General Dynamics awarded $38M for Air Defense Communication Service O&M and Engineering Support

Contract Overview

Contract Amount: $38,009,065 ($38.0M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-04-01

End Date: 2026-03-31

Contract Duration: 1,460 days

Daily Burn Rate: $26.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AIR DEFENSE COMMUNICATION SERVICE (ADCS4) CALL ORDER 0001 FOR THE OPERATION & MAINTENANCE (O&M) AND ENGINEERING SUPPORT.

Place of Performance

Location: PANAMA CITY, BAY County, FLORIDA, 32403

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $38.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: AIR DEFENSE COMMUNICATION SERVICE (ADCS4) CALL ORDER 0001 FOR THE OPERATION & MAINTENANCE (O&M) AND ENGINEERING SUPPORT. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a BPA Call, indicating it's part of a larger indefinite-delivery/indefinite-quantity agreement. 3. The firm-fixed-price contract type shifts cost risk to the contractor. 4. The contract duration is approximately four years, ending in March 2026. 5. The primary service category is 'Other Computer Related Services', suggesting IT support. 6. The contract is not set aside for small businesses, nor does it appear to have specific subcontracting goals mentioned.

Value Assessment

Rating: good

The contract value of $38 million over approximately four years averages to about $9.5 million annually. Benchmarking this against similar IT support contracts for defense agencies requires detailed analysis of scope and service levels. However, the firm-fixed-price structure is generally favorable for the government, as it caps potential costs. The specific nature of 'Air Defense Communication Service' O&M and engineering support is specialized, making direct cost comparisons challenging without further detail on the services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' solicitation, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The use of a BPA Call suggests this order was placed against an existing Basic Ordering Agreement, which itself was likely competed.

Taxpayer Impact: A full and open competition process is the most advantageous for taxpayers as it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions, ultimately leading to better value for public funds.

Public Impact

The Department of Defense, specifically the Defense Information Systems Agency (DISA), is the primary beneficiary, receiving critical communication support services. The contract ensures the operation and maintenance of Air Defense Communication Services, vital for national security. Engineering support is also included, suggesting potential for system upgrades, troubleshooting, and technical enhancements. The contract is geographically focused on Florida (FL), indicating a specific operational area for these services. The services provided likely support military personnel and operations within the specified geographic region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count for the full and open competition limits assessment of competitive intensity.
Details on performance metrics and service level agreements are not publicly available, hindering performance evaluation.
The specialized nature of 'Air Defense Communication Service' makes it difficult to benchmark costs and value without more granular data.
The contract is a BPA Call, which can sometimes obscure the original competition details and pricing structure of the parent BPA.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Firm-fixed-price contract type provides cost certainty for the government.
Long-term duration (approx. 4 years) allows for stable service provision and potential for contractor investment in efficiency.
Services are critical for national defense operations.

Sector Analysis

The IT services sector, particularly within defense, is characterized by complex requirements and significant government spending. Contracts for communication systems operation and maintenance are crucial for maintaining readiness and operational capabilities. General Dynamics Information Technology, Inc. is a major player in this space, often competing for large-scale government IT contracts. Spending benchmarks for similar O&M and engineering support for specialized defense communication systems can vary widely based on system complexity, security requirements, and geographic scope.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no explicit indication of small business subcontracting requirements in the provided data. This suggests that the primary award went to a large business, and opportunities for small businesses would likely be through subcontracting if General Dynamics chooses to engage them. Without specific subcontracting plans or goals, the direct impact on the small business ecosystem for this particular contract is unclear.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Information Systems Agency (DISA) contracting and program management offices. As a Department of Defense contract, it is also subject to oversight by the Department of Defense Inspector General (DoIG) for potential fraud, waste, and abuse. Transparency is facilitated through contract award databases like FPDS, though detailed performance metrics and internal oversight mechanisms are not always publicly disclosed.

