State Department's $107M IT contract for refugee processing systems awarded to General Dynamics

Contract Overview

Contract Amount: $107,422,337 ($107.4M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of State

Start Date: 2011-12-13

End Date: 2018-03-19

Contract Duration: 2,288 days

Daily Burn Rate: $47.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WRAPS ENHANCEMENT AND MAINTENANCE-REFUGEE PROCESSING AND WORLDWIDE REFUGEE ADMISSIONS PROCESSING SYSTEM

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $107.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: WRAPS ENHANCEMENT AND MAINTENANCE-REFUGEE PROCESSING AND WORLDWIDE REFUGEE ADMISSIONS PROCESSING SYSTEM Key points: 1. Contract value represents a significant investment in IT infrastructure for critical government functions. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (over 6 years) indicates a long-term need for these services. 4. The fixed-price contract type aims to control costs and provide budget certainty. 5. This contract supports the Department of State's global operations and refugee assistance efforts. 6. The IT services procured are essential for managing complex data and processing workflows.

Value Assessment

Rating: good

The contract value of approximately $107 million over six years for IT systems design and maintenance appears reasonable given the scope of supporting worldwide refugee admissions processing. Benchmarking against similar large-scale IT system development and maintenance contracts for government agencies suggests that the overall investment is within expected ranges for complex, mission-critical systems. The firm fixed-price structure provides a degree of cost control, though the total expenditure is substantial.

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 openly suggests that multiple vendors likely vied for the opportunity, which typically fosters price discovery and can lead to more competitive pricing for the government. The specific number of bidders is not provided, but the competition type implies a robust process.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging a wider range of potential providers to offer their best pricing and technical solutions, potentially leading to a more cost-effective outcome compared to sole-source or limited competition awards.

Public Impact

Benefits refugees and displaced persons by ensuring efficient processing of admissions and support. Delivers critical IT infrastructure and maintenance services for the Department of State's global operations. Supports the administration of worldwide refugee programs, impacting international humanitarian efforts. The IT systems are vital for managing data related to refugee resettlement and tracking. Enhances the operational capacity of the Department of State in handling complex international affairs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite fixed-price contract.
Reliance on a single contractor for a critical, long-term IT system.
Vulnerability to changes in technology or evolving refugee processing needs.
Potential for vendor lock-in given the long-term nature of the system.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm fixed-price contract type provides cost certainty.
Long contract duration indicates a stable, ongoing need for the services.
Supports a critical government function with significant humanitarian impact.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the IT services industry. The market for government IT services is large and competitive, with agencies like the Department of State requiring sophisticated solutions for managing complex data and operational workflows. This contract supports a specialized area of government IT, focusing on systems critical for international relations and humanitarian aid, which often involves unique security and processing requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited unless General Dynamics Information Technology, Inc. voluntarily engages small businesses as subcontractors. Further investigation into subcontracting plans would be needed to assess the full impact.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. The firm fixed-price nature of the contract provides a degree of financial oversight by limiting potential cost increases. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and oversight activities are internal to the agency.

Related Government Programs

Refugee Assistance Programs
Department of State IT Modernization Efforts
Global Immigration and Visa Processing Systems
Humanitarian Aid and Disaster Relief Technology

Risk Flags

Long contract duration may lead to technological obsolescence.
Reliance on a single vendor for critical IT infrastructure.
Potential for scope creep impacting fixed-price budget.
Security risks associated with sensitive refugee data.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $107.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. WRAPS ENHANCEMENT AND MAINTENANCE-REFUGEE PROCESSING AND WORLDWIDE REFUGEE ADMISSIONS PROCESSING SYSTEM

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 $107.4 million.

What is the period of performance?

Start: 2011-12-13. End: 2018-03-19.

What is the track record of General Dynamics Information Technology, Inc. in delivering similar large-scale IT systems for government agencies, particularly those involving sensitive data processing?

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record in providing IT services and solutions to various U.S. government agencies, including defense, intelligence, and civilian sectors. They are known for managing large, complex IT infrastructure projects, system integration, and modernization efforts. For sensitive data processing, GDIT typically adheres to stringent security protocols and compliance requirements mandated by agencies like the Department of State. Their experience often includes developing and maintaining systems that handle classified or personally identifiable information, suggesting a capability to manage the requirements of refugee processing systems. However, specific performance details and past issues on similar contracts would require deeper analysis of contract performance reports and agency evaluations.

How does the cost of this contract compare to similar IT system development and maintenance contracts awarded by other federal agencies for comparable functions?

Benchmarking the cost of this $107 million contract requires comparing it against IT contracts for similar scope, complexity, and duration across federal agencies. Contracts involving large-scale database management, secure data processing, and global system accessibility for agencies like Homeland Security (USCIS), Health and Human Services (for social services IT), or Defense (personnel systems) could serve as comparators. The firm fixed-price nature helps in cost control, but the total value is substantial. Without specific details on the number of users, data volume, system uptime requirements, and specific functionalities, a precise comparison is difficult. However, for a mission-critical, long-term IT system supporting global operations, the investment appears aligned with the scale of such undertakings.

What are the key performance indicators (KPIs) used to measure the success and effectiveness of the WRAPS system under this contract?

While the specific Key Performance Indicators (KPIs) for the WRAPS system are not detailed in the provided data, typical metrics for such IT systems would likely include system availability and uptime (e.g., 99.9% availability), data processing speed and accuracy, response times for user queries, security incident rates (aiming for zero critical incidents), successful completion of refugee application processing within target timelines, and user satisfaction ratings. The Department of State would establish these KPIs in the contract's Performance Work Statement (PWS) to ensure the contractor meets performance expectations. Regular performance reviews and reporting would track adherence to these KPIs, informing payment and contract continuation decisions.

What is the potential risk associated with the long duration (over 6 years) of this contract in terms of technological obsolescence or changing requirements?

The long duration of this contract presents a moderate risk of technological obsolescence and potential misalignment with evolving requirements. Over six years, IT landscapes can change significantly, with new technologies emerging that could offer greater efficiency or security. If the contract does not include robust mechanisms for technology refresh, upgrades, or flexibility to adapt to new processing mandates from Congress or international bodies, the WRAPS system could become outdated. The firm fixed-price structure might also disincentivize proactive innovation from the contractor unless explicitly incentivized or required by contract modifications. Mitigation strategies could include phased technology insertions, regular reviews of system architecture, and contract clauses allowing for adjustments based on demonstrated technological advancements or policy changes.

How has historical spending on refugee processing IT systems by the Department of State trended over the past decade, and does this contract represent an increase or decrease?

Analyzing historical spending trends for refugee processing IT systems requires access to detailed budget data for the Department of State over the past decade. Without that specific data, it's challenging to definitively state whether this $107 million contract represents an increase or decrease. However, the increasing complexity of global refugee crises and the growing reliance on digital systems for management and processing suggest that IT investments in this area are likely to be substantial and potentially growing. This contract, covering system enhancement and maintenance, indicates a sustained or potentially increased commitment to leveraging technology for refugee admissions processing. A full analysis would involve comparing this contract's value against previous IT expenditures for similar functions.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 4300 FAIR LAKES CT, FAIRFAX, VA, 22033

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $107,422,337

Exercised Options: $107,422,337

Current Obligation: $107,422,337

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 263010050

IDV Type: IDC

Timeline