DoD's $27.6M Data Center Services Contract Awarded to General Dynamics One Source LLC

Contract Overview

Contract Amount: $27,619,975 ($27.6M)

Contractor: General Dynamics ONE Source LLC

Awarding Agency: Department of Defense

Start Date: 2014-07-22

End Date: 2016-05-22

Contract Duration: 670 days

Daily Burn Rate: $41.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF ENTERPRISE DATA CENTER SERVICES

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $27.6 million to GENERAL DYNAMICS ONE SOURCE LLC for work described as: IGF::CT::IGF ENTERPRISE DATA CENTER SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. Performance period spans 670 days, indicating a medium-term service delivery requirement. 4. The contract falls under Computer Systems Design Services, a common IT support category. 5. The award value is substantial, requiring careful monitoring of performance and value. 6. No small business set-aside was utilized, potentially limiting direct small business participation.

Value Assessment

Rating: fair

The contract value of approximately $27.6 million over 670 days represents a significant investment in IT infrastructure. Benchmarking this against similar data center services contracts is challenging without more granular data on the specific services provided. However, the firm fixed-price structure suggests an attempt to control costs, but the overall value for money depends heavily on the quality and efficiency of the services delivered by General Dynamics One Source LLC. Further analysis would require comparing the per-unit costs of specific services against industry averages.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of only one bid (no: 1) is a notable point. While full and open competition is generally preferred for maximizing competition, a single bid can sometimes suggest a lack of market interest, unique contractor capabilities, or potential barriers to entry for other firms. This could impact price discovery and potentially lead to less competitive pricing than if multiple bids were received.

Taxpayer Impact: A single bid in a full and open competition raises questions about whether taxpayers received the best possible price. While the process allowed for broad participation, the outcome suggests that only one firm was either willing or able to submit a proposal, potentially limiting the downward pressure on costs that multiple competing bids typically create.

Public Impact

The Department of Defense benefits from the provision of essential data center services, ensuring operational continuity and data management. This contract supports the delivery of computer systems design and related services critical for military IT infrastructure. The contract is geographically focused on Maryland (MD), indicating a specific regional impact for IT support. The contract likely supports a workforce skilled in IT services, data center management, and computer systems design.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Single bid received under full and open competition may indicate limited market interest or potential barriers to entry.
Lack of small business participation noted, which could impact opportunities for smaller firms in the IT services sector.
Firm Fixed Price contract shifts risk to contractor; performance quality is key to value realization.

Positive Signals

Awarded through full and open competition, adhering to principles of broad market access.
Firm Fixed Price contract provides cost certainty for the government, assuming contractor performance meets expectations.
Contract duration of 670 days allows for sustained service delivery and potential for relationship building.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design and data center services. The IT services market is highly competitive and dynamic, with significant government spending allocated to maintaining and upgrading complex systems. General Dynamics is a major player in this space. The value of this contract, while substantial, needs to be viewed within the broader context of federal IT spending, which often runs into billions annually for similar services across various agencies.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no small business participation (sb: false). This means that opportunities for small businesses to directly participate in this specific contract were limited. While General Dynamics One Source LLC might engage small businesses as subcontractors, the primary award did not prioritize small business inclusion. This could represent a missed opportunity to foster small business growth within the federal IT contracting ecosystem for this particular requirement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. As a firm fixed-price contract, oversight would focus on ensuring the contractor meets performance standards and delivery schedules. Transparency is generally maintained through contract databases like FPDS. The Inspector General's office for the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

IT Infrastructure Services
Data Center Operations
Computer Systems Design
Information Technology Support Services
Department of Defense IT Contracts

Risk Flags

Single bid received under full and open competition.
Potential for limited price competition due to single bidder.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.6 million to GENERAL DYNAMICS ONE SOURCE LLC. IGF::CT::IGF ENTERPRISE DATA CENTER SERVICES

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 $27.6 million.

What is the period of performance?

Start: 2014-07-22. End: 2016-05-22.

What specific data center services were included in this $27.6 million contract?

The provided data indicates the contract falls under NAICS code 541512 (Computer Systems Design Services) and is for 'IGF ENTERPRISE DATA CENTER SERVICES'. However, the specific breakdown of services such as server hosting, network management, data storage, cloud integration, or cybersecurity measures is not detailed in the summary data. Understanding the precise scope of services is crucial for a comprehensive value assessment and for comparing this contract to similar procurements. Without this granularity, it's difficult to ascertain if the $27.6 million adequately covers the required technical capabilities and operational support.

How does the $27.6 million contract value compare to historical spending on similar data center services by the Department of the Army?

To compare this $27.6 million contract value to historical spending, one would need to analyze prior contracts awarded by the Department of the Army for enterprise data center services. This would involve querying contract databases for similar NAICS codes (e.g., 541512, 518210 for data processing) and service descriptions over several fiscal years. Factors like inflation, technological advancements, and changes in service requirements would need to be considered for a meaningful comparison. Without access to this historical data, it's challenging to determine if this award represents an increase, decrease, or stable level of investment in data center services.

What is the assessed risk level associated with General Dynamics One Source LLC as a contractor for this type of service?

Assessing the risk level for General Dynamics One Source LLC requires examining their past performance on similar government contracts. Key indicators include on-time delivery rates, quality of service, adherence to budget (though less critical for FFP), and any history of contract disputes or performance issues. While the provided data doesn't include a contractor performance score, a large, established company like General Dynamics typically has a track record that can be reviewed through sources like the Contractor Performance Assessment Reporting System (CPARS). A review of their history in providing complex IT and data center services would inform the risk assessment.

Given the firm fixed-price (FFP) contract type, what are the potential implications for service quality and cost overruns?

A Firm Fixed-Price (FFP) contract shifts the primary cost risk to the contractor, General Dynamics One Source LLC. This means the government pays a set price regardless of the contractor's actual costs. The implication for service quality is that the contractor is incentivized to deliver the specified services efficiently to maximize profit. However, if the initial cost estimation was flawed or unforeseen technical challenges arise, the contractor might be tempted to cut corners on quality to maintain profitability, potentially impacting service delivery. Conversely, if the contractor is highly efficient, the government benefits from cost certainty. Robust performance monitoring by the Army is essential to ensure quality is not compromised.

What does the single bid received under 'full and open competition' signify for the government and taxpayers?

Receiving only one bid under a 'full and open competition' is a significant indicator. It suggests that despite the solicitation being open to all responsible sources, only one entity submitted a proposal. This could stem from various factors: the requirement being highly specialized, the contractor possessing unique capabilities, restrictive pre-qualification criteria, or a lack of market interest due to perceived low profitability or high risk. For taxpayers, a single bid can mean less competitive pricing than might be achieved with multiple offers. It raises questions about whether the government secured the best possible value and whether the procurement process effectively stimulated competition.

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 (UEI: 001381284)

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: $27,619,975

Exercised Options: $27,619,975

Current Obligation: $27,619,975

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $14,211,945

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0030

IDV Type: GWAC

Timeline