DHS Spends $74M on IT Support Services with General Dynamics, Raising Value Concerns
Contract Overview
Contract Amount: $74,371,133 ($74.4M)
Contractor: General Dynamics ONE Source LLC
Awarding Agency: Department of Homeland Security
Start Date: 2007-09-01
End Date: 2013-04-14
Contract Duration: 2,052 days
Daily Burn Rate: $36.2K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: PROFESSIONAL SUPPORT SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20407
Plain-Language Summary
Department of Homeland Security obligated $74.4 million to GENERAL DYNAMICS ONE SOURCE LLC for work described as: PROFESSIONAL SUPPORT SERVICES Key points: 1. Significant contract value of $74.37 million over six years. 2. General Dynamics One Source LLC is the sole awardee. 3. Potential for overspending due to Time and Materials pricing. 4. IT sector spending, focusing on computer facilities management.
Value Assessment
Rating: questionable
The $74.37 million contract value over six years for IT support services appears high, especially given the Time and Materials pricing structure which can lead to cost overruns. Benchmarking against similar IT facilities management contracts is crucial to assess true value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
Awarded as a competitive delivery order, suggesting initial competition. However, the specific details of this competition and how price discovery was achieved are not fully detailed, leaving room for potential inefficiencies.
Taxpayer Impact: Taxpayer funds totaling $74.37 million were allocated. The effectiveness of the competition and pricing structure will determine the ultimate value for taxpayers.
Public Impact
Citizens rely on effective IT infrastructure managed by these services. Potential for taxpayer money to be spent inefficiently if not managed closely. Contract duration of six years impacts long-term budget planning. Ensuring data security and system reliability is paramount.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- Long contract duration
- Lack of detailed competition specifics
Positive Signals
- Competitive award mechanism
- Established IT services provider
Sector Analysis
This contract falls within the IT sector, specifically Computer Facilities Management Services. Spending benchmarks for similar IT support contracts vary widely, but large, multi-year Time and Materials contracts often warrant close scrutiny for cost control.
Small Business Impact
The data indicates this contract was not awarded to a small business. Analysis of subcontracting opportunities for small businesses within this large IT services contract would be beneficial.
Oversight & Accountability
Oversight by the Department of Homeland Security's Office of Procurement Operations is essential. Regular performance reviews and cost audits are critical to ensure accountability and prevent wasteful spending, especially with Time and Materials contracts.
Related Government Programs
- Computer Facilities Management Services
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- Potential for cost overruns due to T&M pricing.
- Lack of detailed competition specifics.
- Long contract duration (6 years).
- No small business set-aside.
Tags
computer-facilities-management-services, department-of-homeland-security, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $74.4 million to GENERAL DYNAMICS ONE SOURCE LLC. PROFESSIONAL SUPPORT SERVICES
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 (Office of Procurement Operations).
What is the total obligated amount?
The obligated amount is $74.4 million.
What is the period of performance?
Start: 2007-09-01. End: 2013-04-14.
What specific IT facilities management services were provided under this contract, and how did they align with DHS's mission objectives?
The contract, NA 541513, covered Computer Facilities Management Services. These services are critical for maintaining the operational integrity of the Department of Homeland Security's IT infrastructure, ensuring the availability and reliability of systems essential for national security and public safety operations.
Were there any performance issues or cost overruns reported during the contract's six-year duration?
The provided data does not detail performance issues or cost overruns. However, the Time and Materials pricing structure inherently carries a risk of cost escalation if not meticulously managed and monitored by the contracting agency throughout the contract's lifecycle.
How effective was the competitive process in securing fair market value for these IT services?
While the award was competitive, the Time and Materials (T&M) pricing model can complicate the assessment of fair market value. T&M contracts are often less predictable in final cost compared to fixed-price contracts, making it harder to definitively state the effectiveness of the competition in achieving optimal 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: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 77 A STREET, NEEDHAM, MA, 02494
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $74,371,133
Exercised Options: $74,371,133
Current Obligation: $74,371,133
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSHQDC06D00024
IDV Type: IDC
Timeline
Start Date: 2007-09-01
Current End Date: 2013-04-14
Potential End Date: 2013-04-14 00:00:00
Last Modified: 2023-01-27
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