State Department awards $62.4M for IT services to General Dynamics, highlighting long-term support needs

Contract Overview

Contract Amount: $62,432,981 ($62.4M)

Contractor: General Dynamics Information Technology Inc.

Awarding Agency: Department of State

Start Date: 2016-09-13

End Date: 2024-09-12

Contract Duration: 2,921 days

Daily Burn Rate: $21.4K/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 TAJ. IGF::CT::IGF

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $62.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC. for work described as: GSS VISA SERVICES FOR TAJ. IGF::CT::IGF Key points: 1. Contract value represents a significant investment in IT infrastructure management. 2. Long contract duration suggests a need for sustained and specialized support. 3. Fixed-price contract structure aims to control costs over the performance period. 4. Competition level indicates a potentially robust market for these services. 5. Performance context is crucial given the critical nature of IT services for diplomatic operations. 6. Sector positioning within IT services management is a key area of focus.

Value Assessment

Rating: good

The contract value of $62.4 million over approximately eight years suggests a competitive pricing strategy for IT facilities management. Benchmarking against similar large-scale IT service contracts for federal agencies indicates that this pricing is within a reasonable range, especially considering the scope and duration. The firm-fixed-price nature of the award provides cost certainty for the Department of State, implying a good value proposition if performance targets are met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The presence of a single award suggests that General Dynamics Information Technology Inc. was selected as the most advantageous offer. The level of competition is a positive sign for price discovery and ensuring the government receives competitive pricing for these essential IT services.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among potential bidders.

Public Impact

Benefits the Department of State by ensuring the continuity and efficiency of its IT infrastructure. Delivers essential computer facilities management services, including maintenance and support. Geographic impact is likely nationwide and potentially global, supporting State Department operations. Workforce implications include the potential for direct employment by the contractor and indirect support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to long contract duration.
Risk of cost overruns if scope creep occurs despite fixed-price structure.
Dependence on contractor performance for critical IT operations.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm-fixed-price contract provides cost certainty.
Long-term nature allows for stable IT support and planning.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer facilities management. The market for such services is substantial within the federal government, with agencies consistently outsourcing IT infrastructure support. Comparable spending benchmarks for IT services across federal agencies often run into billions annually, making this contract a significant, but not outlier, investment for the Department of State.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the prime contractor is a large entity. There is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether General Dynamics Information Technology Inc. actively engages small businesses as subcontractors for specialized services or components.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of State's contracting officers and program managers. Accountability measures are embedded within the contract's performance standards and delivery schedules. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of State IT Modernization Efforts
Federal Civilian Agency IT Services Contracts
General Services Administration (GSA) IT Schedule Contracts
Computer Facilities Management Services (CFMS)

Risk Flags

Long contract duration may outpace technological advancements.
Potential for vendor lock-in.
Dependence on contractor performance for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $62.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY INC.. GSS VISA SERVICES FOR TAJ. 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 $62.4 million.

What is the period of performance?

Start: 2016-09-13. End: 2024-09-12.

What is the historical spending pattern for IT services by the Department of State under similar contracts?

Analyzing historical spending for IT services by the Department of State reveals a consistent and significant investment in maintaining and upgrading its technological infrastructure. Prior to this $62.4 million award, the Department has engaged in numerous contracts for IT support, ranging from network management and cybersecurity to software development and hardware maintenance. These expenditures often reflect the evolving global security landscape and the increasing reliance on digital communication for diplomatic functions. For instance, in the years leading up to 2016, the State Department allocated substantial funds, often in the tens of millions annually, to various IT service providers to ensure operational continuity and enhance data security. This pattern suggests a strategic approach to IT procurement, prioritizing long-term partnerships and comprehensive service delivery to meet its complex operational requirements.

How does the awarded price compare to market rates for similar IT facilities management services?

The awarded price of $62.4 million for approximately eight years of IT facilities management services from General Dynamics Information Technology Inc. appears competitive when benchmarked against similar large-scale federal contracts. The firm-fixed-price structure provides a degree of cost certainty. While specific per-unit costs are not detailed, the overall value suggests that the Department of State secured services at a rate that aligns with industry standards for comprehensive IT support. Factors such as the scope of services, geographic coverage, and the criticality of the systems managed influence the overall price. Compared to other large federal agencies procuring similar services, the Department of State's investment seems proportionate to its operational needs and global presence, indicating a reasonable market rate was likely achieved through the full and open competition process.

What are the key performance indicators (KPIs) associated with this contract, and how is performance monitored?

While the specific Key Performance Indicators (KPIs) for this contract are not publicly detailed, typical performance monitoring for IT facilities management services involves metrics related to system uptime, response times for service requests, incident resolution rates, and adherence to security protocols. The Department of State's contracting officer's representative (COR) and program managers are responsible for overseeing contractor performance. They would likely track these KPIs against established targets outlined in the contract's Performance Work Statement (PWS). Regular performance reviews, service level agreement (SLA) reporting, and potentially site visits would be employed to ensure General Dynamics Information Technology Inc. is meeting its contractual obligations. Failure to meet critical KPIs could result in penalties or affect future contract renewals.

What is the track record of General Dynamics Information Technology Inc. in performing similar federal IT contracts?

General Dynamics Information Technology Inc. (GDIT) has a substantial and well-established track record of performing large-scale IT services contracts for various U.S. federal agencies, including the Department of Defense, NASA, and other civilian departments. Their experience encompasses a wide range of IT support functions, such as network infrastructure management, cybersecurity solutions, cloud computing services, and enterprise IT modernization. GDIT has consistently managed complex, multi-year contracts with significant dollar values, demonstrating their capacity to handle demanding requirements. Their performance history generally indicates a strong capability in delivering reliable IT services, though like any large contractor, specific contract performance can vary. The Department of State's decision to award this contract suggests confidence in GDIT's past performance and ability to meet their specific needs.

What are the potential risks associated with a long-term (8-year) IT services contract like this?

Long-term IT services contracts, such as this 8-year award to General Dynamics Information Technology Inc., present several potential risks. Technology evolves rapidly, and an 8-year commitment could lead to the use of outdated systems or solutions if the contract doesn't adequately incorporate provisions for technological refresh and adaptation. There's also the risk of vendor lock-in, where the government becomes heavily reliant on a single provider, potentially diminishing leverage in future negotiations. Scope creep is another concern; despite a fixed-price structure, changes in requirements or unforeseen issues can lead to cost increases or delays if not managed meticulously. Furthermore, contractor performance can degrade over time, or key personnel may depart, impacting service quality. Finally, the long duration means the government is committed to a specific vendor's approach for an extended period, potentially missing out on innovative solutions from competitors.

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: $75,661,621

Exercised Options: $75,661,621

Current Obligation: $62,432,981

Actual Outlays: $16,269,535

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