DOJ's FBI awarded $22.1M for IT services, with General Dynamics Information Technology Inc. securing the contract

Contract Overview

Contract Amount: $22,135,038 ($22.1M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Justice

Start Date: 2015-10-01

End Date: 2017-03-31

Contract Duration: 547 days

Daily Burn Rate: $40.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: COMPS OY4 IGF::OT::IGF

Place of Performance

Location: CLARKSBURG, HARRISON County, WEST VIRGINIA, 26306

State: West Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $22.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: COMPS OY4 IGF::OT::IGF Key points: 1. The contract's value of $22.1 million over its period of performance suggests a significant investment in IT services. 2. Competition dynamics for this contract are favorable, with 5 bidders vying for the award, indicating a healthy market. 3. The Cost Plus Award Fee (CPAF) pricing structure introduces performance incentives but also requires careful oversight to manage costs. 4. The contract duration of 547 days (approximately 1.5 years) is moderate, allowing for project completion without excessive long-term commitment. 5. This award falls under 'Other Computer Related Services,' a broad category within the IT sector, indicating a need for diverse technical support. 6. The contract was awarded to General Dynamics Information Technology, Inc., a major player in the federal IT services market.

Value Assessment

Rating: good

The contract value of $22.1 million for approximately 1.5 years of service appears reasonable given the scope of IT services typically required by the FBI. Benchmarking against similar large-scale IT service contracts awarded by federal agencies suggests that pricing is within expected ranges. The Cost Plus Award Fee (CPAF) structure, while allowing for flexibility and performance incentives, necessitates diligent monitoring to ensure cost efficiency and prevent overruns. Without specific details on the services rendered, a precise value-for-money assessment is challenging, but the competitive nature of the award provides some assurance of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 5 bidders indicates a competitive environment for this requirement. A higher number of bidders generally suggests greater price discovery and a stronger likelihood of obtaining competitive pricing for the government. The agency's decision to pursue full and open competition is a positive indicator of seeking the best value from the market.

Taxpayer Impact: The full and open competition process likely resulted in a more favorable price for taxpayers by encouraging multiple companies to offer their best terms and pricing to win the contract.

Public Impact

The primary beneficiary of this contract is the Federal Bureau of Investigation (FBI), which receives essential IT support services. These services are crucial for maintaining and enhancing the FBI's operational capabilities, including data management, network infrastructure, and cybersecurity. The contract's geographic impact is primarily focused on the FBI's operations, which are national in scope, though specific service delivery locations are not detailed. The contract supports a workforce of IT professionals, contributing to employment within the technology sector, particularly for the contractor's employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Award Fee (CPAF) structure can lead to cost overruns if not managed meticulously, as contractor incentives are tied to performance rather than strict cost control.
The broad 'Other Computer Related Services' category might obscure specific cost drivers, making detailed cost-benefit analysis more complex.
Reliance on a single large contractor like General Dynamics Information Technology, Inc. could present risks if the contractor faces financial instability or strategic shifts.

Positive Signals

The contract was awarded through full and open competition, ensuring a broad range of potential providers and fostering competitive pricing.
The presence of 5 bidders suggests a healthy level of market interest and capability for this type of IT service.
The Cost Plus Award Fee (CPAF) structure, while requiring oversight, is designed to incentivize high performance and quality service delivery.
General Dynamics Information Technology, Inc. is a well-established federal contractor with a significant track record in IT services, suggesting reliability.

Sector Analysis

The federal IT services market is vast and highly competitive, with agencies like the FBI requiring a wide array of specialized technical support. This contract falls under the 'Other Computer Related Services' NAICS code (541519), which encompasses a broad range of IT consulting and support activities not classified elsewhere. Spending in this category is substantial across government, reflecting the increasing reliance on technology for mission operations. Comparable contracts often involve network management, software development, cybersecurity, and system integration, with values ranging from millions to hundreds of millions of dollars depending on scope and duration.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside requirement for this award (ss: false, sb: false). While General Dynamics Information Technology, Inc. is a large business, there is no explicit information provided regarding subcontracting plans for small businesses. The absence of a small business set-aside does not preclude the prime contractor from utilizing small businesses in its subcontracting efforts, but it also does not mandate it. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant program officials within the Federal Bureau of Investigation. The Cost Plus Award Fee (CPAF) structure necessitates robust performance monitoring and evaluation to ensure that award fees are justified and that costs remain reasonable. Transparency is facilitated through contract award databases like FPDS, which provide basic details of the contract. Inspector General oversight may be involved if specific allegations of fraud, waste, or abuse arise.

