DHS Coast Guard awards $32.8M contract to General Dynamics for IT services
Contract Overview
Contract Amount: $32,764,623 ($32.8M)
Contractor: General Dynamics Decision Systems
Awarding Agency: Department of Homeland Security
Start Date: 2007-04-23
End Date: 2013-12-31
Contract Duration: 2,444 days
Daily Burn Rate: $13.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: SCLIN 0007AB: SECTION NEW ENGLAND SEE ATTACHED PAGES.
Place of Performance
Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85257
State: Arizona Government Spending
Plain-Language Summary
Department of Homeland Security obligated $32.8 million to GENERAL DYNAMICS DECISION SYSTEMS for work described as: SCLIN 0007AB: SECTION NEW ENGLAND SEE ATTACHED PAGES. Key points: 1. Contract awarded to a large, established defense contractor. 2. Significant contract value suggests a critical need for IT services. 3. Potential for cost overruns given the Cost Plus Incentive Fee structure. 4. IT sector spending is a major component of federal budgets.
Value Assessment
Rating: fair
The contract value of $32.8M over approximately 6.7 years is substantial. Benchmarking against similar IT service contracts is difficult without more detailed scope information, but the Cost Plus Incentive Fee structure introduces risk.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the Cost Plus Incentive Fee (CPIF) pricing structure can lead to higher costs if not managed carefully.
Taxpayer Impact: Taxpayer funds are utilized for IT services. The CPIF structure necessitates robust oversight to ensure cost efficiency and prevent unnecessary spending.
Public Impact
Ensures continued IT support for the U.S. Coast Guard's operations. Supports a major defense contractor, potentially impacting the defense industrial base. Funds are allocated for essential technology infrastructure and services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee structure can lead to cost overruns.
- Contract duration is long, increasing exposure to changing technology.
- No specific small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Contract supports critical Coast Guard mission.
- General Dynamics is an experienced contractor.
Sector Analysis
This contract falls within the Information Technology sector, a significant area of federal spending. Benchmarks for IT services vary widely based on scope, but large-scale support contracts often run into tens of millions.
Small Business Impact
The provided data does not indicate any specific set-aside for small businesses. This suggests the primary awardee is likely a large business, and opportunities for small businesses may be limited to subcontracting roles.
Oversight & Accountability
The Cost Plus Incentive Fee structure requires diligent oversight from the Department of Homeland Security to ensure cost controls and performance targets are met. Regular audits and performance reviews are crucial.
Related Government Programs
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Cost Plus Incentive Fee (CPIF) pricing model.
- Long contract duration.
- Lack of specific performance metrics in provided data.
- No indication of small business participation.
Tags
department-of-homeland-security, az, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $32.8 million to GENERAL DYNAMICS DECISION SYSTEMS. SCLIN 0007AB: SECTION NEW ENGLAND SEE ATTACHED PAGES.
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS DECISION SYSTEMS.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Coast Guard).
What is the total obligated amount?
The obligated amount is $32.8 million.
What is the period of performance?
Start: 2007-04-23. End: 2013-12-31.
What specific IT services are being procured, and how do they align with current Coast Guard modernization efforts?
The provided data lacks specifics on the IT services. Understanding the exact nature of the services (e.g., software development, network infrastructure, cybersecurity) is crucial to assess their alignment with the Coast Guard's strategic goals and modernization plans. This detail would allow for a more accurate evaluation of value and necessity.
How effectively is the Cost Plus Incentive Fee structure being managed to control costs and incentivize performance?
The CPIF structure necessitates robust government oversight to ensure contractor performance and cost control. Key metrics and incentive targets must be clearly defined and monitored. Without insight into the specific incentive clauses and performance data, it's difficult to definitively assess the effectiveness of cost management and contractor motivation.
What is the long-term impact of this contract on the Coast Guard's IT capabilities and future technology adoption?
This contract's long duration (over 6 years) suggests a significant commitment to the awarded services and potentially the contractor's technology stack. Assessing its impact requires understanding if it fosters innovation or potentially locks the Coast Guard into legacy systems, hindering future technological advancements and agility.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 8201 E MCDOWELL RD, SCOTTSDALE, AZ, 85257
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $32,764,623
Exercised Options: $32,764,623
Current Obligation: $32,764,623
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DTCG2302DNDRS02
IDV Type: IDC
Timeline
Start Date: 2007-04-23
Current End Date: 2013-12-31
Potential End Date: 2013-12-31 00:00:00
Last Modified: 2025-05-12
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