DHS awards $47.9M for data center services to CSRA LLC, a sole-source contract

Contract Overview

Contract Amount: $47,913,314 ($47.9M)

Contractor: Csra LLC

Awarding Agency: Department of Homeland Security

Start Date: 2016-01-01

End Date: 2021-06-30

Contract Duration: 2,007 days

Daily Burn Rate: $23.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CL,CT::IGF DATA CENTER 1

Place of Performance

Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39522

State: Mississippi Government Spending

Plain-Language Summary

Department of Homeland Security obligated $47.9 million to CSRA LLC for work described as: IGF::CL,CT::IGF DATA CENTER 1 Key points: 1. Contract awarded on a sole-source basis, limiting competitive pricing benefits. 2. Significant duration of over 5 years suggests a critical, long-term need. 3. Firm Fixed Price contract type provides cost certainty but may limit flexibility. 4. The contract falls under Computer Facilities Management Services, a key IT infrastructure area. 5. Awarded by U.S. Immigration and Customs Enforcement (ICE), indicating a focus on immigration system support. 6. The contract's value is substantial, requiring careful oversight for efficiency.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its sole-source nature and specific service category. Without competitive bids, it's difficult to ascertain if the $47.9 million price tag represents optimal value for money. The duration of over five years suggests a significant investment, and a detailed cost breakdown would be necessary to compare it against industry standards for similar data center management services. The firm fixed-price structure offers predictability but might not reflect the most cost-effective solution if market conditions or service needs change.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one vendor can provide the required services, often due to proprietary technology, unique capabilities, or urgent needs. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs for the government compared to a fully competed contract. The justification for sole-source procurement would need to be robust to ensure taxpayer funds are used efficiently.

Taxpayer Impact: Sole-source awards can result in higher prices for taxpayers as the government does not benefit from competitive bidding. This limits the government's ability to negotiate the best possible price and may indicate a lack of available qualified vendors or a failure to adequately plan for competition.

Public Impact

U.S. Immigration and Customs Enforcement (ICE) benefits from the continuity of essential data center operations. The contract ensures the reliable functioning of IT infrastructure supporting immigration and customs enforcement activities. Geographic impact is primarily within the operational sphere of ICE, likely supporting national-level functions. Workforce implications include the continued employment of personnel by CSRA LLC to manage and maintain the data center facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Long contract duration may reduce agility in adopting new technologies.
Lack of transparency in sole-source justification could mask inefficiencies.

Positive Signals

Firm Fixed Price provides budget certainty for the agency.
CSRA LLC is an established contractor, suggesting potential for reliable service delivery.
Contract supports critical functions for a major federal agency.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on data center management and facilities support. The market for these services is large and competitive, with numerous providers offering solutions ranging from cloud-based services to on-premise infrastructure management. Federal spending in IT services, particularly for critical infrastructure like data centers, represents a significant portion of the government's technology budget. Comparable spending benchmarks would typically involve analyzing other large-scale data center support contracts awarded by federal agencies to assess pricing and service levels.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The prime contractor, CSRA LLC, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. This means that opportunities for small businesses to participate in this contract are likely limited unless subcontracted by the prime. The absence of set-asides means the full value of the contract is not directly contributing to the small business ecosystem through this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security and U.S. Immigration and Customs Enforcement. As a sole-source award, the justification and performance monitoring are critical. Transparency regarding the contractor's performance metrics, adherence to service level agreements, and cost management would be key oversight areas. Inspector General jurisdiction would apply to investigate any potential fraud, waste, or abuse related to the contract's execution.

Related Government Programs

DHS Data Center Consolidation Initiative
Federal Data Center Savings and Consolidation Act
IT Infrastructure Modernization Programs
Cloud Computing Services Contracts
Cybersecurity Support Services

Risk Flags

Sole-source award
Long contract duration
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $47.9 million to CSRA LLC. IGF::CL,CT::IGF DATA CENTER 1

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. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $47.9 million.

What is the period of performance?

Start: 2016-01-01. End: 2021-06-30.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT COMPETED' and classified as 'sole-source'. While the specific justification is not detailed in the provided data snippet, sole-source awards are typically granted when a unique product or service is required, only one responsible source can provide it, or in cases of urgent and compelling need where competition is not feasible. For a contract of this magnitude ($47.9 million over five years) for data center facilities management, the justification would likely revolve around unique technical requirements, existing infrastructure dependencies, or specialized expertise held exclusively by CSRA LLC at the time of the award. A thorough review of the contract's official justification documentation would be necessary to understand the precise reasons.

How does the $47.9 million contract value compare to similar data center management contracts?

Directly comparing the $47.9 million value is difficult without knowing the specific scope of services, duration, and performance metrics. However, for a contract spanning over five years (January 1, 2016, to June 30, 2021), this averages to approximately $9.6 million per year. This figure is within the range for large-scale federal IT infrastructure support contracts. Given that it's for a significant agency like ICE, the cost reflects the complexity and criticality of managing data center facilities. Benchmarking would ideally involve comparing it to other sole-source or competitively awarded contracts for similar services, considering factors like the number of servers managed, data storage capacity, uptime requirements, and security protocols.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a data center facilities management contract, typical KPIs and SLAs would focus on critical aspects such as system uptime (e.g., 99.99% availability), response times for incidents and service requests, Mean Time To Repair (MTTR), data backup and recovery success rates, physical security of the facility, and energy efficiency. The firm fixed-price nature suggests that performance against these metrics would be closely monitored by U.S. Immigration and Customs Enforcement (ICE) to ensure service delivery meets the required standards and justifies the contract's cost.

What is CSRA LLC's track record with similar federal contracts, particularly within DHS?

CSRA LLC (now part of General Dynamics IT) has a significant history of performing IT services for various federal agencies, including the Department of Homeland Security (DHS). Prior to its acquisition, CSRA held numerous contracts across different domains, including IT infrastructure, cloud services, cybersecurity, and mission support. Their track record with DHS would likely include managing complex IT systems and facilities. While this specific contract was sole-source, CSRA's broader experience suggests a capability to handle large-scale federal IT requirements. Performance on other DHS contracts, if available, would provide further insight into their reliability and effectiveness in delivering mission-critical services.

What are the potential risks associated with a sole-source award of this duration?

The primary risks associated with a sole-source award of this duration (over 5 years) include potential price escalation over time if not managed carefully, reduced incentive for the contractor to innovate or improve efficiency beyond contractually mandated levels, and a lack of flexibility for the government to switch to potentially better or more cost-effective solutions if they emerge. There's also the risk of vendor lock-in, making it difficult and costly to transition to a new provider at the end of the contract term. Furthermore, without competitive pressure, the government may not be achieving the best possible value for its investment, and oversight becomes even more critical to ensure performance and fair pricing.

How does this contract align with broader federal IT modernization and data center consolidation efforts?

This contract, awarded in 2016 and ending in 2021, falls within a period of significant federal focus on IT modernization and data center consolidation, driven by initiatives like the Federal Data Center Consolidation Initiative (FDCCI) and the Modernizing Government Technology (MGT) Act. While the contract itself is for managing existing data center facilities, its execution would ideally align with these goals by ensuring efficient, secure, and cost-effective operations. The specific nature of the services (Computer Facilities Management) suggests it supports the infrastructure backbone. However, the sole-source nature might indicate a continuation of existing infrastructure rather than a move towards more modern, potentially cloud-based solutions, unless the contract included provisions for such transitions.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HSCETC-16-Q-00002

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: $55,482,445

Exercised Options: $51,851,427

Current Obligation: $47,913,314

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $922,489

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