EPA awards $24.9M contract for environmental consulting services to General Dynamics Information Technology

Contract Overview

Contract Amount: $24,913,580 ($24.9M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2008-05-05

End Date: 2017-12-29

Contract Duration: 3,525 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: SUPPORT CONTRACT

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $24.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: SUPPORT CONTRACT Key points: 1. Contract value represents a significant investment in environmental consulting. 2. Competition dynamics suggest a robust bidding process for this service. 3. Contract duration indicates a long-term need for these services. 4. The cost-plus-fixed-fee structure requires careful monitoring of expenses. 5. This contract aligns with the EPA's mission to protect human health and the environment. 6. General Dynamics Information Technology has a substantial presence in federal IT and support services.

Value Assessment

Rating: good

The contract value of $24.9 million over its period of performance is substantial for environmental consulting services. Benchmarking against similar contracts is challenging without more specific service details, but the duration and scope suggest a fair market price was likely achieved through competition. The cost-plus-fixed-fee (CPFF) pricing structure, while common, necessitates diligent oversight to ensure costs remain reasonable and the fixed fee is justified by the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of four bidders suggests a healthy level of competition for this type of environmental consulting service. This competitive environment is generally favorable for price discovery and achieving value for the government.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by driving down costs through market forces and encouraging multiple firms to offer their best pricing and technical solutions.

Public Impact

The Environmental Protection Agency (EPA) is the primary beneficiary, receiving essential support for its environmental programs. Services delivered likely include technical assistance, data analysis, and program support related to environmental regulations and initiatives. The geographic impact is national, supporting the EPA's nationwide environmental protection mandate. Workforce implications include employment opportunities for environmental scientists, engineers, and consultants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not managed tightly.
Long contract durations (over 9 years) can sometimes lead to complacency or outdated service delivery if not actively managed.
Reliance on a single large contractor for critical support services can pose risks if the contractor's performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive pricing environment.
The contractor, General Dynamics Information Technology, is a large, established firm with significant federal contracting experience.
The contract duration suggests a stable, long-term need for these services, allowing for consistent support to the agency.

Sector Analysis

Environmental consulting services are a critical component of the federal government's ability to manage and regulate environmental protection. This sector encompasses a wide range of activities, from scientific research and impact assessments to regulatory compliance and remediation support. The EPA, as a major consumer of these services, represents a significant portion of federal spending in this area. Comparable spending benchmarks would depend on the specific nature of the consulting services, but contracts of this magnitude are not uncommon for large-scale federal support needs.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. While the primary award went to a large business, there may be subcontracting opportunities for small businesses within the scope of the work performed by General Dynamics Information Technology. The extent of small business participation would depend on the contractor's subcontracting plan and execution.

Oversight & Accountability

Oversight for this contract would primarily reside with the Environmental Protection Agency's contracting officers and program managers. The cost-plus-fixed-fee structure necessitates close monitoring of expenditures and performance against the contract's objectives. Transparency is generally maintained through contract reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Environmental Consulting Services
EPA Support Contracts
IT and Technical Support Services
Federal Environmental Programs

Risk Flags

Cost-plus-fixed-fee pricing requires diligent oversight.
Long contract duration may necessitate active performance management.
Potential for contractor inefficiency in CPFF structures.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $24.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. SUPPORT CONTRACT

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 $24.9 million.

What is the period of performance?

Start: 2008-05-05. End: 2017-12-29.

What specific environmental consulting services were provided under this contract?

While the data indicates 'Environmental Consulting Services' and a North American Industry Classification System (NAICS) code of 541620 (Environmental Consulting Services), the precise nature of the services is not detailed. Typically, such contracts support agencies like the EPA with tasks such as regulatory analysis, environmental impact assessments, scientific research support, data management and analysis, technical assistance for program implementation, and potentially support for remediation or compliance activities. The specific deliverables would have been outlined in the contract's Statement of Work (SOW).

How does the $24.9 million contract value compare to other EPA environmental consulting contracts?

Direct comparison of the $24.9 million value is difficult without knowing the exact scope and duration of other EPA environmental consulting contracts. However, this figure represents a significant investment, suggesting a broad or long-term need for specialized expertise. The EPA frequently awards large contracts for environmental services, and this amount falls within a range that indicates a substantial, multi-year engagement rather than a small, project-specific task order. The contract's duration of over 9 years (3525 days) also contributes to the overall value.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude?

The primary risk with a CPFF contract is that the contractor may not have sufficient incentive to control costs, as their fee is fixed regardless of the actual expenses incurred. This can lead to cost overruns if the government does not maintain rigorous oversight. For a $24.9 million contract, potential risks include scope creep, inefficient resource allocation by the contractor, and the possibility that the fixed fee may become disproportionately high if the work proves less complex than anticipated. Effective contract management, including detailed cost tracking and performance reviews, is crucial to mitigate these risks.

What was the track record of General Dynamics Information Technology (GDIT) with the EPA prior to this award?

General Dynamics Information Technology (GDIT), now part of General Dynamics, has a long history of serving federal agencies, including the EPA. While specific prior contract details are not provided in this data snippet, GDIT is a major federal contractor known for providing a wide range of IT, professional, and support services. Their extensive experience suggests a familiarity with government contracting processes and agency needs. A thorough review would examine their past performance ratings, any past disputes or challenges, and their success in delivering similar services to the EPA or other environmental agencies.

How did the 'full and open competition' impact the final contract price?

A 'full and open competition' generally exerts downward pressure on prices because multiple bidders are incentivized to offer their most competitive rates and technical solutions to win the contract. The fact that four bids were received suggests a competitive marketplace for these services. This process allows the government to compare proposals not just on price but also on technical merit, past performance, and other factors, ultimately aiming to secure the best value for taxpayer dollars. The final negotiated price is a result of this competitive evaluation process.

What is the significance of the contract being a 'Definitive Contract'?

A 'Definitive Contract' is a standard, fully negotiated contract that specifies all terms and conditions, including price, delivery schedule, and scope of work. Unlike other contract types like basic ordering agreements or indefinite-delivery/indefinite-quantity (IDIQ) contracts, a definitive contract represents a complete agreement. For this $24.9 million award, it means the EPA and General Dynamics Information Technology had agreed upon all specifics upfront, providing clarity and certainty for both parties regarding the obligations and expectations over the contract's lifespan.

Industry Classification

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

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: PRHQ0810150

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 4300 FAIR LAKES CT, FAIRFAX, VA, 22033

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

Financial Breakdown

Contract Ceiling: $60,792,435

Exercised Options: $35,963,831

Current Obligation: $24,913,580

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline