General Dynamics IT awarded $167M for MC4 PMO Support over 5 years

Contract Overview

Contract Amount: $166,913,083 ($166.9M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: General Services Administration

Start Date: 2010-03-01

End Date: 2015-02-28

Contract Duration: 1,825 days

Daily Burn Rate: $91.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: MC4 PMO SUPPORT

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21702

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $166.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: MC4 PMO SUPPORT Key points: 1. Contract value represents significant investment in program management support. 2. Full and open competition suggests a potentially competitive bidding process. 3. Delivery order structure indicates flexibility within a larger contract vehicle. 4. Time and materials pricing model can introduce cost variability. 5. Contract duration of 5 years allows for sustained support. 6. Performance period spans a significant portion of the early 2010s.

Value Assessment

Rating: fair

The total award of $167 million over five years averages to approximately $33.4 million annually. Benchmarking this against similar large-scale PMO support contracts is challenging without specific service details. However, the duration and scope suggest a substantial investment. The time and materials pricing structure, while common, warrants scrutiny for potential cost overruns if not managed tightly. Without detailed performance metrics or comparison to industry standards for PMO support, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This typically suggests a robust bidding environment, which can lead to more competitive pricing. The number of bidders is not specified, but the 'full and open' designation implies a deliberate effort to maximize competition. This approach is generally favored for ensuring fair market prices and preventing undue influence from a limited pool of contractors.

Taxpayer Impact: Taxpayers benefit from a process designed to achieve the best possible price through broad market engagement. Full and open competition increases the likelihood that the government secures services at a rate reflecting market value, minimizing the risk of overpayment.

Public Impact

The primary beneficiaries are likely federal agencies requiring program management office (PMO) support, enabling efficient execution of their initiatives. Services delivered include program management, administrative support, and potentially technical assistance for complex projects. The geographic impact is likely concentrated where the supported agencies operate, with Maryland noted as the state of the contractor. Workforce implications include the creation of jobs for program managers, analysts, and support staff within General Dynamics Information Technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and materials contract type can lead to cost escalation if not closely monitored.
Lack of specific performance metrics in the provided data makes assessing contractor effectiveness challenging.
The broad nature of 'PMO Support' could mask inefficiencies if not clearly defined and managed.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Contract duration of five years allows for stable, long-term support.
General Dynamics Information Technology is a large, established contractor with significant experience.

Sector Analysis

This contract falls within the professional services sector, specifically focusing on program management and support for government operations. The IT services sub-sector is highly competitive, with numerous large and small businesses vying for federal contracts. The market size for government IT and program management support is substantial, representing billions of dollars annually. This contract represents a portion of that spending, likely supporting a specific agency's mission-critical functions.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major prime contractor, it may have implications for small business subcontracting opportunities. While not directly a small business award, large prime contractors are often required to meet small business subcontracting goals. The extent to which General Dynamics Information Technology utilizes small businesses for specialized support services would determine the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight mechanisms for such a contract would typically involve the contracting officer's representative (COR) at the agency level, regular performance reviews, and adherence to the terms of the contract. Accountability is maintained through performance metrics, invoicing procedures, and the potential for contract modifications or termination for cause. Transparency is generally facilitated through contract databases like FPDS, although detailed operational oversight is internal to the agency and contractor.

Related Government Programs

Program Management Support Services
IT Professional Services
Federal Civilian Agency Support
Defense Agency Support (if applicable)
Contract Vehicles (e.g., GSA Schedules)

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of specific performance metrics in summary data.
Broad scope of 'PMO Support' requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $166.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. MC4 PMO 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 $166.9 million.

What is the period of performance?

Start: 2010-03-01. End: 2015-02-28.

What specific services fall under 'MC4 PMO SUPPORT' and how were they defined in the contract?

The provided data abbreviates the contract as 'MC4 PMO SUPPORT,' suggesting it pertains to Program Management Office (PMO) functions, potentially for a specific program or system abbreviated as 'MC4.' Typically, PMO support encompasses a range of activities including strategic planning, project management, financial management, risk management, resource allocation, and administrative support to ensure the efficient execution of government programs or projects. The precise definition and scope of services would be detailed in the contract's Statement of Work (SOW). Without access to the SOW, it's difficult to ascertain the exact deliverables, performance standards, and key personnel requirements. The 'Time and Materials' (T&M) pricing structure often implies that the contractor is reimbursed for direct labor hours at specified rates and for the cost of materials used. This necessitates robust oversight to ensure that hours billed and materials procured are reasonable, allocable, and necessary for the contract's objectives.

