General Dynamics IT awarded $89.9M for IT Infrastructure Security Support Services to the Department of State

Contract Overview

Contract Amount: $89,874,107 ($89.9M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of State

Start Date: 2007-12-19

End Date: 2012-08-16

Contract Duration: 1,702 days

Daily Burn Rate: $52.8K/day

Pricing Type: NOT REPORTED

Sector: IT

Official Description: TO-1 - DS/SI/CS - IT INFRASTRUCTURE SECURITY SUPPORT SERVICES

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $89.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: TO-1 - DS/SI/CS - IT INFRASTRUCTURE SECURITY SUPPORT SERVICES Key points: 1. Contract value of $89.9M over approximately 4.7 years indicates significant investment in IT security. 2. The contract was awarded under a Blanket Purchase Agreement (BPA), suggesting a pre-negotiated framework for services. 3. The 'Other Computer Related Services' NAICS code points to a broad scope of IT support. 4. The contract duration of 1702 days (approx. 4.7 years) suggests a long-term need for these services. 5. The award to a single large contractor, General Dynamics Information Technology, Inc., warrants scrutiny of competition and pricing. 6. The absence of specific small business set-aside information requires further investigation into subcontracting opportunities.

Value Assessment

Rating: fair

The total award of $89.9M over nearly five years averages to approximately $19.1M annually. Benchmarking this against similar IT security support contracts is challenging without more specific service details. However, the duration and scale suggest a substantial investment. The pricing structure within the BPA would need detailed analysis to assess value for money, especially considering the lack of competitive bidding at the task order level.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was awarded under a Blanket Purchase Agreement (BPA), which typically involves pre-negotiated terms and conditions. The specific competition details for the underlying BPA and any subsequent task orders are not provided. If the BPA itself was competed, it could offer some level of price discovery. However, if task orders were issued on a sole-source basis under the BPA, it would limit competition and potentially impact price competitiveness.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Limited or sole-source awards under a BPA can lead to higher costs if not carefully managed and benchmarked against market rates.

Public Impact

The Department of State benefits from enhanced IT infrastructure security, protecting sensitive government data and operations. Services delivered likely include network security, system monitoring, vulnerability assessments, and incident response. The geographic impact is primarily within the Department of State's operational footprint, potentially global. Workforce implications may involve IT security specialists, analysts, and support personnel employed by General Dynamics Information Technology, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the competition for the BPA and task orders.
Potential for cost overruns if pricing is not rigorously managed within the BPA framework.
Reliance on a single large contractor may limit flexibility and innovation.

Positive Signals

Long-term contract indicates a stable and ongoing need for critical IT security services.
Award to a large, established contractor like General Dynamics suggests a focus on reliability and expertise.
The BPA structure can streamline procurement for recurring services.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on cybersecurity and infrastructure support. The IT services market is highly competitive, with significant government spending allocated to maintaining secure and functional digital infrastructure. The Department of State's spending on such services is crucial for national security and diplomatic operations. Comparable spending benchmarks would depend on the specific services rendered, but government IT security spending is consistently in the billions annually.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this contract is not readily available. Given the award to a large prime contractor, it is important to ascertain if subcontracting opportunities were made available to small businesses to ensure broad participation in the federal IT services ecosystem.

Oversight & Accountability

Oversight mechanisms would typically involve contract officers, program managers within the Department of State, and potentially the Inspector General's office. Transparency is assessed through the availability of contract data. Accountability measures are inherent in contract performance requirements and reporting. The Inspector General for the Department of State would have jurisdiction over investigations related to fraud, waste, or abuse.

Related Government Programs

Department of State IT Modernization Efforts
Federal Cybersecurity Initiatives
IT Infrastructure Support Services
General Services Administration (GSA) Schedules (if applicable to BPA)

Risk Flags

Limited Competition Potential
Lack of Detailed Service Scope
BPA Task Order Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $89.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. TO-1 - DS/SI/CS - IT INFRASTRUCTURE SECURITY 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: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $89.9 million.

