Department of Homeland Security awards $102M for Border Enforcement Management Systems support

Contract Overview

Contract Amount: $102,040,348 ($102.0M)

Contractor: Science Applications International Corp

Awarding Agency: Department of Homeland Security

Start Date: 2018-09-29

End Date: 2020-09-26

Contract Duration: 728 days

Daily Burn Rate: $140.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::CL,CT::IGF THIS ORDER IS EXECUTED TO DELIVER OPERATIONS AND MAINTENANCE AND SOFTWARE DEVELOPMENT SUPPORT FOR SYSTEMS AND APPLICATIONS UNDER THE BORDER ENFORCEMENT MANAGEMENT SYSTEMS DIVISION PORTFOLIO.

Place of Performance

Location: ARLINGTON, LOUDOUN County, VIRGINIA, 20598

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $102.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORP for work described as: IGF::CL,CT::IGF THIS ORDER IS EXECUTED TO DELIVER OPERATIONS AND MAINTENANCE AND SOFTWARE DEVELOPMENT SUPPORT FOR SYSTEMS AND APPLICATIONS UNDER THE BORDER ENFORCEMENT MANAGEMENT SYSTEMS DIVISION PORTFOLIO. Key points: 1. Contract focuses on critical operations and maintenance, and software development for border enforcement systems. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 728 days indicates a significant, medium-term commitment. 4. The contractor, Science Applications International Corp (SAIC), has a substantial presence in government IT services. 5. The contract type (Cost Plus Fixed Fee) can present cost control challenges if not managed diligently. 6. This spending supports the modernization and upkeep of systems vital to border security operations.

Value Assessment

Rating: good

The contract value of $102 million over approximately two years for IT operations, maintenance, and software development appears reasonable given the scope. Benchmarking against similar large-scale IT support contracts for federal agencies suggests this is within expected ranges. The Cost Plus Fixed Fee structure, while allowing for flexibility, requires robust oversight to ensure cost efficiency and prevent scope creep. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the designation suggests a robust competitive environment. This level of competition is generally expected to drive down prices and encourage innovation as contractors vie for the award. The agency likely benefited from a range of technical solutions and pricing proposals.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value and price for essential border enforcement technology support. Full and open competition helps ensure that government funds are used efficiently by preventing sole-source awards that might otherwise lead to higher costs.

Public Impact

Benefits the U.S. Customs and Border Protection (CBP) by ensuring the operational readiness of critical border enforcement systems. Delivers essential services including operations, maintenance, and software development for the Border Enforcement Management Systems (BEMS) portfolio. Geographic impact is national, supporting CBP operations across all U.S. borders. Workforce implications include support for IT professionals and developers employed by SAIC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage costs effectively and prevent overruns.
The duration of the contract (728 days) necessitates ongoing monitoring to ensure continued alignment with agency needs and performance standards.
Reliance on a single contractor for critical system support could pose risks if performance issues arise or if the contractor faces financial instability.

Positive Signals

Awarded under full and open competition, indicating a competitive process that likely yielded favorable pricing and technical solutions.
The contractor, SAIC, is a well-established entity with significant experience in large-scale government IT contracts.
The contract supports vital national security functions related to border enforcement, indicating a high level of strategic importance.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. The U.S. government is a major consumer of these services, particularly for maintaining and modernizing complex systems. Spending in this area is crucial for agencies like DHS to manage vast amounts of data, ensure operational continuity, and adapt to evolving technological landscapes. Comparable spending benchmarks for large IT support contracts often run into tens or hundreds of millions of dollars annually, depending on the complexity and criticality of the systems involved.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate specific subcontracting requirements for small businesses in the provided data. The prime contractor, SAIC, is a large business. While large contracts can sometimes include subcontracting opportunities for small businesses, the absence of explicit set-aside language suggests that the primary focus was on securing the best overall solution from the broader market. Further analysis of subcontracting plans would be needed to assess the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Customs and Border Protection contracting officer and program managers. The Cost Plus Fixed Fee structure necessitates close monitoring of costs, performance, and adherence to the contract's scope. Transparency is generally maintained through contract reporting requirements and potential reviews by the Government Accountability Office (GAO) or the DHS Inspector General, although specific IG jurisdiction for this particular order is not detailed.

Related Government Programs

Border Security Technology Modernization
Customs and Border Protection IT Modernization
Federal Civilian IT Operations and Maintenance
Homeland Security Information Technology Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Potential for vendor lock-in if performance issues arise with a single provider.
Scope creep risk in software development and system support contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $102.0 million to SCIENCE APPLICATIONS INTERNATIONAL CORP. IGF::CL,CT::IGF THIS ORDER IS EXECUTED TO DELIVER OPERATIONS AND MAINTENANCE AND SOFTWARE DEVELOPMENT SUPPORT FOR SYSTEMS AND APPLICATIONS UNDER THE BORDER ENFORCEMENT MANAGEMENT SYSTEMS DIVISION PORTFOLIO.

