DOJ's $25.8M IWN Program Management Office contract to General Dynamics C4 Systems awarded in 2007, ending 2021

Contract Overview

Contract Amount: $25,865,163 ($25.9M)

Contractor: General Dynamics C4 Systems, Inc.

Awarding Agency: Department of Justice

Start Date: 2007-08-30

End Date: 2021-05-31

Contract Duration: 5,023 days

Daily Burn Rate: $5.1K/day

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IWN PROGRAM MANAGEMENT OFFICE

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $25.9 million to GENERAL DYNAMICS C4 SYSTEMS, INC. for work described as: IWN PROGRAM MANAGEMENT OFFICE Key points: 1. Contract awarded for program management services, indicating a need for specialized support in managing complex wireless telecommunications initiatives. 2. Long contract duration (over 13 years) suggests a sustained requirement for these services, potentially reflecting the evolving nature of wireless technology. 3. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful oversight to manage costs effectively. 4. Awarded to a single contractor, raising questions about competition and potential for cost efficiencies. 5. The North American Industry Classification System (NAICS) code 517212 points to services related to cellular and wireless telecommunications infrastructure and operations. 6. The contract's value of $25.8 million over its lifespan indicates a significant investment in managing these critical communication systems.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contracts. The Cost Plus Fixed Fee structure can lead to cost overruns if not managed diligently. However, the total award value over nearly 14 years averages to approximately $1.85 million per year, which may be reasonable for specialized program management in a complex sector like wireless telecommunications. Further analysis would require understanding the scope of services provided and the specific outcomes achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded as a sole-source contract, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances do not permit a competitive process. The lack of competition means that pricing and service levels were not tested against market alternatives, potentially leading to higher costs or less optimal service delivery compared to a competed contract.

Taxpayer Impact: Sole-source awards can mean taxpayers may not be getting the best possible price or value, as there was no competitive pressure to drive down costs or incentivize innovation.

Public Impact

The Department of Justice benefits from specialized program management expertise to ensure the effective operation and evolution of its wireless communication systems. Services delivered likely include planning, execution, monitoring, and control of wireless telecommunications projects, ensuring compliance and operational readiness. The geographic impact is likely nationwide, supporting DOJ operations across various locations. Workforce implications may involve the integration of contractor personnel with government staff to manage and implement wireless solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in higher costs for taxpayers.
Cost Plus Fixed Fee contracts require robust oversight to prevent cost creep.
Long contract duration without re-competition could indicate a lack of market dynamism or a failure to explore alternative solutions.

Positive Signals

Contractor has a long-standing relationship with the agency, suggesting a level of trust and established performance.
Specialized program management services are critical for complex telecommunications infrastructure.
The contract duration indicates a sustained and potentially critical need for these services.

Sector Analysis

This contract falls within the Information Technology and Telecommunications sector, specifically focusing on wireless communication services. The market for such services is characterized by rapid technological advancements, significant capital investment, and a mix of large established providers and specialized niche players. Government spending in this area is crucial for maintaining secure and reliable communication networks essential for national security and operational effectiveness. Comparable spending benchmarks would involve analyzing other large-scale wireless infrastructure and management contracts within federal agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award to a large contractor, it is unlikely to have significant subcontracting opportunities for small businesses unless explicitly mandated or initiated by the prime contractor. This contract does not appear to directly support the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's contracting and program management offices. Given the Cost Plus Fixed Fee structure, rigorous financial oversight and performance monitoring are essential to ensure funds are used appropriately and objectives are met. Transparency may be limited due to the sole-source nature and the specific details of program management often being internal to the agency's operations. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Justice IT Modernization Programs
Federal Public Safety Wireless Networks
Telecommunications Infrastructure Procurement
Wireless Network Management Services

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Long contract duration without re-competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $25.9 million to GENERAL DYNAMICS C4 SYSTEMS, INC.. IWN PROGRAM MANAGEMENT OFFICE

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS C4 SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $25.9 million.

What is the period of performance?

Start: 2007-08-30. End: 2021-05-31.

What specific program management services were provided under this contract?

While the specific details of the services provided are not fully elaborated in the provided data, the contract's classification under NAICS code 517212 (Cellular and Other Wireless Telecommunications) and its award to General Dynamics C4 Systems, Inc. suggest that the services likely encompassed a broad range of program management functions. These could include strategic planning, acquisition support, project management, systems integration oversight, lifecycle management, budget and financial management, risk assessment and mitigation, and ensuring compliance with relevant regulations and standards for the Department of Justice's wireless telecommunications infrastructure. The long duration and sole-source nature imply a deep integration into the agency's operations and a critical role in managing complex, evolving wireless systems.

How does the Cost Plus Fixed Fee (CPFF) structure typically impact cost control and contractor performance in long-term contracts?

The Cost Plus Fixed Fee (CPFF) contract type is designed to provide flexibility for projects where the scope or costs are uncertain, by reimbursing the contractor for allowable costs plus a predetermined fixed fee. For long-term contracts like this one, CPFF can incentivize contractors to manage costs efficiently to protect their fixed fee, but it also requires robust government oversight to prevent cost overruns. The government bears the risk of cost increases, while the contractor is motivated to complete the work within the estimated cost to maximize profit. Effective cost control relies heavily on detailed cost accounting, regular audits, and clear definition of allowable costs. Performance is typically measured against defined milestones and deliverables, with the fixed fee contingent upon successful completion.

What are the potential risks associated with awarding a long-term contract as sole-source?

Awarding a long-term contract as sole-source carries several potential risks. Firstly, it eliminates the potential for competitive bidding, which typically drives down prices and encourages innovation. Taxpayers may end up paying more than necessary. Secondly, it can lead to complacency on the part of the contractor, as there is no immediate threat of losing the business to a competitor. This could potentially impact service quality or responsiveness over time. Thirdly, the agency may become overly reliant on a single vendor, creating vendor lock-in and making it difficult or costly to switch providers in the future, even if market conditions or technological advancements offer better alternatives. Finally, without market validation through competition, it's harder to ascertain if the pricing and services offered represent true value for money.

What does the contract's end date of May 31, 2021, imply about the program's status?

The contract's end date of May 31, 2021, signifies the conclusion of the period for which General Dynamics C4 Systems, Inc. was contracted to provide IWN Program Management Office services. This implies that either the program reached its intended conclusion, was transitioned to another entity or contract, or was significantly restructured. It's possible that the Department of Justice has since awarded a new contract for these or related services, potentially through a competitive process, or that the program's requirements have evolved. Without further information, it's difficult to definitively state the program's current status, but the end date marks a formal closure of this specific contractual arrangement.

Given the contract's focus on wireless telecommunications, what are potential technological obsolescence risks?

Wireless telecommunications technology evolves at an extremely rapid pace. A contract spanning over 13 years (August 2007 to May 2021) for program management in this field inherently carries a significant risk of technological obsolescence. The systems, standards, and infrastructure being managed in 2007 could be outdated by 2021. The program management office would need to actively monitor technological advancements, plan for upgrades or replacements, and ensure that the managed systems remain secure, efficient, and interoperable with current and future technologies. The sole-source nature of the contract might have limited the contractor's incentive or the agency's ability to proactively incorporate the latest advancements if not explicitly managed and funded.

Industry Classification

NAICS: Information › Wireless Telecommunications Carriers (except Satellite) › Cellular and Other Wireless Telecommunications

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 8201 E MCDOWELL RD, SCOTTSDALE, AZ, 01

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $25,865,163

Exercised Options: $25,865,163

Current Obligation: $25,865,163

Parent Contract

Parent Award PIID: DJJ06C1410

IDV Type: IDC

Timeline