DoD's $27.9M Software Defined Network Contract Awarded to General Dynamics One Source LLC

Contract Overview

Contract Amount: $27,936,483 ($27.9M)

Contractor: General Dynamics ONE Source LLC

Awarding Agency: Department of Defense

Start Date: 2020-02-10

End Date: 2022-03-31

Contract Duration: 780 days

Daily Burn Rate: $35.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SOFTWARE DEFINED NETWORK

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $27.9 million to GENERAL DYNAMICS ONE SOURCE LLC for work described as: SOFTWARE DEFINED NETWORK 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. The contract duration of 780 days (approx. 2 years) provides a moderate timeframe for service delivery. 4. The award was a Delivery Order, indicating it's part of a larger contract vehicle. 5. The North American Industry Classification System (NAICS) code 541519 points to 'Other Computer Related Services'. 6. The contract was awarded to a single entity, General Dynamics One Source LLC. 7. The base contract value is $35,816, with the delivery order significantly increasing the total obligation. 8. The contract is categorized under 'IT' for sector analysis.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the underlying contract vehicle and the scope of services. However, the significant increase from the base contract value to the delivery order amount warrants scrutiny. Comparing the per-unit cost of the services provided within this $27.9M order against similar Software Defined Network (SDN) solutions procured by the DoD or other federal agencies would be necessary for a comprehensive value assessment. The firm-fixed-price nature provides cost certainty for the government, but the overall value depends on the efficiency and effectiveness of the delivered solution.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. The data does not specify the number of bidders, but this procurement method generally fosters a competitive environment. A competitive process is expected to drive down prices and encourage innovative solutions as contractors vie for the award. The absence of specific bidder numbers prevents a deeper analysis of the intensity of the competition.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it increases the likelihood of obtaining the best value through competitive pricing and a wider range of potential solutions.

Public Impact

The Department of Defense benefits from enhanced network capabilities through Software Defined Networking. This contract supports the modernization of military communication and information infrastructure. The services delivered are likely to impact the operational efficiency and security of defense networks. The geographic impact is primarily within the operational domains of the Department of Defense, potentially worldwide. Workforce implications may include the need for specialized IT personnel to manage and maintain the SDN.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders in the full and open competition limits the assessment of competitive intensity.
The significant jump in value from the base contract to the delivery order requires further investigation into the scope and necessity of the additional services.
Without detailed performance metrics, it's difficult to assess the effectiveness and efficiency of the delivered SDN solution.
The specific nature of 'Other Computer Related Services' is broad and could encompass a wide range of activities, making precise value assessment difficult.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Firm Fixed Price contract type provides cost certainty for the government.
The contract supports critical IT infrastructure modernization for the Department of Defense.
General Dynamics One Source LLC is a known entity in the federal contracting space.

Sector Analysis

The Software Defined Network (SDN) market is a rapidly growing segment within the broader IT services sector, driven by the need for more agile, programmable, and cost-effective network infrastructure. Federal agencies, particularly the Department of Defense, are increasingly adopting SDN to enhance network flexibility, security, and management capabilities. This contract fits within the 'Other Computer Related Services' category, which is a broad classification for IT services not elsewhere specified. Comparable spending benchmarks for SDN solutions within the federal government can vary widely based on scope, complexity, and duration, but large-scale network modernization efforts often involve multi-million dollar investments.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct small business set-aside implications. However, the prime contractor, General Dynamics One Source LLC, may engage small businesses as subcontractors to fulfill portions of the contract requirements. The extent of subcontracting to small businesses would depend on the contractor's internal policies and the specific needs of the SDN solution. Without further information on subcontracting plans, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Defense's contracting officers and program managers within the Defense Information Systems Agency (DISA). Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or identified during the contract's performance or closeout.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
Department of Defense Network Modernization Programs
Software Defined Networking (SDN) Solutions
Federal IT Services Contracts
General Dynamics Federal Contracts

Risk Flags

Potential for scope creep if initial requirements were not fully defined.
Risk of contractor cost-cutting impacting solution quality due to FFP.
Dependence on a single contractor for critical network infrastructure.
Need for robust government oversight to ensure performance standards are met.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.9 million to GENERAL DYNAMICS ONE SOURCE LLC. SOFTWARE DEFINED NETWORK

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 (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $27.9 million.

