DHS TIP Campus Infrastructure contract awarded to General Dynamics One Source LLC for $265.8M over 7 years

Contract Overview

Contract Amount: $265,792,564 ($265.8M)

Contractor: General Dynamics ONE Source LLC

Awarding Agency: General Services Administration

Start Date: 2011-06-06

End Date: 2018-06-05

Contract Duration: 2,556 days

Daily Burn Rate: $104.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: THE SCOPE OF DHS TIP IS TO CREATE A PHYSICALLY AND LOGICALLY DIVERSE AND REDUNDANT CAMPUS INFRASTRUCTURE THAT WILL SUPPORT EVERYTHING ON AND WITHIN THE PERIMETER FENCE. OPEN SYSTEM INTERCONNECTION REFERENCE MODEL (OSI REFERENCE MODEL OR OSI MODEL) LAYER 1 - PHYSICAL LAYER AND LAYER 2 - DATA-LINK LAYER ARE INCLUDED IN THEIR ENTIRETY FOR THE CAMPUS. ASPECTS OF LAYER 3 - NETWORK LAYER ARE PARTIALLY INCLUDED, AS ARE HIGHER LAYERS FOR ON-SITE SPECIALIZED SYSTEMS (E.G., SECURITY, SMART BUILDINGS APPLICATIONS, AND FIRE SAFETY SYSTEMS.)

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $265.8 million to GENERAL DYNAMICS ONE SOURCE LLC for work described as: THE SCOPE OF DHS TIP IS TO CREATE A PHYSICALLY AND LOGICALLY DIVERSE AND REDUNDANT CAMPUS INFRASTRUCTURE THAT WILL SUPPORT EVERYTHING ON AND WITHIN THE PERIMETER FENCE. OPEN SYSTEM INTERCONNECTION REFERENCE MODEL (OSI REFERENCE MODEL OR OSI MODEL) LAYER 1 - PHYSICAL LAYER AND L… Key points: 1. Contract supports a diverse and redundant campus infrastructure for DHS, encompassing physical and logical layers. 2. Services include IT infrastructure design and implementation, covering OSI layers 1-3 and specialized on-site systems. 3. The contract was awarded via full and open competition, suggesting a competitive bidding process. 4. The contract type is Cost Plus Award Fee (CPAF), which incentivizes contractor performance. 5. This contract represents a significant investment in foundational IT infrastructure for a key federal agency. 6. The duration of the contract is over 7 years, indicating a long-term need for these services.

Value Assessment

Rating: good

The contract value of $265.8 million over approximately 7 years for comprehensive campus IT infrastructure appears reasonable given the scope. While specific cost breakdowns are not provided, the CPAF structure allows for performance-based adjustments. Benchmarking against similar large-scale federal IT infrastructure projects would provide a more precise value-for-money assessment, but the scale and complexity suggest a significant but potentially justified expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This approach generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The presence of multiple bidders suggests that the market has the capacity to support such a large and complex requirement.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and encourages innovation among potential contractors.

Public Impact

The primary beneficiary is the Department of Homeland Security (DHS), which gains enhanced and resilient campus infrastructure. Services delivered include the design and implementation of physical and logical IT infrastructure, crucial for agency operations. The geographic impact is focused on the DHS campus, providing a secure and functional environment for its personnel. Workforce implications include potential job creation for IT professionals, network engineers, and construction personnel involved in the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Award Fee (CPAF) contract type can lead to cost overruns if not managed diligently, as the government reimburses costs plus a fee based on performance.
The long duration of the contract (over 7 years) may present risks related to technological obsolescence and changing requirements.
The broad scope of 'Computer Systems Design Services' could lead to scope creep if not clearly defined and managed.
Reliance on a single contractor for such a critical infrastructure project could pose a risk if the contractor faces financial or operational difficulties.

Positive Signals

The award to a large, established contractor like General Dynamics suggests a level of reliability and experience.
The use of full and open competition indicates a robust market response and potential for competitive pricing.
The CPAF structure incentivizes the contractor to meet or exceed performance objectives, potentially leading to higher quality outcomes.
The focus on physical and logical diversity and redundancy enhances the resilience and security of DHS's campus infrastructure.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and integration. The market for large-scale federal IT infrastructure projects is substantial, with major players like General Dynamics competing for significant contracts. This project aligns with the government's ongoing efforts to modernize and secure its IT infrastructure, ensuring operational continuity and data protection. Comparable spending benchmarks would involve analyzing other large campus build-outs or major IT system overhauls for federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale infrastructure project awarded through full and open competition, it is likely that General Dynamics One Source LLC, as the prime contractor, may engage small businesses as subcontractors. However, without specific subcontracting plans or data, the direct impact on the small business ecosystem remains unclear. The focus is likely on large system integrators capable of managing such a comprehensive project.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA) and the contracting officers within the Department of Homeland Security (DHS). The CPAF structure implies performance metrics that would be monitored to determine award fees. Transparency would be enhanced through contract reporting mechanisms and potentially through Inspector General reviews if any issues arise. The specific oversight mechanisms would be detailed within the contract's terms and conditions.

