DoD's $14.3M Installation Support Contract Awarded to General Dynamics for Engineering Services

Contract Overview

Contract Amount: $14,346,238 ($14.3M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-06-24

End Date: 2011-06-01

Contract Duration: 1,072 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: INSTALLATION SUPPORT OF SMART CARRIER

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19112, UNITED STATES OF AMERICA

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $14.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: INSTALLATION SUPPORT OF SMART CARRIER Key points: 1. Contract value represents a significant investment in engineering services for installation support. 2. General Dynamics Information Technology, Inc. secured this contract, indicating their established presence in the defense sector. 3. The contract duration of 1072 days suggests a long-term need for these services. 4. Awarded under 'Full and Open Competition', this suggests a broad market solicitation. 5. The 'Cost Plus Fixed Fee' pricing structure warrants scrutiny for potential cost overruns. 6. The contract's focus on engineering services aligns with broader defense modernization efforts.

Value Assessment

Rating: fair

The contract value of $14.3 million for installation support services over approximately three years appears within a reasonable range for large-scale engineering projects. However, without specific benchmarks for 'smart carrier' installation support, a precise value-for-money assessment is challenging. The 'Cost Plus Fixed Fee' (CPFF) structure, while common, can sometimes lead to higher final costs than fixed-price contracts if not managed diligently. Comparing this to similar, albeit potentially less complex, engineering service contracts awarded by the Department of Defense would provide a clearer picture of its relative cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition,' indicating that the solicitation was made available to all responsible sources. The fact that it was competed broadly suggests that multiple companies had the opportunity to bid. While the number of bidders is not specified, a full and open competition generally fosters a more competitive environment, which can lead to better pricing and service offerings for the government. This approach aims to maximize the pool of potential contractors and ensure fair market access.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and innovative solutions, potentially leading to cost savings and better service delivery compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Department of the Navy, through enhanced installation support capabilities. The services delivered are engineering-focused, likely supporting the infrastructure and operational readiness of military installations. The geographic impact is centered around the specific Navy installations where the 'smart carrier' system is being implemented, potentially in Pennsylvania given the 'SN' field. Workforce implications include employment opportunities for engineers, technicians, and support staff involved in the project, both within the contractor and potentially in related support industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Cost Plus Fixed Fee' (CPFF) contract type carries inherent risks of cost escalation if not closely monitored.
Lack of specific performance metrics or outcome-based evaluations in the provided data makes it difficult to assess the true effectiveness of the services.
The broad nature of 'Installation Support' could lead to scope creep if not clearly defined and managed.
Limited information on the specific 'smart carrier' technology makes it hard to gauge the complexity and associated risks.

Positive Signals

Awarded through 'Full and Open Competition', suggesting a robust and fair bidding process.
The contractor, General Dynamics Information Technology, Inc., is a well-established entity with significant experience in government contracting.
The contract duration indicates a sustained commitment and likely a critical need for the services provided.
The focus on engineering services points towards a strategic investment in infrastructure and operational capabilities.

Sector Analysis

The engineering services sector within the federal market is substantial, encompassing a wide range of specialized support for defense, infrastructure, and technology projects. This contract falls under the broader category of professional, scientific, and technical services, specifically engineering. The Department of Defense is a major consumer of these services, often awarding large contracts for system integration, infrastructure development, and technical support. Benchmarking this $14.3 million contract would involve comparing it to other large-scale engineering service awards within the defense sector, considering factors like duration, scope, and complexity.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses ('sb': false) and there is no explicit mention of small business subcontracting goals ('ss': false). This suggests that the primary contractor, General Dynamics Information Technology, Inc., is expected to perform the majority of the work. While large prime contracts often have subcontracting requirements, the absence of specific flags here implies that small business participation might be limited or managed through General Dynamics' internal subcontracting programs rather than a direct government mandate for this specific award. Further investigation into General Dynamics' subcontracting plans would be needed to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures against the fixed fee and ensure that costs incurred are reasonable and allocable. Transparency would be facilitated through contract reporting mechanisms and potentially through Inspector General reviews if any performance or financial irregularities arise. The 'DO' award type suggests it might be a delivery order under a larger contract vehicle, implying oversight might also be tied to the parent contract's structure.

