Department of the Interior's $156M IT Infrastructure Support Services contract awarded to General Dynamics IT shows fair value

Contract Overview

Contract Amount: $156,104,765 ($156.1M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of the Interior

Start Date: 2013-11-01

End Date: 2019-10-31

Contract Duration: 2,190 days

Daily Burn Rate: $71.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IGF::CL::IGF INFORMATION TECHNOLOGY INFRASTRUCTURE SUPPORT SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $156.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::CL::IGF INFORMATION TECHNOLOGY INFRASTRUCTURE SUPPORT SERVICES Key points: 1. The contract's value appears reasonable when benchmarked against similar IT support services. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract duration of nearly six years presents potential risks related to technology obsolescence. 4. Performance is contextually situated within the Department of the Interior's broader IT modernization efforts. 5. This contract falls within the IT services sector, specifically computer systems design. 6. The absence of small business set-asides warrants further examination of subcontracting opportunities.

Value Assessment

Rating: fair

The total award amount of $156.1 million over approximately six years suggests a moderate annual spend. Benchmarking against similar IT infrastructure support contracts indicates that the pricing is within an expected range, though specific labor rates would be needed for a precise comparison. The contract type, labor hours, implies that cost control and efficient service delivery are key to achieving value for money.

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 offers. The presence of 4 bids suggests a reasonably competitive landscape, which typically drives better pricing and service offerings for the government. The competitive nature of this procurement is a positive indicator for price discovery.

Taxpayer Impact: Taxpayers likely benefited from a more competitive bidding process, which should have resulted in more favorable pricing compared to a sole-source or limited competition award.

Public Impact

The Department of the Interior benefits from enhanced IT infrastructure support, crucial for its operations. Federal employees across various bureaus within the Department will have access to reliable IT services. The contract supports IT infrastructure, indirectly impacting the delivery of public services managed by the Department. The primary workforce implication is for the contractor's employees providing these IT services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (nearly 6 years) increases risk of technology obsolescence and potential for cost overruns if not managed proactively.
Labor hour contract type requires diligent oversight to ensure efficient resource utilization and prevent scope creep.
Lack of specific small business set-aside may limit opportunities for smaller, specialized IT firms.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
General Dynamics Information Technology is a large, established contractor with significant experience in IT services.
The contract supports critical IT infrastructure, essential for the agency's mission.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and related services. The IT services market is highly competitive and dynamic, with significant government spending allocated to maintaining and modernizing federal IT infrastructure. Comparable spending benchmarks for large-scale IT support contracts often range in the tens to hundreds of millions of dollars annually, depending on the scope and duration.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no explicit small business subcontracting goals were met or required. This suggests that the primary award went to a large business, and opportunities for small businesses would likely be through subcontracting, the extent of which is not detailed here. Further analysis would be needed to determine if adequate subcontracting opportunities were provided to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Interior's contracting officers and program managers. Accountability measures are typically embedded in the contract's performance work statement and delivery schedules. Transparency is facilitated through contract award databases, though detailed performance metrics and specific oversight activities are not publicly disclosed in this summary.

Related Government Programs

IT Infrastructure Modernization Programs
Cloud Computing Services Contracts
Cybersecurity Support Services
Enterprise Resource Planning (ERP) Systems Support

Risk Flags

Long contract duration
Labor hour contract type requires diligent oversight
Potential for technology obsolescence
Lack of explicit small business set-aside

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $156.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::CL::IGF INFORMATION TECHNOLOGY INFRASTRUCTURE SUPPORT SERVICES

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 $156.1 million.

What is the period of performance?

Start: 2013-11-01. End: 2019-10-31.

What is the track record of General Dynamics Information Technology (GDIT) in delivering similar IT infrastructure support services to federal agencies?

General Dynamics Information Technology, now part of General Dynamics, has a long history of providing IT services to the federal government. They have held numerous large-scale contracts for IT infrastructure management, system integration, cybersecurity, and modernization across various agencies, including defense, civilian, and intelligence communities. Their experience typically involves managing complex networks, data centers, and end-user support. While specific performance metrics for this particular contract are not detailed, GDIT's general track record suggests a capacity to handle substantial IT support requirements. However, like any large contractor, they have faced scrutiny on specific projects regarding cost, schedule, and performance, necessitating robust government oversight.

How does the awarded amount compare to the initial estimated cost or ceiling for this contract?

The provided data indicates a total award amount of $156,104,764.81. However, it does not specify the contract's ceiling value or the initial estimated cost. Without this information, it is difficult to definitively assess how closely the awarded amount aligns with the government's initial projections or if the full ceiling was utilized. Typically, contracts have a ceiling that cannot be exceeded, and the awarded amount represents the value obligated or the total value if it's a fixed-price contract. If this is a cost-reimbursement or labor-hour contract, the awarded amount might represent the total obligated funds, with the potential for more funds to be added up to the ceiling.

What are the key performance indicators (KPIs) used to measure the success of this IT infrastructure support contract?

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided summary. However, for IT infrastructure support services, common KPIs typically include system uptime and availability (e.g., network, servers), response times for incident resolution, mean time to repair (MTTR), successful completion of scheduled maintenance, adherence to security protocols, and user satisfaction ratings. The contract's Performance Work Statement (PWS) would outline these specific metrics, along with acceptable performance levels and any associated award fees or penalties.

What is the historical spending trend for IT infrastructure support services within the Department of the Interior?

Historical spending data for IT infrastructure support services within the Department of the Interior (DOI) is not provided in this summary. To analyze trends, one would need to examine DOI's IT spending over several fiscal years, identifying contracts similar in scope to computer systems design and related services (NAICS 541512). This would involve looking at total IT budgets, specific allocations for infrastructure, and the number and value of contracts awarded in this category. Such an analysis could reveal whether spending on IT infrastructure has been increasing, decreasing, or remaining stable, and how this particular contract fits into the broader spending pattern.

Are there any identified risks associated with the contractor's performance or the nature of the services provided?

Potential risks associated with this contract include the long duration (nearly 6 years), which can lead to technology obsolescence and make it challenging to keep pace with evolving IT standards and security threats. The labor-hour contract type also carries a risk of cost overruns if not managed diligently, requiring strong oversight to ensure efficient use of resources and prevent scope creep. Furthermore, reliance on a single large contractor for critical infrastructure support can pose risks if the contractor experiences financial difficulties or significant performance issues. The lack of explicit small business participation might also be viewed as a missed opportunity for innovation and broader economic impact.

What is the potential impact of this contract on the broader IT services market, particularly concerning competition and innovation?

This contract, awarded under full and open competition to a large incumbent like General Dynamics Information Technology, signifies a substantial portion of the federal IT infrastructure support market. While full and open competition is generally positive for price discovery, the dominance of large contractors in such large-value contracts can sometimes create barriers to entry for smaller, innovative firms. The market impact hinges on whether the prime contractor effectively utilizes small business subcontractors, fostering innovation through the supply chain. If the contract primarily relies on the large contractor's established solutions, it might have a limited effect on driving disruptive innovation within the federal IT landscape compared to contracts specifically designed to foster new technologies or approaches.

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

Solicitation ID: D12PS00300

Offers Received: 4

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

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: $185,084,274

Exercised Options: $181,257,225

Current Obligation: $156,104,765

Actual Outlays: $104,382

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F088AA

IDV Type: FSS

Timeline