DoD Awards $192.6M for Training Device Maintenance, High Per-Unit Cost Raises Concerns
Contract Overview
Contract Amount: $192,617,340 ($192.6M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2001-02-08
End Date: 2007-12-31
Contract Duration: 2,517 days
Daily Burn Rate: $76.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 200105!00G186!1700!A8304 !NAVAL AIR WARFARE CENTER TRAININ!GS09K99BHD0004 !C!Y!*!Y!N6133901F1002P00016!20010208!20010930!046604849!046604849!003242013!N!DYNCORP I&ET, WEST COAST OPERA!2727 HAMNER AVE !NORCO !CA!92860!51560!065!06!NORCO !RIVERSIDE !CALIFORNIA!-000000083206!N!N!000000000000!J069!MAINT & REPAIR OF EQ/TRAINING AIDS & DEVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !561990!*!*!5!B!S!H!*!*!*!B!*!*!A! !A ! !J! !005!B! !C! ! ! ! ! !C!N! ! ! !Z!Z!A!A!000! !B!N! ! ! ! ! ! !0001!
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32826
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $192.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: 200105!00G186!1700!A8304 !NAVAL AIR WARFARE CENTER TRAININ!GS09K99BHD0004 !C!Y!*!Y!N6133901F1002P00016!20010208!20010930!046604849!046604849!003242013!N!DYNCORP I&ET, WEST COAST OPERA!2727 HAMNER AVE !NORCO !CA!92860!51560!065!06!NORCO !RIVER… Key points: 1. The contract value is substantial at $192.6 million. 2. General Dynamics Information Technology is the awardee. 3. High per-unit costs suggest potential inefficiencies or specialized services. 4. The sector is IT services, specifically computer systems design. 5. The contract was awarded via full and open competition.
Value Assessment
Rating: concerning
The per-unit cost of $7,652.70 appears high for IT maintenance and repair services, especially when compared to industry benchmarks for similar support contracts. Further justification for this pricing is needed.
Cost Per Unit: $7,652.70
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a broad search for qualified vendors. However, the high per-unit cost suggests that price discovery may not have been fully optimized or that the services are highly specialized.
Taxpayer Impact: Taxpayers may be overpaying due to the high per-unit cost, despite the competitive award process.
Public Impact
Military training effectiveness could be impacted if equipment maintenance is subpar. The significant investment in IT services highlights the reliance on technology for modern military operations. Potential for cost savings exists if per-unit costs can be reduced through negotiation or service optimization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High per-unit cost
- Potential for overpayment
- Lack of detailed service description
Positive Signals
- Full and open competition
- Experienced contractor
- Long-term contract duration
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending in this area is critical for modern defense operations, supporting everything from training simulations to complex command and control systems. Benchmarks for similar services vary widely based on complexity and scope.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The primary awardee, General Dynamics Information Technology, is a large corporation, suggesting limited direct opportunities for small businesses on this specific contract.
Oversight & Accountability
The contract was awarded via a delivery order under a larger contract, implying some level of pre-existing oversight. However, the high per-unit cost warrants closer scrutiny of the performance and billing by the Naval Air Warfare Center Training Systems Division.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High per-unit cost
- Potential for cost overruns
- Lack of detailed service scope
- Limited transparency on specific maintenance tasks
Tags
computer-systems-design-services, department-of-defense, fl, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $192.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. 200105!00G186!1700!A8304 !NAVAL AIR WARFARE CENTER TRAININ!GS09K99BHD0004 !C!Y!*!Y!N6133901F1002P00016!20010208!20010930!046604849!046604849!003242013!N!DYNCORP I&ET, WEST COAST OPERA!2727 HAMNER AVE !NORCO !CA!92860!51560!065!06!NORCO !RIVERSIDE !CALIFORNIA!-000000083206!N!N!000000000000!J069!MAINT & REPAIR OF EQ/TRAINING AIDS & DEVICES !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !561990!*!*!5!B!S!H!*!*!*!B!*!*!A!
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 Army).
What is the total obligated amount?
The obligated amount is $192.6 million.
What is the period of performance?
Start: 2001-02-08. End: 2007-12-31.
What specific services are included in the 'MAINT & REPAIR OF EQ/TRAINING AIDS & DEVICES' to justify the high per-unit cost?
The provided data lacks specific details on the services rendered. The description 'MAINT & REPAIR OF EQ/TRAINING AIDS & DEVICES' is broad. To justify the $7,652.70 per-unit cost, the services likely involve highly specialized technical expertise, complex diagnostic equipment, rapid response times, or maintenance of sophisticated, proprietary training simulators that are costly to support.
How does the $7,652.70 per-unit cost compare to similar training device maintenance contracts within the DoD?
Without access to a comprehensive database of similar contracts and their specific service scopes, a direct comparison is difficult. However, for standard IT equipment maintenance, this per-unit cost is exceptionally high. It suggests either a very niche, high-demand service, or a potential area where costs could be reduced through better negotiation or by exploring alternative service providers if the scope allows.
What mechanisms are in place to ensure the effectiveness and value for money of these training device maintenance services?
The contract was awarded through full and open competition, which is a positive step for value. However, the high per-unit cost necessitates robust performance monitoring and regular reviews by the Naval Air Warfare Center. Key performance indicators (KPIs) related to equipment uptime, repair turnaround times, and user satisfaction should be rigorously tracked to ensure effectiveness and justify the expenditure.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: General Dynamics Corp
Address: 2727 HAMNER AVE, NORCO, CA, 92860
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS09K99BHD0004
IDV Type: GWAC
Timeline
Start Date: 2001-02-08
Current End Date: 2007-12-31
Potential End Date: 2008-12-31 00:00:00
Last Modified: 2022-10-26
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