How does the $167 million award compare to similar PMO support contracts awarded by the GSA or other agencies?

Comparing the $167 million award for MC4 PMO Support requires context regarding the specific services rendered and the duration. This award, spread over five years (1825 days), averages approximately $33.4 million annually. Large-scale PMO support contracts can range significantly, from tens of millions to hundreds of millions of dollars annually, depending on the complexity, scope, and criticality of the programs being supported. For instance, major defense or civilian agencies managing large IT modernization efforts or complex acquisition programs often award contracts in this magnitude or higher. General Dynamics Information Technology, as a large incumbent contractor, likely secured this award through a competitive process. Benchmarking requires identifying contracts with similar service descriptions, agency types (e.g., civilian vs. defense), and contract types (e.g., T&M vs. FFP). Without more granular data on the specific functions performed and the agency served by MC4, a precise comparison is challenging, but the award size is consistent with significant federal program management requirements.

What are the key risks associated with a Time and Materials (T&M) contract of this magnitude?

The primary risk associated with a Time and Materials (T&M) contract of this magnitude ($167 million) is cost control. T&M contracts reimburse the contractor for direct labor hours at specified rates and for the cost of materials. This structure inherently lacks a fixed ceiling on the total cost, making it susceptible to cost overruns if not managed diligently. Key risks include: 1) Uncontrolled labor hours: Without strict oversight, contractors may bill for excessive or inefficient labor hours. 2) Inflated material costs: The government may pay inflated prices for materials if not properly vetted or if competitive quotes are not obtained. 3) Scope creep: Changes in requirements can lead to increased labor and material costs without a corresponding adjustment in the contract's overall value proposition. 4) Performance variability: The contractor may prioritize billing hours over achieving specific outcomes, especially if performance metrics are weak. To mitigate these risks, the government must implement robust oversight, including detailed monitoring of labor hours, review of material invoices, clear definition of work requirements, and strong performance management.

What is General Dynamics Information Technology's track record with similar government contracts?

General Dynamics Information Technology (GDIT), now part of General Dynamics, is a major federal contractor with an extensive history of supporting government agencies across various sectors, including defense, intelligence, and civilian. They have a well-established track record in providing IT services, program management, and mission support. GDIT has managed numerous large-scale contracts, often involving complex IT infrastructure, cybersecurity, cloud migration, and data analytics. Their experience typically includes supporting large program offices, managing significant budgets, and delivering mission-critical solutions. While specific performance details for the MC4 PMO Support contract are not provided, GDIT's overall profile suggests they possess the resources, expertise, and experience necessary to handle contracts of this size and complexity. However, like any large contractor, their performance can vary across individual contracts, and a detailed review of past performance evaluations for similar contracts would provide a more precise assessment.

How has federal spending on PMO support evolved, and where does this contract fit in?

Federal spending on Program Management Office (PMO) support has generally trended upwards over the past two decades, driven by the increasing complexity of government programs, the digitization of services, and a greater emphasis on efficient program execution and accountability. Agencies across the board, from defense to civilian, rely on PMOs to manage large-scale initiatives, IT modernization efforts, and strategic planning. This $167 million contract, awarded between 2010 and 2015, falls within a period of significant federal IT and program management investment. It reflects the government's ongoing need for specialized expertise to oversee and manage complex projects, ensuring they stay on schedule, within budget, and meet their intended objectives. The trend continues, with agencies increasingly seeking integrated support services that combine technical expertise with robust program management capabilities to navigate evolving technological landscapes and policy requirements.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: R3104043

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 3211 JERMANTOWN RD, FAIRFAX, VA, 22030

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

Financial Breakdown

Contract Ceiling: $192,354,814

Exercised Options: $168,432,648

Current Obligation: $166,913,083

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS07T00BGD0024

IDV Type: GWAC

Timeline