GSA's $393M IT Services Contract with General Dynamics Faces Scrutiny Over Competition and Value

Contract Overview

Contract Amount: $393,664,873 ($393.7M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2003-11-10

End Date: 2010-01-27

Contract Duration: 2,270 days

Daily Burn Rate: $173.4K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: OTHER ADP & TELECOMMUNICATIONS SERVICES

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $393.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: OTHER ADP & TELECOMMUNICATIONS SERVICES Key points: 1. Significant contract value of $393.6 million awarded to General Dynamics Information Technology. 2. Competition method was a competitive delivery order, suggesting some level of market engagement. 3. Potential risks include the Cost Plus Fixed Fee pricing structure and limited small business participation. 4. The sector is IT services, specifically Computer Systems Design Services, a common area for federal spending.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed tightly. Benchmarking CPFF contracts for similar IT services is challenging without detailed scope, but the overall value suggests a need for rigorous oversight to ensure fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

A competitive delivery order implies that multiple vendors were considered, but the specifics of the competition (e.g., number of bidders, evaluation criteria) are not detailed. This method can be effective for task-specific needs but may not always yield the best overall value compared to full and open competition for broader requirements.

Taxpayer Impact: The impact on taxpayers is moderate, as competition was present, but the CPFF structure and lack of small business set-aside could lead to less cost savings than alternative contract types or approaches.

Public Impact

Taxpayers funded a substantial IT services contract over seven years. The contract supported General Dynamics Information Technology, a large federal contractor. The specific IT services provided likely impacted various federal agency operations. The contract's duration and value suggest a significant, long-term commitment of federal resources.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee pricing structure
Limited small business participation
Long contract duration (2270 days)

Positive Signals

Competitive delivery order method used
Contract awarded to a known IT services provider

Sector Analysis

This contract falls within the IT services sector, specifically Computer Systems Design Services. Federal spending in this area is consistently high, with agencies relying on contractors for complex system development and integration. Benchmarks for similar contracts vary widely based on scope and complexity.

Small Business Impact

The data indicates that small businesses were not a primary focus for this contract, as the 'sb' (small business) flag is false. This suggests that opportunities for small businesses to participate in this significant IT services award were limited, potentially impacting diversity in federal contracting.

Oversight & Accountability

The contract was managed under the General Services Administration's Federal Acquisition Service, which typically provides oversight for IT procurements. However, the CPFF structure necessitates close monitoring of costs and performance to ensure accountability and prevent waste.

Related Government Programs

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

Risk Flags

Cost Plus Fixed Fee pricing
Limited small business participation
Long contract duration
Lack of detailed competition information
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $393.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. OTHER ADP & TELECOMMUNICATIONS SERVICES

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 $393.7 million.

What is the period of performance?

Start: 2003-11-10. End: 2010-01-27.

What was the specific scope of 'Computer Systems Design Services' under this contract, and how did it align with agency needs to justify the CPFF structure?

The specific scope of services is not detailed in the provided data. However, Computer Systems Design Services typically encompass planning, designing, and integrating hardware, software, and communication technologies. The CPFF structure is often used when the scope is not fully defined or involves significant uncertainty, requiring close monitoring by the government to ensure costs remain reasonable and deliverables meet expectations.

Given the competitive delivery order, what was the pricing discovery mechanism, and how was the 'fairness' of the fixed fee determined against market rates for similar services?

Pricing discovery in a competitive delivery order relies on proposals submitted by qualified vendors. The 'fairness' of the fixed fee is typically determined through negotiation, comparison with historical data, and market research. Without specific details on the bidding process and the number of competitors, it's difficult to assess the effectiveness of this price discovery mechanism in ensuring optimal value for the taxpayer.

What was the actual cost performance of this contract, and did the CPFF structure lead to cost efficiencies or overruns compared to alternative contract types?

The provided data does not include actual cost performance or a comparison to alternative contract types. However, Cost Plus Fixed Fee contracts inherently carry a risk of cost overruns if the government's oversight is insufficient or if the contractor's cost management is poor. A thorough post-award review would be necessary to determine if this contract achieved cost efficiencies or resulted in overruns.

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: COMPETITIVE DELIVERY ORDER

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: SRA International, Inc. (UEI: 606261683)

Address: 4300 FAIR LAKES CT, FAIRFAX, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $393,704,873

Exercised Options: $393,664,873

Current Obligation: $393,664,873

Parent Contract

Parent Award PIID: GS00T99ALD0211

IDV Type: GWAC

Timeline