!P00043 !19961104!19990915!188991954!114685548!001293950!N!67032!GTE GOVERNMENT SYSTEMS CORPORA!400 JOHN QUINCY ADAMS RD !TAUNTON !MA!02780!69170!005!25!TAUNTON !BRISTOL !MASS !0001!+000000042875!N!N!000000000000!7025!ADP INPUT/OUTPUT AND STORAGE DEVICES !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !3571!3!*!*!C!B!A!*!A !N!J!2!002!B!* !A!N!A!* !* !N!C!*!C!C!A!A!A!*!* !*!N!A!C!N!*!*!*!*!*!
Place of Performance
Location: TAUNTON, BRISTOL County, MASSACHUSETTS, 02780
Plain-Language Summary
Department of Defense obligated $400.1 million to GENERAL DYNAMICS MISSION SYSTEMS, INC. for work described as: 199712!2100!0064!AB07 !USA COMM-ELECTRONICS COMMAND !DAAB0794CN853 !A!*!P00043 !19961104!19990915!188991954!114685548!001293950!N!67032!GTE GOVERNMENT SYSTEMS CORPORA!400 JOHN QUINCY ADAMS RD !TAUNTON !MA!02780!69170!005!25!TAUNTON !BRISTO… Key points: 1. The contract's total value of $189 million over its life suggests a significant investment in essential IT hardware. 2. While awarded under full and open competition, the number of bids received (3) warrants further scrutiny regarding market engagement. 3. The contract's duration of over 8 years indicates a long-term need for these specific ADP devices. 4. Performance context is limited without specific delivery metrics or quality assessments. 5. The procurement falls within the broader Defense sector's need for robust IT infrastructure. 6. The contract's pricing and value proposition require deeper analysis against industry benchmarks.
Value Assessment
Rating: fair
The total contract value of $188,991,954 over its extended period suggests a substantial investment. However, without detailed breakdowns of per-unit costs or specific performance metrics, a definitive value-for-money assessment is challenging. Comparing this to similar procurements for ADP input/output and storage devices would be crucial to determine if the pricing was competitive and if the government received optimal value. The extended duration might indicate a stable, albeit potentially less dynamic, pricing environment.
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. However, with only three bidders, the level of competition may not have been as robust as ideal, potentially impacting price discovery. A higher number of bidders typically drives down prices and encourages innovation. Further investigation into the solicitation process and bidder qualifications could reveal if the competition was truly maximized.
Taxpayer Impact: While full and open competition is generally beneficial for taxpayers, a limited number of bidders (3) might mean that taxpayers did not benefit from the most aggressive pricing possible. This could translate to higher costs than if more companies had competed.
Public Impact
The primary beneficiaries are likely military and civilian personnel within the Department of Defense who rely on these ADP devices for daily operations. The services delivered include the provision of essential input/output and storage devices crucial for data processing and management. The geographic impact is national, supporting DoD operations across various bases and facilities. Workforce implications are indirect, primarily related to the IT support and maintenance required for these devices.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition (3 bidders) may have restricted price optimization.
- Extended contract duration could lead to technology obsolescence if not managed proactively.
- Lack of detailed performance metrics makes value assessment difficult.
Positive Signals
- Awarded under full and open competition, ensuring broad market access.
- The contract addresses a fundamental need for IT hardware within the DoD.
- The fixed-price nature of the contract provides cost certainty for the government.
Sector Analysis
This contract falls within the broader Information Technology sector, specifically concerning the procurement of computer hardware. The market for ADP input/output and storage devices is mature, with numerous manufacturers and suppliers. The Department of Defense is a significant consumer of such equipment, often requiring specialized or ruggedized versions. Benchmarking this contract's value against other large-scale IT hardware procurements within the federal government or even the commercial sector would provide further context on its financial efficiency.
Small Business Impact
There is no indication that this contract was specifically set aside for small businesses. Given the scale and nature of the procurement (ADP input/output and storage devices), it is likely that large defense contractors were the primary bidders. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in the provided data. The impact on the small business ecosystem is likely minimal unless significant subcontracting occurred.
Oversight & Accountability
Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance. Accountability measures are inherent in the contract terms, particularly the firm-fixed-price structure which shifts cost risk to the contractor. Transparency is facilitated by the contract award data being publicly available, though detailed performance reports may be less accessible.
Related Government Programs
- Defense Information Systems Agency (DISA) procurements
- General Services Administration (GSA) IT Schedule contracts
- Procurements for computer hardware and peripherals
- Department of Defense IT modernization efforts
Risk Flags
- Potential for technology obsolescence due to long contract duration.
- Limited number of bidders may indicate insufficient market competition.
- Lack of detailed performance metrics hinders value assessment.
Tags
department-of-defense, information-technology, computers-and-peripherals, definitive-contract, firm-fixed-price, full-and-open-competition, large-contract, massachusetts, gte-government-systems, adp-input-output-storage-devices, 1990s-procurement, defense-contract-management-agency
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $400.1 million to GENERAL DYNAMICS MISSION SYSTEMS, INC.. 199712!2100!0064!AB07 !USA COMM-ELECTRONICS COMMAND !DAAB0794CN853 !A!*!P00043 !19961104!19990915!188991954!114685548!001293950!N!67032!GTE GOVERNMENT SYSTEMS CORPORA!400 JOHN QUINCY ADAMS RD !TAUNTON !MA!02780!69170!005!25!TAUNTON !BRISTOL !MASS !0001!+000000042875!N!N!000000000000!7025!ADP INPUT/OUTPUT AND STORAGE DEVICES !A7 !ELECTRONICS AND COMMUNICATION !1000!NOT DISCERNABLE OR CLASSIFIED !3571!3!*!*!C!B!A!*!A !N!J!2!0
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS MISSION SYSTEMS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $400.1 million.
