DoD's $178.9M IT contract with General Dynamics faces scrutiny over cost and competition
Contract Overview
Contract Amount: $178,869,737 ($178.9M)
Contractor: General Dynamics ONE Source LLC
Awarding Agency: Department of Defense
Start Date: 2018-12-20
End Date: 2024-07-31
Contract Duration: 2,050 days
Daily Burn Rate: $87.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IT UNCLASSIFIED IGF::OT::IGF
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $178.9 million to GENERAL DYNAMICS ONE SOURCE LLC for work described as: IT UNCLASSIFIED IGF::OT::IGF Key points: 1. Significant contract value of $178.9M for IT services. 2. Competition method is 'FULL AND OPEN COMPETITION', but specific pricing details are limited. 3. Potential risks include cost overruns and effectiveness of services. 4. The sector is Information Technology, specifically Computer Systems Design Services.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure, while common, can lead to higher costs if not managed tightly. Benchmarking against similar DoD IT contracts is difficult without detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a broad search for vendors. However, the impact on price discovery is unclear without knowing the number of bids and the final negotiated prices.
Taxpayer Impact: Taxpayer funds are being utilized for IT services. The effectiveness and efficiency of spending will determine the ultimate value for taxpayers.
Public Impact
Citizens expect efficient use of taxpayer money for essential government services. Transparency in IT contract awards is crucial for public trust. The Department of Defense's reliance on IT services impacts national security operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure
- Limited public cost data
- Long contract duration
Positive Signals
- Full and open competition
- Established contractor
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services, a critical area for government operations. Benchmarks for similar contracts vary widely based on complexity and scope.
Small Business Impact
The data indicates this contract was not awarded to small businesses, suggesting a focus on larger, established IT service providers. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
Oversight is crucial for Cost Plus Fixed Fee contracts to ensure costs remain reasonable and services are delivered effectively. The Department of Defense's internal oversight mechanisms will be key.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Limited transparency on specific cost components
- Long contract duration may not reflect current technological needs
- Effectiveness of services needs continuous monitoring
Tags
computer-systems-design-services, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $178.9 million to GENERAL DYNAMICS ONE SOURCE LLC. IT UNCLASSIFIED IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS ONE SOURCE LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $178.9 million.
What is the period of performance?
Start: 2018-12-20. End: 2024-07-31.
What is the typical cost range for similar computer systems design services contracts within the Department of Defense?
The cost range for similar DoD computer systems design services contracts can vary significantly, often from tens of millions to hundreds of millions of dollars, depending on the scope, duration, and specific technologies involved. Factors like security clearances, specialized expertise, and integration requirements also influence pricing. Without specific details on this contract's deliverables, a precise benchmark is challenging.
How does the Cost Plus Fixed Fee structure potentially increase risk for taxpayers in this contract?
The Cost Plus Fixed Fee (CPFF) structure carries inherent risk for taxpayers because the government reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee. If the contractor's costs escalate beyond initial estimates, the government pays more. While the fixed fee provides some predictability, it doesn't cap the total contract cost, potentially leading to overspending if cost controls are weak or scope creep occurs.
What measures are in place to ensure the effectiveness and value of the computer systems design services provided?
Effectiveness and value are typically ensured through detailed performance work statements (PWS), key performance indicators (KPIs), and regular performance reviews. The contracting officer's representative (COR) plays a vital role in monitoring progress and deliverables. For CPFF contracts, rigorous oversight of incurred costs and justification for any deviations from the baseline plan are essential to ensure value for taxpayer money.
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: N6833516R0256
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 3211 JERMANTOWN ROAD, FAIRFAX, VA, 22030
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $224,768,662
Exercised Options: $212,769,699
Current Obligation: $178,869,737
Actual Outlays: $8,716,333
Subaward Activity
Number of Subawards: 127
Total Subaward Amount: $21,431,888
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q09BGD0030
IDV Type: GWAC
Timeline
Start Date: 2018-12-20
Current End Date: 2024-07-31
Potential End Date: 2024-07-31 00:00:00
Last Modified: 2025-07-22
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