DHS awards $134M for IT Operations and Maintenance to General Dynamics
Contract Overview
Contract Amount: $134,337,855 ($134.3M)
Contractor: General Dynamics ONE Source LLC
Awarding Agency: Department of Homeland Security
Start Date: 2011-05-01
End Date: 2015-03-14
Contract Duration: 1,413 days
Daily Burn Rate: $95.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: INFORMATION TECHNOLOGY OPERATIONS AND MAINTENANCE END USER SERVICES
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $134.3 million to GENERAL DYNAMICS ONE SOURCE LLC for work described as: INFORMATION TECHNOLOGY OPERATIONS AND MAINTENANCE END USER SERVICES Key points: 1. General Dynamics secured a significant contract for IT end-user services. 2. The contract was awarded under full and open competition. 3. Potential risks include vendor lock-in and cost overruns given the CPIF contract type. 4. The IT sector, particularly facilities management, is a key area of government spending.
Value Assessment
Rating: fair
The contract value of $134M over approximately 3.8 years suggests a substantial investment in IT services. Benchmarking against similar IT operations and maintenance contracts would be necessary to fully assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded via full and open competition, this method generally promotes competitive pricing. However, the specific pricing structure (Cost Plus Incentive Fee) can lead to less predictable final costs.
Taxpayer Impact: Taxpayer funds are utilized for essential IT infrastructure and services, with the aim of achieving value through competition.
Public Impact
Ensures continued IT support for U.S. Citizenship and Immigration Services operations. Supports critical government functions through reliable end-user services. The contract's duration impacts long-term IT planning and resource allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee (CPIF) can lead to cost overruns.
- Long contract duration may not reflect current market pricing.
- Lack of specific performance metrics in provided data.
Positive Signals
- Awarded through full and open competition.
- Supports essential government IT operations.
Sector Analysis
This contract falls within the IT sector, specifically Computer Facilities Management Services. Government spending in this area is consistently high, driven by the need for robust and secure IT infrastructure.
Small Business Impact
The provided data does not indicate any specific subcontracting goals or participation by small businesses in this contract.
Oversight & Accountability
Oversight would focus on monitoring the CPIF structure to ensure cost control and adherence to performance standards by General Dynamics.
Related Government Programs
- Computer Facilities Management Services
- Department of Homeland Security Contracting
- U.S. Citizenship and Immigration Services Programs
Risk Flags
- Cost Plus Incentive Fee (CPIF) contract type.
- Long contract duration (over 3.8 years).
- Potential for scope creep.
- Dependence on a single large contractor.
- Limited transparency on specific performance metrics.
Tags
computer-facilities-management-services, department-of-homeland-security, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $134.3 million to GENERAL DYNAMICS ONE SOURCE LLC. INFORMATION TECHNOLOGY OPERATIONS AND MAINTENANCE END USER SERVICES
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 $134.3 million.
What is the period of performance?
Start: 2011-05-01. End: 2015-03-14.
What is the average per-unit cost for end-user IT services under this contract compared to industry benchmarks?
Without detailed breakdowns of services and quantities, calculating a precise per-unit cost is challenging. However, the total contract value of $134M over nearly four years suggests an average annual spend of approximately $35M. Benchmarking this against similar government or private sector contracts for large-scale IT operations and maintenance would reveal if this represents a competitive price point for the services rendered.
What are the key performance indicators (KPIs) and incentive structures within the Cost Plus Incentive Fee (CPIF) agreement?
The CPIF structure implies that both the contractor (General Dynamics) and the government share in cost savings or overruns based on pre-defined targets. Specific KPIs would likely relate to service uptime, response times, user satisfaction, and security compliance. Understanding these metrics and the exact incentive/disincentive clauses is crucial for assessing the government's ability to control costs and ensure effective service delivery.
How does the scope of 'End User Services' compare to similar IT support contracts within DHS or other agencies?
The scope of 'End User Services' can vary significantly. For this contract, it likely encompasses help desk support, hardware/software maintenance, network access, and potentially device management for a large user base within USCIS. Comparing this scope to other DHS or federal contracts for similar IT functions would help determine if the $134M award is commensurate with the breadth and depth of services provided.
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: HSSCCG-11-R-00005
Offers Received: 4
Pricing Type: COST PLUS INCENTIVE FEE (V)
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: $158,511,716
Exercised Options: $134,337,855
Current Obligation: $134,337,855
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSHQDC06D00024
IDV Type: IDC
Timeline
Start Date: 2011-05-01
Current End Date: 2015-03-14
Potential End Date: 2015-03-14 00:00:00
Last Modified: 2020-05-05
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