GSA's $43.9M IT Support Contract with General Dynamics Faces Scrutiny Over Competition and Value

Contract Overview

Contract Amount: $43,883,281 ($43.9M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2008-02-14

End Date: 2013-02-14

Contract Duration: 1,827 days

Daily Burn Rate: $24.0K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HIGH END ARCHITECTURE/DATABASE AND LIFE CYCLE SUPPORT

Place of Performance

Location: SEASIDE, MONTEREY County, CALIFORNIA, 93955

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $43.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: HIGH END ARCHITECTURE/DATABASE AND LIFE CYCLE SUPPORT Key points: 1. The contract awarded to General Dynamics Information Technology, Inc. for high-end architecture and database support represents a significant investment in IT services. 2. Competition for this contract was competitive, but the specific delivery order type and duration warrant further examination of price discovery. 3. Potential risks include the long contract duration and the lack of small business participation, which could limit innovation and broader economic impact. 4. The IT sector, particularly computer systems design services, is dynamic, making long-term fixed-price contracts susceptible to market shifts and technological obsolescence.

Value Assessment

Rating: fair

The contract's total award value of $43.9M over five years suggests a substantial investment. Benchmarking against similar large-scale IT architecture and database support contracts is necessary to determine if the pricing reflects fair market value, especially given the firm-fixed-price structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This was a competitive delivery order, indicating that multiple vendors likely had an opportunity to bid. However, the specific nature of the competition for this particular order and the resulting price discovery mechanism are not fully detailed, leaving room for potential inefficiencies.

Taxpayer Impact: The competitive nature of the award is a positive sign for taxpayers, suggesting that efforts were made to secure a reasonable price. However, the overall value and long-term effectiveness need continuous monitoring.

Public Impact

Taxpayers are funding significant IT infrastructure and support services, impacting the efficiency and effectiveness of government operations. The contract's focus on high-end architecture and database support suggests a critical role in managing sensitive government data and systems. The duration of the contract (5 years) means that the government is locked into this solution for an extended period, potentially missing out on newer technologies or more cost-effective alternatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation
Long contract duration
Potential for price escalation or obsolescence

Positive Signals

Competitive award process
Firm fixed price contract

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical area for government IT modernization. Spending benchmarks in this sector vary widely based on complexity and scope, but large, multi-year contracts like this represent a significant portion of federal IT expenditures.

Small Business Impact

The contract data indicates no small business participation (sb: false). This is a concern as it limits opportunities for smaller, potentially innovative firms and may not fully leverage the diversity of the contracting landscape. Agencies should strive to include small businesses in their contracting strategies.

Oversight & Accountability

The contract was awarded by the General Services Administration (GSA), a primary agency for federal procurement. Oversight would typically involve contract management by the GSA's Federal Acquisition Service, ensuring performance and adherence to terms. The number of modifications (no: 3) suggests some level of ongoing management and potential adjustments.

Related Government Programs

Computer Systems Design Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Lack of small business participation
Long contract duration may lead to obsolescence
Potential for price not reflecting current market value over time
Limited transparency on specific competition details for the delivery order

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $43.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. HIGH END ARCHITECTURE/DATABASE AND LIFE CYCLE SUPPORT

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $43.9 million.

What is the period of performance?

Start: 2008-02-14. End: 2013-02-14.

What specific performance metrics were established to ensure the value delivered by General Dynamics Information Technology, Inc. aligns with the $43.9M investment over the contract's life?

The contract's value is assessed based on the successful delivery of high-end architecture, database, and life cycle support services as defined in the statement of work. Performance metrics would typically include system uptime, response times, data integrity, and successful implementation of architectural designs. Regular performance reviews and adherence to Service Level Agreements (SLAs) are crucial for ensuring the government receives the expected value for its investment.

Given the 5-year duration and firm-fixed-price nature, what mechanisms are in place to mitigate the risk of technological obsolescence or market price shifts impacting the contract's cost-effectivenes

Firm-fixed-price contracts, especially long-term ones, carry inherent risks of obsolescence and market shifts. Mitigation strategies could include contract clauses allowing for periodic reviews, technology refresh provisions, or performance-based incentives tied to adopting newer, more efficient solutions. However, without specific details on such clauses, the risk remains that the government may overpay for outdated technology or services compared to current market rates.

How effectively does this contract contribute to the broader goals of federal IT modernization and efficiency, considering the lack of small business involvement?

While the contract addresses critical IT needs, the exclusion of small businesses is a missed opportunity for fostering innovation and competition. Federal IT modernization often benefits from diverse perspectives and agile solutions that smaller firms can provide. The lack of small business participation might indicate a less inclusive approach to achieving modernization goals, potentially limiting the range of solutions explored and the broader economic benefits to the small business sector.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 9T8SDWIS13R6

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

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

Business Categories: Category Business, Hospital, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $53,001,279

Exercised Options: $43,883,281

Current Obligation: $43,883,281

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4594G

IDV Type: FSS

Timeline