General Dynamics IT awarded $70.6M for Navy OCONUS Network Operations and Maintenance

Contract Overview

Contract Amount: $70,624,661 ($70.6M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: General Services Administration

Start Date: 2005-06-13

End Date: 2009-03-31

Contract Duration: 1,387 days

Daily Burn Rate: $50.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE OPERATIONS, MAINTENANCE, SUPPORT, AND MANAGEMENT OF NAVY OCONUS ENTERPRISE NETWORK FAR EAST REGION

Place of Performance

Location: WAHIAWA, HONOLULU County, HAWAII, 96786

State: Hawaii Government Spending

Plain-Language Summary

General Services Administration obligated $70.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: THE OPERATIONS, MAINTENANCE, SUPPORT, AND MANAGEMENT OF NAVY OCONUS ENTERPRISE NETWORK FAR EAST REGION Key points: 1. Contract focuses on essential IT infrastructure support for Navy operations in the Far East. 2. The firm fixed-price contract type suggests a defined scope and predictable costs for the government. 3. A duration of over three years indicates a significant, ongoing need for these services. 4. The award was made by the General Services Administration, a common contracting vehicle for IT services. 5. The contract was awarded under full and open competition, suggesting a competitive bidding process.

Value Assessment

Rating: good

The contract value of $70.6 million over approximately 3.8 years (1387 days) averages to about $18.6 million annually. Without specific benchmarks for OCONUS network operations and maintenance, it's difficult to definitively assess value. However, the firm fixed-price structure generally provides cost certainty. The award by GSA suggests adherence to established procurement practices. Further analysis would require comparison to similar contracts for network management in comparable geographic regions and for similar military branches.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This typically leads to a more robust selection of qualified vendors and can foster competitive pricing. The number of bidders is not specified, but the competitive nature of the award suggests that multiple companies likely vied for this significant contract, which is generally favorable for price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging lower prices and ensuring the government receives services from the most capable and cost-effective providers.

Public Impact

Provides critical IT network operations and maintenance services for the U.S. Navy in the Far East region. Ensures the reliable functioning of communication and data infrastructure essential for military operations. Supports Navy personnel stationed in the Far East by maintaining their access to necessary network resources. The contract's geographic focus is on the Far East, impacting military installations and personnel in that area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively procured.
Reliance on a single contractor for critical network infrastructure could pose a risk if performance issues arise.
The long duration of the contract may not always reflect the most current technological advancements or pricing.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded a fair price.
Firm fixed-price contract type provides cost certainty for the government.
The contract is managed by the General Services Administration, a reputable agency for federal IT procurement.
The contractor, General Dynamics Information Technology Inc., is a well-established provider of IT services.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on network operations, maintenance, and support. The market for government IT services, particularly for defense and overseas operations, is substantial. General Dynamics Information Technology Inc. is a major player in this space, competing with other large system integrators. The spending benchmark for similar OCONUS network support contracts can vary significantly based on location, scope, and security requirements, but this award represents a significant investment in maintaining critical military IT infrastructure.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, as a large prime contract awarded to a major IT provider, there may be opportunities for small businesses to participate as subcontractors, depending on General Dynamics Information Technology Inc.'s subcontracting plan and the specific needs of the contract. The absence of a small business set-aside means the primary competition was likely among larger, established firms.

Oversight & Accountability

The General Services Administration (GSA) typically oversees contracts awarded through its schedules and other procurement vehicles, implying a level of oversight. The firm fixed-price nature of the contract provides a degree of financial oversight by locking in costs. Accountability measures would be detailed within the contract's performance work statement (PWS) and subject to standard government contract administration. Transparency is generally facilitated by the public nature of contract awards, though specific performance metrics may not always be publicly disclosed.

Related Government Programs

Navy Enterprise Networks
OCONUS IT Support
Defense Information Technology Contracting
General Services Administration IT Procurement
Network Operations and Maintenance Contracts

Risk Flags

Potential for performance issues impacting critical operations.
Cybersecurity risks associated with network infrastructure.
Risk of vendor lock-in for future procurements.
Contract duration may not align with rapid technological advancements.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $70.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. THE OPERATIONS, MAINTENANCE, SUPPORT, AND MANAGEMENT OF NAVY OCONUS ENTERPRISE NETWORK FAR EAST REGION

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 $70.6 million.