What is the period of performance?

Start: 2020-02-10. End: 2022-03-31.

What specific Software Defined Network capabilities were delivered under this $27.9M delivery order?

The provided data identifies the contract as being for 'SOFTWARE DEFINED NETWORK' services under NAICS code 541519 ('Other Computer Related Services'). However, it does not detail the specific technical capabilities or solutions provided. This could range from network design and implementation to ongoing management, security enhancements, or integration with existing systems. To understand the delivered capabilities, one would need to review the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Without this, the exact nature of the SDN solution remains unspecified, making it difficult to assess its technical merit or operational impact beyond the general goal of modernizing DoD networks.

How does the $27.9M delivery order value compare to typical SDN procurements of similar scope within the DoD?

Direct comparison of the $27.9M delivery order value to 'typical' SDN procurements is challenging without more granular data on the scope, duration, and specific services included. Federal IT procurements, especially for complex systems like SDN, can vary significantly. However, $27.9M represents a substantial investment for a single delivery order, suggesting a significant scope of work or a long-term service component. To benchmark effectively, one would need to identify comparable contracts awarded by DISA or other DoD components for SDN implementation or sustainment, considering factors like the number of users supported, the geographic reach, and the level of technological sophistication. A preliminary assessment suggests this is a significant, but not necessarily outlier, investment for a large-scale defense network initiative.

What is the track record of General Dynamics One Source LLC in delivering complex IT solutions for the Department of Defense?

General Dynamics One Source LLC is a subsidiary of General Dynamics, a major defense contractor with a long history of providing IT and C4ISR solutions to the U.S. military. While specific performance data for this particular SDN contract is not detailed in the provided summary, General Dynamics as a whole has a substantial portfolio of government contracts. Their track record generally includes large-scale system integration, network infrastructure development, and IT support services. However, like any large contractor, their performance can vary across different contracts and programs. A thorough assessment would require reviewing past performance evaluations (e.g., CPARS reports) for General Dynamics One Source LLC and related entities on similar DoD IT projects to gauge their reliability and effectiveness.

What are the potential risks associated with a Firm Fixed Price contract for Software Defined Networking?

While a Firm Fixed Price (FFP) contract shifts cost risk to the contractor, it can introduce other risks, particularly for complex and evolving technologies like Software Defined Networking (SDN). One primary risk is that the contractor may cut corners on quality or scope to maintain profitability if their initial cost estimates were too low or if unforeseen technical challenges arise. This could lead to a suboptimal solution or performance issues. Another risk is that the government may not receive the full benefit of technological advancements that occur during the contract period if the scope is rigidly defined. Furthermore, if the initial requirements were poorly defined, the FFP nature can make scope adjustments difficult and costly, potentially leading to disputes or a solution that doesn't fully meet evolving needs.

How has federal spending on 'Other Computer Related Services' (NAICS 541519) trended in recent years, and where does this contract fit?

Federal spending on 'Other Computer Related Services' (NAICS 541519) has generally shown a consistent upward trend over the past decade, reflecting the increasing reliance of government agencies on specialized IT support, consulting, and integration services. This category is broad and encompasses a wide array of services beyond standard software development or hardware maintenance. This $27.9M delivery order for Software Defined Networking falls squarely within this category, representing a significant investment in advanced network infrastructure modernization. Its size suggests it is a major project, likely contributing substantially to the overall federal expenditure within this NAICS code for the fiscal year it was awarded and performed.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HC102815R0030

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

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: $27,936,483

Exercised Options: $27,936,483

Current Obligation: $27,936,483

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $559,518

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102818D0010

IDV Type: IDC

Timeline