DHS awards $79.7M for HSIN Next Gen Engineering Support to General Dynamics
Contract Overview
Contract Amount: $79,706,630 ($79.7M)
Contractor: General Dynamics ONE Source LLC
Awarding Agency: Department of Homeland Security
Start Date: 2008-05-23
End Date: 2013-08-26
Contract Duration: 1,921 days
Daily Burn Rate: $41.5K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: ENGINEERING SUPPORT TO HSIN NEXT GENERATION
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001
Plain-Language Summary
Department of Homeland Security obligated $79.7 million to GENERAL DYNAMICS ONE SOURCE LLC for work described as: ENGINEERING SUPPORT TO HSIN NEXT GENERATION Key points: 1. General Dynamics secured a significant contract for critical IT infrastructure support. 2. The contract was awarded via a competitive delivery order, suggesting some price discovery. 3. Potential risks include cost overruns given the Cost Plus Fixed Fee structure. 4. Spending falls within the Computer Facilities Management Services sector.
Value Assessment
Rating: good
The contract's value of $79.7M over 5 years for IT engineering support appears reasonable when benchmarked against similar large-scale IT service contracts. However, the Cost Plus Fixed Fee structure warrants close monitoring for potential cost escalations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
Awarded as a competitive delivery order, this method likely allowed for some level of price negotiation and comparison among qualified vendors. The specific competition details are not provided, but the 'competitive' designation suggests multiple bids were considered.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently, though the Cost Plus Fixed Fee structure requires diligent oversight to prevent unnecessary spending.
Public Impact
Ensures continued operation and development of the Homeland Security Information Network (HSIN). Supports critical national security and inter-agency communication infrastructure. Impacts government IT modernization efforts and contractor landscape.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure can lead to cost overruns.
- Long contract duration (5 years) increases exposure to changing requirements.
- No indication of small business participation.
Positive Signals
- Awarded competitively, suggesting potential for good value.
- Supports a critical government function (HSIN).
- Experienced contractor (General Dynamics).
Sector Analysis
This contract falls under IT services, specifically Computer Facilities Management Services. Spending benchmarks for similar large-scale IT support contracts vary widely, but $79.7M over five years for a critical system like HSIN is within a plausible range.
Small Business Impact
The data indicates this contract was not awarded to a small business (sb: false). There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The contract's competitive delivery order nature suggests some level of oversight in the award process. However, the Cost Plus Fixed Fee payment type necessitates robust government oversight to manage costs and ensure performance aligns with the fixed fee.
Related Government Programs
- Computer Facilities Management Services
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- Cost Plus Fixed Fee structure.
- Long contract duration.
- Lack of small business participation noted.
- Potential for scope creep in IT projects.
- Dependence on a single contractor for critical infrastructure.
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 $79.7 million to GENERAL DYNAMICS ONE SOURCE LLC. ENGINEERING SUPPORT TO HSIN NEXT GENERATION
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 $79.7 million.
What is the period of performance?
Start: 2008-05-23. End: 2013-08-26.
What specific performance metrics were used to evaluate General Dynamics' success in providing engineering support for HSIN Next Generation?
The provided data does not detail the specific performance metrics used for this contract. Typically, such metrics would be outlined in the contract's statement of work and could include system uptime, response times for technical issues, successful implementation of new features, and adherence to security protocols. Effective oversight would involve regular reviews against these defined metrics.
How does the Cost Plus Fixed Fee structure mitigate or exacerbate risks associated with long-term IT system development and maintenance?
The Cost Plus Fixed Fee (CPFF) structure can mitigate risk by allowing the contractor to cover all allowable costs while earning a predetermined fixed fee. This can encourage innovation and ensure critical systems are maintained. However, it can exacerbate risk by incentivizing cost overruns, as the contractor is guaranteed their costs are covered, potentially leading to less stringent cost control than in fixed-price contracts.
What is the long-term strategic value of this $79.7M investment in HSIN Next Generation engineering support for the Department of Homeland Security?
This investment is crucial for maintaining and evolving the Homeland Security Information Network (HSIN), a vital platform for information sharing and collaboration among federal, state, and local agencies. Ensuring its continued functionality and modernization supports national security, emergency response coordination, and overall operational effectiveness for DHS and its partners.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HSHQDC-08-R-00037
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
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: $79,706,630
Exercised Options: $79,706,630
Current Obligation: $79,706,630
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSHQDC06D00024
IDV Type: IDC
Timeline
Start Date: 2008-05-23
Current End Date: 2013-08-26
Potential End Date: 2013-11-26 00:00:00
Last Modified: 2018-08-30
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