What is the period of performance?

Start: 2007-12-19. End: 2012-08-16.

What specific IT infrastructure security support services were included under this contract?

The contract, identified as TO-1 - DS/SI/CS - IT INFRASTRUCTURE SECURITY SUPPORT SERVICES, was awarded under NAICS code 541519 (Other Computer Related Services). While the specific details of the services are not fully elaborated in the provided data, this classification suggests a broad range of IT support functions related to security. This could encompass network security monitoring, vulnerability assessments, intrusion detection and prevention, security policy development and implementation, incident response, and potentially hardware/software security maintenance. The 'DS/SI/CS' acronym might further denote specific divisions or functions within the Department of State related to Defense Security, Security Intelligence, or Cyber Security, indicating a focus on protecting sensitive government information and systems critical to diplomatic and national security operations.

How does the $89.9M award compare to historical spending on similar IT security services by the Department of State?

To accurately compare the $89.9M award to historical spending, one would need to analyze the Department of State's procurement data for IT security support services over previous fiscal years. This would involve identifying contracts with similar scope, duration, and service categories (e.g., NAICS 541519, cybersecurity services). The provided data indicates this contract ran from December 2007 to August 2012, a period of approximately 4.7 years. Understanding the annual expenditure within this period and comparing it to average annual spending in the years preceding and following this contract would reveal trends. Without access to that historical data, it's difficult to definitively state if $89.9M represents an increase, decrease, or consistent level of investment. However, given the increasing importance of cybersecurity, it is plausible that spending in this area has trended upwards across federal agencies.

What are the potential risks associated with awarding a large contract like this to a single vendor?

Awarding a large contract to a single vendor, such as General Dynamics Information Technology, Inc. in this case, presents several potential risks. Firstly, it can lead to a lack of competitive pressure, potentially resulting in higher costs for the government over the contract's life if robust price monitoring is not in place. Secondly, over-reliance on one vendor can create vendor lock-in, making it difficult and costly to switch providers if performance issues arise or if better solutions become available. Thirdly, it may stifle innovation, as the vendor might have less incentive to proactively introduce new technologies or efficiencies compared to a more competitive environment. Finally, the vendor's financial stability or operational capacity could become a single point of failure, impacting critical government functions if they experience significant disruptions.

What is the significance of this contract being awarded under a Blanket Purchase Agreement (BPA)?

A Blanket Purchase Agreement (BPA) is a simplified method of filling anticipated repetitive needs for supplies or services. It is not a contract in itself but rather an agreement establishing terms and conditions under which future purchases (task orders) may be made. The significance of this contract being awarded under a BPA is that it likely streamlined the procurement process for the Department of State by pre-negotiating rates and terms with General Dynamics Information Technology, Inc. This can lead to faster delivery of services and potentially better pricing due to volume commitments. However, the effectiveness of a BPA in ensuring value for money depends heavily on the initial competition for the BPA itself and the subsequent management and oversight of individual task orders issued against it.

What does the NAICS code 541519 (Other Computer Related Services) imply about the scope of work?

The North American Industry Classification System (NAICS) code 541519, 'Other Computer Related Services,' indicates a broad and diverse scope of work that doesn't fit into more specific computer-related categories. For a contract focused on IT infrastructure security support services, this could encompass a wide array of activities beyond standard IT support. Examples include IT system design and integration, network security architecture, cybersecurity consulting, data security management, IT infrastructure vulnerability testing, and potentially specialized software development or implementation related to security. The 'other' designation suggests flexibility for the contractor to provide a comprehensive suite of services tailored to the evolving security needs of the Department of State, rather than being limited to a narrowly defined set of tasks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Contractor Details

Parent Company: Sterling Parent Inc. (UEI: 968838909)

Address: 4300 FAIR LAKES CT, FAIRFAX, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $89,889,387

Exercised Options: $89,889,387

Current Obligation: $89,874,107

Parent Contract

Parent Award PIID: SAQMMA07A0008

IDV Type: BPA

Timeline