DHS Awards $41.9M for Computer Systems Design to Anduril Industries, Inc
Contract Overview
Contract Amount: $41,865,736 ($41.9M)
Contractor: Anduril Industries, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2025-08-01
End Date: 2026-08-02
Contract Duration: 366 days
Daily Burn Rate: $114.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: S1 APPROVED AWARD FOR DELIVERY ORDER 18
Place of Performance
Location: COSTA MESA, ORANGE County, CALIFORNIA, 92626
Plain-Language Summary
Department of Homeland Security obligated $41.9 million to ANDURIL INDUSTRIES, INC. for work described as: S1 APPROVED AWARD FOR DELIVERY ORDER 18 Key points: 1. Significant award to a single vendor for specialized IT services. 2. Competition method suggests potential for better pricing, but exclusion of sources warrants scrutiny. 3. Risk associated with reliance on a single vendor for critical systems. 4. IT sector spending is high, but specific benchmarks for this service are needed.
Value Assessment
Rating: fair
The award amount of $41.9M for a 366-day contract is substantial. Without specific benchmarks for 'Computer Systems Design Services' under similar conditions, it's difficult to definitively assess pricing. The contract type is Firm Fixed Price, which can offer cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while competition was sought, certain sources were excluded, potentially limiting the breadth of competition and impacting price discovery.
Taxpayer Impact: Taxpayer funds are being used for this significant IT services contract. The effectiveness of the competition method in securing the best value for taxpayers is a key consideration.
Public Impact
Border security technology upgrades may be impacted by this contract. Anduril Industries, Inc. is a key player in defense technology, and this award reflects their growing role. The use of IT services for border management highlights the increasing reliance on technology in federal agencies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to source exclusion.
- Potential for vendor lock-in.
- Lack of clear per-unit cost benchmark.
Positive Signals
- Firm Fixed Price contract type.
- Clear period of performance.
- Award to a known entity in the defense tech space.
Sector Analysis
This award falls within the IT sector, specifically computer systems design services. Federal IT spending is a major component of the federal budget, with significant investments made annually in system design, integration, and maintenance.
Small Business Impact
The awardee, Anduril Industries, Inc., is not typically considered a small business. This contract does not appear to have specific set-asides or provisions for small business participation, which is common for large, specialized IT contracts.
Oversight & Accountability
Oversight will be crucial to ensure that the services delivered meet the requirements of U.S. Customs and Border Protection and that the funds are used efficiently. The 'exclusion of sources' aspect warrants particular attention from oversight bodies.
Related Government Programs
- Computer Systems Design Services
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- Limited competition due to source exclusion.
- Potential for cost overruns if scope creep occurs.
- Dependence on a single vendor for critical IT systems.
- Lack of transparency in the source exclusion process.
- Cybersecurity risks associated with third-party IT services.
Tags
computer-systems-design-services, department-of-homeland-security, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $41.9 million to ANDURIL INDUSTRIES, INC.. S1 APPROVED AWARD FOR DELIVERY ORDER 18
Who is the contractor on this award?
The obligated recipient is ANDURIL INDUSTRIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).
What is the total obligated amount?
The obligated amount is $41.9 million.
What is the period of performance?
Start: 2025-08-01. End: 2026-08-02.
What specific factors led to the exclusion of certain sources in the competition, and how did this impact the final price and vendor selection?
The exclusion of sources suggests that only a limited number of vendors met specific technical, security, or capability requirements. This can be justified if only a few companies possess the necessary expertise or technology. However, it also raises concerns about whether the government received the most competitive pricing possible, as a narrower field of bidders may reduce downward price pressure.
How does the $41.9M contract value compare to similar computer systems design services contracts awarded by DHS or other agencies of comparable scope and duration?
Benchmarking this contract's value requires detailed comparison with similar 'Computer Systems Design Services' (NAICS 541512) contracts. Factors like contract duration (366 days), service complexity, and vendor-specific expertise influence pricing. Without access to a comprehensive database of comparable contracts, it's challenging to definitively state if $41.9M represents a competitive price point for this specific service.
What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effective delivery of services?
Effective service delivery hinges on clearly defined KPIs tied to the 'Computer Systems Design Services' scope. These could include system uptime, successful integration of new components, adherence to project timelines, and user satisfaction. Robust measurement mechanisms and regular performance reviews by U.S. Customs and Border Protection are essential to ensure the contractor meets expectations and taxpayer funds are well-spent.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1375 SUNFLOWER AVE, COSTA MESA, CA, 92626
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $41,865,736
Exercised Options: $41,865,736
Current Obligation: $41,865,736
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70B02C20D00000019
IDV Type: IDC
Timeline
Start Date: 2025-08-01
Current End Date: 2026-08-02
Potential End Date: 2026-08-02 16:06:24
Last Modified: 2026-01-30
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