EPA Spends $84.8M on IT Services for Seat Management Over 5 Years
Contract Overview
Contract Amount: $84,828,503 ($84.8M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Environmental Protection Agency
Start Date: 2008-09-11
End Date: 2013-09-30
Contract Duration: 1,845 days
Daily Burn Rate: $46.0K/day
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: BASE PERIOD STANDARD SEAT SERVICE
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Environmental Protection Agency obligated $84.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: BASE PERIOD STANDARD SEAT SERVICE Key points: 1. Significant expenditure on IT services, specifically computer systems design. 2. General Dynamics Information Technology, Inc. is the primary contractor. 3. Contract duration spans over five years, indicating a long-term need. 4. The contract type is Time and Materials, which can pose cost control challenges.
Value Assessment
Rating: fair
The total award amount of $84.8M over 5 years suggests a substantial investment. Without specific unit pricing or comparison data, it's difficult to definitively assess value. However, the Time and Materials pricing model can lead to higher costs if not managed closely.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The competition method is not specified, but the contract was awarded as a Delivery Order. The impact on price discovery is unknown without knowing the initial solicitation and bidding process. Time and Materials contracts can sometimes limit price competition if not structured with strong oversight.
Taxpayer Impact: Taxpayer funds are being utilized for IT services. The efficiency and necessity of these services, along with the pricing structure, will determine the ultimate taxpayer impact.
Public Impact
Ensures operational continuity for essential IT infrastructure. Supports the EPA's mission by providing necessary technological support. Potential for cost overruns due to Time and Materials pricing. Long-term reliance on a single vendor for critical services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing model
- Long contract duration
- Lack of specified competition method
Positive Signals
- Supports critical EPA functions
- Established vendor relationship
Sector Analysis
This contract falls under IT services, specifically Computer Systems Design. The benchmark for such services can vary widely based on complexity and scope. The $84.8M award over five years represents a significant investment in IT infrastructure management for a federal agency.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine if small business participation was sought or achieved.
Oversight & Accountability
Oversight of this contract would be crucial, especially given the Time and Materials pricing. The EPA's contracting officers and program managers would need to ensure diligent monitoring of hours, rates, and deliverables to manage costs effectively and ensure accountability.
Related Government Programs
- Computer Systems Design Services
- Environmental Protection Agency Contracting
- Environmental Protection Agency Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of transparency regarding competition method.
- Long-term contract duration may reduce flexibility.
- Reliance on a single vendor for critical IT services.
Tags
computer-systems-design-services, environmental-protection-agency, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Environmental Protection Agency awarded $84.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. BASE PERIOD STANDARD SEAT SERVICE
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..
Which agency awarded this contract?
Awarding agency: Environmental Protection Agency (Environmental Protection Agency).
What is the total obligated amount?
The obligated amount is $84.8 million.
What is the period of performance?
Start: 2008-09-11. End: 2013-09-30.
What specific IT services were included under 'BASE PERIOD STANDARD SEAT SERVICE' and how do they align with the EPA's core mission requirements?
The term 'BASE PERIOD STANDARD SEAT SERVICE' likely refers to the provision and management of standard IT workstations or user access points. This could encompass hardware, software, maintenance, and support for employee computing environments. These services are crucial for enabling EPA staff to perform their duties, which range from environmental monitoring and data analysis to regulatory enforcement and public outreach, thus directly supporting the agency's operational effectiveness.
What were the primary drivers for selecting a Time and Materials contract type, and what measures were in place to mitigate potential cost overruns?
Time and Materials (T&M) contracts are often chosen when the scope of work is not clearly defined or is expected to change frequently. For IT services like seat management, T&M can offer flexibility. However, to mitigate cost overruns, agencies typically implement strict labor hour tracking, require detailed justifications for all hours billed, establish ceiling prices, and conduct regular reviews of contractor performance and expenditures to ensure value for money.
How did the EPA ensure fair and reasonable pricing for this $84.8M contract, particularly given the potential for less price competition with a Time and Materials approach?
Ensuring fair and reasonable pricing for a T&M contract of this magnitude involves several steps. The EPA would likely have established pre-negotiated labor rates based on market research and historical data. They would also set a ceiling price for the contract to limit overall liability. Furthermore, robust oversight mechanisms, including detailed invoice reviews and performance metrics, are essential to verify that the hours and materials charged are necessary, reasonable, and directly related to the contract's objectives.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 15000 CONFERENCE CENTER DR, CHANTILLY, VA, 20151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $92,143,331
Exercised Options: $92,143,331
Current Obligation: $84,828,503
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: EPW08034
IDV Type: IDC
Timeline
Start Date: 2008-09-11
Current End Date: 2013-09-30
Potential End Date: 2015-09-30 00:00:00
Last Modified: 2020-03-27
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