DoD's $84M IT sustainment contract awarded to General Dynamics One Source LLC shows fair value and strong competition
Contract Overview
Contract Amount: $84,196,184 ($84.2M)
Contractor: General Dynamics ONE Source LLC
Awarding Agency: Department of Defense
Start Date: 2010-04-01
End Date: 2011-12-31
Contract Duration: 639 days
Daily Burn Rate: $131.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SUSTAINMENT SUPPORT
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $84.2 million to GENERAL DYNAMICS ONE SOURCE LLC for work described as: SUSTAINMENT SUPPORT Key points: 1. Contract value appears reasonable given the scope of IT sustainment services. 2. Full and open competition suggests a healthy market for these services. 3. Fixed-price contract type mitigates cost overrun risks. 4. Contract duration of 639 days is standard for this type of service. 5. Awarded by the Defense Contract Management Agency, indicating robust oversight. 6. Services fall under Computer Systems Design, a common IT sector.
Value Assessment
Rating: good
The contract's total value of approximately $84 million for IT sustainment services over 639 days appears to be within a reasonable range when benchmarked against similar large-scale IT support contracts. The firm fixed-price nature of the award helps control costs and provides predictability for the Department of Defense. While specific per-unit cost data is not provided, the overall value suggests a competitive pricing environment was achieved.
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 fact that it was competed broadly suggests a competitive market for IT sustainment services, likely leading to better pricing and service offerings. The number of bids received (4) further supports the notion of active competition.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and encouraging innovation among bidders.
Public Impact
Provides critical IT sustainment support to the Department of Defense. Ensures the continued operation and maintenance of essential computer systems. Supports military readiness and operational effectiveness through reliable IT infrastructure. Likely impacts IT professionals within the contractor's workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if sustainment requirements are highly specialized.
- Dependence on a single contractor for critical IT infrastructure.
Positive Signals
- Firm fixed-price contract reduces financial risk for the government.
- Full and open competition ensures market-driven pricing.
- Award to a large, established contractor like General Dynamics suggests a track record of performance.
Sector Analysis
The IT services sector is a vast and critical component of government operations. This contract for computer systems design services, specifically focusing on sustainment, falls within the broader IT support and maintenance market. The total contract value of $84 million is significant but not unusual for large-scale sustainment efforts within the Department of Defense, which consistently invests heavily in maintaining its technological infrastructure.
Small Business Impact
The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While General Dynamics One Source LLC is a large prime contractor, there is potential for small businesses to participate as subcontractors. However, without specific subcontracting plans or goals detailed in the award, the direct impact on the small business ecosystem is unclear.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractors meet performance and quality standards. The firm fixed-price contract type provides a degree of financial oversight by establishing a ceiling cost. Transparency is generally good for publicly awarded federal contracts, though specific performance metrics are not detailed here.
Related Government Programs
- Department of Defense IT Modernization Programs
- Defense Information Systems Agency (DISA) Contracts
- IT Services and Support Contracts
- Computer Systems Design Services
Risk Flags
- Potential for vendor lock-in
- Dependence on contractor for critical systems
Tags
it, defense, computer-systems-design-services, full-and-open-competition, firm-fixed-price, delivery-order, general-dynamics-one-source-llc, defense-contract-management-agency, sustainment-support, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $84.2 million to GENERAL DYNAMICS ONE SOURCE LLC. SUSTAINMENT SUPPORT
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS ONE SOURCE LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $84.2 million.
What is the period of performance?
Start: 2010-04-01. End: 2011-12-31.
What is the track record of General Dynamics One Source LLC in performing similar IT sustainment contracts for the DoD?
General Dynamics is a major defense contractor with extensive experience in IT services, including sustainment and support. General Dynamics One Source LLC, as a subsidiary or division, likely leverages this corporate expertise. While specific performance data for this exact contract is not detailed here, the company's overall profile suggests a capacity to handle complex IT sustainment requirements. Historical performance on similar contracts would typically be assessed during the bidding process, and their ability to win this competitive bid implies a satisfactory track record.
How does the per-unit cost of this contract compare to industry benchmarks for IT sustainment services?
Specific per-unit cost data (e.g., cost per server, cost per user) is not provided in the award details. Therefore, a direct comparison to industry benchmarks for IT sustainment services is not possible with the given information. However, the overall contract value of $84 million for 639 days, awarded under full and open competition, suggests that the pricing was likely competitive and aligned with market rates for comprehensive IT sustainment.
What are the primary risks associated with this IT sustainment contract, and how are they mitigated?
Key risks include potential technical obsolescence of supported systems, contractor performance issues, and security vulnerabilities. Mitigation strategies are inherent in the contract structure: the firm fixed-price (FFP) nature shifts cost overrun risk to the contractor. The full and open competition process helps ensure a capable contractor is selected. Furthermore, the Defense Contract Management Agency (DCMA) provides oversight, and the Department of Defense likely has established cybersecurity protocols and performance monitoring mechanisms in place to address security and performance risks.
How effective has this contract been in ensuring the operational readiness of the IT systems it supports?
The provided data focuses on the award details and does not include performance metrics or outcomes related to operational readiness. Assessing effectiveness would require access to post-award performance reports, uptime statistics, incident response times, and user satisfaction surveys. However, the contract's duration and the fact that it was awarded competitively suggest an expectation of sustained operational capability. Continued funding and contract renewals, if any, would also serve as indirect indicators of perceived effectiveness.
What has been the historical spending trend for similar IT sustainment services within the Department of Defense?
The Department of Defense is a major consumer of IT services, including sustainment, and consistently spends billions annually across various contracts. Spending in this category is driven by the need to maintain aging infrastructure, upgrade systems, and ensure cybersecurity. Historical data would show a significant and often increasing trend in IT spending due to the evolving threat landscape and the increasing reliance on technology for military operations. This specific $84 million contract represents a portion of that broader, substantial investment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 3211 JERMANTOWN ROAD, FAIRFAX, VA, 22030
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $86,100,483
Exercised Options: $85,658,723
Current Obligation: $84,196,184
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q09BGD0030
IDV Type: GWAC
Timeline
Start Date: 2010-04-01
Current End Date: 2011-12-31
Potential End Date: 2012-12-31 00:00:00
Last Modified: 2018-09-10
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