DHS awarded $24M for IT services to General Dynamics, highlighting a need for facilities management

Contract Overview

Contract Amount: $24,056,528 ($24.1M)

Contractor: General Dynamics ONE Source LLC

Awarding Agency: Department of Homeland Security

Start Date: 2010-09-02

End Date: 2013-12-31

Contract Duration: 1,216 days

Daily Burn Rate: $19.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: STIP DEV

Place of Performance

Location: FAIRFAX, FAIRFAX CITY County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $24.1 million to GENERAL DYNAMICS ONE SOURCE LLC for work described as: STIP DEV Key points: 1. Contract value of $24M over three years suggests a significant investment in IT infrastructure support. 2. The award to a large, established contractor like General Dynamics indicates a preference for experienced providers in critical IT roles. 3. The 'Computer Facilities Management Services' designation points to a focus on the operational backbone of IT systems. 4. A fixed-fee contract structure implies that the government has a clear understanding of the scope and cost of services required. 5. The duration of over three years suggests a long-term need for these services, potentially indicating stability in the agency's IT operations.

Value Assessment

Rating: good

The contract value of $24M over approximately three years for Computer Facilities Management Services appears reasonable given the scope of supporting critical IT infrastructure for the TSA. Benchmarking against similar large-scale IT service contracts for federal agencies suggests that this award falls within expected spending ranges for comprehensive facilities management. The fixed-fee pricing structure indicates a degree of cost certainty for the government, although the specific profit margins are not detailed.

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 three bidders suggests a competitive environment, which typically benefits the government by driving down prices and improving service quality. The specific details of the bidding process and the number of proposals received would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by ensuring that the government receives the most advantageous offer based on price and technical merit.

Public Impact

Federal employees and contractors within the Department of Homeland Security, specifically the Transportation Security Administration, benefit from reliable IT infrastructure. Essential services include the management and maintenance of computer facilities, ensuring the operational continuity of critical systems. The geographic impact is primarily within the operational areas of the TSA, likely concentrated where major IT hubs are located. Workforce implications may include the direct employment of IT professionals by General Dynamics and potential indirect impacts on TSA's internal IT staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long-term nature of the contract and specialized services.
Reliance on a single large contractor could limit flexibility in adapting to rapidly changing IT needs.
Ensuring adequate performance metrics and oversight are in place to guarantee service quality over the contract's duration.

Positive Signals

Award to a reputable contractor like General Dynamics suggests a high likelihood of successful service delivery.
Full and open competition indicates a robust process that should yield competitive pricing.
The fixed-fee structure provides cost predictability for the government.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT facilities management. The market for these services is substantial, with federal agencies being significant consumers. General Dynamics is a major player in the government IT services market, competing with other large system integrators and IT service providers. Comparable spending benchmarks for IT infrastructure management can vary widely based on the scale and complexity of the systems supported.

Small Business Impact

As this contract was awarded under full and open competition and does not indicate a small business set-aside, the primary impact on small businesses would be through potential subcontracting opportunities. Large prime contractors like General Dynamics often utilize small businesses for specialized services. However, without specific subcontracting plans detailed in the award, the extent of small business participation remains unclear. The absence of a set-aside suggests the primary contract was not specifically targeted to boost small business prime contracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Transportation Security Administration. Performance standards and deliverables would be outlined in the contract, with regular reviews to ensure compliance. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

IT Infrastructure Management Services
Computer Systems Design Services
Cloud Computing Services
Cybersecurity Services
IT Support Services

Risk Flags

Contract duration exceeds 3 years
Awarded to a large prime contractor
Fixed-fee contract type

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $24.1 million to GENERAL DYNAMICS ONE SOURCE LLC. STIP DEV

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 (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $24.1 million.

What is the period of performance?

Start: 2010-09-02. End: 2013-12-31.

What is the track record of General Dynamics in delivering similar IT facilities management services to federal agencies?

General Dynamics Information Technology (GDIT), a subsidiary of General Dynamics, has a long and extensive history of providing IT services to various federal agencies, including the Department of Homeland Security. Their portfolio includes IT infrastructure management, systems integration, cybersecurity, and cloud services. They have held numerous large-scale contracts supporting critical operations for agencies like the Department of Defense, NASA, and the Centers for Medicare & Medicaid Services. While specific performance metrics for past contracts are often proprietary, GDIT's continued success in winning significant federal IT contracts suggests a generally positive track record and established capability in managing complex IT environments and facilities.

How does the awarded value compare to similar IT facilities management contracts for federal agencies of comparable size and scope?

The awarded value of approximately $24 million over three years for Computer Facilities Management Services to the TSA appears to be within a reasonable range for a contract of this nature. Large federal agencies often spend tens to hundreds of millions of dollars annually on comprehensive IT infrastructure and facilities management. For instance, contracts supporting the operational backbone of agencies like the IRS or the Department of Veterans Affairs can reach similar or higher figures. Factors influencing this comparison include the specific services required (e.g., data center operations, network management, hardware maintenance), the number of users supported, and the criticality of the systems. Without more granular details on the scope, a precise benchmark is difficult, but the value suggests a substantial, ongoing need for robust IT support.

What are the primary risks associated with this type of IT facilities management contract, and how are they mitigated?

Key risks include potential cost overruns if the fixed-fee structure doesn't adequately account for unforeseen technical challenges or scope creep, although the fixed fee aims to mitigate this. Performance degradation is another risk, where service quality might decline over time, impacting agency operations. Vendor lock-in is also a concern, as transitioning to a new provider for specialized facilities management can be complex and costly. Mitigation strategies typically involve clearly defined performance work statements (PWS), stringent Service Level Agreements (SLAs) with associated penalties or incentives, regular performance reviews, and robust government oversight. The government also maintains the option to not renew or to re-compete the contract at its expiration.

What is the expected effectiveness of these Computer Facilities Management Services in supporting the TSA's mission?

The effectiveness of these services is crucial for the TSA's mission, as reliable IT infrastructure underpins nearly all its operations, from passenger screening technology to administrative functions. By ensuring the proper functioning, maintenance, and security of computer facilities, the contractor directly contributes to the operational readiness and efficiency of the TSA. This includes minimizing downtime, ensuring data integrity, and supporting the deployment of new technologies. Effective management of these facilities should lead to smoother IT operations, reduced technical disruptions, and ultimately, better support for the TSA's core security and transportation facilitation responsibilities.

What have been the historical spending patterns for Computer Facilities Management Services within the TSA or DHS?

Analyzing historical spending patterns for Computer Facilities Management Services within the TSA or DHS would provide valuable context. This contract, valued at $24 million over three years, represents an average annual spend of approximately $8 million. Understanding if this level of spending is consistent with previous years, or if it represents an increase or decrease, can indicate shifts in IT strategy, infrastructure needs, or budget allocations. For example, a significant increase might signal new projects or upgrades, while a decrease could suggest consolidation or outsourcing changes. Without access to specific historical DHS/TSA IT spending data, it's challenging to provide precise figures, but this award suggests a sustained investment in this area.

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

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Wico Limited

Address: 77 A STREET, NEEDHAM, MA, 02494

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,056,528

Exercised Options: $24,056,528

Current Obligation: $24,056,528

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSHQDC06D00024

IDV Type: IDC

Timeline