General Dynamics IT awarded $18.3M for managed web, content, and hosting services to the Executive Office of the President

Contract Overview

Contract Amount: $18,303,465 ($18.3M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Executive Office of the President

Start Date: 2008-11-20

End Date: 2011-11-19

Contract Duration: 1,094 days

Daily Burn Rate: $16.7K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: MANAGED WEBSERVICE, CONTENT MANAGEMENT AND HOSTING SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20503

State: District of Columbia Government Spending

Plain-Language Summary

Executive Office of the President obligated $18.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: MANAGED WEBSERVICE, CONTENT MANAGEMENT AND HOSTING SUPPORT SERVICES Key points: 1. The contract value represents a significant investment in essential digital infrastructure for a key executive branch agency. 2. Competition dynamics for this contract are not fully detailed, but the award type suggests a competitive process. 3. Performance risk appears moderate, given the nature of IT services and the contractor's established presence. 4. The contract duration of nearly three years provides a stable period for service delivery. 5. This spending falls within the broader category of IT services, a critical area for government operations. 6. The contract's focus on managed services indicates a reliance on external expertise for critical IT functions.

Value Assessment

Rating: good

The total award of $18.3 million over approximately three years for managed web, content, and hosting services appears reasonable for the scope of work. Benchmarking against similar contracts for executive branch agencies requires detailed service level agreements and specific technical requirements. However, the cost-plus award fee structure incentivizes performance, suggesting an effort to ensure value for money. Without specific performance metrics and comparison data, a definitive value assessment is challenging, but the contract type aims to align contractor performance with government objectives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' indicating that it was competed among multiple vendors. The presence of '3' in the 'no' field likely refers to the number of bids received or offers considered, suggesting a reasonable level of competition. A competitive process generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source awards.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers as it likely resulted in a more cost-effective solution and encouraged vendors to offer competitive pricing to secure the contract.

Public Impact

The Executive Office of the President benefits from enhanced and reliable web, content management, and hosting capabilities. Essential digital services supporting presidential communications, policy dissemination, and internal operations are delivered. The geographic impact is primarily within Washington D.C., where the Executive Office of the President is located. The contract supports IT professionals and potentially content managers, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in managed services if not clearly defined.
Dependence on a single contractor for critical IT infrastructure.
Ensuring continued alignment with evolving technological needs over the contract term.

Positive Signals

Awarded through a competitive process, indicating potential for good value.
Cost Plus Award Fee structure incentivizes contractor performance.
Contractor (General Dynamics Information Technology) has a significant presence in the federal IT market.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on managed hosting, content management, and web services. The IT services market for the federal government is substantial, with significant spending allocated to custom computer programming, cloud services, and IT management. General Dynamics Information Technology is a major player in this space, competing with numerous other large and small businesses. This contract represents a portion of the broader government spending on maintaining and modernizing its digital infrastructure.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses ('ss': false, 'sb': false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, as a large prime contractor, General Dynamics Information Technology may engage small businesses as subcontractors for specialized services, though this is not explicitly detailed in the award information.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting agency, the Executive Office of the President, through designated contracting officers and program managers. The Cost Plus Award Fee (CPA) structure implies performance monitoring and evaluation to determine award fees. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would depend on the specific IG's mandate related to the agency and the nature of any potential fraud, waste, or abuse.

Related Government Programs

Executive Office of the President IT Support Contracts
Federal Managed IT Services
Government Web Hosting and Content Management
Custom Computer Programming Services

Risk Flags

Contract awarded as Cost Plus Award Fee (CPA)
Managed Services Contract
Executive Branch Agency Support

Frequently Asked Questions

What is this federal contract paying for?

Executive Office of the President awarded $18.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. MANAGED WEBSERVICE, CONTENT MANAGEMENT AND HOSTING 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: Executive Office of the President (Executive Office of the President).

What is the total obligated amount?

The obligated amount is $18.3 million.

What is the period of performance?

Start: 2008-11-20. End: 2011-11-19.

