DOJ's DEA Spends $75M on IT Services with General Dynamics, Raising Value Concerns
Contract Overview
Contract Amount: $75,108,538 ($75.1M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Justice
Start Date: 2011-06-01
End Date: 2020-11-30
Contract Duration: 3,470 days
Daily Burn Rate: $21.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PROFESSIONAL AND TECHNICAL SERVICES TO SUPPORT FITS
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Justice obligated $75.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: PROFESSIONAL AND TECHNICAL SERVICES TO SUPPORT FITS Key points: 1. Significant spending of $75.1M on IT services over 9 years. 2. Sole provider General Dynamics Information Technology, Inc. dominated. 3. Risk of inflated costs due to limited competition. 4. IT services sector sees high demand and evolving technology.
Value Assessment
Rating: questionable
The contract's total value of $75.1M over nearly a decade suggests a substantial investment. Without clear benchmarks or competitive pricing data, it's difficult to assess if this represents good value for the services rendered, especially given the duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While advertised as full and open competition, the award was a delivery order, implying a specific task order under a broader contract. The long duration and single awardee raise questions about sustained competition and price discovery.
Taxpayer Impact: Taxpayer funds totaling $75.1M were allocated. The potential for overpayment due to limited effective competition could mean a less efficient use of these funds.
Public Impact
Supports critical law enforcement functions within the DEA. Long-term IT support can be essential for agency operations. Potential for vendor lock-in and reduced innovation over time.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Long contract duration (9 years).
- Potential for limited effective competition despite 'full and open' designation.
- Lack of transparency on specific services and pricing breakdown.
Positive Signals
- Supports a vital federal agency (DEA).
- Firm Fixed Price contract can provide cost certainty.
Sector Analysis
The IT services sector, particularly computer systems design, is a significant area of federal spending. Agencies rely on these services for infrastructure, software development, and cybersecurity. Benchmarks vary widely based on complexity and duration.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as indicated by 'sb': false. This suggests larger, established IT firms were the primary recipients of this significant federal spend.
Oversight & Accountability
The long duration and single awardee warrant scrutiny. Oversight should focus on whether the DEA consistently received competitive pricing and if the services evolved to meet changing needs effectively throughout the contract's life.
Related Government Programs
- Computer Systems Design Services
- Department of Justice Contracting
- Drug Enforcement Administration Programs
Risk Flags
- Long contract duration.
- Potential for limited effective competition.
- Lack of detailed service and pricing information.
- High total expenditure.
- No small business participation indicated.
Tags
computer-systems-design-services, department-of-justice, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $75.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. PROFESSIONAL AND TECHNICAL SERVICES TO SUPPORT FITS
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 Justice (Drug Enforcement Administration).
What is the total obligated amount?
The obligated amount is $75.1 million.
What is the period of performance?
Start: 2011-06-01. End: 2020-11-30.
Was the 'full and open competition' truly effective in securing competitive pricing over the contract's nine-year lifespan?
The data suggests potential limitations. While the contract type was 'full and open,' the long duration and single awardee for a delivery order raise concerns. Effective competition requires ongoing market pressure. Without evidence of re-competition or competitive task order awards, it's plausible that pricing may not have been optimized throughout the entire period.
What specific computer systems design services were provided, and how did their cost compare to market rates for similar services during the contract period?
The provided data lacks specifics on the exact services rendered and their associated costs. 'Computer Systems Design Services' is broad. A detailed analysis would require access to task orders, service descriptions, and independent market research to benchmark pricing against comparable contracts and industry standards.
Does the $75.1M expenditure represent a cost-effective investment for the DEA's IT needs over the nine-year period?
Assessing cost-effectiveness is challenging without more granular data. While the firm fixed-price nature offers some predictability, the long duration and potential for limited competition raise flags. A thorough review would compare the delivered outcomes and services against alternative solutions and market costs to determine true value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
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: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
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: $78,165,183
Exercised Options: $75,108,538
Current Obligation: $75,108,538
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS00Q09BGD0055
IDV Type: GWAC
Timeline
Start Date: 2011-06-01
Current End Date: 2020-11-30
Potential End Date: 2020-11-30 00:00:00
Last Modified: 2024-09-13
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