State Department's $236.6M contract for Brazil visa support awarded to General Dynamics Information Technology Inc

Contract Overview

Contract Amount: $236,616,041 ($236.6M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of State

Start Date: 2011-08-15

End Date: 2017-09-14

Contract Duration: 2,222 days

Daily Burn Rate: $106.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE GLOBAL SUPPORT STRATEGY FOR VISA SERVICES IN BRAZIL

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $236.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: PROVIDE GLOBAL SUPPORT STRATEGY FOR VISA SERVICES IN BRAZIL Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2,222 days (over 6 years) indicates a long-term need for these services. 3. The fixed-price contract type aims to control costs by establishing a set price for services. 4. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The North American Industry Classification System (NAICS) code 541513 points to computer facilities management services. 6. The contract's value of over $236 million signifies a substantial investment in global support infrastructure.

Value Assessment

Rating: good

The contract value of $236.6 million over approximately six years for global support strategy for visa services in Brazil appears reasonable given the scope. Benchmarking against similar large-scale IT support contracts for diplomatic missions or international operations would provide a more precise value-for-money assessment. The fixed-price nature of the contract suggests an effort to manage costs effectively, though the total expenditure is significant.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it was competed suggests that the agency sought to leverage market competition to obtain the best value. The number of bidders is not specified, but the open competition is a positive sign for price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions, ensuring that government funds are used efficiently.

Public Impact

Citizens and foreign nationals requiring visa services in Brazil will benefit from streamlined and supported processes. The contract ensures the continuity and efficiency of critical visa processing operations for the Department of State. The geographic impact is focused on Brazil, supporting U.S. diplomatic and consular functions within the country. The contract likely supports a workforce of IT and support personnel, both directly and indirectly, within Brazil and potentially in the U.S.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long contract duration and specialized nature of support.
Risk of cost overruns if the scope of work expands beyond initial projections, despite fixed-price terms.
Dependence on a single contractor for critical visa support infrastructure could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Fixed-price contract type helps in budget predictability and cost control.
Long-term contract suggests a stable and ongoing requirement, allowing for focused service delivery.
General Dynamics Information Technology Inc. is a large, established contractor with experience in government IT services.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on IT facilities management and support for a critical government function. The market for IT support services for government agencies is substantial, with numerous large and small businesses competing for contracts. This specific contract addresses the unique needs of diplomatic operations, which often require specialized security and operational considerations beyond standard commercial IT support.

Small Business Impact

There is no explicit indication of small business set-asides for this contract, and the prime contractor is a large business. However, General Dynamics Information Technology Inc. may utilize small businesses for subcontracting opportunities to fulfill specific aspects of the contract, which could provide some benefit to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of State's contracting officers and program managers. Accountability measures are inherent in the fixed-price contract terms, with performance expectations likely outlined in the contract's statement of work. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not be publicly available.

Related Government Programs

Department of State IT Support Contracts
Global Diplomatic Infrastructure Support
Visa Processing System Support
Federal IT Services Contracts
Information Technology Management Services

Risk Flags

Long contract duration may increase risk of technological obsolescence.
Fixed-price contract could lead to contractor underperformance if cost estimates were too low.
Dependence on a single large contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $236.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. PROVIDE GLOBAL SUPPORT STRATEGY FOR VISA SERVICES IN BRAZIL

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 $236.6 million.

What is the period of performance?

Start: 2011-08-15. End: 2017-09-14.

What is the track record of General Dynamics Information Technology Inc. in managing similar large-scale IT support contracts for federal agencies, particularly those involving international operation

General Dynamics Information Technology Inc. (GDIT) has a long history of providing IT support and services to various federal agencies, including the Department of Defense and the Department of State. They have managed numerous large, complex contracts involving infrastructure management, cybersecurity, and mission-critical systems. Their experience often includes supporting operations in challenging international environments. While specific details on past performance for visa services in Brazil are not provided here, GDIT's overall profile suggests they possess the capabilities and experience to handle such a contract. A deeper dive into their past performance reviews and any reported issues on similar contracts would offer more insight into their reliability and effectiveness in comparable situations.

How does the awarded amount of $236.6 million compare to similar contracts for IT support for diplomatic missions or visa services in other countries?

Benchmarking this $236.6 million contract against similar IT support contracts for diplomatic missions or visa services in other countries is challenging without access to detailed comparative data. However, the value suggests a significant scope of work, likely encompassing comprehensive IT infrastructure management, user support, and potentially specialized visa system support for a major diplomatic presence. Contracts for large embassies or consulates in high-demand regions can range from tens to hundreds of millions of dollars over several years, depending on the complexity, security requirements, and volume of services. The duration of over six years for this contract also contributes to the substantial total value. A precise comparison would require identifying contracts with similar service levels, geographic scope, and contract types.

What are the primary risks associated with a fixed-price contract of this magnitude and duration for IT support services?

The primary risks associated with a fixed-price contract of this magnitude and duration for IT support services include potential scope creep, unforeseen technical challenges, and contractor performance issues. For the government, the risk is that the fixed price may become uncompetitive if market rates decrease or if the contractor fails to deliver services efficiently, leading to a less-than-optimal value. For the contractor, the risk is underestimating the costs or effort required, leading to reduced profit margins or even losses, which could impact service quality or lead to contract disputes. Given the long duration, changes in technology or operational requirements could also necessitate contract modifications, potentially impacting the fixed-price advantage.

What are the potential program effectiveness implications of awarding this contract to a single large prime contractor like General Dynamics Information Technology Inc.?

Awarding this contract to a single large prime contractor like General Dynamics Information Technology Inc. can have several implications for program effectiveness. On the positive side, a single contractor can offer streamlined management, consistent service delivery, and potentially leverage economies of scale. This can lead to greater efficiency and a unified approach to IT support. However, a potential downside is reduced flexibility and innovation if the contractor becomes complacent or if the contract structure discourages new ideas. It also concentrates risk; if the contractor underperforms or faces significant issues, the entire program's effectiveness could be jeopardized. The government's oversight and performance management become critical to ensure the contractor remains motivated and effective throughout the contract's life.

How has the Department of State's spending on IT support services, particularly for overseas operations, evolved over the past decade, and how does this contract fit into that trend?

The Department of State's spending on IT support services, especially for overseas operations, has likely seen a steady increase over the past decade, driven by the growing reliance on technology for diplomatic functions, increased cybersecurity threats, and the need to maintain modern communication and data systems across its global network. This $236.6 million contract for visa services support in Brazil fits into this trend as a significant investment in maintaining critical operational capabilities in a key international location. Such contracts are essential for ensuring the continuity and security of services that directly support U.S. foreign policy objectives and citizen services abroad. The trend generally points towards consolidating and modernizing IT infrastructure to improve efficiency and security, often through large, long-term contracts with experienced providers.

Industry Classification

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

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

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)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 3170 FAIRVIEW PARK DR, 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: $236,616,041

Exercised Options: $236,616,041

Current Obligation: $236,616,041

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA10D0017

IDV Type: IDC

Timeline