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORP.

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 $102.0 million.

What is the period of performance?

Start: 2018-09-29. End: 2020-09-26.

What is the track record of Science Applications International Corp (SAIC) with Department of Homeland Security contracts, particularly in IT support?

Science Applications International Corp (SAIC) has a long and extensive history of contracting with the Department of Homeland Security (DHS), including significant work with U.S. Customs and Border Protection (CBP). SAIC is a major provider of IT services to the federal government, encompassing areas such as systems engineering, software development, cybersecurity, and mission support. Their portfolio with DHS often includes large, complex programs critical to national security and border operations. While specific performance metrics for individual contracts are not publicly detailed, SAIC's continued success in winning and performing on numerous large-value DHS contracts suggests a generally positive track record and established relationship with the agency. However, like any large contractor, there may be instances of past performance issues or contract disputes that warrant deeper investigation for specific awards.

How does the $102 million cost compare to similar IT support contracts for border enforcement systems?

The $102 million award for Border Enforcement Management Systems (BEMS) operations, maintenance, and software development over approximately two years represents a substantial investment. Comparing this to similar contracts requires access to detailed data on other large-scale IT support agreements within federal agencies, particularly those focused on border security or large operational system portfolios. However, for complex, mission-critical IT systems supporting national security functions, costs in the tens to low hundreds of millions of dollars over a multi-year period are not uncommon. Factors influencing cost include the number of systems supported, the criticality of uptime, the complexity of software development required, and the specific security requirements. Given the scope of BEMS, this figure appears to be within the expected range for such a significant undertaking, especially when awarded through full and open competition.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT services?

Cost Plus Fixed Fee (CPFF) contracts, like the one awarded to SAIC for BEMS support, present specific risks primarily related to cost control. The government agrees to pay the contractor's allowable costs plus a fixed fee, which represents the contractor's profit. The main risk for the government is that the contractor may have less incentive to control costs compared to fixed-price contracts, as cost overruns are generally reimbursed. This can lead to the total contract cost exceeding initial estimates if not managed rigorously. For the contractor, the risk lies in accurately estimating costs to ensure the fixed fee remains profitable. Effective oversight, detailed cost accounting, and clear scope definition are crucial to mitigate these risks and ensure value for taxpayer money. Scope creep is a significant concern that must be actively managed.

How effective are IT modernization efforts like this in improving border enforcement capabilities?

IT modernization efforts, such as the software development and system support funded by this contract for the Border Enforcement Management Systems (BEMS) portfolio, are generally considered crucial for improving border enforcement capabilities. Modernized systems can enhance data sharing among agencies, improve situational awareness, streamline processing of individuals and goods, and enable more efficient resource allocation. For example, better integrated systems can help identify high-risk individuals or cargo more effectively. However, the effectiveness is highly dependent on the quality of the software developed, the seamless integration with existing infrastructure, user adoption, and ongoing maintenance. Without specific performance metrics tied to this contract's outcomes (e.g., reduction in processing times, improved interdiction rates), it's difficult to quantify the exact effectiveness, but the investment is strategically aimed at enhancing operational efficiency and security.

What has been the historical spending trend for Border Enforcement Management Systems support by DHS?

Analyzing historical spending trends for Border Enforcement Management Systems (BEMS) support by DHS would require accessing detailed contract databases and budget allocations over several fiscal years. Typically, agencies like DHS face continuous needs for IT system maintenance, upgrades, and modernization due to evolving threats, technological advancements, and policy changes. Spending on critical systems like BEMS is likely to be substantial and relatively consistent, potentially increasing over time if systems are expanded or require more complex upgrades. Fluctuations might occur based on specific modernization initiatives, system lifecycle replacements, or shifts in agency priorities. A comprehensive review would reveal whether this $102 million award represents an increase, decrease, or stable level of investment compared to previous periods for similar services.

What are the implications of awarding IT support for critical border systems through full and open competition?

Awarding IT support for critical border systems through full and open competition has several positive implications. Firstly, it maximizes the pool of potential offerors, increasing the likelihood of finding a contractor with the best technical solution and competitive pricing. This competitive pressure can drive down costs for taxpayers. Secondly, it promotes innovation as companies strive to differentiate their offerings. Thirdly, it enhances transparency and fairness in the procurement process, reducing the potential for favoritism. For critical systems like BEMS, this approach ensures that the government is not locked into a single vendor, allowing for flexibility and potentially better long-term value. The main challenge is the increased time and resources required for the solicitation and evaluation process compared to other methods.

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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Science Applications International Corporation (UEI: 078745061)

Address: 11720 PLAZA AMERICA DR, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $102,040,348

Exercised Options: $102,040,348

Current Obligation: $102,040,348

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $13,854,659

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSBP1013D00021

IDV Type: IDC

Timeline