DoD's $32M Global Freight Management contract awarded to General Dynamics for IT services
Contract Overview
Contract Amount: $32,022,927 ($32.0M)
Contractor: General Dynamics ONE Source LLC
Awarding Agency: Department of Defense
Start Date: 2015-02-24
End Date: 2020-05-31
Contract Duration: 1,923 days
Daily Burn Rate: $16.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF GLOBAL FREIGHT MANAGEMENT SUSTAINMENT AND ENHANCEMENTS
Place of Performance
Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $32.0 million to GENERAL DYNAMICS ONE SOURCE LLC for work described as: IGF::OT::IGF GLOBAL FREIGHT MANAGEMENT SUSTAINMENT AND ENHANCEMENTS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1923 days indicates a long-term need for these services. 3. Fixed-price contract type may offer cost certainty for the government. 4. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services. 5. Awarded by USTRANSCOM, highlighting its importance in military logistics and transportation. 6. The contract was awarded as a delivery order, suggesting it's part of a larger indefinite delivery contract.
Value Assessment
Rating: fair
Benchmarking the value of this $32 million contract over approximately five years requires more granular data on the specific services provided and their market rates. Without detailed performance metrics or comparisons to similar freight management IT systems, it's difficult to definitively assess value for money. However, the fixed-price nature of the contract provides some predictability in costs. The number of bids received (5) suggests a moderate level of competition, which can influence 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. Five bids were received, suggesting a reasonable, though not extensive, level of competition for this requirement. The competitive process aims to ensure that the government receives the best possible price and quality for the services rendered.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and encouraging contractors to offer competitive terms.
Public Impact
The Department of Defense (DoD) benefits through enhanced global freight management capabilities. Services delivered likely include IT support, system design, and potentially sustainment for logistics platforms. The geographic impact is global, given the nature of freight management for a military organization. Workforce implications may include IT specialists and logistics personnel within General Dynamics and potentially subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics makes it hard to assess if the full potential value was realized.
- The fixed-price contract type could lead to cost overruns if scope creep occurs without proper change order management.
- Dependence on a single contractor for critical freight management IT systems could pose a risk if performance degrades.
Positive Signals
- Awarded through full and open competition, indicating a fair and transparent procurement process.
- The fixed-price contract type provides cost predictability for the government.
- The contract duration suggests a stable, long-term requirement being met.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer systems design and related services. The market for defense logistics IT is substantial, driven by the need for efficient and secure movement of personnel and materiel globally. Comparable spending benchmarks would involve analyzing other large-scale IT contracts for logistics and supply chain management within the federal government and large defense contractors.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions for this contract. General Dynamics is a large prime contractor, and while they may utilize small businesses for subcontracting, the primary award was not set aside. Further analysis would be needed to determine the extent of small business participation through subcontracting.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the Department of Defense's contracting and program management offices, as well as the relevant Inspector General. Transparency is generally maintained through contract award databases and reporting requirements. Accountability measures are tied to the contract's performance work statement and the fixed-price terms.
Related Government Programs
- Defense Logistics Agency (DLA) IT Support Contracts
- Military Sealift Command (MSC) IT Services
- Global Transportation Network (GTN) Systems
- DoD Enterprise Resource Planning (ERP) Systems
Risk Flags
- Potential for scope creep in IT enhancement projects.
- Dependence on a single vendor for critical logistics IT infrastructure.
- Cybersecurity risks associated with managing global freight data.
Tags
it-services, computer-systems-design, department-of-defense, ustranscom, full-and-open-competition, delivery-order, firm-fixed-price, logistics-it, freight-management, general-dynamics, illinois, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.0 million to GENERAL DYNAMICS ONE SOURCE LLC. IGF::OT::IGF GLOBAL FREIGHT MANAGEMENT SUSTAINMENT AND ENHANCEMENTS
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 (USTRANSCOM).
What is the total obligated amount?
The obligated amount is $32.0 million.
What is the period of performance?
Start: 2015-02-24. End: 2020-05-31.
What specific IT systems or platforms does this contract cover for global freight management?
The provided data indicates the contract is for 'Computer Systems Design Services' (NAICS 541512) related to 'Global Freight Management Sustainment and Enhancements.' While specific system names are not detailed, this suggests the contract likely covers the design, development, sustainment, and enhancement of IT systems used by USTRANSCOM to manage and track the movement of military cargo and personnel worldwide. This could include software applications, databases, network infrastructure, and integration services necessary for efficient logistics operations, such as planning, execution, and visibility of freight movements across various transportation modes.
How does the $32 million contract value compare to similar IT services contracts for logistics management within the DoD?
Comparing the $32 million value requires context on the scope and duration. This contract spans approximately five years (1923 days). Large-scale IT modernization and sustainment contracts within the DoD can range from tens of millions to billions of dollars. For a specific function like global freight management IT, $32 million over five years suggests a significant but not exceptionally large investment. It's crucial to benchmark against contracts with similar service levels, system complexity, and user bases. Without more detailed service descriptions, a precise comparison is challenging, but it appears to be a substantial commitment for specialized IT support in a critical operational area.
What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?
The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for IT services contracts, especially those involving critical functions like freight management, SLAs would focus on system availability, response times for issue resolution, data accuracy, uptime percentages, and potentially metrics related to the efficiency of freight movement facilitated by the IT systems. The absence of this information in the summary data limits a thorough assessment of performance expectations and contractor accountability.
What is General Dynamics' track record with similar large-scale IT contracts for defense logistics?
General Dynamics Information Technology (GDIT), a subsidiary of General Dynamics, has a substantial track record in providing IT services to the Department of Defense and other federal agencies, including extensive work in logistics and command and control systems. They have historically managed large, complex IT infrastructure, software development, and sustainment programs for various military branches and agencies like USTRANSCOM. Their experience often includes managing global networks, data centers, and mission-critical applications. While specific details of past performance on freight management IT are not in this summary, GDIT's general profile suggests they possess the requisite capabilities and experience for such a contract.
What is the historical spending trend for global freight management IT services within USTRANSCOM or the DoD?
Historical spending on global freight management IT services within USTRANSCOM and the broader DoD is likely substantial and has evolved over time with technological advancements. Early spending might have focused on basic tracking and communication systems. More recent trends involve integrated supply chain visibility platforms, data analytics for optimization, cybersecurity enhancements, and cloud migration. The $32 million awarded here represents a portion of this ongoing investment. Analyzing past contract awards for similar services, including sustainment and enhancement, would reveal trends in spending levels, technology adoption, and contractor landscape over the years.
Were there any specific risks identified during the procurement process for this contract, and how were they mitigated?
The provided summary data does not detail specific risks identified during the procurement process or their mitigation strategies. However, common risks for large IT contracts include technical challenges, schedule delays, cost overruns, cybersecurity vulnerabilities, and contractor performance issues. Given the 'full and open competition' award type, the procurement process likely involved a thorough evaluation of technical proposals, past performance, and price. Mitigation strategies would typically be embedded in the contract's terms and conditions, including performance standards, reporting requirements, and potential penalties or incentives.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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
Offers Received: 5
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: $32,097,707
Exercised Options: $32,022,927
Current Obligation: $32,022,927
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: GS00Q09BGD0030
IDV Type: GWAC
Timeline
Start Date: 2015-02-24
Current End Date: 2020-05-31
Potential End Date: 2020-05-31 00:00:00
Last Modified: 2023-07-20
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