DHS awarded $16.5M for document production services to General Dynamics, lasting 3 years

Contract Overview

Contract Amount: $16,523,480 ($16.5M)

Contractor: General Dynamics ONE Source LLC

Awarding Agency: Department of Homeland Security

Start Date: 2010-07-06

End Date: 2014-07-06

Contract Duration: 1,461 days

Daily Burn Rate: $11.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INTEGRATED DOCUMENT PRODUCTION BRANCH (IDP) CARD OPERATION/PRODUCTION SERVICES (COPS) EAGLE T.O. 3YR POP, BASE + 2 OPTION YEARS

Place of Performance

Location: CORBIN, KNOX County, KENTUCKY, 40701

State: Kentucky Government Spending

Plain-Language Summary

Department of Homeland Security obligated $16.5 million to GENERAL DYNAMICS ONE SOURCE LLC for work described as: INTEGRATED DOCUMENT PRODUCTION BRANCH (IDP) CARD OPERATION/PRODUCTION SERVICES (COPS) EAGLE T.O. 3YR POP, BASE + 2 OPTION YEARS Key points: 1. The contract value appears reasonable for the duration and services provided, considering the complexity of integrated document production. 2. Full and open competition was utilized, suggesting a competitive bidding process that should have driven favorable pricing. 3. The contract is firm-fixed-price, which shifts cost risk to the contractor and provides budget certainty. 4. Performance is benchmarked against similar IT services contracts for document management and production. 5. The contractor, General Dynamics, is a large, established entity with significant experience in government contracting. 6. The contract falls under IT services, specifically computer facilities management, a common area for federal spending.

Value Assessment

Rating: good

The total award of $16.5 million over three years, including option years, averages approximately $5.5 million annually. This figure is within the expected range for large-scale document production and management services for a federal agency of USCIS's size. Benchmarking against similar IT services contracts for facilities management and document processing suggests that the pricing is competitive, especially given the firm-fixed-price structure which limits cost overruns for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data does not specify the number of bidders, but the use of full and open competition generally leads to a more robust price discovery process and potentially lower prices for the government compared to sole-source or limited competition awards.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it maximizes the potential for receiving the best value through a wide range of offers and competitive pricing.

Public Impact

Citizens and immigrants benefit from efficient processing of their documentation, facilitating services provided by USCIS. The contract delivers essential document production, card operations, and related support services. Services are primarily delivered in Kentucky, impacting the local workforce and economy. This contract supports jobs within the IT services and document management sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if transition to a new provider is complex or costly.
Dependence on a single large contractor for critical document operations.

Positive Signals

Firm-fixed-price contract structure provides cost certainty.
Full and open competition suggests a competitive market was leveraged.
Contractor is a large, established entity with a proven track record in government services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under Computer Facilities Management Services. The market for IT services supporting government operations is substantial, with agencies increasingly relying on contractors for specialized functions like document production and management. Comparable spending benchmarks for similar IT support contracts often range from millions to tens of millions of dollars annually, depending on the scope and scale of services required.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). Therefore, there are no direct subcontracting implications or set-aside requirements for small businesses mandated by this specific award. However, the prime contractor, General Dynamics, may engage small businesses as subcontractors, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Citizenship and Immigration Services (USCIS) contracting officer and program managers. Transparency is generally maintained through contract award databases and reporting requirements. While specific IG jurisdiction isn't detailed, the DHS Office of Inspector General would have oversight over fraud, waste, and abuse related to federal contracts.

Related Government Programs

USCIS Document Management Services
Federal IT Support Contracts
General Services Administration (GSA) Schedule Contracts
Department of Homeland Security IT Procurement

Risk Flags

Contract duration exceeds 3 years, potentially limiting flexibility.
Firm-fixed-price contracts can be less adaptable to scope changes.
Reliance on a single large contractor for critical operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $16.5 million to GENERAL DYNAMICS ONE SOURCE LLC. INTEGRATED DOCUMENT PRODUCTION BRANCH (IDP) CARD OPERATION/PRODUCTION SERVICES (COPS) EAGLE T.O. 3YR POP, BASE + 2 OPTION YEARS

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 (U.S. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $16.5 million.

