GSA's $390.7M CITS II Contract Awarded to General Dynamics IT for IT Services

Contract Overview

Contract Amount: $390,706,967 ($390.7M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2014-06-01

End Date: 2019-08-31

Contract Duration: 1,917 days

Daily Burn Rate: $203.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF- EUROPEAN AND AFRICAN THEATER COMMUNICATION AND INFORMATION TECHNOLOGY SERVICES CITS II

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19131

State: Pennsylvania Government Spending

Plain-Language Summary

General Services Administration obligated $390.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF- EUROPEAN AND AFRICAN THEATER COMMUNICATION AND INFORMATION TECHNOLOGY SERVICES CITS II Key points: 1. The contract, valued at $390.7 million, was awarded to General Dynamics Information Technology, Inc. 2. This represents a significant investment in IT services for the European and African theaters. 3. The contract utilized full and open competition, suggesting a competitive bidding process. 4. The duration of the contract is 1917 days, indicating a long-term service requirement.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar IT service contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the Cost Plus Fixed Fee structure requires diligent oversight to ensure fair pricing.

Taxpayer Impact: Taxpayer funds are being utilized for essential IT services in critical overseas operational areas, with the expectation of value derived from competitive procurement.

Public Impact

Ensures critical communication and IT infrastructure support for U.S. operations in Europe and Africa. Supports military and diplomatic missions requiring reliable technology services. Potential for long-term impact on operational efficiency and security in deployed regions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Long contract duration may not adapt well to rapidly changing technology.
No small business participation noted.

Positive Signals

Full and open competition utilized.
Awarded to a known IT services provider.
Supports critical overseas operations.

Sector Analysis

This contract falls under the Computer Systems Design Services sector (NAICS 541512). Spending in this sector is substantial across government, supporting a wide range of IT needs. Benchmarks vary widely based on service complexity and geographic location.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award (ss=false, sb=false). This suggests the prime contractor did not subcontract to small businesses or that the contract was not set aside for small businesses.

Oversight & Accountability

The contract's Cost Plus Fixed Fee structure necessitates robust oversight from the General Services Administration (GSA) to manage costs and ensure performance. Regular audits and performance reviews are crucial for accountability.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to CPFF structure.
Risk of technology obsolescence over the contract's long duration.
Lack of small business participation.
Geopolitical instability in operational theaters could impact service delivery.
Dependence on a single large contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $390.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF- EUROPEAN AND AFRICAN THEATER COMMUNICATION AND INFORMATION TECHNOLOGY SERVICES CITS II

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 $390.7 million.

What is the period of performance?

Start: 2014-06-01. End: 2019-08-31.

What specific IT services are included under CITS II, and how do they align with current operational needs in the European and African theaters?

The contract covers 'Communication and Information Technology Services.' While specific details are not provided, it likely includes network management, cybersecurity, hardware/software support, and potentially telecommunications infrastructure. Alignment with current needs requires a review of the Statement of Work and any subsequent modifications, considering the evolving geopolitical and technological landscape in those regions.

How effectively did the full and open competition process ensure competitive pricing for a Cost Plus Fixed Fee contract?

Full and open competition is designed to solicit the widest possible range of offers, theoretically driving down prices. However, for Cost Plus Fixed Fee contracts, the 'cost' component is variable. The effectiveness in ensuring competitive pricing hinges on the clarity of the baseline cost estimates, the rigor of the evaluation process, and the government's ability to negotiate a fair fixed fee and subsequently manage incurred costs.

What mechanisms are in place to ensure the long-term effectiveness and adaptability of the IT services provided under this contract, given its 5+ year duration?

Mechanisms for long-term effectiveness typically involve contract clauses for performance metrics, service level agreements (SLAs), and regular performance reviews. Adaptability might be addressed through contract modification procedures allowing for technology refreshes or scope adjustments. The government's proactive contract management and the contractor's commitment to innovation are key to maintaining effectiveness over the contract's lifespan.

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: ID03140018

Offers Received: 7

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: $438,814,769

Exercised Options: $433,256,881

Current Obligation: $390,706,967

Actual Outlays: $-99,169

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $10,345,765

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