We last examined GDIT in 2019, examining their top customers, M&A history, and their movement of personnel post CSRA-acquisition. In this blog, we examine the company’s changing mix of customers and major wins and losses over the past two years.
How has GDIT’s customer portfolio changed?
The below graphic illustrates how GDIT’s top customers have changed over time:
Figure 1 – GDIT’s top prime contracting customers from FY2015-FY2018 and FY2018-FY2021
Source: USASpending.gov
As shown above, GDIT’s top customers have remained Centers for Medicare and Medicaid Services (CMS), the U.S. Army, Navy, Air Force, and U.S. Department of State. It’s important to note that their overall revenue at CMS, the U.S. Navy, and the U.S. Air Force has decreased from over the past six years. This trend indicates a potential erosion of work with GDIT’s most major customers. This is partially due to the divestiture of GDIT’s government call center business to Maximus Corporation in 2018 for $400 million.
However, it’s also important to note that, at the same time, GDIT increased their footprint at several federal civilian agencies during this time period, to include the U.S. Department of State, Federal Aviation Administration (FAA), U.S. Census Bureau, Federal Emergency Management Agency (FEMA), and the Environmental Protection Agency (EPA).
Major wins for GDIT
Since April 2019, GDIT has won several large-scale contracts across various agencies:
- U.S. Patent and Trademark Office (USPTO) Enterprise Cloud Modernization – In November 2021, GDIT was awarded a five-year, $190 million ceiling value contract to provide enterprise cloud modernization support to the USPTO. Notably, GDIT will provide a hybrid multi-cloud platform and specifically called out its intention to leverage cloud solutions from Amazon Web Services (AWS), Google and Microsoft. Note that GDIT was recently awarded another contract at UPSTO, to support the office’s adoption of AIML engineering and operations through the Intelligent Automation and Innovation Support Services (IAISS) BPA.
- U.S. Department of the Navy, Naval Information Warfare Systems Command (NAVWAR), IT Service Desk Modernization – In September 2021, GDIT was awarded a four-year, $136 million ceiling value IDIQ to modernize and consolidate existing IT help desks for the U.S. Navy. GDIT will provide service desk-as-a-service using a knowledge-based solution that will employ artificial intelligence, machine learning, predictive analytics and natural language processing.
- U.S. Army Europe (USAREUR), Enterprise Mission Information Technology Services (EMITS) – In January 2021, GDIT was awarded a five-year, $695 million ceiling value task order to provide enterprise information technology, communications, and mission command support services to support USAREUR headquarters and NATO operations.
- U.S. Defense Information Systems Agency (DISA), Defense Enterprise Office Solutions (DEOS) – In November 2020, GDIT was awarded a $4.4 billion ceiling value contract to provide enterprise cloud support to the DoD. GDIT will stand up and accredit DEOS cloud environments and support the migration of existing DoD Office 365 (O365) tenants into DEOS, impacting over 3.2 million DoD users. This contract, which constitutes new work, was originally awarded in August 2019 for $7.6 billion but was protested by legacy Perspecta and recompeted, leading to another GDIT win.
- U.S. Southern Command (SOUTHCOM) Cyber Information Technology Enterprise Services (SCITES) – In October 2020, GDIT was awarded a $762 million ceiling value contract to provide global enterprise IT and digital modernization services to USOUTHCOM. GDIT will modernize and normalize information technology for SOUTHCOM combatant command blue terrain in the cyber warfighting domain.
Major losses for GDIT
Along with some key wins, GDIT has lost some noteworthy pursuits:
- U.S. Department of Homeland Security (DHS), Data Center and Cloud Optimization (DCCO) – In September 2021, GDIT lost the recompete contract that included Data Center 1 support for DHS to Peraton. This $2.7 billion DCCO contract will manage a hybrid computing environment (HCE) consisting of a data center, colocation facilities and cloud services. This was likely a large blow to GDIT, as the company had the last contract on DC1 since 2015, earning over a billion dollars. It also stands out as an upset win considering that Peraton won DCCO in spite of the fact that Data Center 2 (which was supported by legacy Perspecta) was set to be shut down by DHS.
- U.S. European Command (EUCOM), U.S. Africa Command (AFRICOM), and AFRICOM’s Combined Joint Task Force – Horn of Africa (CJTF-HOA), Communication and Information Technology Services III – In July 2019, GDIT lostthe recompete contract to CACI for IT services support to EUCOM, AFRICOM, and CJTF-HOA. The $645 million ALLIANT task order O&M and lifecycle support for communications, networks, office automation, software, and systems application support for C4 systems.
The FedSavvy Strategies Takeaway
- GDIT’s top customers remain CMS, the U.S. Navy, U.S. Army, U.S. Department of State, and the U.S. Air Force. They’ve also seen an increased footprint in several federal civilian agencies, to include the EPA and FEMA.
- GDIT continues to demonstrate its capability to win large-scale, enterprise contracts, providing services in cloud, cyber, communications, and service desk work.
- The company’s DHS portfolio will shrink following the DCCO loss. It is possible this loss could erode GDIT’s reputation in data center support.
- GDIT’s DEOS win (both the original and recompeted version caused by protest) and recent USPTO win demonstrates their particular focus on cloud. Their mention of particular cloud partnerships through their USPTO win signals strong relationships with top cloud providers.
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