DHS awards $53M sole-source contract for NEC enterprise facial licenses to CSRA LLC

Contract Overview

Contract Amount: $53,060,034 ($53.1M)

Contractor: Csra LLC

Awarding Agency: Department of Homeland Security

Start Date: 2018-09-30

End Date: 2020-09-29

Contract Duration: 730 days

Daily Burn Rate: $72.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE REQUISITION IS TO PROCURE NEC ENTERPRISE FACIAL LICENSES FOR DHS.

Place of Performance

Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39529

State: Mississippi Government Spending

Plain-Language Summary

Department of Homeland Security obligated $53.1 million to CSRA LLC for work described as: THE REQUISITION IS TO PROCURE NEC ENTERPRISE FACIAL LICENSES FOR DHS. Key points: 1. Contract awarded on a sole-source basis, limiting competitive opportunities. 2. The contract duration is 2 years, with a total value of $53.06 million. 3. The North American Industry Classification System (NAICS) code is 541513, indicating Computer Facilities Management Services. 4. The contract type is Firm Fixed Price, which shifts risk to the contractor. 5. This award represents a significant investment in facial recognition technology for homeland security. 6. The contract was awarded as a Delivery Order under an existing contract.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and specific application. Without competitive bids, it's difficult to ascertain if the $53.06 million represents a fair market price for NEC enterprise facial licenses. The firm fixed-price structure provides cost certainty but doesn't inherently guarantee value for money. Further analysis would require comparing the per-unit cost of licenses or the overall solution to similar deployments in other federal agencies or the private sector, which is not readily available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning only one vendor, CSRA LLC, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors vying for the contract. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities, urgent needs), they generally lead to less price discovery and potentially higher costs for the government compared to full and open competition.

Taxpayer Impact: The lack of competition means taxpayers may not benefit from the cost savings that could arise from a competitive bidding process. The government may have paid a premium due to the absence of alternative offers.

Public Impact

The Department of Homeland Security (DHS) is the primary beneficiary, gaining access to enterprise facial licenses. The services delivered are related to computer facilities management, specifically supporting facial recognition technology. The geographic impact is likely nationwide, given DHS's operational scope. This contract supports the technology infrastructure and potentially the workforce involved in utilizing facial recognition systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potential cost savings.
Lack of transparency in the procurement process due to sole-source justification.
Potential for higher costs without competitive benchmarking.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Awarded to an existing contractor (CSRA LLC), suggesting potential familiarity and established relationship.
Supports critical homeland security functions through advanced technology.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer facilities management and software licensing for facial recognition technology. The market for biometric and facial recognition solutions is rapidly growing, driven by security and identification needs across various sectors, including government and private industry. Comparable spending benchmarks are difficult to establish precisely due to the proprietary nature of such licenses and the specific enterprise-level requirements of a large agency like DHS.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, CSRA LLC, is a large business, and any subcontracting would be at their discretion, not mandated by a small business set-aside provision.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's internal procurement and program management offices. As a sole-source award, it may undergo heightened scrutiny. Transparency is limited by the sole-source nature. Inspector General jurisdiction would apply to any investigations of fraud, waste, or abuse related to the contract's execution and performance.

Related Government Programs

DHS Biometric and Identity Programs
Federal Information Technology Contracts
Software Licensing Agreements
Computer Facilities Management Services

Risk Flags

Sole-source award raises concerns about competition and potential value.
Lack of detailed public information on specific license features and per-unit costs.
Potential for vendor lock-in with a single-source provider.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $53.1 million to CSRA LLC. THE REQUISITION IS TO PROCURE NEC ENTERPRISE FACIAL LICENSES FOR DHS.

Who is the contractor on this award?

The obligated recipient is CSRA LLC.

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 $53.1 million.

What is the period of performance?

Start: 2018-09-30. End: 2020-09-29.

What is the track record of CSRA LLC in delivering similar IT services and software licenses to federal agencies, particularly DHS?

CSRA LLC, now part of General Dynamics Information Technology (GDIT), has a substantial history of providing IT services to the federal government, including DHS. Their portfolio often includes large-scale IT infrastructure management, system integration, and software support. For facial recognition technology specifically, their experience would likely be tied to broader IT modernization efforts or security system implementations. Assessing their track record would involve reviewing past performance evaluations, contract awards, and any documented successes or failures in delivering complex IT solutions. Given this is a sole-source award, it implies DHS has confidence in CSRA's ability to meet these specific requirements, possibly based on prior performance or unique qualifications.

How does the per-unit cost or overall value of this NEC facial license contract compare to industry benchmarks or similar government contracts?

Determining a precise per-unit cost or overall value benchmark for this contract is challenging due to several factors. Firstly, it's a sole-source award, meaning no competitive bids were obtained to establish a market price. Secondly, 'NEC enterprise facial licenses' likely refers to a specific, potentially proprietary, software solution with unique features and support requirements tailored for a large federal agency like DHS. Without access to the detailed license structure, user counts, feature sets, and support levels, direct comparison to other government or commercial contracts is difficult. Industry benchmarks for facial recognition software vary widely based on technology sophistication, deployment scale, and vendor. A thorough value assessment would require internal DHS analysis comparing the proposed solution against alternatives and considering the total cost of ownership over the contract's life.

What are the primary risks associated with a sole-source award for critical facial recognition technology?

The primary risks associated with a sole-source award for critical facial recognition technology include potential overpayment due to lack of competition, reduced incentive for the contractor to innovate or offer the most cost-effective solution, and a lack of transparency in the procurement process. Taxpayers may bear a higher cost than necessary. Furthermore, reliance on a single vendor can create vendor lock-in, making future transitions or upgrades more complex and expensive. There's also a risk that the chosen technology might not be the best available if alternatives were not thoroughly explored. Ensuring robust contract oversight and performance management becomes even more critical in sole-source situations to mitigate these risks.

What is the expected effectiveness and impact of these NEC enterprise facial licenses on DHS's operational capabilities?

The expected effectiveness and impact of these NEC enterprise facial licenses are centered on enhancing DHS's capabilities in areas such as identity verification, border security, law enforcement support, and potentially insider threat detection. Facial recognition technology, when properly implemented and integrated, can improve the speed and accuracy of identifying individuals, streamline security processes, and provide critical data for investigations. The 'enterprise' nature suggests a broad deployment across various DHS components, aiming for a unified or interoperable system. The effectiveness will depend on factors like the quality of the NEC software, the accuracy of the underlying algorithms, the integration with existing DHS databases and systems, and the training and adherence to privacy policies by personnel using the system.

How does this $53 million contract for facial licenses fit into the broader context of federal spending on biometric and identity technologies?

This $53 million contract represents a significant, albeit specific, component of broader federal spending on biometric and identity technologies. Agencies across the government, including DHS, DoD, and law enforcement, are increasingly investing in technologies like facial recognition, fingerprint scanning, and iris recognition to enhance security, manage access, and improve operational efficiency. Federal spending in this area has been growing, driven by evolving security threats and advancements in technology. This particular contract for NEC licenses contributes to DHS's strategic goals in identity management and security. It's part of a larger trend of federal agencies adopting advanced biometric solutions, often procured through various contract vehicles, including sole-source awards when specific capabilities are required.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70RNPP18R00000020

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3170 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042

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

Financial Breakdown

Contract Ceiling: $53,060,034

Exercised Options: $53,060,034

Current Obligation: $53,060,034

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: HSHQDC16D00001

IDV Type: IDC

Timeline