GSA's $156M IT contract to General Dynamics One Source LLC for computer systems design services awarded via full and open competition
Contract Overview
Contract Amount: $156,313,556 ($156.3M)
Contractor: General Dynamics ONE Source LLC
Awarding Agency: General Services Administration
Start Date: 2016-02-01
End Date: 2021-01-31
Contract Duration: 1,826 days
Daily Burn Rate: $85.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF, OTHER FUNCTION TMCC II
Plain-Language Summary
General Services Administration obligated $156.3 million to GENERAL DYNAMICS ONE SOURCE LLC for work described as: IGF::OT::IGF, OTHER FUNCTION TMCC II Key points: 1. The contract value of $156.3 million over its 5-year period represents a significant investment in IT support. 2. Competition dynamics indicate a full and open approach, suggesting potential for competitive pricing. 3. The contract type (Cost Plus Fixed Fee) warrants scrutiny for cost control and contractor incentive alignment. 4. Performance context is tied to computer systems design services, a critical area for federal IT infrastructure. 5. Sector positioning places this contract within the broader IT services market, a consistently large federal spending category.
Value Assessment
Rating: fair
Benchmarking the value of this $156.3 million contract requires detailed analysis of the specific computer systems design services rendered. Without comparable contract data for similar scope and complexity, assessing value for money is challenging. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs compared to fixed-price contracts if not managed diligently, as it allows the contractor to recover all allowable costs plus a fixed fee. However, CPFF can be appropriate for complex projects where cost estimation is difficult.
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 data shows 2 offers were received. A higher number of bidders typically suggests a more competitive environment, which can drive down prices and improve value. With only two offers, the degree of price discovery and potential for aggressive bidding may be limited compared to a scenario with numerous competitors.
Taxpayer Impact: For taxpayers, full and open competition is generally favorable as it aims to secure the best value by allowing a wide range of contractors to compete. However, with a limited number of bids, the realized savings for taxpayers might be less than optimal.
Public Impact
Federal agencies utilizing General Services Administration (GSA) IT services benefit from enhanced computer systems design and support. The contract supports the modernization and maintenance of federal IT infrastructure, ensuring operational continuity. Geographic impact is likely nationwide, supporting various federal agency operations across different locations. Workforce implications include employment opportunities for IT professionals within General Dynamics One Source LLC and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure requires robust oversight to prevent cost overruns and ensure efficient resource utilization.
- Limited number of bids (2) may indicate potential barriers to entry or a concentrated market, impacting competitive pricing.
- The specific nature of 'Computer Systems Design Services' can be broad, requiring clear performance metrics to ensure effective delivery.
Positive Signals
- Awarded through full and open competition, maximizing the pool of potential contractors.
- The contract duration of 1826 days (approx. 5 years) provides stability for service delivery and planning.
- General Services Administration's involvement suggests adherence to established procurement standards and oversight.
Sector Analysis
The IT services sector is a substantial component of federal spending, encompassing a wide array of services from software development to systems integration and maintenance. This contract for computer systems design services falls within the broader IT consulting and integration market. Federal spending in this area is driven by the continuous need to upgrade legacy systems, enhance cybersecurity, and adopt new technologies to improve government efficiency and service delivery. Comparable spending benchmarks would involve analyzing other large IT service contracts awarded by GSA and other agencies for similar capabilities.
Small Business Impact
The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. There is no explicit information regarding subcontracting plans for small businesses. This suggests that the primary focus was on securing the best value through full and open competition, rather than specifically targeting small business engagement. The impact on the small business ecosystem would depend on whether General Dynamics One Source LLC voluntarily engages small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would primarily fall under the purview of the General Services Administration (GSA), specifically the Federal Acquisition Service. GSA has established procurement regulations and contract administration processes to ensure compliance and performance. Accountability measures would be embedded in the contract's terms and conditions, 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
- IT Schedule 70 (now IT Professional Services)
- CIO-SP3 Small Business
- Alliant Government Services
- Seaport-e
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight.
- Limited number of bids may reduce competitive pressure.