What is the period of performance?
Start: 1996-11-04. End: 2005-07-31.
What was the specific nature of the ADP input/output and storage devices procured under this contract, and were there any unique specifications required by the DoD?
The contract, identified by PSC code 7025, covers 'ADP INPUT/OUTPUT AND STORAGE DEVICES.' This broad category typically includes items such as keyboards, mice, monitors, printers, scanners, hard drives, solid-state drives (SSDs), and other peripheral devices essential for interacting with and storing data on computer systems. Given the Department of Defense's operational environment, it's plausible that these devices required specific ruggedization, security features (e.g., TEMPEST compliance), or compatibility with existing military networks and systems. Without further details on the specific line items within the contract, it's difficult to ascertain the exact nature and any unique specifications beyond standard commercial offerings.
How did the pricing of GTE Government Systems compare to other bidders and to prevailing market rates at the time of award?
The provided data indicates that GTE Government Systems was awarded the contract with a total value of $188,991,954. While the contract was competed among three bidders, the specific pricing details of the non-selected bids are not publicly available. To assess the competitiveness of GTE's pricing, a comparison would be needed against the bids submitted by the other two entities and against industry benchmarks for similar ADP devices during the contract period (1996-2005). Factors such as volume discounts, contract duration, and any unique government requirements could influence pricing. A detailed cost analysis or comparison with commercial off-the-shelf (COTS) pricing, adjusted for volume and any necessary modifications, would be necessary for a thorough evaluation.
What were the key performance indicators (KPIs) or metrics used to evaluate GTE Government Systems' performance throughout the contract's duration?
The provided summary data does not include specific Key Performance Indicators (KPIs) or metrics used to evaluate GTE Government Systems' performance. Typically, government contracts include clauses related to delivery schedules, product quality (e.g., defect rates, Mean Time Between Failures - MTBF), warranty provisions, and customer support. For a contract of this nature, metrics might have included on-time delivery rates, adherence to technical specifications, and the number of reported hardware failures. The effectiveness of oversight by the Defense Contract Management Agency (DCMA) would have been crucial in monitoring these aspects. Without access to performance reports or contract-specific deliverables, a detailed assessment of GTE's performance is not possible.
What is the historical spending trend for ADP input/output and storage devices within the Department of Defense, and how does this contract fit into that trend?
The Department of Defense (DoD) has consistently been a major spender on Information Technology (IT) infrastructure, including ADP input/output and storage devices. Historical spending trends show a continuous need for these components to maintain operational readiness and modernize systems. This $189 million contract, awarded in the late 1990s and extending into the mid-2000s, represents a significant, but not necessarily anomalous, investment during a period of substantial IT procurement across the federal government. It aligns with the DoD's ongoing efforts to equip its personnel and systems with necessary hardware. Analyzing spending patterns before and after this contract, as well as comparing its value to other large-scale DoD IT procurements from the same era, would provide better context on its place within the broader spending trend.
Were there any identified risks associated with this contract, such as technical obsolescence, contractor performance issues, or cost overruns, and how were they managed?
Given the contract's long duration (over 8 years from award to final completion), the risk of technical obsolescence for ADP input/output and storage devices is a significant concern. Technology in this area evolves rapidly, and devices procured early in the contract might have been outdated by its end. Contractor performance issues are always a potential risk, managed through oversight by agencies like DCMA and contractual remedies. Cost overruns are less likely with a firm-fixed-price contract, as the contractor assumes the financial risk. However, scope creep or unforeseen technical challenges could still impact the overall value. Specific documented risks and mitigation strategies for this particular contract are not detailed in the provided data.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 400 JOHN QUINCY ADAMS RD, TAUNTON, MA, 02780
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 1996-11-04
Current End Date: 2005-07-31
Potential End Date: 2005-07-31 00:00:00
Last Modified: 2016-05-10
More Contracts from General Dynamics Mission Systems, Inc.
- 200410!005969!2100!w15p7t!usa Communications-Electronics !w15p7t04ce405 !A!N! !N! ! !20040716!20111230!046863929!046863929!001381284!n!general Dynamics Decision Syst!8201 E Mcdowell Road !scottsdale !az!85257!65000!013!04!scottsdale !maricopa !arizona !+000010000000!n!n!000000000000!ac63!rdte/Electronics&communication Eq-Adv Tech DEV !A7 !electronics and Communication Equip !360 !jtrs Cluster I !541330!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!b! !A!N!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $1.5B (Department of Defense)
- Federal Contract — $1.4B (Department of Defense)
- THE Space Network (SN) Consists of a Space Segment Comprised of the Tracking and Data Relay Satellites (tdrss), and a Ground Segment (sngs). the SN Provides the Capability for Global Space-To-Ground Telecommunications and Tracking Coverage for LOW Earth Orbit (LEO) and Near-Earth Spaceflight Missions, Including Both Robotic and Human Space Flight. the Sngs Includes Facilities and Systems Located AT the White Sands Complex (WSC) AT LAS Cruces, NM the Guam Remote Ground Terminal (grgt) AT Guam and Space Network Expansion (SNE) East AT Blossom Point, MD. the Purpose of the Sgss Project IS to Implement a Modern Ground Segment That Will Enable the SN to Continue to Deliver High Quality Services to the SN Community, Meet Stakeholder Requirements, and Significantly Reduce Required Operations and Maintenance Resources — $1.2B (National Aeronautics and Space Administration)
- Federal Contract — $1.2B (Department of Defense)
- SDA Tranche 1 Operations and Integration — $861.6M (Department of Defense)
View all General Dynamics Mission Systems, Inc. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)