DHS awards $29.7M for data center support, raising questions about competition and value

Contract Overview

Contract Amount: $29,710,677 ($29.7M)

Contractor: Csra LLC

Awarding Agency: Department of Homeland Security

Start Date: 2017-06-30

End Date: 2018-06-30

Contract Duration: 365 days

Daily Burn Rate: $81.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF THIS TASK ORDER IS FOR DATA-CENTER 1 SUPPORT SERVICES PER: - THE ATTACHED STATEMENT OF WORK - THE ATTACHED TERMS AND CONDITIONS - THE ATTACHED VENDOR PROPOSAL DATED 6/23/17

Place of Performance

Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39529

State: Mississippi Government Spending

Plain-Language Summary

Department of Homeland Security obligated $29.7 million to CSRA LLC for work described as: IGF::CT::IGF THIS TASK ORDER IS FOR DATA-CENTER 1 SUPPORT SERVICES PER: - THE ATTACHED STATEMENT OF WORK - THE ATTACHED TERMS AND CONDITIONS - THE ATTACHED VENDOR PROPOSAL DATED 6/23/17 Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Limited competition may indicate unique capabilities required or a lack of market outreach. 3. Performance period is one year, suggesting a need for ongoing, specialized support. 4. The contract is a delivery order under a larger contract, details of which are not provided. 5. Focus on computer facilities management indicates critical infrastructure support for USCIS operations. 6. The firm fixed-price structure shifts cost risk to the contractor, but the base price is key.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without knowing the specific services and the broader contract it falls under. The $29.7 million for one year of data center support appears substantial. However, without comparable sole-source awards for similar scope and duration, assessing whether this represents good value for money is difficult. The firm fixed-price nature is positive, but the absence of competition raises concerns about whether the government secured the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, CSRA LLC, was considered. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified for unique capabilities or urgent needs, they typically result in less price competition and potentially higher costs for the government compared to fully competed contracts. The lack of multiple bidders means there was no direct comparison of offers to drive down the price.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage market competition to achieve the lowest possible price for taxpayers. This can lead to higher overall spending for essential services.

Public Impact

Citizens and immigrants benefit indirectly through the continued operation of critical IT infrastructure supporting USCIS services. Essential data center support services are delivered, ensuring the availability and reliability of systems. The geographic impact is primarily within the operational scope of U.S. Citizenship and Immigration Services, likely supporting national-level functions. Workforce implications include the potential for specialized IT roles within CSRA LLC to support this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and value for taxpayers.
Lack of transparency regarding the parent contract makes full assessment difficult.
High dollar value for a single year of support warrants scrutiny.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Focus on critical data center operations ensures essential government functions continue.
Award to an established contractor may indicate a known quantity for service delivery.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer facilities management. The market for data center support is substantial, encompassing hardware maintenance, network operations, security, and physical infrastructure management. Given the critical nature of government data, spending in this area is consistently high. This contract represents a specific instance of federal spending on maintaining essential IT infrastructure, a common requirement across many agencies.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have a small business set-aside component. There is no information provided regarding subcontracting plans for small businesses. Therefore, this award does not directly benefit the small business ecosystem through prime contracting, and its impact on subcontracting opportunities is unknown without further details.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. The Inspector General's office may conduct audits or investigations if concerns arise regarding performance, cost, or compliance. Transparency is limited due to the sole-source nature and the fact that this is a delivery order under a potentially larger, unspecified contract.

Related Government Programs

IT Infrastructure Support Services
Data Center Operations
Cloud Computing Services
Cybersecurity Services
IT Managed Services

Risk Flags

Sole-source award
Lack of competitive bidding
High contract value
Limited transparency on parent contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $29.7 million to CSRA LLC. IGF::CT::IGF THIS TASK ORDER IS FOR DATA-CENTER 1 SUPPORT SERVICES PER: - THE ATTACHED STATEMENT OF WORK - THE ATTACHED TERMS AND CONDITIONS - THE ATTACHED VENDOR PROPOSAL DATED 6/23/17

Who is the contractor on this award?

The obligated recipient is CSRA 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 $29.7 million.

What is the period of performance?

Start: 2017-06-30. End: 2018-06-30.

