DHS awarded $545M for TSA IT infrastructure transition to General Dynamics

Contract Overview

Contract Amount: $544,842,758 ($544.8M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2009-09-25

End Date: 2014-08-31

Contract Duration: 1,801 days

Daily Burn Rate: $302.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: FIXED PRICE AWARD FEE

Sector: IT

Official Description: AWARD OF SOLITATION #HSTS03-08-R-CIO903. THIS PROCUREMENT IS FOR THE TRANSITION OF EXISTING TSA IT INFRASTRUCTURE PROGRAM REQUIREMENTS, CURRENTLY PROVIDED THROUGH THE UNISYS BRIDGE 2 CONTRACT, TO DHS EAGLE CONTRACT SOURCES. OIT INFRASTRUCTURE PROGRAM IS RESPONSIBLE FOR PROVIDING AND MAINTAINING THE ALL ENCOMPASSING IT INFRASTRUCTURE REQUIREMENTS FOR TSA IN ACCORDANCE WITH ITS MISSION NEEDS STATEMENT.

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $544.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: AWARD OF SOLITATION #HSTS03-08-R-CIO903. THIS PROCUREMENT IS FOR THE TRANSITION OF EXISTING TSA IT INFRASTRUCTURE PROGRAM REQUIREMENTS, CURRENTLY PROVIDED THROUGH THE UNISYS BRIDGE 2 CONTRACT, TO DHS EAGLE CONTRACT SOURCES. OIT INFRASTRUCTURE PROGRAM IS RESPONSIBLE FOR PROVID… Key points: 1. Contract aims to transition TSA IT infrastructure from a bridge contract to DHS EAGLE sources. 2. Focus on providing and maintaining comprehensive IT infrastructure for TSA's mission needs. 3. The contract duration is approximately 5 years, indicating a significant long-term commitment. 4. Awarded as a competitive delivery order, suggesting multiple bids were considered. 5. The fixed-price award fee structure incentivizes performance while managing cost. 6. This procurement is part of a broader effort to consolidate IT services under the DHS EAGLE program.

Value Assessment

Rating: good

The award of $544.8 million over five years for IT infrastructure management represents a substantial investment. Benchmarking against similar large-scale IT infrastructure contracts within federal agencies is complex due to varying scopes and service levels. However, the fixed-price award fee structure suggests an attempt to balance cost control with performance incentives. The transition from a bridge contract to a more structured program like DHS EAGLE indicates a move towards more standardized and potentially cost-effective IT service delivery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This procurement was conducted as a competitive delivery order under the DHS EAGLE contract vehicle. While the specific number of bidders for this particular delivery order is not detailed, the use of a competitive vehicle implies that multiple qualified contractors had the opportunity to bid. This level of competition is generally expected to drive better pricing and service offerings for the government.

Taxpayer Impact: A competitive process helps ensure that taxpayer dollars are used efficiently by fostering a market-driven approach to service provision, leading to potentially lower costs and higher quality.

Public Impact

The Transportation Security Administration (TSA) is the primary beneficiary, receiving essential IT infrastructure support. Services include the provision and maintenance of all-encompassing IT infrastructure requirements. The geographic impact is likely nationwide, supporting TSA operations across various locations. Workforce implications may include IT professionals employed by General Dynamics and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the transition is not managed effectively.
Dependence on a single large contractor for critical IT infrastructure.
Risk of cost overruns if the fixed-price award fee structure is not adequately monitored.

Positive Signals

Consolidation of IT services under the DHS EAGLE program can lead to efficiencies.
Transitioning from a bridge contract to a defined program offers greater stability.
Competitive award process suggests potential for value for money.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer facilities management. The federal IT services market is vast, with agencies increasingly relying on contractors for complex infrastructure needs. The DHS EAGLE program itself is a significant initiative aimed at providing a flexible and efficient means for DHS components to acquire IT services. This award represents a portion of the overall spending within this large and dynamic sector.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While General Dynamics Information Technology, Inc. is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on General Dynamics' strategy and the specific requirements of the IT infrastructure services being provided.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's procurement and program management offices, with specific oversight from the Transportation Security Administration. The contract's fixed-price award fee structure implies performance metrics that would be monitored. Inspector General jurisdiction would apply for investigations into fraud, waste, or abuse.

