DoD's $24.1M IT support contract awarded to General Dynamics One Source LLC for 819 days

Contract Overview

Contract Amount: $24,112,303 ($24.1M)

Contractor: General Dynamics ONE Source LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-30

End Date: 2022-12-28

Contract Duration: 819 days

Daily Burn Rate: $29.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: DODIN CONSOLIDATED IMPLEMENTATION SUPPORT

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $24.1 million to GENERAL DYNAMICS ONE SOURCE LLC for work described as: DODIN CONSOLIDATED IMPLEMENTATION SUPPORT Key points: 1. Contract value represents a significant investment in IT infrastructure support. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Performance period of over two years indicates a need for sustained IT support. 4. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful oversight. 5. This contract falls within the broader IT services sector, crucial for defense operations. 6. The award amount is substantial, necessitating a close watch on value for money.

Value Assessment

Rating: fair

The contract's value of $24.1 million over 819 days averages approximately $29,441 per day. Benchmarking this against similar IT support contracts is challenging without more granular data on the specific services provided. However, the Cost Plus Fixed Fee (CPFF) structure can sometimes lead to higher costs if not managed tightly, as it reimburses the contractor for allowable costs plus a fixed fee. Further analysis would require comparing the fixed fee percentage and the actual cost reimbursements against industry standards for comparable IT support services.

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. While the number of bidders is not specified, this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency's decision to use full and open competition suggests confidence in the market's ability to provide qualified vendors for these IT support services.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive pricing and innovative solutions, thereby optimizing the use of public funds.

Public Impact

The Department of Defense benefits from enhanced IT infrastructure and support services. This contract ensures the continuity and effectiveness of critical defense information systems. Personnel within the Defense Information Systems Agency (DISA) are likely direct or indirect beneficiaries of the support. The services delivered are essential for maintaining operational readiness and cybersecurity posture. Geographic impact is likely widespread, supporting DoD operations across various locations. Workforce implications may include support for government IT personnel and potential augmentation of contractor staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts require diligent oversight to ensure costs remain reasonable and the fixed fee is justified.
Lack of specific detail on the services rendered makes it difficult to assess true value for money.
The duration of the contract (819 days) means that potential cost overruns could accumulate significantly over time.

Positive Signals

Awarded through full and open competition, suggesting a robust and potentially cost-effective procurement process.
The contract is for essential IT support services, critical for the functioning of the Department of Defense.
The fixed fee component of the CPFF contract provides some level of cost predictability compared to pure cost-reimbursement contracts.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under 'Other Computer Related Services'. The IT services market for the federal government is vast, with significant spending allocated to maintaining and upgrading complex systems. Contracts like this are essential for agencies like the Department of Defense to ensure the operational integrity and security of their networks and data. Comparable spending benchmarks would typically involve analyzing other large-scale IT support contracts awarded by federal agencies, particularly within the defense sector, to gauge pricing and scope.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, General Dynamics One Source LLC, may engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this contract would primarily reside with the Defense Information Systems Agency (DISA) and the Department of Defense. As a Cost Plus Fixed Fee (CPFF) contract, rigorous monitoring of allowable costs and the contractor's performance against the fixed fee is crucial. Accountability measures would include performance reviews, contract deliverables, and potentially audits. Transparency is facilitated by contract award data, but detailed cost breakdowns and performance metrics would require further access to contract-specific documentation. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

DODIN Enterprise Services
IT Infrastructure Support Services
Defense Information Technology Contracting Office (DITCO) Contracts
General Dynamics IT Contracts
Computer Systems Design Services

Risk Flags

Cost Overrun Risk
Performance Monitoring Challenges
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.1 million to GENERAL DYNAMICS ONE SOURCE LLC. DODIN CONSOLIDATED IMPLEMENTATION SUPPORT

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 $24.1 million.

What is the period of performance?

Start: 2020-09-30. End: 2022-12-28.

