Treasury's $27.2M IT Facilities Management Contract Awarded to BAE Systems

Contract Overview

Contract Amount: $27,216,378 ($27.2M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of the Treasury

Start Date: 2009-10-01

End Date: 2011-02-28

Contract Duration: 515 days

Daily Burn Rate: $52.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ITIMS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20220

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $27.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: ITIMS Key points: 1. Contract focused on computer facilities management services, indicating a need for specialized IT infrastructure support. 2. The award to BAE Systems suggests a competitive process, though the specific number of bidders is not detailed. 3. Firm Fixed Price contract type implies predictable costs for the government, reducing budget uncertainty. 4. The contract duration of 515 days (approx. 1.4 years) suggests a medium-term need for these services. 5. Performance is located in Washington D.C., aligning with the agency's primary operational hub. 6. The absence of small business set-aside flags a potential gap in opportunities for smaller IT service providers.

Value Assessment

Rating: good

The contract value of $27.2 million for approximately 1.4 years of IT facilities management services appears reasonable given the scope. Benchmarking against similar contracts for IT infrastructure support in the federal space would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs, but the ultimate value depends on the quality and efficiency of services delivered by BAE Systems.

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 offers. While the specific number of bids received is not provided, this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency's decision to use full and open competition suggests confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for cost savings through robust bidding and encourages a wider range of innovative solutions.

Public Impact

The Department of the Treasury benefits from essential IT facilities management, ensuring the smooth operation of its digital infrastructure. Services delivered likely include maintenance, support, and management of computer systems and data centers. The geographic impact is concentrated in Washington D.C., supporting federal operations in the nation's capital. The contract supports a workforce skilled in IT infrastructure management, likely within BAE Systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively procured.
Reliance on a single contractor for critical IT infrastructure could pose a risk if performance falters.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Full and open competition suggests a robust market evaluation process.
BAE Systems is a large, established defense and technology contractor with significant resources.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT facilities management. This segment of the IT services market involves the operational support and maintenance of critical computing infrastructure, including servers, data centers, and network hardware. The federal government is a significant consumer of such services, with spending often driven by the need to maintain aging systems and upgrade to more modern, secure, and efficient IT environments. Comparable spending benchmarks would typically be found within IT infrastructure support categories across various federal agencies.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and opportunities for small businesses to participate in this specific contract may be limited unless they are direct subcontractors to BAE Systems. Further analysis would be needed to determine if BAE Systems has a history of subcontracting with small businesses on similar contracts.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. As a firm fixed-price contract, financial oversight would focus on ensuring adherence to the agreed-upon price. Performance oversight would be managed by the contracting officer's representative (COR) to ensure services meet the specified requirements. Transparency is generally maintained through public contract databases, though specific performance metrics and detailed oversight 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
Data Center Operations Support
Computer Systems Maintenance
Federal IT Services Procurement
Department of the Treasury IT Spending

Risk Flags

Contract duration is relatively short, potentially leading to frequent re-procurement costs.
Lack of specific performance metrics in the provided data makes assessing service quality difficult.
No small business participation noted, potentially limiting broader economic impact.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $27.2 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. ITIMS

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Departmental Offices).

What is the total obligated amount?

The obligated amount is $27.2 million.

What is the period of performance?

Start: 2009-10-01. End: 2011-02-28.

What is BAE Systems' track record with similar IT facilities management contracts within the federal government?

BAE Systems Technology Solutions & Services Inc. has a substantial history of performing IT and technology-related services for the federal government. While this specific contract focuses on IT facilities management, the company's broader portfolio includes complex system integration, cybersecurity, and information technology support across various agencies, particularly within the Department of Defense. Analyzing their past performance on contracts with similar scope, duration, and value would provide insight into their capability to deliver on this Treasury contract. Key indicators would include past performance reviews, any documented instances of contract disputes or terminations, and their ability to meet key performance indicators on previous IT infrastructure contracts.

How does the $27.2 million value compare to similar IT facilities management contracts awarded by the Treasury or other agencies?

The $27.2 million value for approximately 1.4 years of IT facilities management services needs to be benchmarked against comparable federal contracts. Contracts for IT infrastructure support, data center management, and computer facilities maintenance can vary significantly based on scope, location, and specific services required. For instance, a contract covering a large, complex data center with high security requirements in a major metropolitan area would likely command a higher price than one for less critical infrastructure. Without specific details on the scope of services and the number of facilities managed under this BAE Systems contract, a precise comparison is difficult. However, general market data suggests that federal IT facilities management contracts can range from a few million to tens of billions of dollars annually, depending on the scale and complexity.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks include potential performance failures by the contractor, leading to disruptions in critical IT services for the Treasury. Another risk is cost overruns, although the Firm Fixed Price (FFP) structure aims to mitigate this by fixing the price regardless of the contractor's costs. Vendor lock-in is also a concern if follow-on procurements are not handled competitively. Mitigation strategies typically involve robust performance monitoring by the Contracting Officer's Representative (COR), clearly defined service level agreements (SLAs), and contingency planning. The FFP contract itself is a key mitigation for cost risk. For vendor lock-in, the agency must plan for future procurements well in advance to ensure adequate competition.

How effective is the 'full and open competition' approach in ensuring value for money for this IT facilities management contract?

The 'full and open competition' approach is generally considered effective in promoting value for money by maximizing the pool of potential offerors and encouraging competitive pricing. This method allows the government to solicit proposals from any interested and qualified source, fostering a dynamic marketplace where contractors vie for the award. For IT facilities management, this means the Treasury likely received proposals from multiple capable firms, potentially driving down costs and improving service quality. The effectiveness is further enhanced if the evaluation criteria are well-defined and weighted appropriately to balance price, technical approach, and past performance, ensuring the best overall value is selected, not just the lowest price.

What is the historical spending pattern for IT facilities management services at the Department of the Treasury?

Analyzing historical spending patterns for IT facilities management at the Department of the Treasury would reveal trends in contract values, durations, and the types of services procured. This specific $27.2 million contract awarded in late 2009 for a period of about 1.4 years provides a data point within a broader spending context. Understanding whether the Treasury has consistently relied on large, established contractors like BAE Systems, or if there's a history of utilizing smaller businesses or different contracting vehicles, is crucial. Examining spending over the past 5-10 years would indicate if there's been an increase or decrease in demand for these services, shifts in technology focus (e.g., cloud migration vs. on-premise management), and the overall budget allocated to maintaining its IT infrastructure.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 2525 NETWORK PL, HERNDON, VA, 11

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $71,828,932

Exercised Options: $27,216,378

Current Obligation: $27,216,378

Contract Characteristics

Multi-Year Contract: Yes

Parent Contract

Parent Award PIID: TOS09029

IDV Type: IDC

Timeline