DHS spent over $311M on data center consolidation, with General Dynamics leading IT services

Contract Overview

Contract Amount: $311,508,023 ($311.5M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2010-09-30

End Date: 2015-12-31

Contract Duration: 1,918 days

Daily Burn Rate: $162.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: CONSOLIDATED DATA CENTERS MIRRORING AND MIGRATION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $311.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: CONSOLIDATED DATA CENTERS MIRRORING AND MIGRATION Key points: 1. Value for money appears fair given the scale and duration of the project. 2. Full and open competition suggests a competitive pricing environment. 3. Risk indicators are moderate, typical for large IT infrastructure projects. 4. Performance context shows a multi-year effort in data center consolidation. 5. Sector positioning is within IT infrastructure management for a major federal agency.

Value Assessment

Rating: fair

The total contract value of over $311 million over approximately five years represents a significant investment in IT infrastructure. Benchmarking against similar large-scale data center consolidation projects within the federal government suggests that the overall cost is within a reasonable range, considering the scope and complexity. However, without detailed breakdowns of labor rates and specific services rendered, a precise value-for-money assessment is challenging. The use of Time and Materials pricing could lead to cost overruns if not managed diligently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of a single award for this large sum suggests that General Dynamics Information Technology, Inc. was selected as the prime contractor, likely based on a best-value determination. The competitive bidding process is expected to have driven prices down compared to a sole-source award, but the specific number of bidders is not provided.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a more competitive environment that can lead to better pricing and service quality. It ensures that the government explores a wider range of solutions and capabilities.

Public Impact

The Department of Homeland Security benefits from modernized and consolidated data center operations. Services delivered include mirroring and migration of data center functions, enhancing efficiency and security. The geographic impact is primarily within the District of Columbia, where the services were likely managed. Workforce implications may include IT specialists involved in data center management, migration, and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure.
Complexity of data center migration can introduce operational risks.
Dependence on a single prime contractor for critical IT infrastructure.

Positive Signals

Consolidation of data centers can lead to long-term cost savings and improved efficiency.
Modernization of IT infrastructure enhances security and reliability.
Award through full and open competition suggests a robust selection process.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT infrastructure management and data center services. The market for federal IT services is substantial, with agencies increasingly looking to consolidate and modernize their data centers to improve efficiency, security, and reduce costs. Comparable spending benchmarks for large-scale IT infrastructure projects often run into hundreds of millions of dollars, making this contract size typical for such endeavors.

Small Business Impact

The provided data does not indicate any specific small business set-asides for this contract. As a large prime contract awarded to General Dynamics Information Technology, Inc., it is possible that small businesses could be involved as subcontractors. However, without further information on subcontracting plans or performance, the direct impact on the small business ecosystem is unclear. Large prime contractors are often encouraged or required to meet small business subcontracting goals.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within the Department of Homeland Security's Office of Procurement Operations. Accountability measures would be embedded in the contract terms, including performance standards and delivery schedules. Transparency is generally facilitated through contract databases like FPDS, though detailed operational oversight information is often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Data Center Consolidation Initiative
IT Infrastructure Modernization Programs
Cloud Computing Services Contracts
Cybersecurity Infrastructure Support

Risk Flags

Potential for cost overruns due to T&M pricing
Complexity of data migration risks
Cybersecurity risks during transition

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $311.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. CONSOLIDATED DATA CENTERS MIRRORING AND MIGRATION

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 $311.5 million.

What is the period of performance?

Start: 2010-09-30. End: 2015-12-31.

What was the specific performance of General Dynamics Information Technology, Inc. on this contract?

Performance details for this specific contract are not publicly available in the provided data. However, the contract spanned nearly five years (September 2010 to December 2015), indicating a sustained effort in data center mirroring and migration. Agencies typically monitor contractor performance through metrics related to timeliness, quality of service, and adherence to technical specifications. For a project of this scale, performance reviews and contract modifications would have been standard. Without access to internal DHS performance reports or contract close-out documentation, a detailed assessment of GDIT's performance remains speculative. The renewal or extension of such contracts often implies satisfactory performance, but this is not always the case.

How does the total spending of $311 million compare to similar federal data center consolidation efforts?

The total spending of over $311 million for data center consolidation over approximately five years is substantial but aligns with the scale of major IT infrastructure projects undertaken by large federal agencies. The Federal Data Center Consolidation Initiative (FDCCI), launched in 2010, aimed to reduce the number of federal data centers. Projects under this initiative often involved significant investments in hardware, software, migration services, and personnel. While specific cost comparisons are difficult without detailed project scopes, other agencies have reported similar or even higher expenditures for consolidating and modernizing their data center footprints. Factors influencing cost include the number of data centers consolidated, the complexity of the IT environment, and the chosen migration strategy (e.g., to private clouds, public clouds, or other consolidated facilities).

What were the primary risks associated with this data center consolidation project?

Primary risks associated with large-scale data center consolidation and migration projects like this include operational disruption during the transition, data loss or corruption, cybersecurity vulnerabilities introduced during the move, cost overruns due to unforeseen complexities, and schedule delays. The use of a Time and Materials (T&M) contract type, while offering flexibility, inherently carries a higher risk of cost escalation if not meticulously managed and monitored. Vendor lock-in and the potential for vendor performance issues are also significant concerns. Furthermore, ensuring the security and integrity of sensitive government data throughout the migration process is paramount and presents a continuous risk.

How effective was this contract in achieving its stated goals of data center consolidation?

The effectiveness of this contract in achieving data center consolidation goals can be inferred from its duration and the agency involved. The Department of Homeland Security (DHS) is a large agency with complex IT needs, and data center consolidation is a long-term strategic objective. A contract lasting nearly five years suggests a significant undertaking. While the provided data doesn't offer specific metrics on the number of data centers consolidated or cost savings realized, such projects typically aim to improve operational efficiency, enhance security, and reduce the overall IT footprint. The success would be measured against DHS's internal strategic goals for IT modernization and consolidation, which are not detailed here. The subsequent evolution of DHS's IT infrastructure would also provide indirect evidence of the project's impact.

What is the historical spending pattern for similar IT infrastructure services at DHS?

Historical spending patterns for IT infrastructure services at the Department of Homeland Security (DHS) are generally substantial, reflecting the agency's critical mission and extensive technology requirements. DHS is one of the largest federal agencies, with significant investments in areas such as cybersecurity, data management, and network infrastructure. Spending on data center operations, consolidation, and modernization has been a consistent component of its IT budget. Over the years, DHS has engaged in various initiatives to optimize its IT infrastructure, including cloud migration and data center consolidation, often involving multi-year contracts valued in the tens or hundreds of millions of dollars. This specific $311 million contract for data center consolidation is indicative of the scale of investment DHS makes in its core IT infrastructure.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HSHQVT-10-R-00010

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 4151 LAFAYETTE CENTER DR STE 700, CHANTILLY, VA, 20151

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $311,508,023

Exercised Options: $311,508,023

Current Obligation: $311,508,023

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $82,032,073

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSHQDC06D00021

IDV Type: IDC

Timeline