OPM's $21.5M IT contract with General Dynamics awarded via full and open competition

Contract Overview

Contract Amount: $21,556,347 ($21.6M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Office of Personnel Management

Start Date: 2012-08-08

End Date: 2015-09-25

Contract Duration: 1,143 days

Daily Burn Rate: $18.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: EPIC TRANSFORMATION AT 10017 IGF::CL::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20415

State: District of Columbia Government Spending

Plain-Language Summary

Office of Personnel Management obligated $21.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: EPIC TRANSFORMATION AT 10017 IGF::CL::IGF Key points: 1. Contract awarded through a competitive process, suggesting potential for good value. 2. IT services are critical for agency operations, but performance details are key. 3. The contract duration of over three years indicates a significant, ongoing need. 4. Focus on computer systems design services aligns with modern government IT requirements. 5. The award to a large, established contractor like General Dynamics is common for complex IT needs.

Value Assessment

Rating: good

The contract's value of $21.5 million over approximately three years for IT services appears reasonable given the scope of computer systems design. Benchmarking against similar large-scale IT contracts for federal agencies suggests this falls within expected spending ranges for such services. The labor hours pricing model, while common, requires careful monitoring to ensure efficiency and prevent cost overruns. Without specific performance metrics or detailed task breakdowns, a definitive value-for-money assessment is challenging, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, indicating that multiple vendors had the opportunity to bid. This process is designed to foster price discovery and ensure the government receives competitive offers. The fact that it was competed openly suggests that the agency sought the best possible solution and pricing from the market. The number of bidders is not specified, but the open nature of the competition is a strong positive signal for taxpayer value.

Taxpayer Impact: A full and open competition generally leads to more competitive pricing, which benefits taxpayers by ensuring federal dollars are spent efficiently. It also promotes a wider range of innovative solutions being considered.

Public Impact

Federal employees and agency operations benefit from improved IT systems and design services. The contract supports the modernization and efficiency of the Office of Personnel Management's IT infrastructure. Services are delivered within the District of Columbia, impacting the local federal workforce. The contract likely supports a team of IT professionals, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in IT projects if not managed tightly.
Dependence on a single large contractor for critical IT functions.
Ensuring continuous alignment with evolving OPM strategic goals.

Positive Signals

Awarded through full and open competition, indicating market validation.
Contractor has a significant track record in federal IT services.
Clear definition of IT services (Computer Systems Design) provides focus.

Sector Analysis

The IT services sector for the federal government is vast and highly competitive. Contracts for computer systems design services, like this one, are crucial for agencies to maintain and upgrade their technological capabilities. The market includes a wide range of large and small businesses vying for these opportunities. Spending in this category is consistently high across all federal agencies, reflecting the increasing reliance on digital infrastructure. This contract fits within the broader trend of federal agencies outsourcing complex IT design and development work.

Small Business Impact

This contract was awarded to General Dynamics Information Technology, Inc., a large business. There is no indication of a small business set-aside. While the primary award is to a large entity, it is possible that General Dynamics may engage small businesses as subcontractors to fulfill specific aspects of the contract, contributing to the broader small business ecosystem. However, without specific subcontracting plans or goals outlined, the direct impact on small businesses is not quantifiable from this data alone.

Oversight & Accountability

Oversight for this contract would typically fall under the Office of Personnel Management's contracting officers and program managers. Standard oversight mechanisms would include regular performance reviews, milestone tracking, and financial audits. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General for OPM would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

IT Infrastructure Modernization
Computer Systems Design Services
Federal IT Services Contracts
General Dynamics Federal Contracts

Risk Flags

Potential for cost overruns due to labor hour pricing.
Scope creep risk in complex IT design projects.
Dependence on a single large contractor.

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $21.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. EPIC TRANSFORMATION AT 10017 IGF::CL::IGF

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Office of Personnel Management (Office of Personnel Management).

What is the total obligated amount?

The obligated amount is $21.6 million.

What is the period of performance?

Start: 2012-08-08. End: 2015-09-25.

What is the historical spending pattern for OPM on computer systems design services?

Historical spending data for OPM on computer systems design services prior to this $21.5 million contract would provide valuable context. Analyzing previous contract awards in this category, including their values, durations, and awarded contractors, can reveal trends in OPM's IT investment strategy. For instance, a pattern of increasing or decreasing spending could indicate evolving needs or budget constraints. Understanding past performance and costs associated with similar services can also help benchmark the current contract's value and identify potential areas for cost savings or efficiency improvements in future procurements. Without specific historical data, it's difficult to ascertain if this $21.5 million represents a significant increase or decrease in OPM's typical investment in this area.

How does the pricing structure (labor hours) compare to fixed-price contracts for similar IT services?

The labor hours pricing structure, as indicated for this contract, allows for flexibility but can introduce cost uncertainty if not managed diligently. Compared to fixed-price contracts, labor hour contracts are generally preferred when the scope of work is not well-defined or is expected to evolve. However, they carry a higher risk of cost overruns for the government if the contractor's efficiency is low or if the project scope expands significantly without proper controls. Fixed-price contracts, conversely, offer greater cost certainty for the government but require a very clear and stable scope of work upfront. For complex IT design services where requirements might shift, labor hours can be appropriate, but it necessitates robust oversight to ensure the contractor is delivering value efficiently and that the total cost remains within reasonable bounds relative to the deliverables.

What is General Dynamics Information Technology's track record with OPM and similar federal agencies?

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record serving federal agencies, including the Office of Personnel Management (OPM). Their experience often encompasses large-scale IT modernization, system integration, and support services. A review of past performance evaluations and contract history with OPM and agencies of similar size and mission (e.g., other civilian agencies requiring extensive IT support) would be crucial. Positive past performance, demonstrated ability to meet deadlines, manage budgets, and deliver quality services are key indicators of a contractor's reliability. Conversely, any history of performance issues, disputes, or contract terminations could raise concerns about future performance on this specific contract. GDIT's extensive experience suggests they are capable, but specific project outcomes are paramount.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key Performance Indicators (KPIs) for a contract focused on computer systems design services would likely revolve around project milestones, system performance, user satisfaction, and adherence to budget and schedule. Examples could include the timely delivery of design documents, successful implementation of system components, achievement of specified system uptime or response times, reduction in reported IT issues post-design, and positive feedback from end-users or OPM stakeholders. The contract's success hinges on whether the designed systems effectively meet OPM's operational requirements and strategic objectives. Without explicit KPIs detailed in the contract documentation, assessing performance objectively is challenging, but standard IT project management metrics are typically employed.

What is the potential impact of this contract on OPM's overall IT modernization efforts?

This $21.5 million contract for computer systems design services is likely a significant component of OPM's broader IT modernization strategy. The services procured are fundamental to updating or replacing legacy systems, enhancing cybersecurity, improving data management, and enabling new digital services for federal employees and retirees. The success of this contract could directly influence OPM's ability to achieve its modernization goals, leading to more efficient operations, better data security, and improved user experiences. Conversely, if the contract underperforms, it could delay modernization efforts, increase costs, and hinder OPM's ability to adapt to evolving technological landscapes and citizen expectations.

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: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sterling Parent Inc. (UEI: 968838909)

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

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

Financial Breakdown

Contract Ceiling: $30,410,374

Exercised Options: $21,556,347

Current Obligation: $21,556,347

Parent Contract

Parent Award PIID: OPM3212A0020

IDV Type: BPA

Timeline