Related Government Programs

DHS Campus Modernization Projects
Federal IT Infrastructure Modernization
General Services Administration IT Contracts
Department of Homeland Security IT Services
Large-Scale IT System Integration Contracts

Risk Flags

Long contract duration may lead to technological obsolescence.
CPAF contract type requires diligent cost oversight.
Potential for scope creep in complex IT projects.
Reliance on a single prime contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $265.8 million to GENERAL DYNAMICS ONE SOURCE LLC. THE SCOPE OF DHS TIP IS TO CREATE A PHYSICALLY AND LOGICALLY DIVERSE AND REDUNDANT CAMPUS INFRASTRUCTURE THAT WILL SUPPORT EVERYTHING ON AND WITHIN THE PERIMETER FENCE. OPEN SYSTEM INTERCONNECTION REFERENCE MODEL (OSI REFERENCE MODEL OR OSI MODEL) LAYER 1 - PHYSICAL LAYER AND LAYER 2 - DATA-LINK LAYER ARE INCLUDED IN THEIR ENTIRETY FOR THE CAMPUS. ASPECTS OF LAYER 3 - NETWORK LAYER ARE PARTIALLY INCLUDED, AS ARE HIGHER LAYERS FOR ON-SITE SPECIALIZED SYSTEMS (E.G., SECURITY, SMART BUILDINGS AP

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS ONE SOURCE LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $265.8 million.

What is the period of performance?

Start: 2011-06-06. End: 2018-06-05.

What is the track record of General Dynamics One Source LLC in delivering large-scale federal IT infrastructure projects?

General Dynamics One Source LLC, as part of the larger General Dynamics Corporation, has a significant track record in providing IT services and solutions to the federal government. They are known for undertaking complex projects involving systems integration, network infrastructure, cybersecurity, and enterprise IT modernization. Their experience spans various agencies, including defense and civilian departments. For large-scale infrastructure projects like the DHS TIP, their history suggests a capability to manage complex technical requirements, large budgets, and long-term project lifecycles. However, a detailed review of past performance on similar CPAF contracts would be necessary to fully assess their suitability and past success in meeting performance objectives and managing costs effectively.

How does the $265.8 million cost compare to similar federal campus infrastructure projects?

Directly comparing the $265.8 million cost to similar federal campus infrastructure projects is challenging without specific project details and scope definitions. However, large-scale IT infrastructure build-outs for federal agencies can range from tens of millions to hundreds of millions of dollars, depending on the size of the campus, the complexity of the systems, and the level of redundancy and security required. Given that this contract covers physical and logical infrastructure for an entire DHS campus over seven years, the cost appears to be within the expected range for such a significant undertaking. Factors like the specific technologies deployed, the number of buildings supported, and the integration of specialized systems (e.g., security, smart buildings) heavily influence the total cost. A more precise comparison would require benchmarking against projects with similar scope, duration, and technological requirements.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for this type of project?

The primary risks associated with a Cost Plus Award Fee (CPAF) contract for a project like the DHS TIP revolve around cost control and performance management. While CPAF incentivizes performance by offering an award fee based on achieving specific metrics, there's a risk that the government may end up paying higher costs than anticipated if the base cost plus the maximum award fee exceeds initial estimates. Effective oversight is crucial to ensure that costs are reasonable and allocable, and that the performance metrics are well-defined, measurable, and aligned with the government's objectives. If performance targets are not met, the award fee may be reduced, but the government still reimburses allowable costs. Scope creep is another significant risk, as the contractor may seek to expand the scope to increase costs and fees, requiring diligent contract management to prevent.

How effective is the 'full and open competition' approach likely to be in ensuring value for taxpayers on this contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring value for taxpayers on large federal contracts. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. This process typically results in multiple proposals being evaluated, allowing the government to select the offer that provides the best overall value, considering factors beyond just price, such as technical approach, past performance, and management capability. For a contract of this magnitude and complexity, robust competition is essential to prevent price gouging and ensure that the government obtains high-quality services at a reasonable cost. The success of this approach hinges on the clarity of the solicitation requirements and the fairness of the evaluation process.

What are the potential implications of the contract's long duration (over 7 years) on technological relevance and adaptability?

A contract duration of over seven years for an IT infrastructure project carries inherent risks related to technological relevance and adaptability. The IT landscape evolves rapidly, and technologies that are cutting-edge at the start of the contract may become outdated or less efficient by its end. This necessitates careful planning and flexibility within the contract to accommodate technological advancements. The government may need to incorporate mechanisms for technology refresh, upgrades, or phased replacements to ensure the infrastructure remains current and effective. The contractor must also demonstrate an ability to adapt to evolving requirements and emerging technologies. Failure to manage these aspects could result in an infrastructure that is difficult or costly to maintain, or that does not meet future operational needs.

Industry Classification

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

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 3211 JERMANTOWN ROAD, FAIRFAX, VA, 22030

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $855,815,756

Exercised Options: $855,815,756

Current Obligation: $265,792,564

Actual Outlays: $1,218,724

Subaward Activity

Number of Subawards: 201

Total Subaward Amount: $36,961,938

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0030

IDV Type: GWAC

Timeline