Related Government Programs

Defense Infrastructure Modernization Programs
Naval Installation Support Services
Engineering and Technical Services Contracts
Smart Technology Integration in Military Operations
General Dynamics Information Technology Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
Lack of specific performance metrics makes it difficult to assess value for money definitively.
Scope definition for 'Installation Support' needs clear management to prevent creep.
Reliance on a single large contractor may limit opportunities for smaller, specialized firms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. INSTALLATION SUPPORT OF SMART CARRIER

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 Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $14.3 million.

What is the period of performance?

Start: 2008-06-24. End: 2011-06-01.

What specific 'smart carrier' system is this contract supporting, and what are its operational implications for the Navy?

The provided data does not specify the exact 'smart carrier' system. However, 'smart carrier' typically refers to advanced communication, logistics, or operational technology designed to enhance efficiency and data flow within military installations. For the Navy, such systems could relate to improved command and control, real-time asset tracking, enhanced cybersecurity for critical infrastructure, or streamlined supply chain management. The installation support would involve the physical setup, integration, testing, and potentially ongoing maintenance of this technology, ensuring it functions seamlessly with existing naval infrastructure and operational protocols. The success of this contract directly impacts the Navy's ability to leverage modern technological advancements for operational advantage and readiness.

How does the 'Cost Plus Fixed Fee' (CPFF) structure compare to other contract types in terms of risk and potential cost savings for the government in this context?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or involves a high degree of uncertainty, as might be the case with new technology installations. Under CPFF, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This structure shifts some of the cost risk to the government, as the final cost can exceed initial estimates if actual costs are higher than anticipated. However, the fixed fee provides the contractor with an incentive to control costs, as their profit is predetermined. Compared to a 'Cost Plus Incentive Fee' (CPIF) contract, CPFF offers less flexibility for performance-based incentives. Compared to a 'Fixed Price' contract, CPFF provides more flexibility for undefined scopes but potentially at a higher final cost. For this $14.3 million contract, rigorous oversight is essential to manage costs effectively and ensure the government receives good value.

What is the historical spending pattern for 'Engineering Services' (NAICS 541330) by the Department of the Navy, and how does this contract fit within that trend?

The Department of the Navy consistently awards significant contracts for Engineering Services (NAICS 541330), reflecting the vast and complex infrastructure and operational needs of the naval forces. Historical spending in this category typically runs into billions of dollars annually, covering a wide array of services from naval architecture and marine engineering to facilities design, systems engineering, and technical support for advanced platforms. This $14.3 million contract, while substantial for a single award, represents a relatively small fraction of the Navy's overall annual expenditure on engineering services. It fits within the trend of the Navy procuring specialized engineering expertise to support specific projects, such as the installation of new technologies like the 'smart carrier' system, ensuring operational readiness and technological advancement.

What is General Dynamics Information Technology, Inc.'s track record with similar 'Installation Support' or 'Engineering Services' contracts for the Department of Defense?

General Dynamics Information Technology, Inc. (GDIT) has a extensive and well-documented track record of performing large-scale IT, systems engineering, and support services for the Department of Defense (DoD) and other federal agencies. They are a major prime contractor involved in numerous complex projects, including infrastructure modernization, network integration, cybersecurity solutions, and enterprise IT support. While the specific 'smart carrier' installation details are not provided, GDIT's history suggests they possess the technical capabilities, project management expertise, and security clearances necessary to handle such a contract. Their past performance on similar large, complex engineering and installation support contracts for the DoD would be a key factor in their selection for this award.

What are the potential risks associated with the 'PENNSYLVANIA' location mentioned in the contract data, if any?

The mention of 'PENNSYLVANIA' (SN: PA) likely indicates the primary performance location or the state where the contractor is registered or headquartered. In itself, a Pennsylvania location does not inherently present significant risks for a federal contract of this nature, especially for a company like General Dynamics with a national presence. Potential risks, if any, would be context-dependent and could include factors such as local labor market conditions affecting staffing, specific state regulations impacting operations, or logistical challenges related to the specific installation site within Pennsylvania. However, given the scale and nature of the contract, these are likely manageable and standard considerations for any large-scale project.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002408R3170

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 3211 JERMANTOWN RD, FAIRFAX, VA, 22030

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,038,638

Exercised Options: $15,038,638

Current Obligation: $14,346,238

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4012

IDV Type: IDC

Timeline