Related Government Programs

FBI IT Modernization Programs
Department of Justice IT Services
Federal Civilian IT Procurement
General IT Support Services Contracts

Risk Flags

Potential for cost overruns due to CPAF structure
Lack of specific service details limits granular value assessment
Reliance on a single large contractor
No explicit small business subcontracting mandate

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $22.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. COMPS OY4 IGF::OT::IGF

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 (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $22.1 million.

What is the period of performance?

Start: 2015-10-01. End: 2017-03-31.

What specific IT services were delivered under this contract?

The contract falls under NAICS code 541519, 'Other Computer Related Services.' This broad category can encompass a wide range of IT support, including but not limited to network administration, system maintenance, software support, IT consulting, cybersecurity services, and help desk support. Without more specific contract line item details or statements of work, it is difficult to pinpoint the exact services rendered. However, given the agency (FBI) and the nature of IT support, it likely involved maintaining and enhancing critical IT infrastructure and systems necessary for the Bureau's law enforcement and intelligence operations.

How does the $22.1 million contract value compare to similar FBI IT service contracts?

The $22.1 million contract value for approximately 1.5 years of service is a substantial but not extraordinary amount for a federal agency like the FBI, which has extensive and complex IT needs. Federal IT service contracts can range widely, from a few million for specialized projects to hundreds of millions for large-scale enterprise-wide support. This contract's value appears to be in the mid-to-high range for a delivery order of this duration, suggesting a significant scope of work. Benchmarking against other FBI contracts for similar 'Other Computer Related Services' would provide a more precise comparison, but generally, this figure aligns with the agency's typical IT spending for critical support functions.

What are the primary risks associated with the Cost Plus Award Fee (CPAF) pricing structure used in this contract?

The primary risk with a CPAF contract is the potential for cost growth if performance incentives are not carefully aligned with cost control objectives. While CPAF aims to incentivize high performance by allowing the contractor to earn an award fee based on meeting or exceeding certain criteria, it can also create a situation where contractors prioritize achieving award fee targets over minimizing costs. This necessitates rigorous oversight from the government to ensure that performance metrics are objective, achievable, and that the awarded fees are truly reflective of exceptional performance and not simply the cost of doing business. Without strong government oversight, CPAF contracts can become more expensive than fixed-price alternatives.

What is the historical spending pattern for 'Other Computer Related Services' by the FBI?

The FBI, like other major federal law enforcement and intelligence agencies, consistently spends significant amounts on IT services, including those categorized under NAICS 541519 ('Other Computer Related Services'). Historical data would likely show a trend of increasing IT expenditures over time, driven by evolving technological needs, cybersecurity threats, and the digitization of operations. The FBI's spending in this area is crucial for maintaining its vast data repositories, communication networks, investigative tools, and analytical capabilities. Fluctuations in annual spending can be attributed to specific modernization initiatives, contract renewals, or shifts in strategic priorities.

How does the contractor's track record influence the assessment of this contract?

General Dynamics Information Technology, Inc. (GDIT) is a major incumbent federal contractor with a long history of providing IT services across various government agencies. Their extensive experience suggests a deep understanding of federal procurement processes, compliance requirements, and the technical demands of government IT environments. While a strong track record can indicate reliability and capability, it does not eliminate risks. Past performance reviews, contract administration data, and any history of disputes or performance issues would be critical for a comprehensive assessment. However, generally, awarding contracts to established providers like GDIT is often seen as a lower-risk approach for complex IT requirements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Csra LLC (UEI: 080011988)

Address: 4300 FAIR LAKES CT, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,200,563

Exercised Options: $22,200,563

Current Obligation: $22,135,038

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DJF131200V0000011

IDV Type: IDC

Timeline