DHS Awards $182.5M for OBIM Infrastructure Support to General Dynamics, Sole-Source

Contract Overview

Contract Amount: $182,544,952 ($182.5M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2021-07-01

End Date: 2022-12-30

Contract Duration: 547 days

Daily Burn Rate: $333.7K/day

Competition Type: NOT COMPETED

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THIS TASK ORDER IS TO PROCURE SUPPORT SERVICES TO OPERATE AND MAINTAIN THE OBIM INFRASTRUCTURE COMPONENTS AND ASSOCIATED FUNCTIONALITY OF THE PRODUCTION AND NON-PRODUCTION ENVIRONMENTS AND ASSOCIATED BUSINESS SYSTEMS CURRENTLY DEPLOYED WITH THE DHS D

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $182.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: THIS TASK ORDER IS TO PROCURE SUPPORT SERVICES TO OPERATE AND MAINTAIN THE OBIM INFRASTRUCTURE COMPONENTS AND ASSOCIATED FUNCTIONALITY OF THE PRODUCTION AND NON-PRODUCTION ENVIRONMENTS AND ASSOCIATED BUSINESS SYSTEMS CURRENTLY DEPLOYED WITH THE DHS D Key points: 1. General Dynamics secured a significant contract for critical OBIM infrastructure support. 2. The contract was awarded sole-source, raising questions about competition and potential cost savings. 3. Focus on IT infrastructure management highlights the growing reliance on robust IT systems. 4. The $182.5M award represents substantial federal investment in maintaining essential government functions.

Value Assessment

Rating: questionable

The $182.5M award for Computer Facilities Management Services appears high without competitive benchmarking. Pricing for Time and Materials contracts can escalate if not closely monitored.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The sole-source award limits price discovery and competitive pressure, potentially leading to higher costs for taxpayers. Justification for sole-source is critical.

Taxpayer Impact: Lack of competition may result in taxpayers paying a premium for these essential support services.

Public Impact

Ensures continuity of operations for the OBIM system, crucial for national security and identity management. Supports the maintenance and operation of critical IT infrastructure, impacting government efficiency. The large contract value signifies a significant investment in maintaining government IT capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Time and Materials contract type
Lack of small business participation

Positive Signals

Supports critical infrastructure
Long-term operational support

Sector Analysis

This contract falls under IT services, specifically Computer Facilities Management. Federal spending in this sector is substantial, driven by the need to maintain and upgrade aging IT systems and support complex government operations.

Small Business Impact

The data indicates no small business participation in this contract. Agencies should actively seek opportunities to include small businesses in federal contracting.

Oversight & Accountability

Sole-source awards require strong justification and oversight to ensure fair pricing and prevent potential waste. The duration and value necessitate diligent monitoring by DHS.

Related Government Programs

Computer Facilities Management Services
Department of Homeland Security Contracting
Office of Procurement Operations Programs

Risk Flags

Sole-source award limits competition
Time and Materials contract type risks cost overruns
No small business participation noted
High contract value requires diligent oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $182.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. THIS TASK ORDER IS TO PROCURE SUPPORT SERVICES TO OPERATE AND MAINTAIN THE OBIM INFRASTRUCTURE COMPONENTS AND ASSOCIATED FUNCTIONALITY OF THE PRODUCTION AND NON-PRODUCTION ENVIRONMENTS AND ASSOCIATED BUSINESS SYSTEMS CURRENTLY DEPLOYED WITH THE DHS D

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 Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $182.5 million.

What is the period of performance?

Start: 2021-07-01. End: 2022-12-30.

What is the specific justification for awarding this contract sole-source, and were alternative competitive strategies considered?

The justification for a sole-source award is crucial for understanding why competition was bypassed. Agencies typically cite unique capabilities, urgent needs, or lack of qualified sources. Without this information, it's difficult to assess if taxpayers received the best value or if competitive avenues were overlooked, potentially leading to inflated costs.

How will the Time and Materials pricing structure be managed to prevent cost overruns and ensure efficient service delivery?

Time and Materials (T&M) contracts can be susceptible to cost creep if not rigorously managed. Effective oversight involves detailed tracking of labor hours and material costs, establishing clear ceilings, and regular performance reviews to ensure efficiency and prevent unnecessary expenditures. Without strict controls, T&M can become more expensive than fixed-price alternatives.

What performance metrics are in place to measure the effectiveness of General Dynamics' support services for the OBIM infrastructure?

Measuring effectiveness requires clearly defined Key Performance Indicators (KPIs) related to system uptime, response times, incident resolution rates, and security compliance. Regular reporting against these KPIs allows DHS to assess contractor performance, identify areas for improvement, and ensure the critical OBIM infrastructure is reliably maintained, safeguarding national identity data.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70RCSA21Q00000072

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3150 FAIRVIEW PARK DR STE 100, FALLS CHURCH, VA, 22042

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

Financial Breakdown

Contract Ceiling: $197,225,992

Exercised Options: $182,544,952

Current Obligation: $182,544,952

Actual Outlays: $42,422,611

Subaward Activity

Number of Subawards: 71

Total Subaward Amount: $54,190,051

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RTAC21D00000002

IDV Type: IDC

Timeline