General Dynamics IT awarded $110M for IT systems development, serving the District of Columbia

Contract Overview

Contract Amount: $110,468,221 ($110.5M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2009-02-20

End Date: 2014-02-23

Contract Duration: 1,829 days

Daily Burn Rate: $60.4K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 4

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)

Sector: IT

Official Description: IT SYSTEMS DEVELOPMENT SERVICES FOR GAO

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20548

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $110.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IT SYSTEMS DEVELOPMENT SERVICES FOR GAO Key points: 1. The contract value of $110.5 million over five years suggests a significant investment in IT systems development. 2. Competition dynamics for this delivery order are not fully detailed, but the award was competitive. 3. The duration of the contract (1829 days) indicates a long-term need for these IT services. 4. The services provided fall under computer systems design, a critical area for government operations. 5. The contract was awarded by the General Services Administration, a key agency for federal procurement. 6. The geographic focus is the District of Columbia, implying services are likely delivered to federal agencies in the capital.

Value Assessment

Rating: good

The contract value of $110.5 million for IT systems development services over approximately five years appears reasonable given the scope and duration. Benchmarking against similar large-scale IT development contracts would provide a more precise value-for-money assessment. However, the competitive nature of the award suggests that pricing was subject to market forces, which generally supports fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. The fact that it was competed suggests a healthy level of market engagement for these types of IT systems development services. The presence of multiple bidders typically leads to better price discovery and innovation.

Taxpayer Impact: A competitive award process ensures that taxpayer dollars are used efficiently by fostering a marketplace where contractors vie for the best price and quality, ultimately benefiting the government's budget.

Public Impact

Federal agencies requiring IT systems development and modernization will benefit from the services rendered. The delivery of advanced IT systems can improve the efficiency and effectiveness of government operations. The primary geographic impact is within the District of Columbia, supporting federal entities located there. The contract likely supports a workforce of IT professionals, including developers, analysts, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term IT development projects.
Dependency on a single contractor for critical IT systems could pose a risk.
Ensuring continued technological relevance and modernization throughout the contract period.

Positive Signals

Competitive award process suggests potential for cost savings and quality.
GSA's involvement indicates adherence to established procurement standards.
Long-term contract allows for sustained development and support of essential IT infrastructure.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design services. The IT services market for the federal government is substantial, with agencies constantly seeking to upgrade and maintain their digital infrastructure. This contract represents a significant investment in that area, likely supporting core government functions. Comparable spending benchmarks would involve looking at other large-scale IT development contracts awarded to major system integrators.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, if General Dynamics Information Technology, Inc. chooses to engage them. Without specific subcontracting plans, it's difficult to assess the direct impact on the small business ecosystem for this particular award.

Oversight & Accountability

The General Services Administration (GSA) typically has robust oversight mechanisms for its contracts, including performance monitoring and compliance checks. As a competitive delivery order, it would be subject to standard federal acquisition regulations and oversight. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Systems Modernization
Computer Systems Design Services
Federal IT Procurement
General Services Administration Contracts
IT Services for Government Agencies

Risk Flags

Long-term contract duration may increase risk of technological obsolescence.
Potential for vendor lock-in if not managed carefully.
Need for continuous monitoring to prevent scope creep and ensure performance.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $110.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IT SYSTEMS DEVELOPMENT SERVICES FOR GAO

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 $110.5 million.

What is the period of performance?

Start: 2009-02-20. End: 2014-02-23.

What is the track record of General Dynamics Information Technology, Inc. with federal IT contracts?

General Dynamics Information Technology, Inc. (GDIT) is a major federal contractor with a long history of providing IT services across various government agencies. They have experience in areas such as cloud computing, cybersecurity, data analytics, and systems modernization. Their track record includes numerous large-scale contracts, often involving complex IT infrastructure and software development. While specific performance metrics for individual contracts are not always publicly detailed, GDIT is generally considered a significant player in the federal IT landscape. Analyzing their past performance on similar contracts, including any past performance evaluations or contract disputes, would provide further insight into their reliability and capability for this specific award.

How does the awarded amount compare to similar IT systems development contracts?

The awarded amount of approximately $110.5 million for IT systems development services over five years places this contract in the mid-to-large size category for federal IT procurements. To benchmark its value, one would compare it to other contracts for similar services (e.g., custom software development, system integration, IT modernization) awarded by agencies like GSA, DOD, or HHS during the same period. Factors such as the complexity of the systems, the level of customization required, and the specific technologies involved would influence pricing. A detailed comparison would involve analyzing the per-year cost and the scope of work against a portfolio of comparable contracts to determine if the pricing is competitive and reflects fair market value.

What are the primary risks associated with this type of long-term IT development contract?

Long-term IT development contracts, like this five-year award, carry several inherent risks. One significant risk is technological obsolescence; the IT landscape evolves rapidly, and systems developed today might be outdated by the end of the contract term, requiring continuous adaptation and modernization efforts. Another risk is vendor lock-in, where the government becomes heavily reliant on a single contractor, potentially limiting flexibility and future negotiation power. Scope creep is also a common risk, where project requirements expand beyond the initial agreement, leading to cost overruns and schedule delays. Furthermore, ensuring the contractor maintains adequate security protocols to protect sensitive government data is paramount, especially with increasing cyber threats.

How effective are competitive delivery orders in ensuring value for taxpayer money?

Competitive delivery orders are generally an effective mechanism for ensuring value for taxpayer money, provided the competition is robust. By allowing multiple qualified vendors to bid on specific requirements under an existing contract vehicle (like a GSA Schedule), the government can leverage market forces to obtain competitive pricing and identify the best technical solutions. This process encourages vendors to offer their most attractive terms to win the order. However, the effectiveness hinges on the clarity of the statement of work, the fairness of the evaluation criteria, and the number and capability of the competing vendors. A well-executed competitive process typically leads to better price discovery and a higher likelihood of receiving quality services at a reasonable cost.

What is the historical spending trend for IT systems development services by the General Services Administration?

The General Services Administration (GSA) is a major procurer of IT services, including systems development, for the federal government. Historical spending data from GSA shows a consistent and significant investment in IT modernization and development over the years, driven by the need to maintain and upgrade aging federal IT infrastructure and to adopt new technologies. GSA's Federal Acquisition Service, which awarded this contract, manages numerous IT schedules and contract vehicles that facilitate these procurements. Analyzing GSA's overall IT spending trends, particularly in areas like computer systems design and software development, would reveal patterns of increasing or decreasing investment, influenced by government-wide IT initiatives, budget appropriations, and evolving technological demands.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: GSCTFMG09M090

Offers Received: 4

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 15036 CONFERENCE CENTER DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $117,106,469

Exercised Options: $110,468,221

Current Obligation: $110,468,221

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00T99ALD0211

IDV Type: GWAC

Timeline