State Department's $230M IT services contract for Andean South America shows strong competition and long duration

Contract Overview

Contract Amount: $230,700,770 ($230.7M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of State

Start Date: 2016-06-28

End Date: 2023-12-31

Contract Duration: 2,742 days

Daily Burn Rate: $84.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: GSS VISA SERVICES FOR ANDEAN SOUTH AMERICA. IGF::CT::IGF

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $230.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: GSS VISA SERVICES FOR ANDEAN SOUTH AMERICA. IGF::CT::IGF Key points: 1. The contract demonstrates a significant investment in IT infrastructure and services for a critical geopolitical region. 2. A full and open competition suggests a robust market for these services, potentially leading to competitive pricing. 3. The long contract duration (over 7 years) indicates a need for sustained IT support and potential for contractor lock-in. 4. The fixed-price contract type aims to control costs, but requires careful scope management to avoid overruns. 5. The absence of small business set-asides may limit opportunities for smaller firms in this significant contract. 6. The contract's performance period spans multiple administrations, highlighting the enduring nature of IT support needs.

Value Assessment

Rating: good

Benchmarking this contract's value is challenging without specific service details and comparable contracts. However, the total value of over $230 million for more than seven years of IT services suggests a substantial investment. The firm-fixed-price structure is generally favorable for cost control, assuming the scope was well-defined. Without more granular data on the specific services rendered and their market rates, a precise value-for-money assessment is difficult, but the competitive nature of the award provides a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, encouraging multiple bidders to vie for the contract. The presence of robust competition is generally beneficial for price discovery and can lead to more favorable terms for the government. The specific number of bidders is not provided, but the designation implies a significant number participated.

Taxpayer Impact: Full and open competition is the most taxpayer-friendly approach, as it maximizes the potential for cost savings through competitive bidding and ensures the government receives the best possible value.

Public Impact

Provides essential IT infrastructure and management services to support U.S. diplomatic and consular operations in Andean South America. Ensures the continuity and security of critical communication and information systems for the Department of State in the region. Supports the workforce of the Department of State operating in countries like Peru, Ecuador, and Colombia. Facilitates the delivery of consular services and diplomatic engagement by maintaining reliable IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to complacency or reduced innovation over time.
Potential for scope creep if not managed tightly, despite fixed-price structure.
Lack of specific small business participation may limit broader economic impact.
Dependence on a single large contractor for critical IT infrastructure.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract type provides cost certainty for the government.
Long-term nature of the contract indicates a stable and ongoing need for these services.
The contractor, General Dynamics Information Technology, is a large, established entity with significant IT experience.

Sector Analysis

This contract falls within the Information Technology and Telecommunications sector, specifically focusing on computer facilities management services. The IT services market is highly competitive, with numerous large and small businesses offering a wide range of solutions. Government IT spending is a significant portion of the overall federal IT budget, with agencies like the Department of State relying heavily on contractors for maintaining complex global networks and systems. Comparable spending benchmarks would typically involve other large-scale IT support contracts for federal agencies operating in challenging or remote environments.

Small Business Impact

This contract was not awarded as a small business set-aside, and the data indicates no explicit small business participation (sb: false). This suggests that the primary award went to a large business, General Dynamics Information Technology. While large contracts can sometimes include subcontracting opportunities for small businesses, the absence of a specific set-aside or reported subcontracting goals means that direct opportunities for small businesses under this specific award may be limited. This could represent a missed opportunity to foster small business growth within the federal IT contracting ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. As a large, multi-year contract, it is likely subject to regular performance reviews and audits. The contract type (firm-fixed-price) necessitates close monitoring of deliverables and adherence to scope. While not explicitly stated, the Inspector General for the Department of State would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract, ensuring a level of accountability.

Related Government Programs

Department of State IT Modernization Programs
Global IT Infrastructure Support Contracts
IT Services for Overseas Operations
Computer Facilities Management Services
Information Technology Consulting Services

Risk Flags

Long contract duration may reduce flexibility and increase risk of vendor lock-in.
Lack of explicit small business participation noted.
Potential for scope creep in complex IT environments.
Performance data and specific KPIs not publicly detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $230.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. GSS VISA SERVICES FOR ANDEAN SOUTH AMERICA. IGF::CT::IGF

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 $230.7 million.

What is the period of performance?

Start: 2016-06-28. End: 2023-12-31.

What specific IT services are included under this contract, and how do they align with the Department of State's mission in the Andean region?