What is the period of performance?

Start: 2005-06-13. End: 2009-03-31.

What is the track record of General Dynamics Information Technology Inc. in managing large-scale OCONUS IT contracts?

General Dynamics Information Technology Inc. (GDIT) has a long and extensive history of managing complex IT contracts for the U.S. federal government, including significant overseas operations. They are a major provider of IT services to various branches of the military and other federal agencies. Their experience typically encompasses network infrastructure, cybersecurity, enterprise IT modernization, and end-user support in challenging environments. While specific performance details for every contract are not always public, GDIT's sustained presence and numerous large awards in this domain suggest a generally capable track record. However, like any large contractor, they may have faced performance challenges on specific projects, which would be documented in past performance reviews during re-competes or through contract close-out reports if publicly available.

How does the $70.6 million award compare to similar Navy OCONUS network support contracts?

Comparing this $70.6 million award for Navy OCONUS network operations and maintenance requires access to a broader dataset of similar contracts. However, based on the contract duration of approximately 3.8 years, the annual value is roughly $18.6 million. This figure is substantial and indicative of a significant scope of work, likely encompassing multiple facilities and a large user base within the Far East region. Contracts for OCONUS IT support can vary widely in price due to factors like geographic location, specific technological requirements, security levels, and the number of personnel supported. Without direct comparable contract data, it's challenging to definitively benchmark this award, but it represents a considerable investment in maintaining critical military IT infrastructure abroad.

What are the primary risks associated with this type of IT infrastructure support contract?

The primary risks associated with this type of IT infrastructure support contract include potential performance failures that could disrupt critical Navy operations, cybersecurity vulnerabilities that could compromise sensitive data, and cost overruns if the firm fixed-price contract is not managed effectively or if unforeseen technical issues arise. There's also a risk of vendor lock-in, where the incumbent contractor may have an advantage in future re-competes due to intimate knowledge of the system. Furthermore, geopolitical instability or changes in the operational environment in the Far East could impact service delivery or necessitate changes to the network infrastructure, potentially leading to scope adjustments and cost implications. Ensuring robust oversight and clear performance metrics is crucial to mitigate these risks.

How effective is the firm fixed-price (FFP) contract type in managing IT support services like this?

The firm fixed-price (FFP) contract type is generally considered effective for managing IT support services when the scope of work is well-defined and unlikely to change significantly. It provides the government with cost certainty, as the contractor assumes most of the risk for cost overruns. This encourages the contractor to manage resources efficiently and control costs. For services like network operations and maintenance, where the requirements are often routine and predictable, FFP can be advantageous. However, if the scope requires significant flexibility or adaptation to evolving technologies or unforeseen circumstances, an FFP contract might stifle innovation or lead to disputes if changes are necessary. In such cases, other contract types like cost-plus or time-and-materials might be considered, but they come with less cost certainty for the government.

What is the historical spending trend for Navy OCONUS network operations and maintenance?

Analyzing historical spending trends for Navy OCONUS network operations and maintenance requires access to detailed historical contract data beyond this single award. However, it is generally understood that the U.S. Navy, like other branches of the Department of Defense, consistently invests significant resources in maintaining its global IT infrastructure. Spending in this area is driven by the need for secure, reliable communication networks to support worldwide operations, intelligence gathering, and command and control. Factors influencing historical spending include the number of deployed personnel, the geographic scope of operations, technological upgrades, and evolving threat landscapes. It's reasonable to assume that spending in this category has remained substantial and potentially increased over time due to the growing reliance on digital systems and the increasing complexity of cyber threats.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 3160 FAIRVIEW PARK DR, FALLS CHURCH, VA, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $70,624,661

Exercised Options: $70,624,661

Current Obligation: $70,624,661

Parent Contract

Parent Award PIID: GS09K99BHD0003

IDV Type: GWAC

Timeline