DoD's $23.5M IT contract with General Dynamics One Source LLC shows strong competition and long-term performance
Contract Overview
Contract Amount: $23,511,035 ($23.5M)
Contractor: General Dynamics ONE Source LLC
Awarding Agency: Department of Defense
Start Date: 2017-05-19
End Date: 2023-08-11
Contract Duration: 2,275 days
Daily Burn Rate: $10.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF MODIFICATION TO INCORPORATE INCREMENTAL FUNDING.
Place of Performance
Location: FAIRFAX, FAIRFAX CITY County, VIRGINIA, 22030
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $23.5 million to GENERAL DYNAMICS ONE SOURCE LLC for work described as: IGF::OT::IGF MODIFICATION TO INCORPORATE INCREMENTAL FUNDING. Key points: 1. The contract demonstrates a competitive award process, suggesting favorable pricing and value for the government. 2. A long performance duration of over 6 years indicates a sustained need for these IT services. 3. The firm-fixed-price structure helps mitigate cost overrun risks for the Department of Defense. 4. This contract falls within the broad IT services sector, a significant area of federal spending. 5. The award to a large, established contractor like General Dynamics suggests a focus on reliable service delivery. 6. The modification for incremental funding points to ongoing program needs and budget allocation strategies.
Value Assessment
Rating: good
The contract's total value of $23.5 million over more than six years suggests a moderate annual spend. Without specific benchmarks for 'Computer Systems Design Services' for the Department of the Army, a direct value-for-money assessment is challenging. However, the firm-fixed-price contract type and full and open competition indicate a structured approach to achieving value. The contractor, General Dynamics, is a major player, implying they can deliver at competitive rates for such services.
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 bids. This typically leads to a more robust price discovery process and potentially better pricing for the government. The presence of 4 bids suggests a healthy level of interest and competition for this requirement.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces, ensuring the government receives the best possible value for its investment.
Public Impact
The Department of the Army benefits from essential computer systems design services, crucial for its operational efficiency. This contract supports the technological infrastructure and capabilities of a major branch of the U.S. military. The services are likely delivered within Virginia, where the contractor's facility is located, potentially impacting the local IT workforce. The sustained nature of the contract implies ongoing support for critical defense IT systems.
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 might limit opportunities for smaller, innovative firms in the future.
- The modification for incremental funding, while common, requires diligent tracking to ensure funds are used as intended.
Positive Signals
- Awarded through full and open competition, ensuring a competitive bidding process.
- Firm-fixed-price contract type helps control costs and provides budget certainty.
- Contractor is a well-established entity with a track record in government contracting.
- Multiple bids received (4) indicate significant market interest and competitive pressure.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically Computer Systems Design Services. This is a vast and critical sector for federal agencies, encompassing everything from software development to network infrastructure management. Federal spending in IT services is consistently high, driven by the need for modernization, cybersecurity, and efficient data management. Comparable contracts in this space often involve long-term support, complex system integration, and significant investment in skilled personnel.
Small Business Impact
This contract was not set aside for small businesses, and the data does not indicate any small business subcontracting requirements. The award to a large prime contractor like General Dynamics One Source LLC suggests that the primary focus was on capability and price from established providers, potentially limiting direct opportunities for small businesses on this specific contract. Future opportunities might arise through subcontracting, but this would depend on the prime contractor's strategy.
Oversight & Accountability
The contract is subject to standard federal procurement oversight. As a Department of Defense contract, it likely falls under the purview of the Department of Defense Inspector General for audits and investigations. The firm-fixed-price nature provides a degree of cost control. Transparency is generally maintained through contract award databases like FPDS, though specific performance metrics and oversight activities are internal to the agency.
Related Government Programs
- Department of Defense IT Services
- Computer Systems Design Services
- General Dynamics Contracts
- Federal IT Modernization Programs
- Information Technology Support Services
Risk Flags
- Potential for technological obsolescence over the contract's long duration.
- Risk of vendor lock-in due to sustained reliance on a single provider.
- Need for diligent contract management to ensure ongoing performance and value.
- Dependence on consistent budget allocations for incremental funding.
