SRA International awarded $247M IT support contract for Army National Guard enterprise operations and security

Contract Overview

Contract Amount: $218,038,061 ($218.0M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2015-11-20

End Date: 2021-07-31

Contract Duration: 2,080 days

Daily Burn Rate: $104.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: IGF::CT::IGF TASK ORDER (TO) GSQ0016AJ0009 IS HEREBY AWARDED TO SRA INTERNATIONAL, INC. TO PROVIDE THE ARMY NATIONAL GUARD (ARNG) WITH A WIDE RANGE OF IT AND INFRASTRUCTURE SUPPORT, AND PROGRAM MANAGEMENT SERVICES FOR ENTERPRISE OPERATIONS AND SECURITY SERVICES. THE PERIOD OF PERFORMANCE FOR THIS TO WILL BE FEBRUARY 1, 2016 THROUGH JANUARY 31, 2021. THE TOTAL VALUE OF THE TO WILL BE $247,355,568 AND THE TO WILL BE FUNDED IN THE AMOUNT OF $16,490,000 AT AWARD.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $218.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::CT::IGF TASK ORDER (TO) GSQ0016AJ0009 IS HEREBY AWARDED TO SRA INTERNATIONAL, INC. TO PROVIDE THE ARMY NATIONAL GUARD (ARNG) WITH A WIDE RANGE OF IT AND INFRASTRUCTURE SUPPORT, AND PROGRAM MANAGEMENT SERVICES FOR ENTERPRISE OPERATIONS AND SECURITY SERVICES. THE PERIOD OF PER… Key points: 1. Contract provides comprehensive IT and infrastructure support, program management, and enterprise operations/security services. 2. Performance period spans five years, from February 2016 to January 2021. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. Funding at award was $16.49 million, with a total value of $247.36 million. 5. The contract type is Cost Plus Award Fee (CPAF), which incentivizes contractor performance. 6. SRA International, Inc. is the awardee, with General Dynamics Information Technology, Inc. also listed. 7. The North American Industry Classification System (NAICS) code is 541512 for Computer Systems Design Services.

Value Assessment

Rating: good

The total contract value of $247.36 million over five years averages to approximately $49.47 million per year. This figure needs to be benchmarked against similar IT and infrastructure support contracts for large federal agencies. The Cost Plus Award Fee (CPAF) contract type allows for performance-based incentives, which can lead to better value if managed effectively. However, CPAF contracts can also be complex to administer and may not always guarantee the lowest cost compared to fixed-price contracts.

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 offers. The presence of two listed entities (SRA International, Inc. as awardee and General Dynamics Information Technology, Inc. as a potential competitor or related entity) suggests a competitive environment. The specific number of bidders is not provided, but full and open competition generally promotes price discovery and encourages contractors to offer competitive pricing to win the award.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and better value for the services rendered.

Public Impact

The Army National Guard (ARNG) is the primary beneficiary, receiving essential IT and infrastructure support. Services include program management, enterprise operations, and security services, crucial for maintaining ARNG's technological capabilities. The contract supports the operational readiness and effectiveness of the ARNG's IT infrastructure. Geographic impact is likely nationwide, supporting ARNG units across various locations. Workforce implications may include the direct employment of IT professionals and support staff by SRA International, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Award Fee (CPAF) structure requires careful monitoring to ensure award fees are justified by performance and do not inflate costs unnecessarily.
The five-year duration of the contract necessitates ongoing evaluation of evolving IT needs and potential for cost savings through modernization or alternative solutions.
Reliance on a single awardee for comprehensive IT and security services could pose a risk if the contractor faces performance issues or financial instability.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process and potential for competitive pricing.
The CPAF structure includes incentives for performance, which can drive efficiency and effectiveness if properly managed.
The contract addresses critical IT and security needs for the Army National Guard, supporting national security objectives.

Sector Analysis

This contract falls within the Information Technology (IT) and professional services sector, specifically focusing on computer systems design and related services. The market for federal IT support is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract represents a significant portion of spending within this niche, supporting enterprise-level IT operations and security for a major military branch. Comparable spending benchmarks would involve analyzing other large-scale IT support contracts awarded to prime contractors by Department of Defense components or other federal agencies.

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 requirements for small businesses mandated by a set-aside. However, the prime contractor, SRA International, Inc., may still engage small businesses as subcontractors to fulfill specific aspects of the contract, depending on their own subcontracting plans and the nature of the services required. The absence of a small business set-aside means that large businesses were eligible to compete and likely dominated the bidding.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the Army National Guard's contracting and program management offices, as well as the relevant contracting activity within the General Services Administration (GSA). The Cost Plus Award Fee (CPAF) structure necessitates robust performance monitoring and evaluation to ensure that award fees are earned based on demonstrated performance against established metrics. Transparency would be facilitated through contract reporting mechanisms and potentially through GSA's contract data reporting systems. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Army IT Modernization Programs
National Guard Bureau Enterprise IT Services
Department of Defense IT Infrastructure Support
Federal Civilian IT Services Contracts
Cybersecurity Support Services Contracts

Risk Flags

Potential for cost overruns in CPAF contract
Performance monitoring challenges for complex IT services
Contractor dependency for critical IT functions
Need for clear and measurable performance metrics

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $218.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::CT::IGF TASK ORDER (TO) GSQ0016AJ0009 IS HEREBY AWARDED TO SRA INTERNATIONAL, INC. TO PROVIDE THE ARMY NATIONAL GUARD (ARNG) WITH A WIDE RANGE OF IT AND INFRASTRUCTURE SUPPORT, AND PROGRAM MANAGEMENT SERVICES FOR ENTERPRISE OPERATIONS AND SECURITY SERVICES. THE PERIOD OF PERFORMANCE FOR THIS TO WILL BE FEBRUARY 1, 2016 THROUGH JANUARY 31, 2021. THE TOTAL VALUE OF THE TO WILL BE $247,355,568 AND THE TO WILL BE FUNDED IN THE AMOUNT OF $16,490,000 AT AWARD.

