HHS Awards $253.8M for LSDR Operations & Maintenance to General Dynamics IT
Contract Overview
Contract Amount: $253,766,656 ($253.8M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2014-09-01
End Date: 2023-12-31
Contract Duration: 3,408 days
Daily Burn Rate: $74.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: VDC TASK ORDER FOR "LARGE SCALE DATA REPOSITORY (LSDR) OPERATIONS&MAINTENANCE" IGF::OT::IGF
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $253.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: VDC TASK ORDER FOR "LARGE SCALE DATA REPOSITORY (LSDR) OPERATIONS&MAINTENANCE" IGF::OT::IGF Key points: 1. Significant contract value for IT infrastructure and data services. 2. General Dynamics IT is a major player in the federal IT contracting space. 3. Long contract duration (2014-2023) suggests a critical, ongoing need. 4. The sector is vital for government data management and operations.
Value Assessment
Rating: good
The contract value of $253.8 million over 9 years represents a substantial investment. Benchmarking against similar large-scale IT operations and maintenance contracts is necessary for a precise value assessment, but the scale suggests a competitive pricing strategy was likely employed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value through a rigorous selection process.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential IT services.
Public Impact
Ensures continuity of critical data repository operations for CMS. Supports healthcare data management and analysis for Medicare and Medicaid. Impacts millions of beneficiaries through reliable health system infrastructure. General Dynamics IT's role highlights the reliance on large contractors for federal IT.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term contract duration could lead to cost creep if not managed.
- Reliance on a single vendor for critical infrastructure poses a risk.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type provides cost certainty.
- Long duration indicates sustained need and potential for efficiency.
Sector Analysis
This contract falls within the Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services sector. Spending in this area is consistently high as federal agencies digitize operations and manage vast amounts of data.
Small Business Impact
The data indicates this contract was awarded to General Dynamics Information Technology, Inc., a large business. There is no explicit information on small business participation or subcontracting within this specific award notice.
Oversight & Accountability
The contract's long duration and significant value warrant ongoing oversight from CMS to ensure performance, cost control, and adherence to contract terms. Regular performance reviews and audits are crucial for accountability.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Vendor Lock-in
- Potential for Cost Overruns
- Reliance on Single Provider
- Data Security Risks
Tags
computing-infrastructure-providers-data-, department-of-health-and-human-services, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $253.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. VDC TASK ORDER FOR "LARGE SCALE DATA REPOSITORY (LSDR) OPERATIONS&MAINTENANCE" IGF::OT::IGF
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 Health and Human Services (Centers for Medicare and Medicaid Services).
What is the total obligated amount?
The obligated amount is $253.8 million.
What is the period of performance?
Start: 2014-09-01. End: 2023-12-31.
What specific performance metrics were used to evaluate General Dynamics IT's success throughout the contract period?
Performance metrics likely included system uptime, data integrity, response times for data access and processing, security compliance, and adherence to service level agreements (SLAs). The contract's firm fixed price nature suggests performance was tied to meeting these defined operational standards to avoid penalties or ensure full payment.
How does the cost per unit for data storage and processing compare to industry benchmarks for similar government contracts?
Without specific unit cost breakdowns (e.g., cost per terabyte stored, cost per transaction processed), a direct comparison is difficult. However, given the full and open competition and the firm fixed price structure, the pricing is presumed to be competitive. Further analysis would require access to detailed cost data and contemporary market rates.
What is the potential risk associated with the long contract duration and the concentration of critical data operations with one vendor?
The primary risk is vendor lock-in and potential complacency, leading to reduced innovation or price increases over time. A long duration also means the agency is tied to the vendor's technology stack. Mitigating this requires robust contract management, regular performance reviews, and contingency planning for potential transitions.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and 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: RFPCMS20120007
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 3150 FAIRVIEW PARK DR STE 100, 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: $254,308,778
Exercised Options: $253,766,656
Current Obligation: $253,766,656
Actual Outlays: $65,549,717
Subaward Activity
Number of Subawards: 43
Total Subaward Amount: $88,345,158
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSM500201300011I
IDV Type: IDC
Timeline
Start Date: 2014-09-01
Current End Date: 2023-12-31
Potential End Date: 2023-12-31 00:00:00
Last Modified: 2024-04-04
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