DHS Awards BAE Systems $19.7M for RMT Program Management & Technical Support

Contract Overview

Contract Amount: $19,722,521 ($19.7M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2022-08-22

End Date: 2027-03-09

Contract Duration: 1,660 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: PROGRAM MANAGEMENT & TECHNICAL SUPPORT FOR THE RESOURCE MANAGEMENT TRANSFORMATION (RMT) OFFICE OF THE CHIEF FINANCIAL OFFICER (OCFO).

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20407

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $19.7 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: PROGRAM MANAGEMENT & TECHNICAL SUPPORT FOR THE RESOURCE MANAGEMENT TRANSFORMATION (RMT) OFFICE OF THE CHIEF FINANCIAL OFFICER (OCFO). Key points: 1. The contract focuses on critical program management and technical support for the Resource Management Transformation office. 2. BAE Systems Technology Solutions & Services Inc. is the incumbent contractor. 3. The contract is structured as Time and Materials, which can pose cost risks if not managed tightly. 4. The sector is Computer Systems Design Services, a key area for government IT modernization efforts.

Value Assessment

Rating: fair

The contract value of $19.7M over approximately 5 years suggests a moderate annual spend. Benchmarking against similar IT support contracts is difficult without more granular data on specific services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. However, the Time and Materials pricing structure may limit price discovery and could lead to cost overruns if not closely monitored.

Taxpayer Impact: Taxpayers are impacted by the $19.7M expenditure, with the effectiveness of this spending dependent on the successful transformation of the RMT office.

Public Impact

Supports the financial transformation of the Department of Homeland Security. Ensures continuity of critical IT program management services. Potential for improved resource management and financial efficiency within DHS.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns.
Contract duration is substantial, requiring ongoing oversight.
Small business participation is not indicated.

Positive Signals

Awarded through full and open competition.
Supports a critical financial transformation initiative.
Incumbent contractor likely brings relevant expertise.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, which is vital for government IT infrastructure and modernization. Spending in this area is significant across federal agencies, with benchmarks varying widely based on scope and complexity.

Small Business Impact

The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small business subcontracting opportunities were pursued or mandated.

Oversight & Accountability

The contract's duration and value necessitate robust oversight from the Office of Procurement Operations to ensure performance, manage costs, and achieve the intended transformation goals.

Related Government Programs

Computer Systems Design Services
Department of Homeland Security Contracting
Office of Procurement Operations Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of explicit small business participation.
Significant contract value requires sustained oversight.
Dependence on contractor performance for critical financial transformation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $19.7 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. PROGRAM MANAGEMENT & TECHNICAL SUPPORT FOR THE RESOURCE MANAGEMENT TRANSFORMATION (RMT) OFFICE OF THE CHIEF FINANCIAL OFFICER (OCFO).

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 (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $19.7 million.

What is the period of performance?

Start: 2022-08-22. End: 2027-03-09.

What specific metrics will be used to measure the success of the Resource Management Transformation (RMT) office under this contract?

Success metrics should focus on tangible improvements in financial reporting accuracy, budget execution efficiency, and the successful integration of new resource management systems. Key Performance Indicators (KPIs) should be clearly defined in the contract's Statement of Work, with regular reviews to track progress against these benchmarks and ensure the transformation objectives are being met effectively.

How will the agency mitigate the cost risks associated with the Time and Materials pricing structure?

Mitigation strategies should include establishing firm-fixed-price CLINs for specific deliverables where possible, setting clear labor hour ceilings, and implementing rigorous monitoring of labor rates and hours. Regular performance reviews and audits are crucial to ensure that all hours billed are necessary, reasonable, and directly related to the contract's objectives, preventing scope creep and uncontrolled cost escalation.

What is the expected long-term impact of this RMT transformation on DHS's overall financial operations and taxpayer value?

The RMT transformation is expected to yield significant long-term value by enhancing the accuracy and timeliness of financial data, improving budget planning and execution, and streamlining financial processes. This should lead to more efficient resource allocation, reduced waste, and better-informed decision-making, ultimately providing greater accountability and value for taxpayer dollars invested in DHS operations.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70RDAD22Q00000002

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

Address: 520 GAITHER ROAD, ROCKVILLE, MD, 20850

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

Financial Breakdown

Contract Ceiling: $24,232,773

Exercised Options: $23,126,648

Current Obligation: $19,722,521

Actual Outlays: $15,280,712

Subaward Activity

Number of Subawards: 50

Total Subaward Amount: $11,047,241

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0053

IDV Type: GWAC

Timeline