DoD's $16.7M contract with General Dynamics for technical training shows fair value but limited small business participation
Contract Overview
Contract Amount: $16,761,096 ($16.8M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-10-01
End Date: 2012-09-30
Contract Duration: 1,460 days
Daily Burn Rate: $11.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MSNAP - BASE PERIOD
Place of Performance
Location: COLTS NECK, MONMOUTH County, NEW JERSEY, 07722
Plain-Language Summary
Department of Defense obligated $16.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: MSNAP - BASE PERIOD Key points: 1. The contract value of $16.7M over four years suggests a moderate annual spend for technical training services. 2. General Dynamics Information Technology, Inc. is a large incumbent, potentially limiting opportunities for smaller, specialized firms. 3. The firm fixed-price contract type mitigates cost overrun risk for the government. 4. The 'Other Technical and Trade Schools' NAICS code indicates a focus on vocational and specialized training.
Value Assessment
Rating: fair
The contract's total value of $16.7M over four years averages to approximately $4.15M annually. Without specific benchmarks for this niche training, it appears reasonable for a large-scale government training program.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the incumbent's size may have influenced the competitive landscape.
Taxpayer Impact: Taxpayer funds are utilized for essential technical training, ensuring a skilled workforce for the Department of Defense. The competitive award aims for cost-effectiveness.
Public Impact
Ensures critical technical skills for Navy personnel, enhancing operational readiness. Supports a large, established contractor, potentially impacting the growth of smaller, specialized training providers. The fixed-price nature protects taxpayers from unexpected cost increases during the contract period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited small business participation
- Potential for incumbent advantage in future competitions
Positive Signals
- Full and open competition utilized
- Firm fixed-price contract mitigates cost risk
Sector Analysis
The Department of Defense is a significant spender in the IT and professional services sectors. This contract falls within the technical training and education sub-sector, often involving specialized knowledge and certifications.
Small Business Impact
The contract explicitly states no small business participation (ss: false, sb: false). This indicates a missed opportunity to leverage small businesses for specialized training needs and limits their access to this significant federal spend.
Oversight & Accountability
The award under full and open competition suggests a standard procurement process. Oversight would focus on performance delivery and adherence to the firm fixed-price terms.
Related Government Programs
- Other Technical and Trade Schools
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of small business participation
- Potential incumbent advantage
- Need for clear performance metrics
- Limited transparency on specific training content
Tags
other-technical-and-trade-schools, department-of-defense, nj, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. MSNAP - BASE PERIOD
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 Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $16.8 million.
What is the period of performance?
Start: 2008-10-01. End: 2012-09-30.
What specific technical skills are being trained, and are there readily available commercial alternatives that could be more cost-effective?
The NAICS code 611519 suggests vocational and trade schools. Understanding the precise skills (e.g., specific IT systems, engineering disciplines) is crucial. Benchmarking against commercial training providers for similar skill sets would reveal if the government is receiving competitive pricing or if alternative, potentially cheaper, training solutions exist.
Given the full and open competition, why did no small businesses participate, and does this indicate a barrier to entry?
The lack of small business participation despite full and open competition warrants investigation. Potential barriers could include stringent pre-qualification requirements, the large contract size making it difficult for smaller firms to bid, or the specific technical expertise required being dominated by large incumbents like General Dynamics. This could limit innovation and competition in the long run.
How is the effectiveness of the training measured, and what is the impact on DoD's operational readiness?
The effectiveness of the training is paramount to justify the $16.7M expenditure. Key performance indicators (KPIs) should be established to measure skill acquisition, retention, and application in real-world scenarios. Tracking metrics like improved system performance, reduced error rates, or faster troubleshooting times directly linked to the training would demonstrate its value and impact on the DoD's mission readiness.
Industry Classification
NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0003308R8020
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Computer Sciences Corporation (UEI: 009581091)
Address: 1201 M ST SE STE 400, WASHINGTON, DC, 98
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,964,253
Exercised Options: $16,845,806
Current Obligation: $16,761,096
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2008-10-01
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2013-08-07
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