General Dynamics IT received over $78M for Army PEO EIS program management support

Contract Overview

Contract Amount: $78,394,727 ($78.4M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of the Interior

Start Date: 2011-09-26

End Date: 2016-02-14

Contract Duration: 1,602 days

Daily Burn Rate: $48.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: PROGRAM MANAGEMENT SUPPORT SERVICES TO THE U.S.ARMY PROGRAM EXECUTIVE OFFICE (PEO) ENTERPRISE INFORMATION SYSTEMS (EIS), CHIEF INFORMATION OFFICER (CIO) OFFICE AND INFORMATION TECHNOLOGY SYSTEMS (ITS) PROJECT OFFICE

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $78.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: PROGRAM MANAGEMENT SUPPORT SERVICES TO THE U.S.ARMY PROGRAM EXECUTIVE OFFICE (PEO) ENTERPRISE INFORMATION SYSTEMS (EIS), CHIEF INFORMATION OFFICER (CIO) OFFICE AND INFORMATION TECHNOLOGY SYSTEMS (ITS) PROJECT OFFICE Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1602 days indicates a significant, long-term need for services. 3. Awarded as a delivery order, implying it's part of a larger contract vehicle. 4. The contractor, General Dynamics Information Technology Inc., is a major player in the federal IT space. 5. The services provided are crucial for the Army's Enterprise Information Systems. 6. The contract's value suggests a substantial investment in IT program management.

Value Assessment

Rating: good

The contract value of approximately $78.4 million over 1602 days averages to about $48,936 per day. Without specific benchmarks for similar program management support services for Army PEO EIS, a direct value-for-money assessment is challenging. However, the competitive award process may have helped ensure a reasonable price. Further analysis would require comparing the specific tasks and deliverables to industry standards and other government contracts for comparable services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specific award. While two bidders are better than one, a higher number of bidders typically leads to more robust price discovery and potentially lower costs for the government.

Taxpayer Impact: A competitive award process, even with two bidders, generally benefits taxpayers by encouraging more favorable pricing compared to sole-source or limited competition scenarios.

Public Impact

The U.S. Army's Program Executive Office (PEO) Enterprise Information Systems (EIS) benefits from essential program management support. The Chief Information Officer (CIO) Office and Information Technology Systems (ITS) Project Office receive critical assistance. This contract supports the modernization and effective management of Army IT systems. The services contribute to the operational readiness and technological advancement of the Army. The contract likely supports a workforce of program managers, analysts, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if program management requirements are not tightly defined.
Reliance on a single large contractor could pose risks if performance falters.
The long duration may lead to challenges in adapting to evolving technological needs.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent process.
General Dynamics IT is an established contractor with a significant presence in federal IT.
The contract supports critical Army IT infrastructure, suggesting a well-defined need.
The delivery order structure implies it aligns with a pre-existing, vetted contract vehicle.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on program management support for enterprise information systems. The federal IT services market is substantial, with significant spending allocated to managing complex systems and projects. Contracts like this are essential for agencies to effectively plan, execute, and oversee their technology initiatives, ensuring alignment with strategic goals and efficient use of resources. Benchmarking would involve comparing the daily rate or total value against other large-scale IT program management contracts within the Department of Defense.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration (ss: false, sb: false). This suggests the contract was awarded based on best value to the government without specific small business goals. While this contract itself may not directly benefit small businesses through set-asides, General Dynamics IT, as a large prime contractor, may engage small businesses as subcontractors to fulfill specific needs, contributing indirectly to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management personnel within the Army PEO EIS. Accountability measures are embedded in the contract terms, including performance standards, reporting requirements, and delivery schedules. Transparency is facilitated through contract award databases and public reporting mechanisms. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Army IT Modernization Programs
PEO EIS Contracts
CIO Support Services
Defense Information Systems Agency (DISA) Contracts
Federal IT Program Management Support

Risk Flags

Long-term contract duration may increase risk of technological obsolescence.
Reliance on a single large contractor for critical support.
Potential for cost increases if scope changes significantly.
Performance monitoring is crucial to ensure service delivery quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $78.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. PROGRAM MANAGEMENT SUPPORT SERVICES TO THE U.S.ARMY PROGRAM EXECUTIVE OFFICE (PEO) ENTERPRISE INFORMATION SYSTEMS (EIS), CHIEF INFORMATION OFFICER (CIO) OFFICE AND INFORMATION TECHNOLOGY SYSTEMS (ITS) PROJECT OFFICE

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 the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $78.4 million.

What is the period of performance?

Start: 2011-09-26. End: 2016-02-14.

What is the track record of General Dynamics Information Technology Inc. on similar federal contracts?

