EPA's $22M environmental consulting contract awarded to General Dynamics IT shows mixed value and limited competition

Contract Overview

Contract Amount: $22,031,700 ($22.0M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2007-07-20

End Date: 2012-07-19

Contract Duration: 1,826 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: SUPPORT FOR CLEAN AIR MARKETS AND RELATED ENVIRONMENTAL PROGRAMS.

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $22.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: SUPPORT FOR CLEAN AIR MARKETS AND RELATED ENVIRONMENTAL PROGRAMS. Key points: 1. The contract's value proposition is questionable given the cost-plus-fixed-fee structure and the limited competition. 2. Competition dynamics were constrained, with only two bidders participating in a process that excluded other sources. 3. Risk indicators include the cost-plus contract type, which can incentivize higher spending, and the limited bidder pool. 4. Performance context is provided by the 5-year duration, suggesting a need for sustained environmental consulting services. 5. The contract falls within the Environmental Consulting Services sector, supporting broader clean air market initiatives.

Value Assessment

Rating: fair

The contract's cost-plus-fixed-fee (CPFF) structure, while allowing flexibility, can lead to higher costs compared to fixed-price contracts. Benchmarking against similar environmental consulting services is difficult without more granular data on the specific tasks performed. The total award amount of approximately $22 million over five years suggests a moderate investment, but the value for money is uncertain due to the CPFF and limited competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources were excluded from the outset. Only two bidders participated, which is a low number and suggests that the market may not have been fully explored or that barriers to entry were present. This limited competition could potentially lead to less favorable pricing for the government.

Taxpayer Impact: The limited number of bidders means taxpayers may not have benefited from the most competitive pricing that a broader competition could have yielded.

Public Impact

The primary beneficiary is the Environmental Protection Agency (EPA), which receives support for clean air markets and related environmental programs. Services delivered include environmental consulting, crucial for policy development, market analysis, and program implementation. The geographic impact is national, as clean air initiatives affect the entire United States. Workforce implications are indirect, potentially supporting specialized environmental consulting roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contract type may lead to cost overruns.
Limited competition (2 bidders) could result in suboptimal pricing.
Exclusion of sources in the competition process raises questions about market access.
Lack of detailed performance metrics makes value assessment challenging.

Positive Signals

Contract supports critical environmental programs for clean air.
Long-term contract (5 years) provides stability for program execution.
Awarded to a known entity (General Dynamics Information Technology) with established capabilities.

Sector Analysis

The environmental consulting services sector is vital for government agencies like the EPA to address complex environmental challenges. This contract fits within the broader market for professional, scientific, and technical services, specifically focusing on environmental policy and market mechanisms. Comparable spending benchmarks are difficult to establish without knowing the precise scope of work, but the $22 million over five years represents a significant, albeit not massive, investment in this specialized area.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This means the primary award went to a large business, and the direct impact on the small business ecosystem is likely minimal unless General Dynamics Information Technology engages them as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the EPA's contracting officers and program managers. Accountability measures are inherent in the CPFF structure, requiring detailed reporting and justification of costs. Transparency is generally facilitated through contract databases like FPDS, though specific performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Clean Air Act Programs
Environmental Market Development
EPA Consulting Services
Environmental Policy Analysis
Federal Environmental Consulting Contracts

Risk Flags

Limited Competition
Cost-Plus Contract Type
Exclusion of Sources in Competition

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $22.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. SUPPORT FOR CLEAN AIR MARKETS AND RELATED ENVIRONMENTAL PROGRAMS.

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 $22.0 million.

What is the period of performance?

Start: 2007-07-20. End: 2012-07-19.

What specific environmental consulting services were provided under this contract?

The contract, "SUPPORT FOR CLEAN AIR MARKETS AND RELATED ENVIRONMENTAL PROGRAMS," indicates that the services provided by General Dynamics Information Technology were focused on aiding the EPA in developing and implementing strategies related to clean air markets. This likely encompassed a range of activities such as market analysis, policy research, economic modeling, regulatory support, and program evaluation related to air quality and emissions trading. The exact deliverables would have been detailed in task orders issued under the contract, but the overarching goal was to support the EPA's mission in environmental protection through market-based approaches.

How does the cost-plus-fixed-fee (CPFF) structure compare to other contract types for similar services?

Cost-plus-fixed-fee (CPFF) contracts are often used when the scope of work is not precisely defined or is expected to evolve, offering flexibility. However, compared to fixed-price contracts, CPFF carries a higher risk of cost overruns for the government, as the contractor is reimbursed for all allowable costs plus a predetermined fixed fee. For well-defined environmental consulting services, fixed-price or cost-reimbursement with award fees might offer better value and incentivize efficiency. The CPFF structure here suggests a degree of uncertainty in the project's requirements or a need for adaptability in the services provided.

What are the implications of 'Full and Open Competition After Exclusion of Sources' for this contract?

This specific procurement method, 'Full and Open Competition After Exclusion of Sources,' is unusual. It implies that a broad solicitation was made, but certain potential offerors were intentionally excluded from bidding. This exclusion could be based on various factors, such as prior performance issues, specific technical requirements that only a subset of companies could meet, or even national security concerns. The consequence is a reduced pool of competitors, which, as seen with only two bidders, can limit price discovery and potentially lead to higher costs for the government compared to a truly open competition where all qualified sources could participate without prior exclusion.

What is the historical spending pattern for environmental consulting services at the EPA?

Historical spending on environmental consulting services by the EPA is substantial and varies year to year based on program needs and budget allocations. While this specific $22 million contract over five years represents a significant investment, it needs to be viewed within the context of the EPA's overall budget and its reliance on external expertise for complex scientific, technical, and policy-related tasks. Analyzing broader EPA spending trends in categories like 'Environmental Consulting Services' (NAICS 541620) would reveal patterns of investment in areas such as air quality, water, waste management, and climate change initiatives, showing whether this contract aligns with or deviates from typical spending levels.

What is General Dynamics Information Technology's track record with EPA contracts?

General Dynamics Information Technology (GDIT), now part of General Dynamics, has a long history of providing IT and professional services to various government agencies, including the EPA. Their track record typically involves large-scale IT support, data management, and systems integration. For environmental consulting, their involvement would likely leverage their technical and analytical capabilities. A detailed review of their past performance on similar EPA contracts would be necessary to fully assess their suitability and reliability for this specific environmental program support, looking at factors like on-time delivery, quality of work, and cost management.

How effective are market-based approaches to environmental regulation, as supported by this contract?

Market-based approaches, such as emissions trading or cap-and-trade systems, are often considered efficient tools for environmental regulation. They allow flexibility in how environmental goals are met, potentially lowering overall compliance costs compared to traditional command-and-control regulations. The effectiveness hinges on proper design, robust monitoring, and enforcement. Contracts like this one, supporting clean air markets, aim to leverage economic incentives to achieve environmental objectives. Their success is measured by their ability to reduce pollution cost-effectively, foster innovation, and achieve desired environmental outcomes, though debates continue regarding their equity and overall environmental impact compared to other regulatory methods.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Environmental Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: PRHQ0710739

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sterling Parent Inc. (UEI: 968838909)

Address: 4300 FAIR LAKES CT, FAIRFAX, VA, 11

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,036,460

Exercised Options: $29,172,844

Current Obligation: $22,031,700

Timeline