DoD's $30.4M IT Support Contract Awarded to General Dynamics One Source LLC
Contract Overview
Contract Amount: $30,435,803 ($30.4M)
Contractor: General Dynamics ONE Source LLC
Awarding Agency: Department of Defense
Start Date: 2017-03-15
End Date: 2022-02-28
Contract Duration: 1,811 days
Daily Burn Rate: $16.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CT::IGF SOMTC SUPPORT SERVICES
Place of Performance
Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310
Plain-Language Summary
Department of Defense obligated $30.4 million to GENERAL DYNAMICS ONE SOURCE LLC for work described as: IGF::CT::IGF SOMTC SUPPORT SERVICES Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. Duration of 1811 days indicates a long-term need for these services. 4. The North Carolina location may have implications for regional economic impact. 5. Computer Systems Design Services are critical for modern defense operations. 6. The award value of over $30 million signifies a substantial investment in IT support.
Value Assessment
Rating: good
The contract value of $30.4 million over approximately five years for computer systems design services appears reasonable given the scope and duration. Benchmarking against similar large-scale IT support contracts within the Department of Defense suggests that pricing is likely competitive, especially considering the firm-fixed-price structure which incentivizes contractor efficiency. The absence of specific performance metrics in the provided data makes a definitive value assessment challenging, but the competitive award process is a positive indicator.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of two bids indicates a moderate level of competition for this requirement. While two bidders are better than one, a higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government.
Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.
Public Impact
The U.S. Special Operations Command benefits from enhanced IT support capabilities. Services delivered likely include system design, integration, and maintenance for critical IT infrastructure. The geographic impact is primarily centered around the contractor's operations in North Carolina, but may extend to supported military installations. Workforce implications include the creation or maintenance of skilled IT jobs within General Dynamics and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if the contractor's systems become deeply integrated.
- Reliance on a single contractor for critical IT support could pose risks if performance degrades.
- The long contract duration might limit opportunities for adopting newer, more cost-effective technologies.
Positive Signals
- Firm Fixed Price contract structure incentivizes contractor cost control and efficiency.
- Awarded through full and open competition, indicating a fair and transparent process.
- The contractor, General Dynamics, is a large, established entity with significant experience in defense contracting.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on computer systems design services. The federal IT market is vast, with agencies consistently investing in maintaining and upgrading their technological infrastructure to support mission objectives. This contract represents a significant portion of spending within this niche, supporting the complex operational needs of the U.S. Special Operations Command. Comparable spending benchmarks for similar IT support services within large federal agencies often run into tens or hundreds of millions of dollars annually.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). General Dynamics One Source LLC is a large business. Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, large prime contractors are often encouraged or required to have small business subcontracting plans, which could lead to opportunities for small businesses to participate indirectly.
Oversight & Accountability
Oversight for this contract would typically be managed by the U.S. Special Operations Command's contracting and program management offices. Accountability measures are inherent in the Firm Fixed Price contract type, which holds the contractor responsible for delivering services within the agreed-upon price. Transparency is facilitated by the contract's award under full and open competition, with data publicly available through federal procurement databases. The Inspector General's office for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Defense-wide IT Modernization Programs
- Special Operations Forces Support Services
- General IT Services Contracts
- Computer Systems Design and Related Services
Risk Flags
- Potential for cost overruns if scope is not tightly managed.
- Risk of contractor performance issues impacting critical operations.
- Technological obsolescence over the contract's long duration.
Tags
it, defense, computer-systems-design, full-and-open-competition, firm-fixed-price, large-business, special-operations-command, department-of-defense, north-carolina, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.4 million to GENERAL DYNAMICS ONE SOURCE LLC. IGF::CT::IGF SOMTC SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS ONE SOURCE LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $30.4 million.
What is the period of performance?
Start: 2017-03-15. End: 2022-02-28.
What is the track record of General Dynamics One Source LLC with the Department of Defense?
General Dynamics is a major defense contractor with a long history of serving the Department of Defense across various sectors, including IT, shipbuilding, and combat vehicles. General Dynamics One Source LLC, specifically, has been awarded numerous contracts for IT support, systems integration, and professional services. Their track record generally indicates substantial experience and capability in fulfilling complex government requirements. However, like any large contractor, they have also faced scrutiny and performance reviews on specific contracts. A detailed analysis would require examining past performance evaluations and any documented disputes or corrective actions associated with their previous DoD engagements.
How does the $30.4M award value compare to similar IT support contracts for Special Operations Command?
The $30.4 million award value for computer systems design services over approximately five years is substantial but not unusual for supporting a specialized command like U.S. Special Operations Command (SOCOM). SOCOM requires highly sophisticated and reliable IT infrastructure to support its unique global missions. Benchmarking this against other SOCOM IT contracts, or similar IT support contracts for other high-demand military branches, would place this award in a mid-to-high range, reflecting the critical nature and complexity of the services. The firm-fixed-price structure also suggests that the government has negotiated a defined cost for a specific set of deliverables, aiming for cost predictability.
What are the primary risks associated with this contract for the government?
The primary risks for the government include potential underperformance by the contractor, leading to disruptions in critical IT services for SOCOM. Given the firm-fixed-price nature, if the contractor underestimates costs or faces unforeseen technical challenges, they might cut corners on quality or support, impacting operational effectiveness. Another risk is vendor lock-in, where SOCOM becomes heavily reliant on General Dynamics' specific systems and expertise, making future transitions difficult or costly. Finally, the long duration of the contract (1811 days) could mean that the technology or services procured become outdated before the contract expires, requiring potential modifications or early termination.
How effective is the firm-fixed-price contract type in managing costs for IT services?
The firm-fixed-price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and the risks are understood. For IT services like computer systems design, FFP incentivizes the contractor to manage their own costs efficiently to maximize profit. This shifts the cost-risk burden from the government to the contractor. However, if the requirements are not precisely defined upfront or if unforeseen technical complexities arise, the contractor may struggle to meet the fixed price, potentially leading to disputes, reduced quality, or requests for contract modifications. For stable, well-understood IT support tasks, FFP can be highly effective in achieving cost certainty.
What is the historical spending trend for computer systems design services at the Department of Defense?
The Department of Defense is consistently one of the largest federal spenders on IT services, including computer systems design. Historical spending trends show a significant and often increasing investment in this area as military operations become more technologically dependent. The DoD procures these services through a variety of contract types and vehicles, often through competitive processes, to support everything from enterprise resource planning systems to specialized intelligence and operational platforms. Annual spending across the DoD for IT services, including design, development, and maintenance, typically runs into the tens of billions of dollars, reflecting the critical role technology plays in national defense.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
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: $30,435,803
Exercised Options: $30,435,803
Current Obligation: $30,435,803
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS00Q09BGD0030
IDV Type: GWAC
Timeline
Start Date: 2017-03-15
Current End Date: 2022-02-28
Potential End Date: 2022-02-28 00:00:00
Last Modified: 2023-12-28
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