- Scope of 'Computer Systems Design Services' needs clear definition and monitoring.
Tags
it-services, computer-systems-design, general-services-administration, cost-plus-fixed-fee, full-and-open-competition, delivery-order, large-contract, federal-acquisition-service, general-dynamics-one-source-llc
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $156.3 million to GENERAL DYNAMICS ONE SOURCE LLC. IGF::OT::IGF, OTHER FUNCTION TMCC II
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS ONE SOURCE LLC.
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $156.3 million.
What is the period of performance?
Start: 2016-02-01. End: 2021-01-31.
What is the historical spending pattern for computer systems design services under GSA contracts?
Analyzing historical spending patterns for computer systems design services under GSA contracts reveals a consistent and significant federal investment in this area. GSA's IT Schedule, and its successors, have historically been major vehicles for procuring such services. Spending fluctuates based on agency needs for modernization, cybersecurity upgrades, and the adoption of new technologies. Factors like the economic climate, specific government initiatives (e.g., digital transformation efforts), and the retirement of legacy systems influence year-over-year outlays. Understanding these patterns helps in forecasting future demand and identifying trends in service requirements and pricing.
How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types in terms of cost efficiency for IT services?
The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or involves significant uncertainty, making fixed-price contracts difficult to establish. In CPFF, the contractor is reimbursed for all allowable costs plus a predetermined fixed fee, representing profit. While it offers flexibility, it can be less cost-efficient than fixed-price contracts if costs are not rigorously controlled, as the government bears the risk of cost overruns. Fixed-price contracts, conversely, incentivize contractors to manage costs tightly to maximize profit but can be challenging to implement for complex, evolving IT projects. Best value often depends on the specific project's nature and the government's ability to effectively monitor costs and performance under a CPFF arrangement.
What are the typical performance metrics for 'Computer Systems Design Services' contracts?
Performance metrics for 'Computer Systems Design Services' contracts are highly dependent on the specific project objectives but generally focus on the successful design, development, integration, and implementation of IT systems. Common metrics include adherence to project timelines and milestones, meeting technical specifications and functional requirements, system reliability and uptime post-implementation, user satisfaction, and the effectiveness of the designed solutions in meeting stated business or mission needs. For CPFF contracts, metrics also extend to cost control and efficient resource utilization. Deliverables often include design documents, system architecture diagrams, test plans and results, training materials, and operational systems.
What is the track record of General Dynamics One Source LLC in delivering federal IT services?
General Dynamics One Source LLC, as part of the larger General Dynamics Corporation, has a significant track record in delivering a wide range of IT and technology services to the federal government. Their experience spans various domains, including systems integration, cybersecurity, cloud computing, and IT support. Assessing their specific performance on this particular contract requires reviewing past performance evaluations, contract awards, and any reported issues or successes. Generally, large contractors like General Dynamics have established processes and resources to manage complex federal contracts, but individual contract performance can vary based on project specifics, team execution, and client engagement.
How does the number of bids received (2) impact the potential for price negotiation and value for taxpayers?
Receiving only two bids in a full and open competition can limit the leverage for price negotiation and potentially impact the value realized by taxpayers. A higher number of bidders typically creates a more competitive environment where contractors are incentivized to offer lower prices and more favorable terms to win the contract. With only two offers, the government may have less room to negotiate aggressively on price, as the choice is restricted. While the government still aims for best value, the competitive pressure is inherently lower than if multiple strong contenders were vying for the award. This scenario underscores the importance of robust pre-award market research and solicitation design to encourage broader participation.
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: ID03150038
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 3211 JERMANTOWN ROAD, FAIRFAX, VA, 22030
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $183,113,993
Exercised Options: $183,113,993
Current Obligation: $156,313,556
Actual Outlays: $-94,488
Subaward Activity
Number of Subawards: 29
Total Subaward Amount: $4,581,926
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q09BGD0030
IDV Type: GWAC
Timeline
Start Date: 2016-02-01
Current End Date: 2021-01-31
Potential End Date: 2021-01-31 00:00:00
Last Modified: 2025-02-24
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