What is the track record of General Dynamics Information Technology with the Executive Office of the President for similar services?

General Dynamics Information Technology (GDIT) has a substantial history of providing IT services to various U.S. federal agencies, including those within the Executive Office of the President (EOP). While specific details on prior contracts with the EOP for identical 'managed web, content management, and hosting support services' would require deeper database analysis, GDIT's broad experience in IT modernization, cloud solutions, and managed services positions them as a capable provider. Their track record often includes large-scale IT infrastructure support, cybersecurity, and application development for government clients. Past performance evaluations, typically documented in contract files and agency performance assessment reports, would offer more granular insights into their success rates, adherence to schedules, and quality of service delivery for the EOP or similar high-profile clients.

How does the $18.3 million contract value compare to similar managed IT services contracts for executive branch agencies?

The $18.3 million contract value for managed web, content management, and hosting support services over approximately three years for the Executive Office of the President is within a typical range for such services to high-level government entities. Larger agencies or those with more complex digital footprints might award contracts in the tens or hundreds of millions for comprehensive IT outsourcing. However, comparing directly is challenging without knowing the exact scope, service level agreements (SLAs), number of users supported, and specific technologies involved. Contracts for similar services to agencies like the Department of Defense or Homeland Security can vary widely. The Cost Plus Award Fee (CPA) structure also means the final cost could fluctuate based on performance, making a fixed-price comparison less direct. Generally, this award suggests a significant but not exceptionally large investment for the critical functions it supports.

What are the primary risks associated with this managed services contract for the EOP?

The primary risks associated with this managed services contract include vendor lock-in, where the EOP becomes heavily reliant on General Dynamics Information Technology, making future transitions difficult or costly. There's also a risk of service degradation or security breaches if GDIT's performance falters or their security protocols are insufficient, which could impact critical government operations and sensitive data. Another risk is the potential for cost overruns, especially with a Cost Plus Award Fee (CPA) contract, if not managed tightly through performance metrics and oversight. Furthermore, ensuring that the services remain aligned with evolving technological advancements and the EOP's strategic goals throughout the contract's duration presents an ongoing challenge. Finally, the concentration of critical IT functions with one provider increases the impact of any single point of failure.

How effective is the Cost Plus Award Fee (CPA) contract structure in ensuring value for money in this context?

The Cost Plus Award Fee (CPA) contract structure is designed to provide flexibility in cost while incentivizing high performance, making it potentially effective for complex IT services like managed web, content, and hosting. The 'cost-plus' element allows for reimbursement of allowable costs incurred by the contractor, which is useful when the exact scope or effort is difficult to define precisely upfront. The 'award fee' component allows the government to grant additional fees based on performance against pre-defined criteria. This structure encourages the contractor, General Dynamics Information Technology, to exceed minimum performance standards to earn higher fees. For the EOP, this means the contract can adapt to changing needs while pushing GDIT to deliver superior service, thereby aiming for better value than a simple cost-plus contract. However, effective implementation requires robust performance metrics and diligent oversight from the government.

What are the historical spending patterns for managed IT services within the Executive Office of the President?

Historical spending patterns for managed IT services within the Executive Office of the President (EOP) generally reflect a consistent need for robust, secure, and reliable IT infrastructure to support the core functions of the presidency. While specific figures for 'managed web, content management, and hosting support services' prior to this $18.3 million award would require detailed historical data analysis, it's understood that the EOP invests significantly in IT. This includes spending on network infrastructure, cybersecurity, application development and maintenance, and end-user support. The trend across the federal government, including the EOP, has been towards increased reliance on managed services and cloud solutions to enhance efficiency, scalability, and security. Spending often fluctuates based on administration priorities, technological upgrades, and specific project requirements, but a baseline investment in essential IT operations is a constant.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 3211 JERMANTOWN RD, FAIRFAX, VA, 22030

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $71,844,834

Exercised Options: $18,507,288

Current Obligation: $18,303,465

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS07T00BGD0027

IDV Type: GWAC

Timeline