What is the period of performance?

Start: 2010-07-06. End: 2014-07-06.

What is the track record of General Dynamics One Source LLC with federal contracts, particularly within DHS?

General Dynamics is a major defense contractor and IT services provider with a long history of performing work for various U.S. government agencies, including the Department of Homeland Security (DHS). Their experience spans a wide range of services, from IT infrastructure and cybersecurity to mission support and logistics. For DHS specifically, General Dynamics has held numerous contracts, often in the hundreds of millions or billions of dollars, covering areas like IT modernization, data center operations, and program management. Their extensive portfolio suggests a strong capability to handle large, complex federal contracts like the IDP Card Operation/Production Services (COPS) contract. However, as with any large contractor, specific performance on individual contracts can vary, and a detailed review of past performance ratings and any disputes or contract modifications would be necessary for a complete assessment.

How does the $16.5 million award compare to similar document production contracts within the federal government?

The $16.5 million award for three years of Integrated Document Production Branch (IDP) Card Operation/Production Services (COPS) to General Dynamics One Source LLC is a significant but not extraordinary amount for specialized federal IT services. Annualized, the contract value is approximately $5.5 million. When compared to similar contracts for large-scale document management, printing, and card production services for agencies like the Social Security Administration, the Department of Defense, or the IRS, this figure falls within a reasonable range. Factors influencing cost include the volume of documents, complexity of production (e.g., secure printing, personalization), required turnaround times, and the level of IT integration. Given that this contract was awarded under full and open competition, the pricing is likely competitive for the scope of services provided to USCIS.

What are the primary risks associated with this contract for the government?

The primary risks associated with this contract include potential performance issues where the contractor may not meet service level agreements (SLAs) for document production timeliness or quality, leading to delays in USCIS operations. There's also a risk of cost overruns if the firm-fixed-price structure doesn't adequately account for unforeseen technical challenges or scope creep, although this structure generally favors the government by capping costs. Vendor lock-in is another concern; transitioning document production services away from an incumbent contractor can be complex, costly, and disruptive. Finally, cybersecurity risks related to handling sensitive citizen data during production are inherent, requiring robust security protocols from the contractor.

How effective is the firm-fixed-price (FFP) contract type in managing costs for this type of service?

The firm-fixed-price (FFP) contract type is generally considered effective for managing costs in services where the scope of work is well-defined and technical risks are relatively low, such as document production. Under an FFP contract, the contractor assumes most of the cost risk, agreeing to a set price regardless of their actual costs incurred. This provides the government with budget certainty and incentivizes the contractor to control costs efficiently. For the IDP COPS contract, this means USCIS knows the total expenditure upfront, assuming no contract modifications. The effectiveness hinges on the accuracy of the initial scope definition and the contractor's ability to manage their operations within the agreed price. If unforeseen issues arise that genuinely impact cost, the FFP structure can make it difficult for the government to accommodate necessary changes without significant negotiation.

What is the historical spending pattern for document production and card services at USCIS or DHS?

Historical spending patterns for document production and card services at USCIS and DHS are generally substantial, reflecting the high volume of applications and immigration-related documents processed. Agencies like USCIS require continuous, large-scale operations for producing identification cards, notices, and other critical documents. While specific historical data for the IDP COPS contract isn't provided, similar contracts often span multiple years and involve multi-million dollar awards. Spending in this area tends to be relatively stable, driven by ongoing operational needs rather than cyclical demand, though legislative changes or policy shifts can influence volumes. Agencies often consolidate such services under large IT or support contracts to achieve economies of scale and streamline management, indicating a trend towards centralized, high-value awards like this one.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HSSCCG-10-R-00012

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

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: $28,710,127

Exercised Options: $16,523,480

Current Obligation: $16,523,480

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSHQDC06D00024

IDV Type: IDC

Timeline