The contract, identified by NAICS code 541513 (Computer Facilities Management Services), likely encompasses a broad range of IT support functions. This would typically include the installation, maintenance, and management of computer hardware, software, and networks. For the Department of State in the Andean region, these services are critical for ensuring secure and reliable communication channels, supporting diplomatic operations, facilitating consular services, and managing sensitive data. The specific alignment would involve maintaining the IT infrastructure necessary for embassies and consulates to function effectively, enabling secure data transmission, and supporting the daily operational needs of personnel in potentially challenging environments. The long duration and significant value suggest comprehensive support beyond basic maintenance, potentially including system upgrades, cybersecurity measures, and user support.

How does the $230.7 million contract value compare to similar IT services contracts awarded by the Department of State or other agencies for overseas operations?

The $230.7 million value over approximately 7.5 years (June 2016 - December 2023) translates to an average annual spend of roughly $30.7 million. This figure is substantial but falls within the range of large-scale IT support contracts for federal agencies with global footprints. For instance, other agencies like the Department of Defense or the intelligence community often award IT contracts in the hundreds of millions, or even billions, for similar durations and scope, particularly for complex overseas environments. The Department of State itself manages numerous IT contracts supporting its worldwide operations. Without access to a direct comparison database of specific service lines and geographic scope, it's difficult to provide an exact benchmark, but this contract appears to be a significant, yet not unprecedented, investment for supporting IT infrastructure in a key region.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract, and how is performance measured?

Specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) are not detailed in the provided data. However, for a contract of this nature (Computer Facilities Management Services) and value, typical KPIs would likely focus on system uptime and availability (e.g., network, servers), response times for technical support requests, resolution times for IT issues, data security compliance, and successful implementation of system upgrades or changes. Performance measurement would generally involve regular reporting by the contractor against these agreed-upon metrics, with potential for government evaluations, user satisfaction surveys, and audits. Failure to meet critical SLAs could result in penalties or impact future contract renewals, while consistently exceeding them might lead to performance incentives, though none are specified here.

What is the track record of General Dynamics Information Technology (GDIT) in managing large-scale IT contracts for federal agencies, particularly in overseas or complex environments?

General Dynamics Information Technology (GDIT), now part of General Dynamics, has a long and extensive track record of managing large-scale IT contracts for numerous federal agencies, including the Department of State, Department of Defense, and civilian agencies. They are known for their capabilities in areas such as IT infrastructure management, cloud computing, cybersecurity, and enterprise IT solutions. GDIT has historically managed complex programs involving significant personnel and resources, often in challenging or remote locations, similar to the requirements for supporting overseas operations. Their experience includes providing comprehensive IT support, network operations, and systems integration for large government entities. While specific performance details for every contract are not publicly available, GDIT's sustained presence and success in winning major federal IT contracts indicate a generally strong capability in handling programs of this magnitude and complexity.

Given the contract's duration (2016-2023), what has been the historical spending pattern for IT services by the Department of State in the Andean region?

The provided data represents a single, large contract valued at $230.7 million awarded in 2016 and ending in 2023. This suggests that for the period covered, this contract was likely the primary vehicle for comprehensive IT services in the Andean South America region for the Department of State. Historical spending patterns prior to 2016 would likely involve different contracts, potentially with different scopes, durations, or contractors, or perhaps a more fragmented approach to IT support. Without access to historical contract databases or agency budget reports specifically for this region and service type, it's difficult to detail a precise spending pattern. However, the award of such a substantial, long-term contract in 2016 indicates a strategic decision to consolidate and secure IT support for an extended period, implying a consistent and significant need for these services throughout the contract's life.

What are the potential risks associated with a firm-fixed-price contract of this magnitude and duration, and how might they be mitigated?

Firm-fixed-price (FFP) contracts, while offering cost certainty, carry inherent risks, especially for long-duration, large-value agreements. A primary risk is that the contractor may cut corners on quality or service to maximize profit if the initial price was set too low or if unforeseen technical challenges arise. Conversely, if the scope is not meticulously defined and managed, the government might end up paying more than anticipated if the contractor claims additional work falls outside the original scope, leading to disputes. For this contract, mitigation strategies would include robust contract administration, clear and detailed scope of work, regular performance monitoring against defined metrics, and proactive communication between the government and the contractor to address potential issues early. The Department of State's program managers and contracting officers play a crucial role in ensuring the contractor meets all obligations and that the defined scope is adhered to throughout the contract's lifecycle.

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

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: $253,813,659

Exercised Options: $236,384,179

Current Obligation: $230,700,770

Actual Outlays: $72,550,174

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA10D0017

IDV Type: IDC

Timeline