What is the track record of CSRA LLC in providing data center support services to the federal government, particularly for agencies with similar needs to USCIS?

CSRA LLC, now part of General Dynamics Information Technology (GDIT), has a significant history of providing IT services to the federal government. Their experience includes managing complex IT infrastructure, data centers, and mission-critical systems for various agencies. For USCIS specifically, their ability to handle sensitive data and ensure high availability for immigration services would be crucial. Assessing past performance on similar contracts, including client satisfaction, adherence to schedules, and budget management, would provide insight into their capability to fulfill this delivery order effectively. GDIT's broader portfolio suggests they possess the technical expertise and resources required for such a task.

How does the $29.7 million cost for one year of data center support compare to industry benchmarks or similar government contracts?

Benchmarking the $29.7 million cost for one year of data center support is challenging without detailed service scope and performance metrics. However, for large-scale federal data center operations, this figure can be within a reasonable range, especially if it includes comprehensive management, maintenance, security, and potentially hardware refresh cycles. Industry benchmarks vary widely based on the level of service (e.g., co-location vs. fully managed), data center tier, and geographic location. Sole-source awards often lack the competitive pressure that drives prices down, making direct comparison to fully competed contracts difficult. A thorough analysis would require comparing the specific services rendered against market rates for similar managed services contracts.

What are the specific risks associated with awarding this contract on a sole-source basis?

The primary risk of a sole-source award is the lack of price competition, which can lead to the government paying a premium for services. This reduces the government's leverage to negotiate the best possible price. Another risk is that the government might not be aware of or consider vendors with potentially better or more cost-effective solutions that could have emerged from a competitive process. Furthermore, sole-source awards can sometimes indicate a lack of strategic sourcing or market research by the agency, potentially hindering long-term cost savings and innovation. Dependence on a single vendor also creates a risk if that vendor experiences performance issues or financial instability.

What specific data center support services are included under this delivery order, and how do they align with USCIS's mission objectives?

The provided data indicates the contract is for 'Computer Facilities Management Services' (NAICS 541513) and is a delivery order for 'DATA-CENTER 1 SUPPORT SERVICES'. This typically encompasses a range of activities critical to maintaining the operational integrity of a data center. These services likely include hardware maintenance, network management, environmental controls (cooling, power), physical security, system monitoring, incident response, and potentially patch management and basic system administration. For USCIS, whose mission relies heavily on processing and managing vast amounts of data related to immigration and citizenship, ensuring the continuous availability, security, and performance of their data center infrastructure is paramount. This contract directly supports that mission by ensuring the foundational IT environment remains functional and reliable.

What is the historical spending pattern for data center support services by USCIS or DHS, and how does this award fit into that trend?

Analyzing historical spending patterns for data center support by USCIS or DHS is crucial for context. Without specific historical data, it's difficult to definitively state how this $29.7 million award fits. However, federal agencies, particularly those managing large volumes of sensitive data like USCIS, consistently invest significant amounts in maintaining robust data center infrastructure. Spending trends in this area are often influenced by factors such as data growth, technology modernization efforts (e.g., cloud migration, hardware upgrades), and cybersecurity requirements. If USCIS has historically relied on similar managed services contracts, this award might represent a continuation of that strategy. Conversely, if it deviates significantly from past spending levels or contract types, it could signal a shift in their IT infrastructure approach.

Are there any performance metrics or Service Level Agreements (SLAs) associated with this contract that can be used to evaluate contractor performance?

The provided data does not explicitly detail the performance metrics or Service Level Agreements (SLAs) for this specific delivery order. However, for a contract of this nature and value, it is highly probable that the 'attached Statement of Work' and 'attached Terms and Conditions' include specific performance requirements and SLAs. These would typically define key performance indicators (KPIs) related to system uptime, response times for incidents, maintenance completion rates, and security compliance. Evaluating the contractor's performance against these defined metrics would be essential for determining the value and effectiveness of the services provided. Without access to the SOW and T&Cs, a definitive assessment of performance oversight is not possible.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3170 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,710,677

Exercised Options: $29,710,677

Current Obligation: $29,710,677

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $1,031,563

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: HSHQDC16D00001

IDV Type: IDC

Timeline