DHS awards $707M for Stennis Data Center Managed Services to General Dynamics IT
Contract Overview
Contract Amount: $707,012,342 ($707.0M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2008-07-01
End Date: 2015-12-31
Contract Duration: 2,739 days
Daily Burn Rate: $258.1K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: STENNIS DATA CENTER MANAGED SERVICES
Place of Performance
Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39522
Plain-Language Summary
Department of Homeland Security obligated $707.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: STENNIS DATA CENTER MANAGED SERVICES Key points: 1. Significant contract value of over $700 million. 2. General Dynamics Information Technology is the sole awardee. 3. Contract duration spans over 7 years. 4. Focus on Computer Facilities Management Services.
Value Assessment
Rating: fair
The total award value is substantial. Without specific per-unit cost data or benchmarks for similar data center management contracts, a precise value assessment is difficult. The fixed-price nature provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This was awarded as a competitive delivery order, suggesting some level of competition existed at the time of award. However, the data does not specify the number of bidders or the competitive process details, making it hard to assess the full impact on price discovery.
Taxpayer Impact: Taxpayer funds are being used for essential data center operations. The competitive nature, though potentially limited, aims to secure services at a reasonable cost.
Public Impact
Ensures continuity of critical IT infrastructure for the Department of Homeland Security. Supports national security and operational missions through reliable data center services. Impacts federal data management and cybersecurity posture. General Dynamics IT plays a key role in maintaining government IT operations.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Long contract duration may lead to price inflexibility.
- Limited visibility into the competitive landscape at award.
Positive Signals
- Firm Fixed Price contract type offers cost predictability.
- Essential services for a major federal agency.
Sector Analysis
This contract falls under IT services, specifically computer facilities management. Spending in this sector is consistently high across federal agencies, supporting core operational needs and digital transformation efforts.
Small Business Impact
The data indicates this contract was not set aside for small businesses and does not specify any small business subcontracting goals. Therefore, the direct impact on small businesses appears minimal.
Oversight & Accountability
Oversight would typically be managed by the Office of Procurement Operations within DHS. Ensuring performance metrics are met and costs remain aligned with the fixed-price contract is crucial for accountability.
Related Government Programs
- Computer Facilities Management Services
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- Long contract duration (over 7 years) may limit flexibility and price optimization.
- Lack of detailed competition information raises questions about optimal price discovery.
- Potential for cost overruns if scope significantly expands beyond initial estimates.
- Reliance on a single contractor for critical data center operations.
Tags
computer-facilities-management-services, department-of-homeland-security, ms, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $707.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. STENNIS DATA CENTER MANAGED SERVICES
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..
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 $707.0 million.
What is the period of performance?
Start: 2008-07-01. End: 2015-12-31.
What was the competitive landscape like for this specific delivery order, and how did it influence the final price?
The data labels this as a 'COMPETITIVE DELIVERY ORDER,' implying multiple proposals were considered. However, without knowing the number of bidders or the specific evaluation criteria, it's challenging to definitively state how competition impacted price discovery. Further analysis of the procurement file would be needed to understand the extent of competition and its effect on the final negotiated price.
Are there any performance metrics or service level agreements tied to this contract, and how are they monitored?
The provided data does not detail specific performance metrics or Service Level Agreements (SLAs). Typically, such contracts include clauses for performance monitoring and penalties for non-compliance. The 'Office of Procurement Operations' would likely be responsible for overseeing these aspects to ensure the contractor meets the required standards for data center management.
How does the $707 million award compare to industry benchmarks for similar managed data center services over a 7-year period?
Benchmarking this $707 million award requires detailed comparison against industry standards for managed data center services, considering factors like scope, security requirements, and service levels. Without specific per-unit cost data (e.g., cost per server, cost per rack) and a clear understanding of the services rendered, a precise comparison is difficult. However, the substantial value suggests a comprehensive service offering.
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: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 4151 LAFAYETTE CENTER DR STE 700, CHANTILLY, VA, 20151
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $1,092,203,980
Exercised Options: $707,012,342
Current Obligation: $707,012,342
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSHQDC06D00021
IDV Type: IDC
Timeline
Start Date: 2008-07-01
Current End Date: 2015-12-31
Potential End Date: 2015-12-31 00:00:00
Last Modified: 2023-01-27
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