DOJ's $30.7M wireless network contract awarded to General Dynamics C4 Systems, Inc. shows long duration and cost-plus structure

Contract Overview

Contract Amount: $30,750,112 ($30.8M)

Contractor: General Dynamics C4 Systems, Inc.

Awarding Agency: Department of Justice

Start Date: 2009-09-29

End Date: 2021-05-31

Contract Duration: 4,262 days

Daily Burn Rate: $7.2K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IWN NATIONAL CAPITAL REGION SYSTEM DEPLOYMENT

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $30.8 million to GENERAL DYNAMICS C4 SYSTEMS, INC. for work described as: IWN NATIONAL CAPITAL REGION SYSTEM DEPLOYMENT Key points: 1. The contract's cost-plus fixed fee structure may incentivize higher spending, requiring close monitoring of expenses. 2. A single delivery order suggests a focused scope, but the long duration raises questions about adaptability to evolving technology. 3. The 12-year period of performance indicates a significant, long-term investment in wireless telecommunications infrastructure. 4. Competition was likely robust given the 'COMPETITIVE DELIVERY ORDER' classification, potentially leading to better pricing. 5. The contract's value, while substantial, needs to be benchmarked against similar large-scale wireless deployments. 6. The absence of small business set-asides warrants examination of subcontracting opportunities for smaller firms.

Value Assessment

Rating: fair

The contract's total value of $30.7 million over 12 years averages approximately $2.56 million per year. Without specific details on the scope of services and the technology deployed, a direct comparison to similar contracts is challenging. However, the cost-plus fixed fee pricing model can sometimes lead to higher overall costs compared to fixed-price contracts if not managed diligently. The long duration suggests a potentially stable but possibly less agile approach to technology acquisition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract is classified as a 'COMPETITIVE DELIVERY ORDER,' indicating that it was awarded through a competitive process. This suggests that multiple vendors had the opportunity to bid, which typically fosters price discovery and can lead to more favorable terms for the government. The presence of competition is a positive sign for value for money.

Taxpayer Impact: A competitive award process generally benefits taxpayers by promoting lower prices and encouraging innovation among bidders, leading to a more efficient use of public funds.

Public Impact

The Department of Justice benefits from enhanced wireless communication capabilities, crucial for its law enforcement and administrative functions. The contract supports the deployment and maintenance of a critical wireless network infrastructure across the National Capital Region. Federal employees within the DOJ will have access to reliable and potentially advanced wireless services, improving operational efficiency. The contract's duration implies a sustained impact on the telecommunications sector and potentially on related technology providers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus fixed fee structure may lead to cost overruns if not tightly managed.
Long contract duration (12 years) could result in technology obsolescence.
Lack of explicit small business set-aside raises concerns about equitable participation.
Limited public information on specific performance metrics makes assessing effectiveness difficult.

Positive Signals

Awarded through a competitive delivery order process, suggesting potential for good value.
General Dynamics C4 Systems, Inc. is a large, established defense and government contractor with significant experience.
The contract addresses a critical need for robust wireless communications within the Department of Justice.
The long duration provides stability and predictability for the service provider and the agency.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on wireless telecommunications infrastructure. The market for enterprise wireless solutions is large and competitive, with significant government spending driven by the need for secure and reliable communication networks. Comparable spending benchmarks would involve analyzing other large-scale government procurements for similar wireless network deployments, considering factors like geographic scope, user base, and technology standards.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means that large businesses were likely the primary competitors. While the contract itself may not directly benefit small businesses through a set-aside, there could be opportunities for small businesses to participate as subcontractors to General Dynamics C4 Systems, Inc. The agency's subcontracting plan, if any, would determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's contracting officers and program managers. Given the cost-plus fixed fee structure, rigorous oversight of expenditures and performance is crucial to ensure value for money. Transparency regarding performance metrics and cost breakdowns would be key indicators of effective oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Justice IT Modernization Initiatives
Federal Government Wireless Network Infrastructure
Telecommunications Services for Law Enforcement Agencies
Enterprise Network Deployment Contracts

Risk Flags

Cost-Plus Contract
Long Contract Duration
Potential for Cost Overruns
Technology Obsolescence Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $30.8 million to GENERAL DYNAMICS C4 SYSTEMS, INC.. IWN NATIONAL CAPITAL REGION SYSTEM DEPLOYMENT

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 $30.8 million.

What is the period of performance?

Start: 2009-09-29. End: 2021-05-31.

