General Dynamics IT awarded $26.5M for computer systems design services, with 3 bidders

Contract Overview

Contract Amount: $26,523,791 ($26.5M)

Contractor: General Dynamics Information Technology, Inc

Awarding Agency: General Services Administration

Start Date: 2005-04-14

End Date: 2008-05-31

Contract Duration: 1,143 days

Daily Burn Rate: $23.2K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT RELATED PRODUCTS

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

General Services Administration obligated $26.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC for work described as: IT RELATED PRODUCTS Key points: 1. Value for money appears reasonable given the competitive nature of the award. 2. Strong competition among three bidders likely drove a fair price. 3. No immediate risk indicators are apparent from the contract details. 4. This contract falls within the standard IT services sector. 5. The contract duration of over three years suggests a significant project. 6. The firm-fixed-price structure shifts risk to the contractor.

Value Assessment

Rating: good

The contract was awarded at a firm fixed price, which is generally favorable for the government in managing costs. While a direct comparison to similar contracts is difficult without more specific service details, the presence of three bidders suggests a competitive environment that likely resulted in a fair market price. The total award amount of $26.5 million over approximately three years indicates a substantial investment in IT services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a competitive delivery order process, indicating that multiple vendors were solicited and evaluated. With three bidders participating, the competition level was moderate, suggesting that the government had options and was able to leverage market forces to achieve a reasonable price. The competitive nature of the award is a positive sign for price discovery.

Taxpayer Impact: The competitive award process ensures that taxpayer dollars are used efficiently by fostering a marketplace where contractors vie for the business, leading to potentially lower prices and better service offerings.

Public Impact

Federal agencies requiring computer systems design services benefit from this contract. The services delivered likely support critical IT infrastructure and operations. The contract's impact is primarily within the federal government's IT landscape. Workforce implications may include IT professionals employed by General Dynamics Information Technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded through a competitive process.
Firm-fixed-price contract type limits cost uncertainty for the government.
Contract duration of over three years suggests a stable, ongoing need.

Sector Analysis

This contract falls under the Information Technology (IT) sector, specifically within computer systems design services. This is a large and dynamic market within the federal government, with agencies constantly seeking to modernize and maintain their IT infrastructure. Comparable spending in this area is substantial, reflecting the critical role IT plays in government operations. The market is characterized by a mix of large prime contractors and specialized small businesses.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless General Dynamics Information Technology voluntarily engages small business subcontractors. Further analysis of subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

The contract was awarded by the General Services Administration (GSA), which has robust oversight mechanisms for federal procurement. As a competitive delivery order, it would have undergone standard GSA review processes. Transparency is generally maintained through contract databases like FPDS. Inspector General oversight would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Services
Computer Systems Design
General Services Administration Contracts
IT Modernization

Risk Flags

Contract duration exceeds typical project cycles, potentially leading to obsolescence.
Lack of specific performance metrics makes value assessment challenging.
Potential for scope creep in complex IT design services.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $26.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. IT RELATED PRODUCTS

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 $26.5 million.

What is the period of performance?

Start: 2005-04-14. End: 2008-05-31.

What is the track record of General Dynamics Information Technology with federal contracts?

General Dynamics Information Technology, Inc. (GDIT) is a major federal contractor with a long history of providing IT and other services to various government agencies. They have a substantial portfolio of contracts across defense, civilian, and intelligence sectors. Their track record generally includes large-scale IT modernization, cybersecurity, cloud migration, and mission support services. While specific performance metrics for individual contracts are not publicly detailed here, GDIT's continued success in winning significant federal awards suggests a generally positive performance history and strong capabilities in meeting government requirements. However, like any large contractor, they may have faced past performance issues on specific projects, which would typically be documented in past performance evaluations during the procurement process.

How does the $26.5 million award compare to similar IT services contracts?

The $26.5 million award for computer systems design services over approximately three years is a significant but not extraordinary amount for a contract of this nature awarded to a large prime contractor like General Dynamics Information Technology. Federal IT services spending is in the tens of billions annually. Contracts of this size are common for supporting major agency IT systems, infrastructure upgrades, or specialized design services. For context, many large-scale IT modernization efforts or enterprise-wide system implementations can range from tens to hundreds of millions of dollars. The value here is moderate within the broader landscape of federal IT procurement, especially considering the duration and the nature of the services.

What are the primary risks associated with this type of contract?

The primary risks associated with this firm-fixed-price contract for computer systems design services include potential scope creep if requirements are not clearly defined upfront, contractor underperformance leading to delays or quality issues, and the possibility of the contractor encountering unforeseen technical challenges that could impact cost and schedule, although the fixed-price nature aims to mitigate cost overruns for the government. There's also a risk that the chosen technology or design may become obsolete before the contract's end-of-life, requiring potential modifications or new procurements. Given the competitive award, the risk of the contractor being unable to perform is likely mitigated, but execution risk remains.

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

Competitive delivery orders are generally effective in ensuring value for money because they introduce competition among pre-qualified vendors, driving down prices and encouraging innovation. By soliciting multiple proposals and evaluating them based on technical merit and price, the government can select the offer that provides the best overall value. The presence of three bidders in this specific case suggests that competition was sufficient to foster price discovery and encourage the contractor to offer competitive terms. This process helps prevent sole-source awards where prices might be higher due to a lack of market pressure.

What is the historical spending trend for computer systems design services by the GSA?

The General Services Administration (GSA) is a major procurer of IT services, including computer systems design. Historical spending trends for these services by GSA have generally shown a consistent and significant demand, reflecting the ongoing need for federal agencies to acquire, design, implement, and maintain their IT systems. While specific year-over-year figures for 'Computer Systems Design Services' (NAICS 541512) procured by GSA would require detailed data analysis, the overall trend indicates substantial and often increasing investment in IT modernization and support. GSA plays a crucial role in consolidating this spending through various contract vehicles, aiming for efficiency and cost savings.

What are the implications of a firm-fixed-price contract for IT services?

A firm-fixed-price (FFP) contract for IT services, like this one, means the price is set and not subject to adjustment based on the contractor's cost experience. This structure is advantageous for the government as it provides cost certainty and shifts the risk of cost overruns to the contractor. For the contractor, it incentivizes efficiency and cost control. However, FFP contracts require very well-defined requirements upfront, as any changes or scope creep can lead to costly change orders or disputes. For complex IT services where requirements might evolve, an FFP contract can be riskier for the contractor if not managed meticulously.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 15245 SHADY GROVE RD STE 200, ROCKVILLE, MD, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $87,580,920

Exercised Options: $87,579,387

Current Obligation: $26,523,791

Parent Contract

Parent Award PIID: GS00T99ALD0203

IDV Type: GWAC

Timeline