General Dynamics IT awarded $63.1M for US Army Reserve medical training services under a firm-fixed-price contract

Contract Overview

Contract Amount: $63,105,649 ($63.1M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-01-01

End Date: 2023-10-31

Contract Duration: 2,129 days

Daily Burn Rate: $29.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF AWARD OF NON-PERSONAL SERVICES FOR THE UNITED STATES ARMY RESERVES (USAR) MEDICAL, SPECIFICALLY, THE RESERVE TRAINING SITE-MEDICAL (RTS-MED) PROGRAM.

Place of Performance

Location: DUBLIN, ALAMEDA County, CALIFORNIA, 94568

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $63.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: IGF::OT::IGF AWARD OF NON-PERSONAL SERVICES FOR THE UNITED STATES ARMY RESERVES (USAR) MEDICAL, SPECIFICALLY, THE RESERVE TRAINING SITE-MEDICAL (RTS-MED) PROGRAM. Key points: 1. The contract value of $63.1 million over nearly five years suggests a significant investment in medical training infrastructure. 2. Full and open competition was utilized, indicating a potentially competitive bidding process that could drive value. 3. The firm-fixed-price contract type shifts performance risk to the contractor, potentially stabilizing costs for the government. 4. The contract supports the Reserve Training Site-Medical (RTS-MED) program, crucial for maintaining readiness of Army Reserve medical personnel. 5. The duration of the contract (2129 days) allows for sustained service delivery and potential for long-term relationship building. 6. The award to General Dynamics Information Technology, Inc. places this contract within a large, established federal IT services provider. 7. The North American Industry Classification System (NAICS) code 611430 points to professional and management development training, a specialized service area.

Value Assessment

Rating: good

The contract's firm-fixed-price structure is generally favorable for cost control. Benchmarking against similar large-scale training contracts is necessary for a definitive value assessment. However, the scale of the award and the competitive nature of its procurement suggest a reasonable effort to secure value for the government. The duration of the contract also allows for economies of scale in service delivery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 6 bidders indicates a healthy level of competition for this requirement. This competitive environment is generally expected to lead to more favorable pricing and innovative solutions for the government.

Taxpayer Impact: A competitive bidding process for this significant contract helps ensure taxpayer dollars are used efficiently by driving down costs and encouraging quality service delivery.

Public Impact

Benefits Army Reserve medical personnel by providing essential training for their roles and readiness. Delivers professional and management development training services critical for operational effectiveness. The contract's geographic impact is primarily focused on supporting the US Army Reserve, with services likely delivered at various training sites. Implications for the medical training workforce, potentially involving instructors, support staff, and subject matter experts. Enhances the medical readiness of reserve components, ensuring they can be deployed effectively when needed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if training requirements are not clearly defined and managed.
Dependence on a single large contractor could pose risks if performance issues arise.
Ensuring continuous alignment with evolving military medical training standards requires proactive oversight.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust selection process.
Contractor's established presence in federal IT services may indicate capacity and experience.
Long contract duration allows for stable service provision and potential for efficiency gains.

Sector Analysis

This contract falls within the professional and management development training sector, a segment of the broader education and training services industry. The federal government is a significant purchaser of such services, particularly for military personnel development. Comparable spending benchmarks would involve analyzing other large-scale training contracts awarded by the Department of Defense or other federal agencies for specialized skill development.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. There is no explicit information provided regarding subcontracting plans for small businesses. Further analysis would be needed to determine if small businesses are involved in the supply chain or if there are opportunities for them to participate.

Oversight & Accountability

Oversight for this contract would typically reside with the Department of the Army contracting officer and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which incentivizes contractor performance. Transparency is generally facilitated through contract award databases, though specific performance metrics and oversight reports may not always be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

DoD Medical Readiness Programs
Army Reserve Training Initiatives
Professional Development Services for Federal Agencies
IT Services for Military Support

Risk Flags

Performance Risk
Cost Overrun Potential (if scope changes)
Contractor Dependency
Alignment with Evolving Standards

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $63.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. IGF::OT::IGF AWARD OF NON-PERSONAL SERVICES FOR THE UNITED STATES ARMY RESERVES (USAR) MEDICAL, SPECIFICALLY, THE RESERVE TRAINING SITE-MEDICAL (RTS-MED) PROGRAM.

