General Dynamics IT awarded $116M for computer systems design, with a significant portion spent in the last year
Contract Overview
Contract Amount: $116,428,498 ($116.4M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Energy
Start Date: 2015-02-25
End Date: 2022-06-11
Contract Duration: 2,663 days
Daily Burn Rate: $43.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CT::IGF
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20426
Plain-Language Summary
Department of Energy obligated $116.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::CT::IGF Key points: 1. Value for money appears fair given the contract duration and scope. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a long performance period and fixed-price structure. 4. Performance context shows a lengthy execution phase, requiring sustained oversight. 5. Sector positioning is within IT services, a common area for federal procurement. 6. The contract was awarded under a firm-fixed-price structure, which shifts cost risk to the contractor.
Value Assessment
Rating: fair
The total award of $116.4 million over approximately 7 years suggests a substantial investment in IT services. Benchmarking against similar large-scale IT system design contracts is challenging without more granular data on specific deliverables. However, the firm-fixed-price nature of the contract implies that the government secured a defined scope of work at a set price, which can be advantageous if the scope was well-defined and managed effectively. The relatively high number of bids (10) also suggests a competitive environment that could have driven a reasonable price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through a full and open competition, indicating that all responsible sources were permitted to submit bids. The solicitation attracted 10 bidders, suggesting a healthy level of interest and competition for this type of IT service. A robust competitive process generally leads to better price discovery and can result in more favorable terms for the government.
Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award. The presence of multiple bidders helps ensure that the government is not overpaying for the services rendered.
Public Impact
The Federal Energy Regulatory Commission (FERC) benefits from enhanced computer systems design and support. Services delivered likely include system development, integration, maintenance, and potentially cybersecurity enhancements. The geographic impact is primarily within the District of Columbia, where the agency is located. Workforce implications include the creation of jobs within General Dynamics Information Technology and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 6 years) increases the risk of scope creep or evolving technological needs not being fully addressed.
- Firm-fixed-price contracts can lead to contractor pressure to cut corners if not closely monitored.
- Reliance on a single large contractor for critical IT systems can create vendor lock-in.
- The specific nature of 'Computer Systems Design Services' is broad and requires detailed performance metrics to assess effectiveness.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process.
- Multiple bidders (10) participated, suggesting market interest and potential for competitive pricing.
- Firm-fixed-price contract shifts cost overrun risk to the contractor.
- Long-term contract allows for sustained support and development of critical IT infrastructure.
Sector Analysis
This contract falls within the broader Information Technology (IT) services sector, specifically focusing on computer systems design. The federal IT services market is vast, with agencies consistently investing in modernizing and maintaining their technological infrastructure. Comparable spending benchmarks would typically involve analyzing other large-scale IT system development and integration contracts awarded by civilian agencies. The market is characterized by a mix of large prime contractors and specialized subcontractors, with significant competition.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While General Dynamics Information Technology is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on the specific requirements outlined in the contract and the prime contractor's subcontracting plan, which is not detailed here.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Energy's Federal Energy Regulatory Commission (FERC). Accountability measures would be tied to the contract's performance work statement and delivery schedules. Transparency is generally facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would likely fall under the Department of Energy's Office of Inspector General, which investigates fraud, waste, and abuse in agency programs.
Related Government Programs
- IT Systems Modernization
- Computer Systems Design Services
- Federal Civilian IT Procurement
- Large-Scale IT Services Contracts
- Department of Energy IT Spending
Risk Flags
- Long contract duration may lead to outdated technology or scope creep.
- Firm-fixed-price contracts require careful monitoring to ensure quality is maintained.
- Potential for vendor lock-in with a large IT service provider.
Tags
it-services, computer-systems-design, department-of-energy, federal-energy-regulatory-commission, firm-fixed-price, full-and-open-competition, large-contract, district-of-columbia, multi-year-contract, general-dynamics-information-technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $116.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::CT::IGF
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Federal Energy Regulatory Commission).
What is the total obligated amount?
The obligated amount is $116.4 million.
What is the period of performance?
Start: 2015-02-25. End: 2022-06-11.
What specific IT systems or services were developed or enhanced under this contract?
The contract, NAICS code 541512, specifies 'Computer Systems Design Services.' While the award data does not detail the specific systems, this typically encompasses a range of activities including designing new computer systems, integrating hardware and software products, and providing consulting services on technology. For FERC, these systems could relate to energy regulation, market oversight, data management, internal operations, or cybersecurity infrastructure. A deeper dive into the contract's Performance Work Statement (PWS) or Statement of Objectives (SOO) would be necessary to identify the precise systems and functionalities addressed.
How does the awarded amount compare to similar IT system design contracts for federal agencies of similar size?
Comparing the $116.4 million award to similar contracts requires identifying comparable agencies (e.g., other regulatory bodies or civilian agencies with significant IT needs) and contract scopes (e.g., system design, development, and integration over a multi-year period). Without specific details on the deliverables and the duration of comparable contracts, a precise benchmark is difficult. However, for a contract spanning over six years and involving a large prime contractor like General Dynamics Information Technology, this award amount appears within a plausible range for substantial IT modernization or system development efforts within the federal government. The firm-fixed-price structure and the number of bidders (10) suggest a competitive environment that likely influenced the final price.
What are the key performance indicators (KPIs) used to measure the success of this contract?
The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for 'Computer Systems Design Services' under a firm-fixed-price contract, KPIs would focus on adherence to schedule, meeting technical specifications, successful system integration, user acceptance testing, and potentially system performance metrics (e.g., uptime, response time) post-deployment. The contracting officer's representative (COR) would monitor these KPIs, and performance would be documented in contract performance reports. The long duration suggests that KPIs might evolve or be assessed in phases.
What is the track record of General Dynamics Information Technology (GDIT) in delivering similar large-scale IT contracts for federal agencies?
General Dynamics Information Technology (GDIT) has a long and extensive track record of delivering large-scale IT services and solutions to numerous federal agencies, including defense, civilian, and intelligence communities. They are a major federal IT contractor known for handling complex system integrations, cloud migrations, cybersecurity, and IT infrastructure management. Their performance on similar contracts is generally considered robust, though like any large contractor, specific contract performance can vary. Agencies often evaluate contractor past performance as a key factor in the source selection process for new awards.
How has spending on computer systems design services evolved at FERC over the past five years?
The provided data only pertains to a single contract award. To analyze the evolution of spending on computer systems design services at FERC over the past five years, one would need to access historical contract data for FERC, specifically looking at contracts under NAICS code 541512 and potentially related IT service codes. This would involve querying federal procurement databases (like FPDS-NG or USASpending.gov) for all contracts awarded by FERC in this category over the specified period. This single award of $116.4 million, spanning from 2015 to 2022, represents a significant portion of potential spending in that timeframe, but a comprehensive trend analysis requires broader data.
What is the potential impact of this contract on cybersecurity posture for FERC?
Computer systems design services often include components related to cybersecurity, such as designing secure architectures, implementing security controls, and integrating security solutions. If this contract involved modernizing or developing new systems, it likely incorporated current cybersecurity best practices and standards mandated by federal regulations (e.g., NIST guidelines). The firm-fixed-price nature might incentivize the contractor to deliver robust security features within the agreed-upon budget. However, the specific cybersecurity enhancements depend entirely on the contract's scope and requirements, which are not detailed in the provided summary data.
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
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 10
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 3150 FAIRVIEW PARK DR STE 100, FALLS CHURCH, VA, 22042
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $144,387,403
Exercised Options: $140,245,359
Current Obligation: $116,428,498
Actual Outlays: $27,608,259
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $60,802
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200050W
IDV Type: GWAC
Timeline
Start Date: 2015-02-25
Current End Date: 2022-06-11
Potential End Date: 2022-06-11 00:00:00
Last Modified: 2023-01-27
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