DoD's $120.8M NSIPS Contract Awarded to General Dynamics Raises Questions on Competition
Contract Overview
Contract Amount: $120,765,095 ($120.8M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-04-20
End Date: 2026-02-14
Contract Duration: 1,031 days
Daily Burn Rate: $117.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: NSIPS SUSTAINMENT AND INTEGRATION FOLLOW ON
Place of Performance
Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70122
Plain-Language Summary
Department of Defense obligated $120.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: NSIPS SUSTAINMENT AND INTEGRATION FOLLOW ON Key points: 1. The contract, valued at $120.8 million, is for NSIPS sustainment and integration. 2. General Dynamics Information Technology, Inc. is the sole awardee, raising concerns about competition. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The sector is IT, specifically custom computer programming services.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee structure, coupled with a lack of competition, makes it difficult to assess value. Benchmarking against similar custom programming services is challenging without competitive pricing data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to drive down prices.
Taxpayer Impact: The lack of competition for a contract of this size may result in taxpayers paying more than necessary for these services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long duration of the contract (over 3 years) means potential overspending could persist. Lack of transparency in pricing due to sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of transparency in pricing
Positive Signals
- Essential IT services for the Navy
- Contract awarded to an established IT provider
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming services. Spending in this area is substantial across government, but competitive bidding is crucial for cost efficiency.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the contractor is delivering services efficiently and at a reasonable cost, despite the lack of competition.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for overpricing due to sole-source award.
- Risk of cost overruns with Cost Plus Fixed Fee structure.
- Lack of competitive pressure may reduce efficiency.
- Limited opportunity for small business participation.
- Potential for vendor lock-in.
Tags
custom-computer-programming-services, department-of-defense, la, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $120.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. NSIPS SUSTAINMENT AND INTEGRATION FOLLOW ON
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 $120.8 million.
What is the period of performance?
Start: 2023-04-20. End: 2026-02-14.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award is critical for understanding why competition was bypassed. Agencies typically cite specific circumstances, such as the urgency of the need, the unique capabilities of a single contractor, or the lack of adequate competition. Without this justification, it's difficult to assess if the government acted appropriately in foregoing a competitive process.
How will the government ensure cost control and value for money with a Cost Plus Fixed Fee contract awarded without competition?
Ensuring cost control and value with a CPFF contract awarded sole-source requires robust government oversight. This includes detailed monitoring of costs, rigorous review of contractor performance, and clear performance metrics. The government must actively manage the contract to prevent scope creep and ensure the fixed fee remains appropriate for the work performed, mitigating the risks associated with limited price discovery.
What are the long-term implications of relying on a single vendor for critical IT sustainment and integration?
Long-term reliance on a single vendor can lead to vendor lock-in, reduced innovation, and increased vulnerability if the vendor's performance declines or their business strategy changes. It also limits the government's ability to leverage new technologies or more cost-effective solutions that might be offered by competitors. This can ultimately impact the effectiveness and efficiency of the IT systems being supported.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
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: $144,593,343
Exercised Options: $127,774,471
Current Obligation: $120,765,095
Actual Outlays: $171,987
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $45,016,193
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-04-20
Current End Date: 2026-02-14
Potential End Date: 2026-05-14 00:00:00
Last Modified: 2025-12-17
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