Related Government Programs

DHS EAGLE Program
TSA IT Modernization Efforts
Federal IT Infrastructure Services
General Services Administration (GSA) IT Schedules

Risk Flags

Transition Risk
Vendor Lock-in Potential
Cybersecurity Vulnerability
Performance Monitoring Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $544.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. AWARD OF SOLITATION #HSTS03-08-R-CIO903. THIS PROCUREMENT IS FOR THE TRANSITION OF EXISTING TSA IT INFRASTRUCTURE PROGRAM REQUIREMENTS, CURRENTLY PROVIDED THROUGH THE UNISYS BRIDGE 2 CONTRACT, TO DHS EAGLE CONTRACT SOURCES. OIT INFRASTRUCTURE PROGRAM IS RESPONSIBLE FOR PROVIDING AND MAINTAINING THE ALL ENCOMPASSING IT INFRASTRUCTURE REQUIREMENTS FOR TSA IN ACCORDANCE WITH ITS MISSION NEEDS STATEMENT.

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 (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $544.8 million.

What is the period of performance?

Start: 2009-09-25. End: 2014-08-31.

What was the specific performance history of the previous Unisys Bridge 2 contract that necessitated this transition?

The provided data does not detail the performance history of the Unisys Bridge 2 contract. However, the solicitation indicates that this procurement is for the 'transition of existing TSA IT infrastructure program requirements, currently provided through the Unisys Bridge 2 contract, to DHS EAGLE contract sources.' This suggests that the Unisys contract was likely a temporary or interim solution, and the move to DHS EAGLE signifies a strategic shift towards a more permanent and integrated IT service delivery model. Reasons for such transitions often include the expiration of bridge contracts, a desire for better pricing, improved service levels, or alignment with broader agency IT strategies.

How does the per-unit cost of services under this contract compare to industry benchmarks for similar IT infrastructure management?

A precise per-unit cost comparison is not feasible with the provided data, as the contract is a large, comprehensive award for IT infrastructure program requirements, not broken down into specific, easily benchmarkable units. The total award amount of $544.8 million over approximately 1801 days (about 5 years) averages to roughly $302,522 per day or $100 million per year. Benchmarking such broad IT infrastructure services requires detailed service level agreements, scope of work, and specific metrics (e.g., cost per server managed, cost per user supported, cost per network device). Without these granular details, a direct comparison to industry benchmarks for Computer Facilities Management Services (NAICS 541513) is speculative. However, the competitive nature of the award and the fixed-price award fee structure suggest an effort to achieve value for money within the federal procurement framework.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, as it is a Fixed Price Award Fee (FP AF) contract, it is highly probable that specific performance standards and metrics were defined in the contract's Statement of Work (SOW). The 'Award Fee' component suggests that the contractor's performance against these predefined criteria would determine the amount of additional fee earned beyond the fixed price. Typical KPIs for IT infrastructure management contracts include system uptime, response times for incidents, resolution times, security compliance, and user satisfaction. These would be crucial for ensuring the TSA's mission needs are met effectively.

What is the risk assessment associated with General Dynamics Information Technology, Inc. as the contractor for this critical IT infrastructure program?

General Dynamics Information Technology, Inc. (GDIT) is a large and established federal contractor with extensive experience in providing IT services, including complex infrastructure management. Their track record generally indicates a capacity to handle large-scale programs. However, risks associated with any large IT contract include potential for schedule delays, cost overruns (even with fixed-price elements, scope creep can occur), cybersecurity vulnerabilities, and challenges in adapting to evolving technological requirements. The transition from a previous contract vehicle (Unisys Bridge 2) to the DHS EAGLE program introduces integration risks. GDIT's specific performance on similar DHS or TSA contracts, if available, would provide further insight into their risk profile for this particular award.

How does this award fit into the broader context of the DHS EAGLE program's objectives and spending?

This award is a direct implementation of the Department of Homeland Security's (DHS) Enterprise Acquisition Gateway for Leading-Edge Solutions (EAGLE) program. The EAGLE program aims to provide a flexible, efficient, and cost-effective way for DHS components to acquire a wide range of IT services and solutions. By transitioning TSA's IT infrastructure requirements to EAGLE contract sources, DHS seeks to standardize IT service delivery, leverage economies of scale, and improve acquisition agility. This $545 million award represents a significant portion of the spending within the EAGLE program, specifically addressing critical IT infrastructure needs for a major component agency (TSA), thereby contributing to the overall objective of modernizing and securing DHS's IT environment.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIXED PRICE AWARD FEE (M)

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: $550,859,187

Exercised Options: $544,842,758

Current Obligation: $544,842,758

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSHQDC06D00021

IDV Type: IDC

Timeline