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 $218.0 million.

What is the period of performance?

Start: 2015-11-20. End: 2021-07-31.

What is the track record of SRA International, Inc. in performing similar large-scale IT support contracts for the federal government?

SRA International, Inc. has a history of performing IT services for various federal agencies. Prior to its acquisition by LGS Innovations (which was later acquired by NT Concepts), SRA held numerous contracts involving IT modernization, cybersecurity, and program management. Analyzing their past performance on similar contracts, particularly those with the Department of Defense and the Army, would be crucial. Key indicators to examine include past performance reviews, any contract disputes or terminations, and the successful delivery of services within scope, schedule, and budget. Their ability to manage complex enterprise-level IT operations and security services for organizations of the Army National Guard's size is a critical factor in assessing their capability for this specific task order.

How does the average annual cost of this contract compare to similar IT support contracts for other federal agencies?

The average annual cost of this contract is approximately $49.47 million ($247.36 million / 5 years). To benchmark this value, one would compare it against IT support and enterprise services contracts awarded to similar-sized organizations within the Department of Defense or other large federal agencies. Factors such as the scope of services (infrastructure, cybersecurity, program management), the complexity of the environment, and the specific technologies involved would need to be considered. For instance, contracts providing similar breadth of services to agencies like the Department of the Air Force or the Department of Veterans Affairs could serve as comparators. A higher average annual cost might be justified by a more complex or demanding operational environment, while a lower cost could indicate greater efficiency or a more competitive bidding landscape.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract structure for this type of service?

The primary risks associated with a CPAF contract for IT and infrastructure support revolve around cost control and performance measurement. While CPAF incentivizes performance through award fees, it can also lead to higher overall costs compared to fixed-price contracts if the base fee is substantial or if award fees are consistently maximized without rigorous justification. There's a risk that the government may pay for performance that is merely adequate rather than exceptional, or that the contractor focuses on achieving award fee criteria at the expense of other critical, unstated requirements. Effective oversight is paramount to ensure that award fees are tied to objective, measurable performance metrics and that the total cost remains reasonable and represents good value for the services delivered. Without strong oversight, CPAF contracts can become less predictable in terms of final cost.

What is the potential impact of this contract on the IT workforce within the Army National Guard and the supporting contractor?

This contract is likely to have a significant impact on the IT workforce. For the Army National Guard (ARNG), it may lead to a reduction in direct government IT personnel as these functions are outsourced to SRA International, Inc. This could allow ARNG to focus its internal resources on core military missions. For SRA International, Inc., the contract represents a substantial source of revenue and employment, likely requiring the hiring or allocation of a significant number of IT professionals, cybersecurity experts, program managers, and support staff. The nature of the work—enterprise operations and security—suggests a need for skilled personnel in areas like network administration, systems engineering, cybersecurity analysis, and project management. The contract's duration implies stable employment opportunities for the contractor's workforce.

How has federal spending on IT and infrastructure support for the Army National Guard evolved over the past five years prior to this award?

To assess the evolution of federal spending on IT and infrastructure support for the Army National Guard (ARNG) prior to this February 2016 award, one would need to analyze historical contract data. This would involve examining previous contracts awarded to SRA International, Inc. or other vendors for similar services. Trends might show an increasing reliance on outsourced IT support, a shift towards cloud-based solutions, or increased investment in cybersecurity measures. Understanding the historical spending trajectory provides context for the $247 million value of this task order. If spending had been steadily increasing, this award might represent a continuation of that trend. Conversely, if spending had been declining, this award might signify a strategic shift or a consolidation of services. Data from sources like USAspending.gov or agency-specific procurement reports would be essential for this analysis.

What are the specific cybersecurity services included under this contract, and how do they align with current ARNG security requirements?

The contract mentions 'security services' as part of the scope for enterprise operations. However, the specific details of these cybersecurity services are not elaborated in the provided data. To assess alignment with current ARNG security requirements, a deeper dive into the contract's Statement of Work (SOW) would be necessary. This would likely include services such as network security monitoring, vulnerability assessments, incident response, security policy development and implementation, and potentially compliance with specific DoD cybersecurity frameworks (e.g., RMF - Risk Management Framework). Given the increasing threat landscape, robust cybersecurity is critical for military organizations. The effectiveness of these services would depend on the contractor's expertise, the clarity of the SOW, and the ARNG's ability to define and measure security outcomes.

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

Solicitation ID: GSCQF0B1532925

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

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: $317,217,095

Exercised Options: $317,217,095

Current Obligation: $218,038,061

Actual Outlays: $-53,297

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $2,666,573

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0055

IDV Type: GWAC

Timeline