DHS Spends $50M on Security Operations Support Services for CBP via Competitive Delivery Order
Contract Overview
Contract Amount: $49,943,086 ($49.9M)
Contractor: General Dynamics ONE Source LLC
Awarding Agency: Department of Homeland Security
Start Date: 2007-07-01
End Date: 2015-08-30
Contract Duration: 2,982 days
Daily Burn Rate: $16.7K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 7
Pricing Type: LABOR HOURS
Sector: IT
Official Description: SECURITY OPERATIONS SUPPORT SERVICES FOR THE SECURITY OPERATIONS CENTER
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20229, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Homeland Security obligated $49.9 million to GENERAL DYNAMICS ONE SOURCE LLC for work described as: SECURITY OPERATIONS SUPPORT SERVICES FOR THE SECURITY OPERATIONS CENTER Key points: 1. Significant contract value of nearly $50 million over its period of performance. 2. Awarded to General Dynamics One Source LLC, indicating a major contractor's involvement. 3. The contract was competitively awarded, suggesting potential for price discovery. 4. Services fall under Computer Facilities Management, a critical IT support sector.
Value Assessment
Rating: good
The total award of $49.9M over 8 years suggests a reasonable annual spend of approximately $6.2M. Without specific unit costs or detailed scope, a precise pricing assessment is difficult, but the competitive nature of the award implies market-driven pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This was a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. This method generally promotes price discovery and ensures the government receives competitive pricing.
Taxpayer Impact: The competitive award process likely resulted in a fair price for taxpayers, avoiding potential overspending associated with sole-source contracts.
Public Impact
Ensures the operational readiness of the U.S. Customs and Border Protection's Security Operations Center. Supports critical national security functions by maintaining vital IT infrastructure. The long duration of the contract (8 years) suggests a stable and ongoing need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to vendor lock-in or reduced agility.
- Reliance on a single contractor for critical security operations.
- Potential for scope creep over the 8-year period.
Positive Signals
- Competitive award process.
- Supports a critical government function (border security).
- Managed by a reputable agency (DHS).
Sector Analysis
This contract falls within the IT services sector, specifically Computer Facilities Management. Spending in this area is crucial for government operations, and benchmarks vary widely based on service complexity and duration. The $50M over 8 years is a substantial but not necessarily excessive amount for comprehensive security operations support.
Small Business Impact
The contract was awarded to General Dynamics One Source LLC, a large business. There is no indication that small businesses were specifically subcontracted or involved in this particular award, which is common for large, complex IT service contracts.
Oversight & Accountability
The Department of Homeland Security, specifically U.S. Customs and Border Protection, is responsible for overseeing this contract. The competitive nature of the award suggests a structured procurement process, but ongoing oversight would be necessary to ensure performance and cost control over the contract's long duration.
Related Government Programs
- Computer Facilities Management Services
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- Long contract duration (8 years).
- Potential for vendor lock-in.
- Reliance on a single large business contractor.
- Scope creep risk over time.
- Labor hours contract type requires diligent oversight.
Tags
computer-facilities-management-services, department-of-homeland-security, dc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $49.9 million to GENERAL DYNAMICS ONE SOURCE LLC. SECURITY OPERATIONS SUPPORT SERVICES FOR THE SECURITY OPERATIONS CENTER
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS ONE SOURCE LLC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).
What is the total obligated amount?
The obligated amount is $49.9 million.
What is the period of performance?
Start: 2007-07-01. End: 2015-08-30.
What was the specific scope of 'Security Operations Support Services' and how did it evolve over the contract's 8-year lifespan?
The specific scope likely encompassed monitoring, threat detection, incident response, and management of security infrastructure for the CBP's Security Operations Center. Over an 8-year period, the scope would typically evolve to incorporate new technologies, emerging threats, and updated security protocols, requiring continuous adaptation and potentially contract modifications to remain effective and relevant.
Were there any performance issues or contract disputes during the 8-year period that impacted service delivery or cost?
Without access to contract performance reports or dispute logs, it's impossible to definitively state. However, long-term contracts, especially in rapidly evolving fields like cybersecurity, carry inherent risks of performance degradation or disputes if not actively managed. Regular performance reviews and clear communication channels are crucial to mitigate these risks.
How did the pricing structure (labor hours) compare to industry benchmarks for similar IT security support services at the time of award and throughout the contract period?
The 'labor hours' contract type allows for flexibility but requires careful monitoring to control costs. Comparing pricing to industry benchmarks would necessitate detailed analysis of the specific labor categories, skill levels, and hours billed against prevailing market rates for IT security support services during the contract's duration. The competitive award suggests initial pricing was deemed fair.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 7
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 77 A STREET, NEEDHAM, MA, 02494
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $65,291,263
Exercised Options: $49,943,086
Current Obligation: $49,943,086
Parent Contract
Parent Award PIID: HSHQDC06D00024
IDV Type: IDC
Timeline
Start Date: 2007-07-01
Current End Date: 2015-08-30
Potential End Date: 2015-08-30 00:00:00
Last Modified: 2015-08-21
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