State Department awards $330M in IT support, with General Dynamics leading cyber operations

Contract Overview

Contract Amount: $329,917,573 ($329.9M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of State

Start Date: 2012-08-17

End Date: 2022-02-16

Contract Duration: 3,470 days

Daily Burn Rate: $95.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CYBER SECURITY OPERATIONS SUPPORT (CSOS) SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $329.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: CYBER SECURITY OPERATIONS SUPPORT (CSOS) SERVICES Key points: 1. Contract value indicates significant investment in IT infrastructure and cybersecurity. 2. General Dynamics Information Technology, Inc. holds a substantial portion of this contract. 3. The contract duration spans nearly a decade, suggesting long-term IT needs. 4. Firm Fixed Price (FFP) contract type aims to control costs and provide predictability. 5. The 'Computer Systems Design Services' NAICS code points to a focus on IT infrastructure and support. 6. The contract was awarded under full and open competition, suggesting a robust bidding process.

Value Assessment

Rating: good

The total award amount of over $329 million for IT support services over a nearly 10-year period appears to be within a reasonable range for a contract of this scope and duration. Benchmarking against similar large-scale IT support contracts for federal agencies, the pricing structure, especially under a Firm Fixed Price model, suggests an effort to manage costs effectively. The contract's value is substantial, reflecting the critical nature of cybersecurity operations support for the Department of State.

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 presence of 4 bids suggests a competitive environment, which typically leads to better pricing and service offerings for the government. The level of competition is a positive sign for price discovery and ensuring the government receives value for its investment.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a marketplace where contractors vie for the best price and performance, ultimately driving down costs and improving service quality.

Public Impact

The Department of State benefits from enhanced cybersecurity operations and IT support, crucial for its global mission. Services delivered likely include system design, integration, maintenance, and cybersecurity monitoring. The geographic impact is likely global, supporting the State Department's worldwide operations. Workforce implications may include the creation or sustainment of IT and cybersecurity jobs, both within the contractor and potentially within the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to vendor lock-in if not managed carefully.
Reliance on a single large contractor for critical IT functions poses a risk.
Potential for scope creep if requirements are not clearly defined and managed.
Cybersecurity threats are constantly evolving, requiring continuous adaptation and investment.
Dependence on specific technologies could lead to obsolescence if not updated.

Positive Signals

Firm Fixed Price contract type helps control costs and provides budget certainty.
Full and open competition suggests a competitive process that should yield good value.
The contract's long duration allows for stable support and development of specialized expertise.
General Dynamics Information Technology is a large, established contractor with significant experience.
The contract supports critical national security functions for the Department of State.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and cybersecurity operations support. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and securing federal IT infrastructure. The Department of State's spending on such services is consistent with the increasing digital threats and the need for robust IT systems to support diplomatic and foreign policy objectives. Comparable spending benchmarks for large federal IT support contracts often run into hundreds of millions of dollars over multiple years.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to a large prime contractor like General Dynamics Information Technology suggests that the primary focus was on the prime's capabilities. This could limit opportunities for small businesses to directly participate in this specific contract, although they may be involved in the broader IT ecosystem supporting the Department of State.

Oversight & Accountability

The contract is managed by the Department of State, which has its own internal oversight mechanisms for IT procurements and service delivery. The Firm Fixed Price nature of the contract provides a degree of cost control. Transparency is generally maintained through federal procurement databases like FPDS. The specific Inspector General for the Department of State would likely have jurisdiction over audits and investigations related to this contract's performance and financial integrity.

Related Government Programs

Department of State IT Modernization Efforts
Federal Cybersecurity Initiatives
General Services Administration (GSA) IT Schedules
Department of Defense Cyber Operations Support Contracts

Risk Flags

Long contract duration may not keep pace with rapid technological change.
Reliance on a single large contractor for critical cybersecurity functions.
Potential for cost overruns if scope is not tightly managed.
Cybersecurity landscape is constantly evolving, requiring continuous adaptation.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $329.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. CYBER SECURITY OPERATIONS SUPPORT (CSOS) 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 $329.9 million.

What is the period of performance?

Start: 2012-08-17. End: 2022-02-16.

What is the historical spending trend for cybersecurity operations support services at the Department of State over the last five fiscal years?

Analyzing historical spending trends for cybersecurity operations support (CSOS) services at the Department of State requires access to detailed historical contract data beyond the scope of this single award. However, general trends in federal IT spending indicate a consistent and increasing allocation towards cybersecurity due to rising threat levels. The Department of State, like other federal agencies, has prioritized cybersecurity to protect sensitive information and critical infrastructure. Without specific historical data for this contract or similar ones, it's difficult to provide precise figures, but the overall federal cybersecurity budget has seen year-over-year growth, suggesting a sustained or increasing investment in this area.

How does the per-unit cost of services under this contract compare to similar contracts awarded by other federal agencies for comparable IT support?

A direct per-unit cost comparison is challenging without detailed service breakdowns and specific metrics (e.g., cost per endpoint, cost per hour of support, cost per security incident managed). However, the contract's Firm Fixed Price (FFP) structure suggests that the pricing was established upfront based on anticipated service levels and volumes. Benchmarking against similar large-scale IT support contracts across federal agencies, the total award of approximately $330 million over nearly 10 years, averaging around $33 million annually, appears to be within the expected range for comprehensive IT and cybersecurity support for a major federal department. Variations in pricing can be attributed to differing service scopes, geographic requirements, and specific technological needs.

What is General Dynamics Information Technology's track record with the Department of State and other federal agencies regarding IT support and cybersecurity contracts?

General Dynamics Information Technology (GDIT), now part of General Dynamics, has a long and extensive track record of providing IT support and cybersecurity services to the Department of State and numerous other federal agencies. They are a major federal contractor known for handling large, complex IT programs. Their past performance typically includes managing large networks, providing help desk support, developing and implementing IT solutions, and offering cybersecurity services. While specific performance metrics for this particular CSOS contract would require deeper analysis, GDIT's general reputation and consistent presence in the federal IT contracting space suggest a substantial level of experience and capability in fulfilling such requirements.

What are the key performance indicators (KPIs) used to measure the effectiveness of the cybersecurity operations support provided under this contract?

Key Performance Indicators (KPIs) for cybersecurity operations support contracts typically focus on the effectiveness, efficiency, and responsiveness of the services provided. While the specific KPIs for this contract are not detailed in the provided data, common metrics include: Mean Time to Detect (MTTD) and Mean Time to Respond (MTTR) to security incidents; the number of security incidents detected and successfully mitigated; system uptime and availability; vulnerability remediation rates; compliance with security policies and standards; and customer satisfaction scores (if applicable). The effectiveness of the support is crucial for maintaining the security posture of the Department of State's IT infrastructure.

What is the potential risk associated with the long duration (nearly 10 years) of this contract, and what mitigation strategies are in place?

The primary risk associated with a long-duration contract like this (3470 days, approximately 9.5 years) is the potential for technological obsolescence, evolving threat landscapes, and vendor lock-in. Technologies and cybersecurity threats change rapidly, and a contract structured over such a long period might not adequately adapt to new requirements or more efficient solutions. Mitigation strategies often include contract clauses for regular reviews, performance-based adjustments, options for modernization, and clear termination for convenience clauses. The Department of State would likely have mechanisms for periodic reassessment of needs and potentially renegotiating terms or incorporating new technologies to ensure the services remain effective and cost-efficient throughout the contract's life.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 3150 FAIRVIEW PARK DR STE 100, 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: $375,707,834

Exercised Options: $342,205,722

Current Obligation: $329,917,573

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $7,478,992

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline