General Dynamics IT awarded $31.3M for high-end scientific computing support to EPA

Contract Overview

Contract Amount: $31,350,419 ($31.4M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2017-02-17

End Date: 2022-05-19

Contract Duration: 1,917 days

Daily Burn Rate: $16.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::CT::IGF EPA HIGH END SCIENTIFIC COMPUTING SUPPORT

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27709

State: North Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $31.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::CT::IGF EPA HIGH END SCIENTIFIC COMPUTING SUPPORT Key points: 1. Contract value represents a significant investment in specialized IT infrastructure. 2. Competition was robust, suggesting potential for competitive pricing. 3. Performance period spans over five years, indicating a long-term need. 4. The contract type (Cost Plus Fixed Fee) requires careful monitoring of costs. 5. Services are critical for advanced scientific research and data analysis. 6. Geographic focus on North Carolina highlights regional IT support capabilities.

Value Assessment

Rating: good

The contract value of $31.3 million over approximately five years for scientific computing support appears reasonable given the specialized nature of the services. Benchmarking against similar IT support contracts for federal agencies, particularly those involving high-performance computing, suggests that the overall award amount is within expected ranges. The Cost Plus Fixed Fee structure necessitates diligent oversight to ensure costs remain aligned with the fixed fee and the overall value delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bidders suggests a moderate level of competition for this specialized service. While more bidders could potentially drive prices lower, the full and open nature ensures a fair process and access to qualified providers.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for specialized scientific computing services, preventing potential overpricing from a less competitive environment.

Public Impact

The Environmental Protection Agency (EPA) benefits from enhanced scientific computing capabilities. Researchers and scientists gain access to advanced computational resources for data analysis and modeling. The contract supports critical environmental research initiatives. Workforce implications include the need for specialized IT personnel to manage and operate the systems. Geographic impact is centered in North Carolina, where the support services are likely delivered.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize cost overruns if not managed tightly.
The duration of the contract (over 5 years) requires ongoing performance monitoring to ensure sustained quality.
Dependence on a single contractor for critical computing infrastructure poses a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
The contract addresses a clear and ongoing need for high-end scientific computing.
The contractor, General Dynamics Information Technology, Inc., is a large, established entity with significant federal IT experience.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and related services. The market for high-end scientific computing support is specialized, often involving significant investments in hardware, software, and skilled personnel. Comparable spending benchmarks for similar federal IT support contracts indicate that this award is in line with market rates for complex, long-term engagements. The demand for such services is driven by the increasing complexity of scientific research and the need for advanced data processing capabilities across various government agencies.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. As a large contract awarded to a major IT provider, the primary focus is on the prime contractor's capabilities. The impact on the small business ecosystem is likely indirect, potentially through opportunities if the prime contractor engages them for specialized support, but no direct set-aside benefits are evident.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA) and the Environmental Protection Agency (EPA) program officials. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through federal procurement databases where contract awards are recorded. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

EPA Scientific Computing Services
GSA IT Schedule Contracts
Federal High-Performance Computing Initiatives
Scientific Research and Development Support Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Long contract duration necessitates ongoing performance monitoring.
Geographic concentration of services could pose logistical risks.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $31.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::CT::IGF EPA HIGH END SCIENTIFIC COMPUTING 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 $31.4 million.

What is the period of performance?

Start: 2017-02-17. End: 2022-05-19.

What is the track record of General Dynamics Information Technology, Inc. in providing similar scientific computing support to federal agencies?

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record in providing IT services to the federal government, including complex computing solutions. They have held numerous large-scale contracts with agencies like the Department of Defense, NASA, and other civilian agencies, often involving high-performance computing, data analytics, and IT infrastructure management. Their experience typically includes managing large teams of technical experts, ensuring system uptime, and implementing advanced cybersecurity measures. While specific performance metrics for this particular EPA contract are not detailed here, GDIT's general profile suggests they possess the requisite experience and capacity for this type of work. Past performance evaluations on similar contracts would provide a more granular assessment of their reliability and effectiveness.

How does the pricing structure (Cost Plus Fixed Fee) compare to other contract types for similar services, and what are the associated risks?

The Cost Plus Fixed Fee (CPFF) contract type is common for research and development or complex services where the scope may evolve or is not fully defined at the outset. It reimburses the contractor for allowable costs plus a fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but can be less predictable in terms of final cost. FFP contracts provide cost certainty but are best suited for well-defined scopes. The primary risk with CPFF is the potential for cost overruns if the contractor's costs escalate beyond initial projections, as the government bears the risk of cost increases while the fee remains fixed. This necessitates robust government oversight to scrutinize costs and ensure efficiency.

What are the key performance indicators (KPIs) used to measure the success of this scientific computing support contract?

While specific KPIs are not detailed in the provided data, typical performance indicators for a scientific computing support contract of this nature would likely include system uptime and availability (e.g., 99.9% availability for critical systems), response times for technical support requests, successful completion of scheduled maintenance and upgrades, adherence to security protocols and compliance requirements, and timely delivery of computational resources as needed by EPA researchers. Performance might also be measured by the successful execution of complex simulations or data processing tasks, user satisfaction surveys from the scientific community, and the contractor's ability to manage the computing environment within budget parameters. The contract's success hinges on ensuring researchers have reliable and performant access to the necessary computing power.

What is the historical spending trend for scientific computing support at the EPA or similar agencies?

Historical spending on scientific computing support within agencies like the EPA, or across the federal government for similar R&D functions, has generally shown an increasing trend over the past decade. This is driven by the growing volume and complexity of scientific data, the need for advanced modeling and simulation capabilities, and the push for data-driven decision-making. Agencies often consolidate their IT infrastructure and support services through large contracts to achieve economies of scale and better manage costs. Spending can fluctuate based on specific research priorities, technological advancements (e.g., adoption of cloud computing, AI/ML), and budget allocations. The $31.3 million awarded here represents a significant, but not necessarily anomalous, investment for a multi-year, high-end computing support requirement.

What are the potential risks associated with the geographic concentration of support services in North Carolina?

The geographic concentration of support services in North Carolina presents several potential risks. Firstly, it could limit the pool of local talent available for specialized IT roles, potentially driving up labor costs or leading to recruitment challenges. Secondly, it creates a single point of failure; disruptions such as natural disasters, infrastructure outages, or local economic downturns in North Carolina could significantly impact service delivery. Thirdly, if the support requires close, on-site collaboration with EPA personnel located elsewhere, the geographic distance could introduce communication delays or logistical complexities. While remote support is common, certain critical functions might benefit from closer proximity to the end-users or data centers.

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: EPA TO3

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

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: $58,695,697

Exercised Options: $56,207,297

Current Obligation: $31,350,419

Actual Outlays: $-32,918

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $4,636,058

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: GS00Q09BGD0025

IDV Type: GWAC

Timeline