DoD's $32.9M IT Service Desk Contract Awarded to General Dynamics for 5 Years

Contract Overview

Contract Amount: $32,894,025 ($32.9M)

Contractor: General Dynamics ONE Source LLC

Awarding Agency: Department of Defense

Start Date: 2020-06-01

End Date: 2025-05-31

Contract Duration: 1,825 days

Daily Burn Rate: $18.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: WHCA SERVICE DESK SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20502

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $32.9 million to GENERAL DYNAMICS ONE SOURCE LLC for work described as: WHCA SERVICE DESK SUPPORT SERVICES Key points: 1. Contract provides essential IT support services, ensuring operational continuity for critical defense functions. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type helps manage cost certainty for the government. 4. Performance period spans five years, indicating a long-term need for these services. 5. The contractor, General Dynamics, is a large, established entity in the federal contracting space. 6. Service desk support is a foundational IT function, crucial for end-user productivity and system reliability.

Value Assessment

Rating: good

The contract value of approximately $32.9 million over five years averages to about $6.58 million annually. Benchmarking this against similar IT service desk contracts is challenging without more specific service level agreements and scope details. However, for a large-scale, long-term support requirement within the Department of Defense, this value appears within a reasonable range, especially considering the fixed-price nature which shifts some cost risk to the contractor. The number of bids received (3) suggests some level of competition, but a more robust competition might yield better pricing.

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 bids. Three bids were received, which suggests a moderate level of competition for this requirement. While three bidders are better than a sole-source award, a higher number of bids could potentially drive prices down further and offer a wider range of technical solutions. The agency's decision to use full and open competition is generally positive for ensuring fair market access and potentially better value.

Taxpayer Impact: A competitive award process like this helps ensure that taxpayer dollars are used efficiently by fostering price discovery and encouraging contractors to offer their best pricing and solutions.

Public Impact

End-users within the Department of Defense benefit from reliable IT support, enabling them to perform their duties effectively. Essential IT services, including help desk support, troubleshooting, and potentially system maintenance, are delivered. The primary geographic impact is within the District of Columbia, where the services are likely concentrated. The contract supports the operational readiness and technological infrastructure of a significant federal agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in given the five-year duration and specialized nature of IT support.
Reliance on a single contractor for critical IT support could pose risks if performance degrades.
The fixed-price nature might incentivize cost-cutting that could impact service quality if not closely monitored.

Positive Signals

Awarded through full and open competition, indicating a structured procurement process.
General Dynamics is an experienced federal contractor with a significant presence in IT services.
The fixed-price contract provides budget predictability for the agency.
The five-year term allows for stable service delivery and relationship building.

Sector Analysis

The IT services sector within the federal government is vast, encompassing a wide range of support, development, and infrastructure needs. This contract falls under 'Other Computer Related Services' (NAICS 541519), which is a broad category. Spending in this area is consistently high across various agencies, reflecting the critical role of IT in modern government operations. Comparable contracts often involve help desk operations, network support, and end-user device management. The market is competitive, with large system integrators and specialized IT service providers vying for these opportunities.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data indicates the prime contractor is not a small business. There is no explicit information regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business IT ecosystem is unclear, though large prime contracts can sometimes create opportunities for small business subcontractors if actively pursued.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Defense Information Systems Agency (DISA). Performance standards and service level agreements (SLAs) outlined in the contract would be key metrics for monitoring. The fixed-price nature requires careful monitoring of performance to ensure quality is maintained. While specific IG involvement isn't detailed, the Inspector General's office generally has jurisdiction over DoD contracts for fraud, waste, and abuse.

Related Government Programs

DoD IT Support Services
Defense Information Systems Agency Contracts
General Dynamics Federal Contracts
IT Help Desk Services
Computer Related Services Contracts

Risk Flags

Long-term contract duration may limit flexibility.
Potential for performance degradation over the contract term.
Reliance on a single vendor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.9 million to GENERAL DYNAMICS ONE SOURCE LLC. WHCA SERVICE DESK 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 (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $32.9 million.

What is the period of performance?

Start: 2020-06-01. End: 2025-05-31.

What is the historical spending pattern for IT service desk support by the Defense Information Systems Agency?

Analyzing historical spending for IT service desk support by DISA requires access to detailed procurement data over multiple fiscal years. Generally, agencies like DISA have consistent, significant spending on IT support due to the critical nature of their operations. This spending often fluctuates based on modernization efforts, changes in technology, and evolving security requirements. Contracts for service desk support are typically long-term, often awarded through competitive processes, and can represent a substantial portion of an agency's IT budget. Without specific DISA data for this category, it's difficult to provide precise historical figures, but it's reasonable to assume a sustained investment in maintaining robust IT support infrastructure.

How does the awarded price compare to market rates for similar IT service desk support contracts?

Comparing the awarded price of approximately $32.9 million over five years (averaging $6.58 million annually) to market rates requires detailed benchmarking against contracts with similar scope, service levels, geographic coverage, and security requirements. General Dynamics is a large, established contractor, and their pricing reflects their overhead, expertise, and profit margins. The federal IT services market is competitive, but large, complex contracts within defense agencies often command premium pricing due to stringent requirements. Without specific comparable contract data (e.g., number of users supported, response times, specific technologies managed), a precise market rate comparison is difficult. However, the fixed-price nature suggests the government sought cost certainty, and the three bids indicate some market validation.

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

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, typical SLAs for IT service desk support include metrics such as average response time to user requests, average resolution time for incidents, first-call resolution rates, user satisfaction scores, and system availability. These KPIs are crucial for ensuring the contractor meets the required service standards. The contract likely outlines penalties for failing to meet these SLAs and potentially incentives for exceeding them. Oversight by the contracting officer and COR would focus on monitoring performance against these defined metrics.

What is General Dynamics' track record with similar IT support contracts within the federal government?

General Dynamics Information Technology (GDIT), a subsidiary of General Dynamics, has an extensive track record of providing IT support services to various federal agencies, including the Department of Defense. They are a major player in the federal IT contracting space, often winning large, complex contracts for services such as help desk support, network management, cybersecurity, and enterprise IT solutions. Their history includes numerous prime contracts across different branches of the military and civilian agencies. While specific performance details for every contract are not publicly available, their continued success in winning significant contracts suggests a generally positive track record and capability in delivering these types of services.

What are the potential risks associated with relying on a single contractor for five years for critical IT support?

Relying on a single contractor for five years for critical IT support presents several potential risks. Firstly, there's the risk of vendor lock-in, where the agency becomes heavily dependent on the contractor's specific systems, processes, and personnel, making it difficult and costly to switch providers. Secondly, performance degradation is a risk; if the contractor's quality of service declines over time, the agency may have limited recourse beyond contract termination, which is disruptive. Thirdly, complacency can set in, potentially leading to less innovation or efficiency. Finally, unforeseen events affecting the contractor (e.g., financial instability, major personnel changes) could impact service continuity. Robust contract management, clear SLAs, and regular performance reviews are essential to mitigate these risks.

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: 3

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: $34,290,389

Exercised Options: $32,894,025

Current Obligation: $32,894,025

Actual Outlays: $15,620,672

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $74,363

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