DHS awarded CSRA LLC $27.4M for IT services, raising questions about value and competition

Contract Overview

Contract Amount: $27,362,288 ($27.4M)

Contractor: Csra LLC

Awarding Agency: Department of Homeland Security

Start Date: 2013-11-01

End Date: 2019-06-11

Contract Duration: 2,048 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF HSBP1014A00003 TASK ORDER 0001: HSBP1014F00011; O&M AND TRANSITION-IN SERVICES.

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $27.4 million to CSRA LLC for work described as: IGF::OT::IGF HSBP1014A00003 TASK ORDER 0001: HSBP1014F00011; O&M AND TRANSITION-IN SERVICES. Key points: 1. The contract's value appears high relative to its duration, suggesting potential overspending. 2. Limited competition may have inflated costs for these essential IT operations and transition services. 3. The firm-fixed-price structure offers some cost certainty but doesn't guarantee optimal value. 4. Performance context is limited, making it difficult to assess the effectiveness of the services provided. 5. This contract falls within the IT services sector, a common area for significant federal expenditure. 6. The absence of small business set-asides means opportunities for smaller firms were not prioritized.

Value Assessment

Rating: fair

The total award of $27.4 million over approximately 5.7 years for IT Operations and Maintenance (O&M) and transition-in services suggests an average annual cost of nearly $4.8 million. Benchmarking this against similar IT service contracts is challenging without more granular data on the specific services rendered. However, the duration and scope indicate a substantial investment. The firm-fixed-price (FFP) contract type provides cost predictability for the government, but the overall value for money is difficult to ascertain without performance metrics and a clearer understanding of the market rates for comparable O&M and transition services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, which is generally positive for price discovery. However, the specific details regarding the number of bids received and the evaluation process are not provided. A full and open competition implies that all responsible sources were permitted to submit offers. The effectiveness of this competition in driving down costs depends on the number of qualified bidders and the government's negotiation strategy.

Taxpayer Impact: A full and open competition theoretically allows taxpayers to benefit from the most competitive pricing available in the market.

Public Impact

U.S. Customs and Border Protection (CBP) personnel and operations benefit from the continuity of IT services. The contract ensures the maintenance of critical IT infrastructure and facilitates the transition of services. The geographic impact is primarily within the operational areas of CBP, likely across the United States. The contract supports IT professionals employed by CSRA LLC, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it hard to gauge service quality and efficiency.
The significant award amount warrants closer scrutiny of cost-effectiveness over the contract's life.
Potential for vendor lock-in if transition-in services were not adequately managed.
Limited transparency on the specific IT systems and services covered by the contract.

Positive Signals

Awarded through full and open competition, suggesting a broad market solicitation.
Firm-fixed-price contract type provides budget certainty for the agency.
CSRA LLC is a known entity in the federal IT services space.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on IT operations and maintenance (O&M) and transition services. The federal IT services market is vast, with agencies consistently investing in maintaining and upgrading their technological infrastructure. Comparable spending benchmarks for IT O&M can vary widely based on the complexity of systems, number of users, and specific services required. This contract represents a significant, albeit specific, allocation within the Department of Homeland Security's IT budget.

Small Business Impact

The contract was not awarded as a small business set-aside, nor is there an indication of significant subcontracting opportunities for small businesses within the provided data. This means that the primary contract was competed broadly, and the prime contractor, CSRA LLC, is likely a large business. The absence of specific small business participation goals or reporting suggests that the impact on the small business IT ecosystem for this particular contract may be minimal, unless CSRA voluntarily engages small businesses for subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's internal contracting and program management offices. The Inspector General's office for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is dependent on the agency's public reporting practices regarding contract performance and expenditures. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver services within the agreed-upon price.

Related Government Programs

Department of Homeland Security IT Modernization Efforts
Federal Civilian IT Operations and Maintenance Contracts
IT Transition and Modernization Services
Customs and Border Protection Technology Modernization

Risk Flags

Potential for cost overruns if scope was not tightly managed.
Lack of detailed performance data hinders value assessment.
Competition level details are missing, impacting price discovery analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $27.4 million to CSRA LLC. IGF::OT::IGF HSBP1014A00003 TASK ORDER 0001: HSBP1014F00011; O&M AND TRANSITION-IN SERVICES.

Who is the contractor on this award?

The obligated recipient is CSRA 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 $27.4 million.

What is the period of performance?

Start: 2013-11-01. End: 2019-06-11.

What specific IT systems and services were included under this O&M and transition-in contract?

The provided data does not specify the exact IT systems or services covered by the HSBP1014A00003 TASK ORDER 0001. Operations and Maintenance (O&M) typically includes activities such as system monitoring, patching, help desk support, network management, and hardware/software upkeep. Transition-in services usually involve the process of taking over the management and operation of existing IT systems, potentially from a previous contractor or an internal team, and ensuring a smooth handover. Without a detailed statement of work (SOW), it is impossible to ascertain the precise scope, which impacts value assessment and risk evaluation.

How did CSRA LLC's pricing compare to other potential bidders during the full and open competition?

The available data indicates the contract was awarded via full and open competition, but it does not provide details on the number of bids received or the pricing structures of competing offers. Therefore, a direct comparison of CSRA LLC's pricing against its competitors is not possible. While the firm-fixed-price (FFP) structure sets a ceiling, the government's negotiation and evaluation process are key to ensuring competitive pricing. Without insight into the bid landscape, it's difficult to definitively state if CSRA's price represented the best value achievable through competition.

What performance metrics were used to evaluate CSRA LLC's delivery of O&M and transition-in services?

The provided contract data does not include information on specific performance metrics or Key Performance Indicators (KPIs) established for this task order. For O&M contracts, common metrics include system uptime, response times for help desk tickets, patch deployment rates, and security compliance. For transition-in services, metrics might focus on the smoothness of the handover, successful integration of systems, and adherence to project timelines. The absence of this information makes it challenging to assess the contractor's performance objectively and determine if the government received adequate value for the $27.4 million expenditure.

What is the historical spending pattern for similar IT O&M and transition services at U.S. Customs and Border Protection?

The provided data focuses solely on this specific task order (HSBP1014A00003 TASK ORDER 0001) awarded to CSRA LLC. It does not offer historical spending patterns for similar services at U.S. Customs and Border Protection (CBP) or within the Department of Homeland Security (DHS) more broadly. To establish a historical context, one would need to analyze prior contracts for IT O&M and transition services awarded by CBP, examining their values, durations, contractors, and scopes of work. This would help determine if the $27.4 million award represents an increase, decrease, or consistent level of spending for these types of services over time.

Does CSRA LLC have a track record of successful IT O&M and transition projects within federal agencies?

CSRA LLC (now part of General Dynamics Information Technology) has a significant history of performing IT services for various federal agencies, including operations and maintenance and system transitions. While this specific contract award doesn't detail past performance evaluations, the company's extensive experience suggests a general capability in these areas. A thorough assessment would require reviewing past performance reports (e.g., Contractor Performance Assessment Reporting System - CPARS) for CSRA on similar contracts to identify specific strengths, weaknesses, and any recurring issues related to service delivery, cost management, or adherence to schedules.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

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: $28,682,959

Exercised Options: $27,362,288

Current Obligation: $27,362,288

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: HSBP1014A00003

IDV Type: BPA

Timeline