General Dynamics IT contract for computer systems design services awarded $132M by GSA

Contract Overview

Contract Amount: $132,254,156 ($132.3M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2014-01-10

End Date: 2019-07-09

Contract Duration: 2,006 days

Daily Burn Rate: $65.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20548

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $132.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract spans over 5 years, indicating a significant, long-term engagement. 4. The contract was awarded by the General Services Administration (GSA), a key federal procurement agency. 5. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services. 6. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

Benchmarking the value of this $132 million contract requires more detailed information on the specific services rendered and the performance period. Cost Plus Fixed Fee contracts can sometimes result in higher costs than fixed-price contracts if the contractor's costs exceed initial estimates. Without comparable contract data for similar computer systems design services, it is difficult to definitively assess value for money. However, the competitive award process may have helped to secure a reasonable price.

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 3 bids suggests a moderate level of competition for this contract. A higher number of bidders typically leads to more competitive pricing and a wider range of solutions, but three bidders still provide a basis for price discovery.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering price reductions and encouraging efficient service delivery.

Public Impact

The primary beneficiary of this contract is likely the federal agency utilizing the computer systems design services, potentially improving IT infrastructure and operations. Services delivered include computer systems design, which could encompass a wide range of IT support, development, and integration. The contract was awarded to a company with a presence in Washington D.C., suggesting potential geographic impact in that region. The contract supports the IT workforce by engaging a contractor that provides specialized technical expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts carry inherent risks of cost escalation if not closely monitored.
The duration of the contract (over 5 years) necessitates ongoing performance monitoring to ensure continued value.
Lack of specific performance metrics makes it challenging to assess the contractor's effectiveness beyond the award process.

Positive Signals

Awarded through full and open competition, indicating a robust and fair procurement process.
The contract was awarded to General Dynamics Information Technology, Inc., a large and established government contractor.
The contract is for computer systems design services, a critical area for federal IT modernization.

Sector Analysis

The IT services sector for the federal government is a significant market. Contracts for computer systems design services, categorized under NAICS code 541512, are common and essential for maintaining and upgrading federal IT infrastructure. Spending in this sector is driven by the need for advanced technological solutions to support government operations. Comparable spending benchmarks would typically involve analyzing other large-scale IT service contracts awarded by agencies like GSA.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. There is no explicit information regarding subcontracting plans for small businesses. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless General Dynamics Information Technology, Inc. actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer at the General Services Administration. Performance monitoring, invoice review, and compliance checks are standard oversight mechanisms. Transparency is generally facilitated through federal procurement databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Services
Computer Systems Design
General Services Administration Contracts
Delivery Orders
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
The contract duration necessitates ongoing performance monitoring to ensure continued value and effectiveness.
Limited competition (3 bidders) may have implications for optimal price discovery compared to a more robust bidding environment.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $132.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF

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 $132.3 million.

What is the period of performance?

Start: 2014-01-10. End: 2019-07-09.

What specific computer systems design services were provided under this contract?

The provided data indicates the contract falls under NAICS code 541512 (Computer Systems Design Services). However, it does not detail the specific services rendered. These could range from system analysis and design, network integration, software engineering, IT consulting, to hardware/software integration. A deeper dive into the contract's statement of work (SOW) would be necessary to understand the precise nature of the computer systems design services provided to the General Services Administration.

How does the $132 million contract value compare to similar IT services contracts awarded by GSA?

Comparing the $132 million value requires context on the contract's duration and scope. GSA awards a wide range of IT contracts, from small task orders to multi-billion dollar IDIQ vehicles. This specific contract, awarded as a delivery order over approximately 5.5 years, represents a substantial but not exceptionally large award within the broader GSA IT portfolio. To provide a precise comparison, one would need to analyze the average value and duration of similar computer systems design service contracts awarded by GSA during the same period, considering factors like the specific services and the number of bidders.

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 the potential for cost overruns. While the contractor receives a fixed fee, the government bears the cost of all allowable expenses. If the contractor's actual costs exceed estimates, the government pays more. For a $132 million contract, effective oversight is crucial to ensure that all costs are reasonable, allocable, and allowable. Without stringent cost controls and performance monitoring, the final cost to the government could significantly exceed initial projections, diminishing the value for money.

What was the historical spending pattern for computer systems design services by the General Services Administration prior to this award?

The provided data does not include historical spending patterns for GSA's computer systems design services. To analyze this, one would need to access historical procurement data, such as from the Federal Procurement Data System (FPDS-NG), to track GSA's spending on NAICS code 541512 over previous fiscal years. This would reveal trends in contract values, types of services procured, and the primary contractors utilized, providing context for the $132 million award to General Dynamics Information Technology, Inc.

What is the track record of General Dynamics Information Technology, Inc. in delivering similar IT services to the federal government?

General Dynamics Information Technology, Inc. (GDIT) is a large and established federal contractor with a extensive history of providing IT services across various government agencies. Their track record typically includes large-scale system integration, cybersecurity, cloud computing, and IT support services. While this specific contract data doesn't detail GDIT's performance on this particular award, their broader portfolio suggests significant experience. A comprehensive assessment would involve reviewing past performance evaluations and contract histories for GDIT across similar federal IT procurements.

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: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

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: $148,118,782

Exercised Options: $133,309,541

Current Obligation: $132,254,156

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $141,103

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q09BGD0055

IDV Type: GWAC

Timeline