DHS awards $20.2M contract for technical services, with BAE Systems as prime

Contract Overview

Contract Amount: $20,238,907 ($20.2M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2020-12-18

End Date: 2026-02-06

Contract Duration: 1,876 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ESD EUC

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20472

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $20.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: ESD EUC Key points: 1. Contract value represents a significant investment in specialized technical support. 2. BAE Systems, a major defense contractor, is the prime awardee. 3. The contract duration extends over several years, indicating a long-term need. 4. The award was made under full and open competition. 5. The services provided fall under 'All Other Professional, Scientific, and Technical Services'. 6. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of $20.2 million over its period of performance appears reasonable for specialized technical services. Benchmarking against similar contracts for professional, scientific, and technical services is challenging without more specific service details. However, given the prime contractor's extensive experience, the pricing is likely competitive within the market for such expertise. The firm-fixed-price structure suggests that cost overruns are primarily the contractor's responsibility, which is a positive indicator for value.

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 offers. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which is expected to drive better pricing and service quality. The agency sought proposals from a wide range of potential contractors, maximizing the opportunity for innovative solutions and cost-effectiveness.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, leading to potentially lower prices and better value for the government's investment.

Public Impact

The primary beneficiaries are likely the Department of Homeland Security (DHS) and its various components, which will receive essential technical support. The services delivered are expected to enhance the operational capabilities and efficiency of DHS programs. The contract is geographically focused on Washington D.C., where the agency's operations are concentrated. The contract supports a workforce skilled in professional, scientific, and technical services, potentially including engineers, scientists, and analysts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on a single prime contractor for critical technical services.
Ensuring continued innovation and service quality throughout the contract's duration.

Positive Signals

Award to an experienced prime contractor with a strong track record.
Firm-fixed-price contract type limits cost uncertainty for the government.
Full and open competition promotes a competitive market for services.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, a broad category encompassing a wide range of specialized expertise. The market for these services is highly competitive, with numerous large and small businesses offering solutions to government agencies. Spending in this sector is substantial across the federal government, supporting everything from IT consulting to scientific research and engineering support. This particular award contributes to the overall federal investment in maintaining and enhancing critical government functions through expert technical assistance.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. While BAE Systems is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific needs of the services required. Further analysis would be needed to determine the actual impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Emergency Management Agency (FEMA) contracting officers and program managers within DHS. The firm-fixed-price nature of the contract provides a degree of financial oversight by fixing the total cost. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Professional, Scientific, and Technical Services
IT and Technical Support Services
Department of Homeland Security Contracts
Federal Emergency Management Agency Contracts

Risk Flags

Contract duration exceeds 1 year
Award to large business prime contractor
Services are not IT-specific

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. ESD EUC

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $20.2 million.

What is the period of performance?

Start: 2020-12-18. End: 2026-02-06.

What is the specific nature of the 'All Other Professional, Scientific, and Technical Services' being provided under this contract?

The provided data indicates the contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This is a broad category that can encompass a wide array of specialized services not classified elsewhere. Without more specific details from the contract itself, it's difficult to pinpoint the exact services. However, given the prime contractor, BAE Systems, and the awarding agency, FEMA, these services could range from specialized engineering support, scientific analysis, program management consulting, technical advisory services, or support for specific operational systems critical to FEMA's mission. The 'delivery order' nature suggests it might be a task order under a larger IDIQ contract, further implying a need for flexible and varied technical expertise.

How does the $20.2 million contract value compare to similar technical services contracts awarded by DHS or FEMA?

Benchmarking the $20.2 million contract value requires comparing it to similar 'All Other Professional, Scientific, and Technical Services' contracts awarded by DHS and FEMA. While the provided data doesn't offer direct comparisons, contracts of this magnitude for specialized technical support are not uncommon within large federal agencies like DHS. FEMA, in particular, requires extensive technical expertise for disaster response, recovery, and mitigation efforts. The value suggests a significant scope of work or a long-term need for specialized skills. A more precise comparison would involve analyzing the specific services rendered and the duration, as well as the number of bidders and the competitive landscape for those specific services.

What is BAE Systems' track record with federal contracts, particularly with DHS and FEMA?

BAE Systems Technology Solutions & Services Inc. is a well-established and significant federal contractor, particularly within the defense and intelligence sectors, but also serving civilian agencies. They have a substantial history of performing complex technical, engineering, and support services for various government entities. Their track record with DHS and FEMA would likely include numerous awards for a range of services, potentially including IT support, systems engineering, logistics, and specialized technical consulting. Given their size and experience, they are generally considered a reliable performer, though like any large contractor, specific contract performance can vary. Federal contract databases would provide a more detailed history of their past performance ratings and awards with these agencies.

What are the potential risks associated with a multi-year contract for technical services awarded to a single prime contractor?

A primary risk associated with a multi-year contract for technical services awarded to a single prime contractor is the potential for vendor lock-in and reduced agility. If the contractor's performance falters or if market conditions change, transitioning to a new provider can be complex and costly. There's also a risk of complacency or reduced innovation over time if competition is not continuously fostered through contract modifications or future procurements. Furthermore, over-reliance on one contractor can create vulnerabilities if that contractor faces financial difficulties, organizational changes, or key personnel departures. Robust oversight, clear performance metrics, and contingency planning are crucial to mitigate these risks.

How does the firm-fixed-price contract type influence cost control and risk for this $20.2M award?

The firm-fixed-price (FFP) contract type is generally considered advantageous for the government in terms of cost control and risk transfer. Under an FFP contract, the contractor agrees to a total price for a well-defined scope of work. This means that BAE Systems bears the primary responsibility for any cost overruns incurred during performance. For the government, this provides a high degree of cost certainty, as the total expenditure is fixed. This structure incentivizes the contractor to manage its costs efficiently and effectively to maximize profit. The main risk for the government under FFP is that the contractor might cut corners on quality or scope to protect its profit margin if unforeseen challenges arise, necessitating strong performance monitoring.

What is the historical spending pattern for 'All Other Professional, Scientific, and Technical Services' by FEMA?

Analyzing historical spending patterns for NAICS code 541990 ('All Other Professional, Scientific, and Technical Services') by FEMA would reveal trends in their reliance on external expertise for various functions. FEMA, as the lead federal agency for disaster management, often requires specialized technical and scientific support for response, recovery, mitigation planning, and infrastructure assessment. Historical data would likely show fluctuations tied to major disaster events and the subsequent need for surge support. Understanding this pattern can help assess whether the current $20.2 million award is consistent with past investments, indicative of an increasing need, or a response to specific, ongoing program requirements. This context is crucial for evaluating the long-term fiscal implications.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

Address: 520 GAITHER RD, ROCKVILLE, MD, 20850

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

Financial Breakdown

Contract Ceiling: $20,253,232

Exercised Options: $20,253,232

Current Obligation: $20,238,907

Actual Outlays: $8,743,168

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $2,042,646

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FA3019D00000003

IDV Type: IDC

Timeline