DHS awards $40.5M for US-CERT IT support to General Dynamics

Contract Overview

Contract Amount: $40,486,463 ($40.5M)

Contractor: General Dynamics ONE Source LLC

Awarding Agency: Department of Homeland Security

Start Date: 2009-06-19

End Date: 2013-06-27

Contract Duration: 1,469 days

Daily Burn Rate: $27.6K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: INTEGRATION AND SUPPORT SERVICES FOR NCSD US-CERT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $40.5 million to GENERAL DYNAMICS ONE SOURCE LLC for work described as: INTEGRATION AND SUPPORT SERVICES FOR NCSD US-CERT Key points: 1. General Dynamics secured a significant contract for IT integration and support services. 2. The contract value is substantial, indicating a critical need for these services. 3. Competition details are limited, raising questions about price discovery. 4. The IT sector is a major area of federal spending, with ongoing demand for cybersecurity and infrastructure support.

Value Assessment

Rating: fair

The contract was awarded as a delivery order under a larger contract. Without knowing the terms of the base contract or other competing bids, it's difficult to assess if the $40.5M price is competitive. The 'Time and Materials' pricing model can sometimes lead to cost overruns if not closely managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was awarded as a 'Competitive Delivery Order,' suggesting some level of competition. However, the specifics of the competition, such as the number of bidders and the evaluation process, are not detailed. This lack of transparency can hinder effective price discovery.

Taxpayer Impact: Taxpayer funds are being used for essential IT support services. The effectiveness of the competition and pricing will determine the overall value for taxpayers.

Public Impact

Ensures continuity of critical cybersecurity operations for US-CERT. Supports the Department of Homeland Security's mission to protect national infrastructure. Potential for cost savings or overruns depending on contract management and competition effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer facilities management services. Federal spending in IT, particularly for cybersecurity and infrastructure, remains high due to evolving threats and the increasing reliance on digital systems.

Small Business Impact

The data indicates this contract was awarded to General Dynamics, a large corporation, and does not show any specific set-asides for small businesses. Therefore, the direct impact on small businesses appears minimal for this particular award.

Oversight & Accountability

Oversight would involve monitoring the contractor's performance against the Statement of Work, ensuring adherence to the Time and Materials pricing, and verifying that the services provided are necessary and effective in supporting US-CERT operations.

Related Government Programs

Risk Flags

Tags

computer-facilities-management-services, department-of-homeland-security, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $40.5 million to GENERAL DYNAMICS ONE SOURCE LLC. INTEGRATION AND SUPPORT SERVICES FOR NCSD US-CERT

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 $40.5 million.

What is the period of performance?

Start: 2009-06-19. End: 2013-06-27.

What was the competitive landscape for this delivery order, and how did it influence the final price?

The award was a 'Competitive Delivery Order,' implying multiple proposals were considered. However, without access to the specific bidding data, it's impossible to determine the exact number of competitors or the range of proposed prices. This lack of transparency makes it difficult to ascertain if the final price reflects optimal value for the government or if a more aggressive bidding process could have yielded further savings.

What are the primary risks associated with the 'Time and Materials' pricing structure for this IT support contract?

The primary risk with Time and Materials (T&M) contracts is the potential for cost overruns if not meticulously managed. The government pays for the actual labor hours and material costs incurred by the contractor. Without strict oversight, controls, and clear task definitions, contractors may be incentivized to extend timelines or use more resources than strictly necessary, leading to higher overall expenditures than a fixed-price contract might incur.

How effectively does this contract contribute to the overall cybersecurity mission of US-CERT?

This contract is crucial for the operational continuity and effectiveness of US-CERT, providing essential integration and support services. Assuming General Dynamics delivers as per the contract's scope, it directly bolsters the agency's ability to monitor, analyze, and respond to cyber threats, thereby strengthening national cybersecurity posture. The value is realized through the reliable functioning of critical IT infrastructure supporting these efforts.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Facilities Management Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP 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 (UEI: 001381284)

Address: 77 A STREET, NEEDHAM, MA, 02494

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $40,486,463

Exercised Options: $40,486,463

Current Obligation: $40,486,463

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSHQDC06D00024

IDV Type: IDC

Timeline

Start Date: 2009-06-19

Current End Date: 2013-06-27

Potential End Date: 2013-06-27 00:00:00

Last Modified: 2017-05-17

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