DoD's $19.9M contract for engineering services awarded to General Dynamics IT shows fair competition and potential value
Contract Overview
Contract Amount: $19,894,356 ($19.9M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2014-09-04
End Date: 2017-09-03
Contract Duration: 1,095 days
Daily Burn Rate: $18.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST NO FEE
Sector: Defense
Official Description: IGF::CT::IGF ENGINEERING SERVICES FOR MACHINERY CONTROL SYSTEMS, MACHINERY AUTOMAION, AND MACHINERY INFORMATIONS SYSTEMS. PROVIDE COMPUTER PROGRAMMING, SOFTWARE/SYSTEMS ENGINEERING, PROGRAM MANAGEMENT, QUALITY ASSURANCE AND TECHNICALADMININSTRATIVE SKILLS RELATING TO SOFTWARE-BASED SYSTEMS, STANDARD SOFTWARE-BASED-SYSTEMS PROCESSES, MACHINERY CONTROL SYSTEMS, MACHINERY INFORMATION SYSTEMS, AND MACHINERY AUTOMATION RESEARD AND DEVELOPMENT.
Place of Performance
Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19112
Plain-Language Summary
Department of Defense obligated $19.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::CT::IGF ENGINEERING SERVICES FOR MACHINERY CONTROL SYSTEMS, MACHINERY AUTOMAION, AND MACHINERY INFORMATIONS SYSTEMS. PROVIDE COMPUTER PROGRAMMING, SOFTWARE/SYSTEMS ENGINEERING, PROGRAM MANAGEMENT, QUALITY ASSURANCE AND TECHNICALADMININSTRATIVE SKILLS RELATING TO SOFTWARE-BAS… Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The duration of the contract (1095 days) indicates a significant, long-term need for these specialized engineering services. 3. The award to General Dynamics Information Technology, Inc. places this contract within a large, established federal contractor. 4. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a critical sector for defense operations. 5. The contract type, Delivery Order, implies it's part of a larger indefinite-delivery indefinite-quantity (IDIQ) contract, allowing for flexibility. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted for small business participation.
Value Assessment
Rating: fair
Benchmarking the value of this $19.9 million contract is challenging without specific performance metrics or comparable contract data. However, the contract was awarded under full and open competition, which typically drives more competitive pricing. The pricing structure (Cost No Fee) suggests that the government is primarily responsible for covering allowable costs, with the contractor's fee being fixed. This can sometimes lead to cost overruns if not managed carefully, but it also provides a clear incentive for the contractor to control costs to maximize their fee.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, meaning all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the nature of the competition suggests that multiple companies likely vied for this work. Full and open competition is generally considered the most effective method for ensuring fair pricing and access to the best available services.
Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices due to market forces and a wider selection of qualified contractors, leading to better value for their investment.
Public Impact
The Department of the Navy benefits from specialized engineering services for machinery control, automation, and information systems. This contract supports the development and maintenance of critical defense infrastructure and operational capabilities. The services provided are essential for modernizing and ensuring the reliability of naval machinery systems. The contract's geographic scope is not explicitly defined but likely supports naval operations and facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'Cost No Fee' pricing structure requires diligent oversight to ensure costs remain reasonable and within budget expectations.
- Without specific performance metrics, it's difficult to fully assess the contractor's efficiency and effectiveness in delivering the required engineering services.
- The long duration of the contract necessitates ongoing monitoring to ensure continued alignment with evolving technological needs and strategic objectives.
Positive Signals
- Awarded under full and open competition, indicating a robust and potentially cost-effective bidding process.
- The contract is with a large, established contractor (General Dynamics Information Technology, Inc.) with a significant presence in the federal IT and defense sectors.
- The services procured are critical for the modernization and operational readiness of naval machinery systems.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to IT and defense applications. The market for such specialized engineering services is substantial, driven by ongoing defense modernization efforts and the increasing complexity of military systems. General Dynamics Information Technology, Inc. is a major player in this space, competing with other large defense contractors and specialized engineering firms. Spending in this category is consistent with the Department of Defense's continuous need for advanced technological solutions.
Small Business Impact
This contract does not appear to have been set aside for small businesses, as indicated by the 'ss' and 'sb' fields being false. Consequently, there are no direct subcontracting implications for small businesses mandated by this specific award. However, large prime contractors like General Dynamics often engage small businesses for specialized support services, so indirect opportunities may exist.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Navy. The 'Cost No Fee' structure necessitates careful financial oversight to track expenditures and ensure that costs are allowable and reasonable. Transparency is generally maintained through contract reporting mechanisms, and while no specific Inspector General (IG) jurisdiction is mentioned, the DoD IG would have oversight over fraud, waste, and abuse related to this contract.
Related Government Programs
- Naval Sea Systems Command (NAVSEA) Contracts
- Department of Defense IT Services Contracts
- Machinery Control Systems Engineering
- Software Engineering Services for Defense
- Program Management for Defense Systems
Risk Flags
- Cost No Fee pricing structure requires diligent oversight.