Related Government Programs

Defense Information Systems Agency (DISA) IT Support Contracts
Air Force Communication Systems Maintenance
Army Network Operations and Maintenance
Department of Defense IT Services

Risk Flags

Potential for technological obsolescence in specialized defense communication systems.
Cybersecurity vulnerabilities inherent in critical communication infrastructure.
Contractor performance risk if service levels are not met.
Geographic concentration risk (Florida) for service delivery.
Dependence on a single contractor for critical O&M and engineering support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. AIR DEFENSE COMMUNICATION SERVICE (ADCS4) CALL ORDER 0001 FOR THE OPERATION & MAINTENANCE (O&M) AND ENGINEERING SUPPORT.

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $38.0 million.

What is the period of performance?

Start: 2022-04-01. End: 2026-03-31.

What is the specific nature of the 'Air Defense Communication Service' and its criticality to DISA operations?

The 'Air Defense Communication Service (ADCS4)' likely refers to a specialized network or system designed to support the communication needs of air defense units within the Department of Defense. This could encompass secure voice, data, and command and control (C2) systems essential for coordinating air defense assets, tracking threats, and relaying critical information between command centers and operational units. Its criticality lies in ensuring seamless and secure communication flow, which is paramount for effective air defense operations, threat response, and overall national security. Failures or disruptions in such a system could have severe consequences for situational awareness and response capabilities.

How does the $38 million contract value compare to historical spending on similar ADCS services?

Comparing the $38 million contract value to historical spending on similar ADCS services requires access to detailed historical contract data for this specific service or closely related ones. Without that granular data, a direct comparison is difficult. However, the value represents an average annual spend of approximately $9.5 million over four years. This figure should be evaluated against the scope of services (O&M and engineering support), the number of systems supported, the geographic coverage (Florida), and the specific technological requirements of the air defense communication infrastructure. If similar contracts in the past were significantly higher or lower for comparable services, it could indicate changes in market rates, technology, or the scope of work.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for Operation & Maintenance (O&M) and engineering support contracts, KPIs would focus on aspects like system uptime, response times for technical support, resolution times for issues, network availability, and the successful implementation of engineering changes or upgrades. SLAs would define the expected standards for these metrics. These details are usually outlined in the contract's Statement of Work (SOW) and are crucial for the government to monitor contractor performance and ensure the services meet the required operational standards for air defense communications.

What is General Dynamics Information Technology's track record with similar defense communication system contracts?

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record of performing IT services, including complex communication system support, for various branches of the U.S. military and defense agencies. They have historically been awarded large contracts for network operations, system maintenance, and engineering support. While specific details on their performance for ADCS4 are not in this dataset, GDIT's general profile suggests they possess the technical expertise and resources to manage such contracts. A deeper dive into their past performance evaluations (e.g., CPARS reports) for similar defense communication contracts would provide a more precise assessment of their reliability and effectiveness.

Are there any identified risks associated with the technology or operational environment of the Air Defense Communication Service?

Potential risks associated with the Air Defense Communication Service could include technological obsolescence, as air defense systems often rely on specialized and sometimes aging infrastructure. Cybersecurity threats are a significant risk, given the sensitive nature of defense communications; any compromise could impact national security. Furthermore, the reliance on a single contractor for critical O&M and engineering support, even under full and open competition, introduces operational risk if the contractor faces financial instability, workforce issues, or fails to meet performance standards. The geographic concentration in Florida could also pose risks related to regional disruptions (e.g., natural disasters).

What is the potential impact of this contract on the broader defense IT services market and competition?

This contract, valued at $38 million, contributes to the significant overall spending within the defense IT services market. Its award through full and open competition suggests a healthy competitive landscape for this specific service category, potentially encouraging other large IT providers to vie for similar contracts. However, the fact that it's a BPA Call indicates it might be part of a larger, pre-competed framework, which could limit the number of opportunities outside that specific BPA. The focus on specialized air defense communication services means it primarily impacts companies with deep expertise in secure, mission-critical defense networks rather than the broader IT services market.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3150 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042

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

Financial Breakdown

Contract Ceiling: $48,191,871

Exercised Options: $38,009,065

Current Obligation: $38,009,065

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $6,115,494

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC101321A0006

IDV Type: BPA

Timeline