EPA's $82.9M IT Contract for Computer Systems Design Services Awarded to General Dynamics
Contract Overview
Contract Amount: $82,901,161 ($82.9M)
Contractor: General Dynamics Information Technology Inc.
Awarding Agency: Environmental Protection Agency
Start Date: 2009-10-15
End Date: 2010-12-31
Contract Duration: 442 days
Daily Burn Rate: $187.6K/day
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: ITS-EPA BRIDGE TASK ORDER
Place of Performance
Location: DURHAM, DURHAM County, NORTH CAROLINA, 27711
Plain-Language Summary
Environmental Protection Agency obligated $82.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: ITS-EPA BRIDGE TASK ORDER Key points: 1. The contract value is substantial at $82.9 million. 2. General Dynamics Information Technology Inc. is the sole awardee. 3. The contract type is Cost Plus Fixed Fee, which can carry cost overrun risks. 4. The sector is Information Technology, specifically Computer Systems Design Services.
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee type, which allows for cost reimbursement plus a fixed fee. This can lead to higher costs if not managed carefully compared to fixed-price contracts. Benchmarking against similar IT services contracts is difficult without more detailed scope information.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This was awarded as a delivery order, likely under a pre-existing contract or GSA schedule, suggesting limited competition for this specific task order. The sole-source nature limits price discovery and competitive pressure.
Taxpayer Impact: The sole-source award to a single large contractor may not represent the best value for taxpayers if competitive bidding could have secured lower prices or better terms.
Public Impact
Taxpayers are funding a significant IT services contract for the EPA. The use of a Cost Plus Fixed Fee contract structure warrants scrutiny for potential cost inefficiencies. The lack of open competition for this task order raises questions about optimal resource allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Sole-source award
- Lack of competition
Positive Signals
- Award to a known IT services provider
- Specific task order for EPA's IT needs
Sector Analysis
This contract falls within the IT sector, specifically Computer Systems Design Services. Spending in this area is critical for government operations, but competitive procurement is essential to ensure cost-effectiveness and innovation.
Small Business Impact
The awardee, General Dynamics Information Technology Inc., is a large business. There is no indication of small business participation in this specific task order, which could be an area for improvement in future procurements.
Oversight & Accountability
The Cost Plus Fixed Fee structure requires robust oversight from the EPA to ensure costs are reasonable and the fixed fee is justified. Tracking performance against the defined scope is crucial for accountability.
Related Government Programs
- Computer Systems Design Services
- Environmental Protection Agency Contracting
- Environmental Protection Agency Programs
Risk Flags
- Sole-source award limits competition.
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Potential for cost overruns without strict oversight.
- Lack of small business participation noted.
Tags
computer-systems-design-services, environmental-protection-agency, nc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Environmental Protection Agency awarded $82.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. ITS-EPA BRIDGE TASK ORDER
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 $82.9 million.
What is the period of performance?
Start: 2009-10-15. End: 2010-12-31.
What was the justification for awarding this task order on a sole-source basis, and what steps were taken to ensure fair pricing?
The justification for a sole-source award typically involves specific circumstances like urgency, unique capabilities, or continuation of existing work. Without access to the contract file, it's impossible to determine the exact justification. However, for Cost Plus Fixed Fee contracts, fair pricing is usually assessed through negotiation, comparison to similar contracts, and review of the contractor's proposed costs and fee structure by the agency's contracting officers and technical experts.
What are the potential risks associated with a Cost Plus Fixed Fee contract for IT services, and how can they be mitigated?
The primary risk of a Cost Plus Fixed Fee contract is that the contractor may have less incentive to control costs, as costs are reimbursed. This can lead to cost overruns. Mitigation strategies include strong government oversight, detailed cost monitoring, clear performance metrics, and robust negotiation of the fixed fee based on realistic cost estimates and the contractor's profit margin.
How does this contract contribute to the EPA's overall IT infrastructure and mission effectiveness?
This contract for Computer Systems Design Services likely supports the development, integration, or maintenance of critical IT systems for the Environmental Protection Agency. Effective IT infrastructure is essential for the EPA to collect, analyze, and disseminate environmental data, manage regulatory programs, and communicate with the public, thereby directly impacting its mission effectiveness.
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
Address: 3170 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $86,467,242
Exercised Options: $86,467,242
Current Obligation: $82,901,161
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS00T99ALD0203
IDV Type: GWAC
Timeline
Start Date: 2009-10-15
Current End Date: 2010-12-31
Potential End Date: 2010-12-31 00:00:00
Last Modified: 2022-04-02
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