General Dynamics Information Technology Inc. (GDIT) has a long and extensive history of performing IT services for the federal government, including significant work with the Department of Defense and various Army commands. Their track record includes managing large-scale enterprise IT programs, cybersecurity solutions, cloud migration, and data center operations. GDIT has been a prime contractor on numerous complex, high-value contracts, often involving program management, systems integration, and sustainment. While specific performance metrics for individual contracts are not always publicly detailed, their continued success in winning and executing large federal contracts suggests a generally positive performance history. However, like any large contractor, they may have faced challenges or criticisms on specific projects, which would require a deeper dive into contract performance reports and agency evaluations.

How does the average daily cost of this contract compare to industry benchmarks for IT program management support?

The average daily cost for this contract is approximately $48,936 ($78,394,726.77 / 1602 days). Benchmarking this against industry standards for IT program management support is complex without knowing the specific skill sets, seniority levels, and scope of services required. However, for large-scale, complex federal IT programs, daily rates for senior program managers, technical leads, and specialized analysts can range significantly. Rates can vary from a few hundred dollars to over a thousand dollars per day per person, depending on expertise and location. If this $48,936 daily cost represents the total contract expenditure averaged across all personnel and overhead, it would need to be broken down further. If it represents an average blended rate, it might be within a reasonable range for a large, comprehensive support contract, but a definitive assessment requires detailed service descriptions and market research data for comparable Army PEO EIS support.

What are the primary risks associated with a contract of this duration and value?

A contract valued at over $78 million with a duration of 1602 days (approximately 4.4 years) carries several inherent risks. Firstly, there's the risk of technological obsolescence; the IT landscape can change rapidly, and the services or systems supported might become outdated before the contract concludes, requiring costly modifications or scope changes. Secondly, contractor performance risk is significant; if General Dynamics Information Technology Inc. fails to meet performance standards, deliver quality services, or maintain adequate staffing, it could disrupt critical Army IT operations. Thirdly, budget and funding risks exist; future appropriations may be uncertain, potentially leading to contract modifications, reductions, or termination. Finally, there's the risk of vendor lock-in, where the government becomes heavily reliant on the incumbent contractor, making transitions difficult and potentially reducing future competition.

How effective is program management support in ensuring the success of large IT projects like those managed by PEO EIS?

Effective program management support is absolutely critical to the success of large IT projects, especially within complex organizations like the U.S. Army's PEO EIS. Program management provides the framework for planning, organizing, directing, and controlling resources to achieve specific project objectives. This includes managing scope, schedule, budget, risks, quality, and stakeholder communications. Without robust program management, large IT initiatives are prone to cost overruns, schedule delays, failure to meet requirements, and ultimately, outright failure. For PEO EIS, which oversees a vast portfolio of enterprise IT systems, dedicated program management support ensures that projects align with strategic goals, integrate effectively, and deliver the intended capabilities to warfighters and personnel. The support likely involves expertise in areas like acquisition, systems engineering, cybersecurity, and financial management, all vital for navigating the complexities of defense IT.

What has been the historical spending trend for program management support services within Army PEO EIS?

Analyzing historical spending trends for program management support services within Army PEO EIS requires access to detailed historical contract data, which is not fully available in the provided snippet. However, it's reasonable to infer that spending in this area has likely been substantial and potentially increasing over time, mirroring the overall growth in federal IT spending and the increasing complexity of defense systems. PEO EIS manages a wide array of critical IT programs, from network infrastructure and enterprise resource planning to cybersecurity and cloud computing. Each of these requires significant program management oversight. Trends would likely show a consistent need for these services, with fluctuations based on specific program lifecycles, modernization efforts, and evolving technological requirements. The total value of contracts awarded by PEO EIS annually would provide a broader context for understanding the scale of investment in program management support.

What specific IT systems or programs does this contract likely support within PEO EIS?

Given that this contract supports the U.S. Army Program Executive Office (PEO) Enterprise Information Systems (EIS), Chief Information Officer (CIO) Office, and Information Technology Systems (ITS) Project Office, it likely provides program management support across a broad spectrum of critical Army IT initiatives. This could include support for systems such as the General Fund Enterprise Business System (GFEBS), Logistics Modernization Program (LMP), Enterprise Resource Planning (ERP) systems, tactical network infrastructure, cybersecurity programs, cloud migration efforts, and various command and control systems. The 'Enterprise Information Systems' designation implies a focus on integrated, agency-wide IT solutions rather than isolated departmental tools. The support would involve helping to plan, acquire, implement, and sustain these complex systems, ensuring they meet the Army's operational and strategic requirements.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

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: D11PS19190

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Csra LLC (UEI: 080011988)

Address: 3170 FAIRVIEW PARK DR, 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: $78,394,727

Exercised Options: $78,394,727

Current Obligation: $78,394,727

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $54,896,168

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06D0018

IDV Type: IDC

Timeline