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 Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $63.1 million.

What is the period of performance?

Start: 2018-01-01. End: 2023-10-31.

What is the track record of General Dynamics Information Technology, Inc. in delivering similar large-scale training services to the federal government?

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record of providing IT and professional services to various federal agencies, including the Department of Defense. They have been involved in numerous large-scale contracts encompassing training, simulation, and readiness support. Their experience often includes managing complex programs, developing training curricula, and delivering instruction across diverse military occupational specialties. GDIT's history suggests they possess the organizational capacity and technical expertise to manage a contract of this magnitude, though specific performance on prior, directly comparable training contracts would require deeper investigation into past performance evaluations and contract close-out data.

How does the awarded amount of $63.1 million compare to similar medical training contracts for reserve components?

Comparing the $63.1 million award for the US Army Reserve RTS-MED program requires a benchmark of similar contracts. Large-scale, multi-year training initiatives for military reserve components can range significantly in cost depending on the scope, duration, and specialized nature of the training. Contracts for general military occupational training might be lower, while those involving highly specialized medical or technical skills, advanced simulation, or extensive logistical support could be comparable or higher. Without specific data on other RTS-MED programs or equivalent reserve medical training contracts, it's difficult to definitively state if $63.1 million is high or low. However, for a nearly five-year program supporting a significant portion of the Army Reserve's medical training needs, this figure appears to be within a plausible range for substantial federal training investments.

What are the primary risk indicators associated with this contract, given its scope and duration?

Key risk indicators for this contract include potential performance issues if the contractor fails to meet the specified training standards or delivery schedules, which could impact Army Reserve medical readiness. Given the firm-fixed-price nature, there's a risk of the contractor cutting corners on quality to maintain profitability, necessitating robust government oversight. The long duration (over five years) increases the risk of technological obsolescence in training methods or content, requiring adaptability. Furthermore, reliance on a single large contractor, General Dynamics Information Technology, Inc., presents a dependency risk; any significant performance degradation or financial instability on their part could disrupt critical training services. Finally, ensuring the training remains aligned with evolving military medical doctrine and requirements is an ongoing risk that requires proactive program management.

How effective is the firm-fixed-price contract type in ensuring value for money for this specific medical training requirement?

The firm-fixed-price (FFP) contract type is generally considered effective for ensuring value for money when requirements are well-defined and stable, as is often the case with standardized training programs. For the US Army Reserve's RTS-MED program, an FFP contract shifts the risk of cost overruns to the contractor, incentivizing them to manage their expenses efficiently. This provides the government with cost certainty, making budgeting more predictable. The value for money is further enhanced by the competitive bidding process that preceded the award. However, the effectiveness hinges on the government's ability to clearly define performance standards and conduct diligent oversight to ensure the contractor meets these standards without compromising quality to maximize profit. If requirements are poorly defined or change frequently, an FFP contract can become less advantageous.

What are the historical spending patterns for medical training within the US Army Reserve, and how does this contract fit?

Historical spending patterns for medical training within the US Army Reserve are likely characterized by a mix of internal training capabilities, contracted services, and support from larger Department of Defense training commands. Specific figures for the RTS-MED program prior to this award are not provided, but it can be inferred that consistent investment is required to maintain the medical readiness of reservists. This $63.1 million contract represents a significant, consolidated investment over a defined period, suggesting a strategic approach to outsourcing or augmenting specific training functions. It likely aims to provide a more standardized and potentially cost-effective solution compared to fragmented or ad-hoc training efforts. Understanding the historical allocation of funds towards similar outsourced training initiatives would provide better context for this contract's place within the Reserve's overall training budget.

Industry Classification

NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W81K0417R0006

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 3211 JERMANTOWN RD, FAIRFAX, VA, 22030

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $63,105,649

Exercised Options: $63,105,649

Current Obligation: $63,105,649

Actual Outlays: $56,368

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $2,666,769

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline