ICE's $151M IT Operations Support Contract Awarded to Leidos, Inc. for Network Monitoring and Security
Contract Overview
Contract Amount: $151,466,837 ($151.5M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2007-06-29
End Date: 2013-06-27
Contract Duration: 2,190 days
Daily Burn Rate: $69.2K/day
Competition Type: NON-COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: OFFICE OF IMMIGRATION AND CUSTOMS ENFORCEMENT (ICE) CHIEF INFORMATION OFFICE IT OPERATION SUPPORT SERVICES. THE CONTRACTOR WILL BE RESPONSIBLE FOR STAFFING THE NETWORK OPERATIONS CENTER (NOC) THAT CONSTANTLY MONITORS AND TRACKS CIRCUITS, ROUTERS, AND ENCRYPTION DEVICES ON THE WIDE AREA NETWORK (WAN). THE CONTRACTOR SHALL STAFF THE SECURITY OPERATIONS CENTER (SOC) THAT MONITORS THE INTRUSION DETECTION DEVICES ON THE NETWORK, IDENTIFIES ANY VIRUSES INTRODUCED INTO THE NETWORK, AND ALERTS MANAGEMENT OF ANY SECURITY VIOLATIONS. THE CONTRACTOR IS RESPONSIBLE TO PROVIDING STAFFING IN SUPPORT OF THE COMPUTER SECURITY INCIDENT RESPONSE CENTER (CSIRC) THAT CONDUCTS VULNERABILITY ASSESSMENTS, AND PREPARES REPORTS TO MANAGEMENT ON SECURITY VIOLATIONS, THREATS, AND REMEDIAL ACTIONS TAKEN.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20536
Plain-Language Summary
Department of Homeland Security obligated $151.5 million to LEIDOS, INC. for work described as: OFFICE OF IMMIGRATION AND CUSTOMS ENFORCEMENT (ICE) CHIEF INFORMATION OFFICE IT OPERATION SUPPORT SERVICES. THE CONTRACTOR WILL BE RESPONSIBLE FOR STAFFING THE NETWORK OPERATIONS CENTER (NOC) THAT CONSTANTLY MONITORS AND TRACKS CIRCUITS, ROUTERS, AND ENCRYPTION DEVICES ON THE WID… Key points: 1. Contract provides essential IT operations support for network monitoring, security, and incident response. 2. Focus on staffing critical functions like Network Operations Center (NOC) and Security Operations Center (SOC). 3. Includes vulnerability assessments and reporting on security violations and threats. 4. Contract duration of approximately 6 years, indicating a long-term need for these services. 5. Awarded as a non-competitive delivery order, raising questions about potential cost efficiencies and market alternatives. 6. The services are crucial for maintaining the operational integrity and security of ICE's wide area network.
Value Assessment
Rating: fair
The contract value of $151.5 million over approximately six years suggests a significant investment in IT operations support. Benchmarking this against similar contracts for network operations and security services is challenging without more detailed service descriptions and performance metrics. The Time and Materials (T&M) contract type can sometimes lead to cost overruns if not closely managed, but it also offers flexibility. Without specific performance data or comparisons to industry benchmarks for similar IT support roles, a definitive value-for-money assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a non-competitive delivery order. This indicates that the procurement process did not involve a full and open competition. The specific justification for the sole-source award is not detailed in the provided data, but it implies that only one source was deemed capable or available to meet the requirement at the time of award. This lack of competition may limit opportunities for price discovery and potentially lead to higher costs compared to a competitive environment.
Taxpayer Impact: For taxpayers, a sole-source award means that the government did not leverage the potential for competitive bidding to drive down prices. This could result in a less favorable price than might have been achieved through a competitive process.
Public Impact
Benefits the U.S. Immigration and Customs Enforcement (ICE) by ensuring the continuous operation and security of its IT infrastructure. Delivers critical services including network monitoring, intrusion detection, and incident response. Supports the agency's mission by maintaining the availability and integrity of its wide area network. Impacts the cybersecurity posture of a key federal law enforcement agency. Ensures that security threats and violations are identified and addressed promptly.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Non-competitive award limits price discovery and potential cost savings.
- Time and Materials contract type can pose cost control challenges if not managed diligently.
- Lack of detailed performance metrics makes it difficult to assess efficiency and effectiveness.
- Long contract duration without clear performance reviews could entrench inefficiencies.
Positive Signals
- Provides essential cybersecurity and network operations support, crucial for agency function.
- Contract addresses critical IT security functions like SOC and CSIRC staffing.
- Long-term contract indicates a stable and ongoing need for these vital services.
- Leidos, Inc. is a large, established government contractor with experience in IT services.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer facilities management and IT operations support. The market for such services is large and competitive, with numerous companies offering network monitoring, security operations, and incident response capabilities. Federal agencies like ICE rely heavily on these services to maintain their complex IT infrastructures. Comparable spending benchmarks would typically involve analyzing the average cost of similar IT support contracts across various federal agencies, considering factors like contract type, duration, and scope of services.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award to a large prime contractor, Leidos, Inc., there is a potential for limited subcontracting opportunities for small businesses unless specifically mandated or pursued by the prime. The absence of a small business set-aside suggests that the primary focus was on acquiring specialized IT operations support services from an established provider, rather than specifically fostering small business participation.
Oversight & Accountability
Oversight for this contract would primarily reside within the U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS). As a delivery order under a larger contract vehicle, specific oversight mechanisms would depend on the terms of that vehicle. Transparency is limited due to the non-competitive nature of the award. Accountability would be managed through contract performance reviews and adherence to the Time and Materials terms. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- DHS IT Operations Support
- Federal Cybersecurity Services
- Network Operations Center Services
- Security Operations Center Services
- Computer Security Incident Response Center Support
Risk Flags
- Non-competitive award
- Time and Materials contract type
- Lack of detailed performance metrics
- Potential for cost overruns
- Limited transparency
Tags
it-services, homeland-security, ice, network-operations, cybersecurity, security-operations-center, sole-source, delivery-order, time-and-materials, district-of-columbia, large-contractor, it-operations-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $151.5 million to LEIDOS, INC.. OFFICE OF IMMIGRATION AND CUSTOMS ENFORCEMENT (ICE) CHIEF INFORMATION OFFICE IT OPERATION SUPPORT SERVICES. THE CONTRACTOR WILL BE RESPONSIBLE FOR STAFFING THE NETWORK OPERATIONS CENTER (NOC) THAT CONSTANTLY MONITORS AND TRACKS CIRCUITS, ROUTERS, AND ENCRYPTION DEVICES ON THE WIDE AREA NETWORK (WAN). THE CONTRACTOR SHALL STAFF THE SECURITY OPERATIONS CENTER (SOC) THAT MONITORS THE INTRUSION DETECTION DEVICES ON THE NETWORK, IDENTIFIES ANY VIRUSES INTRODUCED INTO THE NETWORK, AND ALERTS MANAGEMEN
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).
What is the total obligated amount?
The obligated amount is $151.5 million.
What is the period of performance?
Start: 2007-06-29. End: 2013-06-27.
What is the track record of Leidos, Inc. in providing similar IT operations and cybersecurity support to federal agencies?
Leidos, Inc. has a substantial track record in providing a wide range of IT and cybersecurity services to the federal government. They are a major defense contractor and have significant experience supporting agencies like DHS, the Department of Defense, and intelligence community components. Their services often include network operations, cybersecurity, systems integration, and IT infrastructure management. While specific performance details for this particular ICE contract are not provided, Leidos's general profile suggests they possess the technical capabilities and experience to handle complex IT support requirements. However, the effectiveness and value-for-money of their past performance can vary significantly across different contracts and agencies, necessitating a review of specific contract metrics and client feedback where available.
How does the cost of this contract compare to similar IT operations support contracts in the federal government?
Direct cost comparison is challenging without detailed service breakdowns and performance metrics for this specific contract, especially given its sole-source, Time and Materials (T&M) nature. T&M contracts can be more expensive than fixed-price contracts if not managed tightly, as costs are based on actual labor hours and material costs. To benchmark, one would need to identify comparable contracts for network operations, security monitoring, and incident response services awarded to similar-sized agencies or with similar scope. Factors like geographic location (District of Columbia), contract duration (approx. 6 years), and the specific skill sets required for NOC, SOC, and CSIRC staffing would influence pricing. Generally, sole-source awards tend to be less cost-effective than competitively bid contracts. A comprehensive analysis would involve comparing the loaded labor rates and overall contract value against market research and other federal IT support contracts.
What are the primary risks associated with a sole-source, Time and Materials contract for critical IT operations?
The primary risks associated with this sole-source, Time and Materials (T&M) contract are related to cost control and potential lack of innovation. Since it was awarded non-competitively, there's a reduced incentive for the contractor to offer the most competitive pricing. The T&M structure, while flexible, carries inherent risks of cost escalation if labor hours or material usage are not rigorously monitored and controlled by the government. Scope creep can also inflate costs significantly. Furthermore, the lack of competition may limit the introduction of new technologies or more efficient service delivery methods that might have been brought forward by multiple bidders. Ensuring robust government oversight and clear task definitions is critical to mitigating these risks.
How effective is staffing the NOC, SOC, and CSIRC through external contractors versus in-house personnel for agencies like ICE?
Staffing critical IT functions like the Network Operations Center (NOC), Security Operations Center (SOC), and Computer Security Incident Response Center (CSIRC) through external contractors can offer benefits such as access to specialized skills, scalability, and potentially faster deployment compared to hiring and training in-house staff. For agencies like ICE, which require 24/7 monitoring and rapid response capabilities, contractors can provide a readily available pool of expertise. However, risks include potential loss of institutional knowledge, over-reliance on third parties for critical security functions, and challenges in ensuring consistent quality and alignment with agency mission goals. The effectiveness hinges on strong contract management, clear performance standards, and robust oversight to ensure the contractor's personnel are adequately skilled, motivated, and integrated with the agency's overall security posture.
What are the historical spending patterns for IT operations support services within ICE or DHS?
Analyzing historical spending patterns for IT operations support within ICE or DHS would require access to broader contract databases and budget information beyond this single award. However, it's reasonable to infer that agencies of ICE's size and mission complexity have consistently required significant investment in IT infrastructure and support services. Spending on network operations, cybersecurity, and incident response is a critical and often growing component of federal IT budgets. Trends likely show an increasing reliance on specialized IT support, a shift towards cloud-based solutions (though this contract appears infrastructure-focused), and a continuous need for robust cybersecurity measures. Understanding historical spending would involve looking at the total IT budget, the proportion allocated to operations and maintenance, and the prevalence of both competitive and sole-source contract awards for similar services over time.
What are the implications of the contract's duration (approx. 6 years) on service quality and cost-effectiveness?
A contract duration of approximately six years for IT operations support suggests a long-term, stable requirement for these services. From a service quality perspective, a longer duration can allow the contractor to develop deeper expertise and familiarity with ICE's specific network environment and security protocols, potentially leading to more efficient and effective operations. It can also foster a stronger working relationship between the contractor and the agency. However, from a cost-effectiveness standpoint, a very long contract, especially if awarded non-competitively, might reduce pressure on the contractor to innovate or optimize costs over time. It also carries the risk of locking the agency into potentially outdated technologies or service models if not managed with provisions for regular review and adaptation. Periodic performance reviews and potential re-competition are crucial to ensure continued value.
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: NON-COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 1710 SAIC DR, MCLEAN, VA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $209,638,554
Exercised Options: $151,466,837
Current Obligation: $151,466,837
Parent Contract
Parent Award PIID: HSHQDC06D00026
IDV Type: IDC
Timeline
Start Date: 2007-06-29
Current End Date: 2013-06-27
Potential End Date: 2013-06-27 00:00:00
Last Modified: 2014-06-04
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