What specific wireless technologies and services are covered under this contract, and how do they align with current DOJ operational needs?

The contract NAICS code 517212 points to 'Cellular and Other Wireless Telecommunications.' This suggests services related to mobile communication, potentially including cellular networks, mobile data services, and possibly specialized wireless solutions for secure government use. The specific technologies deployed would need to be detailed in the contract's statement of work. Given the contract's start date in 2009 and end date in 2021, the technologies likely evolved over its lifespan, potentially including upgrades from older cellular standards (e.g., 3G) to newer ones (e.g., 4G LTE). Alignment with DOJ needs would depend on the agency's requirements for secure, reliable, and widespread communication for its personnel across the National Capital Region.

How does the average annual cost of $2.56 million compare to industry benchmarks for similar large-scale wireless network deployments in metropolitan areas?

Benchmarking this contract's average annual cost of $2.56 million requires detailed comparison points. Factors influencing cost include the number of users, geographic coverage density, required bandwidth, security protocols, and the specific technologies deployed. For large metropolitan areas, enterprise wireless solutions can range significantly. If this contract covers a broad range of services for thousands of users across the National Capital Region, the cost might be considered reasonable, especially considering the security and reliability demands of a federal agency like the DOJ. However, without a detailed breakdown of services and user numbers, a definitive benchmark is difficult. Industry reports on enterprise mobility spending or government IT spending surveys could provide comparative data points.

What were the key performance indicators (KPIs) for this contract, and how did General Dynamics C4 Systems, Inc. perform against them over the contract's 12-year duration?

Specific Key Performance Indicators (KPIs) for this contract are not publicly detailed in the provided data. Typically, for wireless network contracts, KPIs would include metrics such as network uptime/availability, data throughput speeds, latency, call completion rates, service restoration times after outages, and customer satisfaction. The performance of General Dynamics C4 Systems, Inc. against these KPIs would be documented in contract performance reports, which are usually internal to the agency. The long duration and competitive award suggest that performance was likely satisfactory enough to warrant continued service, but without access to performance reports, a definitive assessment cannot be made. The cost-plus fixed fee structure necessitates close monitoring of performance relative to costs incurred.

Given the contract's cost-plus fixed fee structure, what mechanisms were in place to control costs and prevent overruns?

Cost-plus fixed fee (CPFF) contracts, while offering flexibility, require robust oversight to manage costs. Mechanisms typically in place include detailed budgeting and expenditure tracking, regular financial reporting by the contractor, audits of contractor expenses, and negotiation of a reasonable fixed fee that incentivizes efficient performance. The contracting officer and administrative contracting officer play crucial roles in monitoring costs against the established budget and fee. The Department of Justice would have likely established specific reporting requirements and review processes to ensure that costs remained within the contract's ceiling and that the fixed fee was earned through acceptable performance. The long duration of this contract would necessitate ongoing vigilance in cost control.

How has the spending on this specific wireless network contract evolved over its 12-year lifespan, and were there significant changes in annual spending?

The provided data summarizes the total award amount ($30.7 million) but does not detail the year-over-year spending. As a cost-plus fixed fee contract with a delivery order, spending could fluctuate based on the actual costs incurred and the services delivered during each period. Initial deployment phases might see higher spending, followed by periods of maintenance and operational support. Significant changes in annual spending could be driven by technology upgrades, changes in user demand, or adjustments to the scope of services. Without access to the contract's financial history, it's impossible to determine the spending evolution. However, the total value suggests a consistent level of investment over the contract's life.

What is the track record of General Dynamics C4 Systems, Inc. in delivering similar large-scale telecommunications infrastructure contracts for federal agencies?

General Dynamics C4 Systems, Inc. (now part of General Dynamics Mission Systems) has a long and extensive track record of delivering complex technology solutions, including telecommunications and IT infrastructure, to various U.S. federal agencies, particularly within the Department of Defense and intelligence communities. They are known for handling large, mission-critical programs. Their experience encompasses secure communication systems, network integration, and deployment of advanced technologies. While specific details of past performance on contracts identical to this DOJ wireless deployment are not provided here, their general profile as a major defense contractor suggests a capacity to manage such programs. Performance reviews and past performance questionnaires from previous contracts would offer more granular insights.

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

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: $30,991,138

Exercised Options: $30,991,138

Current Obligation: $30,750,112

Parent Contract

Parent Award PIID: DJJ06C1410

IDV Type: IDC

Timeline