What is the track record of General Dynamics One Source LLC with the Department of Defense for similar IT support contracts?

General Dynamics One Source LLC, a subsidiary of General Dynamics, has a substantial history of contracting with the Department of Defense across various IT and support services. Analyzing their past performance on similar contracts, particularly those involving large-scale IT infrastructure implementation and support, would provide insight into their reliability, cost management, and ability to meet performance requirements. Reviewing past contract awards, performance evaluations (if publicly available), and any documented disputes or corrective actions would be essential. This historical data helps assess the risk associated with awarding new contracts and provides a basis for comparing pricing and service delivery.

How does the awarded amount of $24.1 million compare to similar IT support contracts within the DoD over the past five years?

Comparing the $24.1 million award to similar IT support contracts within the DoD requires identifying contracts with comparable scope, duration, and service complexity. Factors such as the specific IT systems supported, the level of technical expertise required, and the geographic distribution of services significantly influence contract value. For instance, contracts focused on network modernization, cybersecurity implementation, or enterprise-wide system integration might command higher values than routine maintenance and help desk support. Benchmarking against contracts awarded by agencies like DISA or other military branches for similar services would provide a more accurate assessment of whether this award represents a competitive and reasonable price point for the services rendered.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT support services?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT support services revolve around cost control and contractor incentive. While the fixed fee provides some predictability, the government bears the risk of reimbursing all allowable costs incurred by the contractor. If the contractor's cost management is inefficient, or if unforeseen technical challenges arise, the total cost to the government can escalate beyond initial projections. Furthermore, the CPFF structure may offer less incentive for the contractor to aggressively control costs compared to fixed-price contracts, as their profit (the fixed fee) is predetermined. Effective oversight, clear definition of allowable costs, and robust performance metrics are critical to mitigating these risks.

What is the expected impact of this contract on the operational effectiveness of the Defense Information Systems Agency (DISA)?

This contract is expected to significantly enhance the operational effectiveness of the Defense Information Systems Agency (DISA) by providing crucial implementation support for its IT systems. Effective IT support ensures the reliability, availability, and security of the communication and information infrastructure that DISA manages. This includes maintaining networks, systems, and applications that are vital for military command and control, intelligence sharing, and administrative functions. Improved IT support can lead to reduced downtime, faster resolution of technical issues, and the successful deployment of new technologies, ultimately bolstering DISA's ability to fulfill its mission-critical role within the Department of Defense.

How has federal spending on 'Other Computer Related Services' (NAICS 541519) evolved over the last three fiscal years?

Federal spending on 'Other Computer Related Services' (NAICS 541519) has generally shown a consistent or increasing trend over the last three fiscal years, reflecting the government's ongoing reliance on specialized IT expertise. This category encompasses a broad range of services, including IT consulting, system integration, data processing, and IT support not elsewhere classified. Agencies across the government, particularly in defense and intelligence, frequently procure services under this NAICS code to address complex technological needs. Analyzing aggregated federal procurement data would reveal the total dollar value awarded under 541519, identifying key agencies driving this spending and the types of services most in demand.

What is the significance of the contract being awarded as a 'Delivery Order' (aw: DELIVERY ORDER)?

The designation 'Delivery Order' (aw: DELIVERY ORDER) indicates that this contract is likely a task order issued under a larger, pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar type of multiple-award contract vehicle. This approach allows agencies to procure specific goods or services as needed, up to a certain ceiling amount, without needing to conduct a full, separate procurement for each individual requirement. For the government, it offers flexibility and potentially faster acquisition timelines. For the contractor, it represents an award of a specific portion of work under a broader agreement. The 'DODIN CONSOLIDATED IMPLEMENTATION SUPPORT' likely represents one such defined task within a larger framework.

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: COST PLUS FIXED FEE (U)

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: $24,112,303

Exercised Options: $24,112,303

Current Obligation: $24,112,303

Subaward Activity

Number of Subawards: 25

Total Subaward Amount: $3,539,016

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