Tags
it-services, computer-systems-design, department-of-defense, department-of-the-army, firm-fixed-price, full-and-open-competition, delivery-order, general-dynamics-one-source-llc, virginia, long-term-contract, it-modernization
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.5 million to GENERAL DYNAMICS ONE SOURCE LLC. IGF::OT::IGF MODIFICATION TO INCORPORATE INCREMENTAL FUNDING.
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS ONE SOURCE LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $23.5 million.
What is the period of performance?
Start: 2017-05-19. End: 2023-08-11.
What is the historical spending trend for Computer Systems Design Services by the Department of the Army?
Analyzing historical spending for 'Computer Systems Design Services' by the Department of the Army reveals a consistent and significant investment in IT infrastructure and support. Over the past decade, the Army has allocated billions annually to this category, driven by evolving threats, technological advancements, and the need for robust digital capabilities. Spending often fluctuates based on major modernization initiatives, cybersecurity upgrades, and the lifecycle of existing systems. Contracts like the one awarded to General Dynamics One Source LLC represent a portion of this broader investment, typically supporting specific program needs or long-term operational requirements. The trend indicates a sustained reliance on external expertise for complex IT design and implementation.
How does the pricing of this contract compare to similar IT services contracts awarded by the DoD?
Benchmarking the pricing of this $23.5 million contract against similar IT services contracts awarded by the DoD requires access to detailed pricing data and specific service scopes. However, the fact that it was awarded under full and open competition with four bidders suggests that the pricing achieved was likely competitive. Firm-fixed-price contracts generally aim to secure a set price for defined services, implying that the awarded price was deemed fair and reasonable by the contracting officers based on the bids received. Without specific cost breakdowns or comparable contract details, a precise comparison is difficult, but the competitive award process is a positive indicator of value.
What are the primary risks associated with a long-term IT services contract like this one?
Long-term IT services contracts, such as this over six-year engagement, carry several inherent risks. Technological obsolescence is a significant concern; the systems and services procured may become outdated before the contract concludes, requiring costly modifications or replacements. Vendor lock-in is another risk, where the government becomes heavily reliant on a single provider, potentially stifling competition and innovation in the future. Performance degradation over time can occur if contract management and oversight are not rigorous. Furthermore, changes in government requirements or budget constraints could necessitate contract modifications, potentially leading to disputes or inefficiencies. Ensuring clear performance metrics and robust oversight is crucial to mitigate these risks.
What is General Dynamics One Source LLC's track record with federal IT contracts?
General Dynamics One Source LLC, as part of the larger General Dynamics Corporation, has an extensive track record of performing IT services for the federal government, including the Department of Defense. They are a major defense contractor with significant experience in areas such as systems integration, cybersecurity, enterprise IT, and command and control systems. Their history includes numerous large-scale contracts across various agencies. While specific performance details for every contract are not publicly available, their sustained presence and continued awards indicate a generally reliable performance history and capability to meet complex government requirements. Reviewing past performance evaluations, where available, would provide more granular insights.
How has the funding for this contract evolved since its inception?
The provided data indicates a modification to incorporate incremental funding ('IGF::OT::IGF MODIFICATION TO INCORPORATE INCREMENTAL FUNDING'). This suggests that the contract, initially awarded with a certain funding amount, has had subsequent funding actions to add more funds over its performance period. Incremental funding is common for multi-year contracts, especially those with uncertain future needs or phased budgets. It allows agencies to obligate funds incrementally as they become available or as specific milestones are met. The modification implies that the program's needs have continued, requiring additional financial commitment beyond the initial award, and that the contract has been actively managed to accommodate these ongoing requirements.
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
Solicitation ID: W15QKN16R0101
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 3211 JERMANTOWN ROAD, FAIRFAX, VA, 22030
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,511,035
Exercised Options: $23,511,035
Current Obligation: $23,511,035
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $509,605
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS00Q09BGD0030
IDV Type: GWAC
Timeline
Start Date: 2017-05-19
Current End Date: 2023-08-11
Potential End Date: 2023-08-11 12:08:00
Last Modified: 2023-09-22
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