- Lack of specific performance metrics makes value assessment difficult.
- Potential for cost overruns due to CNF structure.
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, it-services, machinery-automation, software-engineering, program-management, full-and-open-competition, delivery-order, cost-no-fee, general-dynamics-information-technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::CT::IGF ENGINEERING SERVICES FOR MACHINERY CONTROL SYSTEMS, MACHINERY AUTOMAION, AND MACHINERY INFORMATIONS SYSTEMS. PROVIDE COMPUTER PROGRAMMING, SOFTWARE/SYSTEMS ENGINEERING, PROGRAM MANAGEMENT, QUALITY ASSURANCE AND TECHNICALADMININSTRATIVE SKILLS RELATING TO SOFTWARE-BASED SYSTEMS, STANDARD SOFTWARE-BASED-SYSTEMS PROCESSES, MACHINERY CONTROL SYSTEMS, MACHINERY INFORMATION SYSTEMS, AND MACHINERY AUTOMATION RESEARD AND DEVELOPMENT.
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 $19.9 million.
What is the period of performance?
Start: 2014-09-04. End: 2017-09-03.
What is the track record of General Dynamics Information Technology, Inc. in delivering similar engineering services for the Department of Defense?
General Dynamics Information Technology, Inc. (GDIT) has a long and extensive track record of providing a wide range of IT and engineering services to the Department of Defense and other federal agencies. They are a major prime contractor on numerous large-scale programs, including those involving software development, systems engineering, cybersecurity, and program management. Their experience spans various military branches and defense initiatives. While specific performance data for this particular contract is not detailed here, GDIT's overall history suggests a capacity to handle complex engineering requirements. However, as with any large contractor, performance can vary across individual contracts, and a deeper dive into past performance reviews and contract close-outs would be necessary for a comprehensive assessment.
How does the $19.9 million value compare to similar engineering services contracts awarded by the Department of the Navy?
The $19.9 million value for this engineering services contract is within a common range for specialized support provided to the Department of the Navy. The Navy, like other branches of the DoD, frequently awards contracts in the multi-million dollar range for complex IT, software, and systems engineering tasks. Without knowing the precise scope and duration of comparable contracts, a direct comparison is difficult. However, contracts for machinery control systems, automation, and information systems can vary significantly based on the complexity of the machinery, the level of integration required, and the specific technologies involved. This contract's duration of three years suggests a substantial, ongoing requirement rather than a short-term project.
What are the primary risks associated with a 'Cost No Fee' (CNF) contract structure in this context?
The primary risk associated with a 'Cost No Fee' (CNF) contract structure, like the one awarded here, is that the contractor's profit is not tied to performance or cost savings. The contractor is reimbursed for allowable costs incurred, and their fee is fixed regardless of how well they manage those costs or how efficiently they deliver the service. This can reduce the contractor's incentive to control costs aggressively, potentially leading to higher overall expenditures for the government if not managed with rigorous oversight. The government bears more of the financial risk, as cost overruns are absorbed. Effective management, detailed cost tracking, and strong program oversight are crucial to mitigate these risks and ensure value for money.
How effective is 'full and open competition' in ensuring competitive pricing for specialized engineering services like these?
Full and open competition is generally considered the most effective method for ensuring competitive pricing for specialized engineering services. By allowing all responsible sources to submit proposals, it maximizes the pool of potential bidders, thereby increasing the likelihood of receiving competitive offers. This process encourages contractors to propose their best pricing and technical solutions to win the contract. While the specific number of bidders for this contract isn't provided, the mechanism itself is designed to drive down prices through market forces. The success of this mechanism also depends on the clarity of the solicitation requirements and the evaluation criteria used by the agency.
What is the historical spending pattern for engineering services related to machinery automation and control systems within the Department of the Navy?
Historical spending patterns for engineering services related to machinery automation and control systems within the Department of the Navy are substantial and ongoing, reflecting the critical nature of these systems for naval operations. The Navy invests heavily in maintaining, modernizing, and upgrading the complex machinery aboard its vessels and in its shore facilities. This includes systems for propulsion, power generation, weapons handling, and auxiliary machinery. Spending in this area is influenced by shipbuilding programs, fleet readiness requirements, and technological advancements. Contracts like this one, for programming, systems engineering, and R&D, are typical components of this broader spending category, which can fluctuate based on defense budgets and strategic priorities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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
Solicitation ID: N0002414R3160
Offers Received: 2
Pricing Type: COST NO FEE (S)
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: $21,233,795
Exercised Options: $21,233,795
Current Obligation: $19,894,356
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $5,291,826
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4012
IDV Type: IDC
Timeline
Start Date: 2014-09-04
Current End Date: 2017-09-03
Potential End Date: 2017-09-03 00:00:00
Last Modified: 2023-01-27
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