FEMA's $25.8M IT support contract for Hazard Mitigation Assistance systems awarded to BAE Systems

Contract Overview

Contract Amount: $25,791,628 ($25.8M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2020-09-15

End Date: 2026-06-14

Contract Duration: 2,098 days

Daily Burn Rate: $12.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA) REQUIRES A IT APPLICATION OPERATIONS AND MAINTENANCE SUPPORT SERVICES FOR THE HAZARD MITIGATION ASSISTANCE (HMA) SYSTEMS.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $25.8 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA) REQUIRES A IT APPLICATION OPERATIONS AND MAINTENANCE SUPPORT SERVICES FOR THE HAZARD MITIGATION ASSISTANCE (HMA) SYSTEMS. Key points: 1. Contract provides essential IT operations and maintenance for critical disaster preparedness systems. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Long-term contract duration (nearly 7 years) indicates a need for sustained support. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. Focus on application operations and maintenance suggests a mature system requiring ongoing support rather than new development. 6. Contractor BAE Systems has a significant presence in government IT services. 7. Geographic location of performance in Virginia aligns with major federal IT hubs.

Value Assessment

Rating: good

The contract value of $25.8 million over nearly seven years for IT application operations and maintenance appears reasonable given the critical nature of FEMA's Hazard Mitigation Assistance systems. Benchmarking against similar large-scale IT support contracts for federal agencies suggests that this pricing is within expected ranges for specialized services. The firm fixed-price structure provides cost predictability for the government, although it places the risk of cost overruns on the contractor. Without specific details on the scope of services and service level agreements, a precise value-for-money assessment is challenging, but the competitive award process likely contributed to a fair price.

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 bids. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which is beneficial for price discovery and ensuring the government receives the best value. The use of full and open competition suggests that the agency did not identify any specific barriers or justifications for limiting the pool of potential contractors.

Taxpayer Impact: Full and open competition is the preferred method for government contracting as it maximizes the potential for cost savings and ensures a wide range of qualified vendors can compete, leading to better prices for taxpayers.

Public Impact

Citizens benefit from improved efficiency and reliability of the Hazard Mitigation Assistance systems, crucial for disaster preparedness and response. Federal Emergency Management Agency (FEMA) personnel receive continuous IT support, enabling them to manage HMA programs effectively. The services delivered ensure the operational integrity of systems used for grants and aid related to hazard mitigation. The primary geographic impact is national, as FEMA's HMA programs serve all areas affected by natural disasters. The contract supports a stable IT workforce within the contractor's organization, potentially including specialized technical roles.

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 system knowledge.
Reliance on a single contractor for critical IT infrastructure could pose risks if performance degrades or the contractor faces financial instability.
Scope creep could lead to cost increases if not managed tightly, despite the fixed-price nature.

Positive Signals

Awarded through full and open competition, indicating a competitive process that likely secured a fair price.
Firm fixed-price contract type provides cost certainty and incentivizes contractor efficiency.
Long contract duration suggests a stable, long-term partnership for critical system support.
Contractor BAE Systems is a large, established entity with significant experience in government IT services.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically focusing on IT application operations and maintenance. This is a broad category encompassing a wide range of support services essential for government operations. The market for such services is highly competitive, with numerous large and small businesses vying for federal contracts. Spending in this area is consistently high across various agencies, reflecting the increasing reliance on technology for mission-critical functions. Comparable spending benchmarks would typically look at the total IT services spending by agencies like DHS or FEMA, and the proportion allocated to operations and maintenance versus new development.

Small Business Impact

This contract was not set aside for small businesses and was awarded under full and open competition, with no indication of specific small business subcontracting goals mentioned in the provided data. While BAE Systems is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors. However, the absence of a specific set-aside or explicit subcontracting plan in the summary data suggests that small business participation might not have been a primary focus of this particular award, or that such details are managed at a lower level of contract documentation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Homeland Security (DHS) and the Federal Emergency Management Agency (FEMA) contracting and program management offices. As a firm fixed-price contract, oversight would focus on ensuring the contractor meets the defined service levels and deliverables. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

FEMA Hazard Mitigation Programs
FEMA IT Support Services
DHS IT Modernization Efforts
Federal Grants Management Systems
Disaster Recovery and Resilience IT

Risk Flags

Long-term contract duration
Critical IT system support
Reliance on a single vendor for essential services

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $25.8 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA) REQUIRES A IT APPLICATION OPERATIONS AND MAINTENANCE SUPPORT SERVICES FOR THE HAZARD MITIGATION ASSISTANCE (HMA) SYSTEMS.

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 Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $25.8 million.

What is the period of performance?

Start: 2020-09-15. End: 2026-06-14.

What is the specific scope of 'IT Application Operations and Maintenance Support Services' for the HMA systems?

The provided data indicates the contract is for 'IT Application Operations and Maintenance Support Services' for FEMA's Hazard Mitigation Assistance (HMA) systems. This typically encompasses a range of activities including system monitoring, troubleshooting, bug fixing, software updates and patching, performance tuning, user support, and ensuring the overall availability and reliability of the HMA applications. It focuses on keeping existing systems running smoothly rather than developing new functionalities. The exact scope would be detailed in the Performance Work Statement (PWS) or Statement of Work (SOW) attached to the contract, outlining specific tasks, deliverables, and service level agreements (SLAs) that BAE Systems is obligated to meet.

How does the $25.8 million contract value compare to historical spending on HMA IT support?

The provided data does not include historical spending figures for HMA IT support, making a direct comparison difficult. However, the contract value of approximately $25.8 million over a period of nearly seven years (September 2020 to June 2026) suggests an average annual spend of roughly $3.7 million. This figure needs to be contextualized against the complexity and criticality of the HMA systems. To assess historical trends, one would need to examine prior contracts for similar services, looking at both the number of awards and their total values over previous fiscal years. This would reveal whether current spending represents an increase, decrease, or stable level of investment in maintaining these vital systems.

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

Specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) are not detailed in the provided summary data. However, for an IT Application Operations and Maintenance support contract of this nature, typical SLAs would likely include metrics related to system uptime/availability (e.g., 99.9% availability), response times for critical issues, resolution times for different severity levels of incidents, and performance benchmarks for application responsiveness. KPIs would track the contractor's adherence to these SLAs and the overall effectiveness of the support provided. These details are crucial for evaluating contractor performance and ensuring the government receives the expected value, and would be found in the contract's Performance Work Statement (PWS).

What is BAE Systems' track record with FEMA and similar government IT support contracts?

BAE Systems is a major defense and technology contractor with extensive experience supporting U.S. government agencies, including the Department of Homeland Security (DHS) and its components like FEMA. While specific details on their past performance solely on FEMA's HMA systems are not in the summary, BAE Systems has a broad portfolio of IT services, including operations, maintenance, cybersecurity, and system integration for various federal clients. Their track record generally involves managing large, complex IT contracts. Performance evaluations for this specific contract would be available through sources like the Contractor Performance Assessment Reporting System (CPARS), which provides detailed feedback on contractor performance on past and present contracts.

Are there any identified risks or challenges associated with this contract's performance or execution?

Potential risks associated with this contract include the inherent challenges of maintaining complex legacy IT systems, the possibility of unforeseen technical issues arising, and the risk of vendor lock-in due to the specialized knowledge required. Given the long duration and critical nature of the HMA systems, any performance degradation by the contractor could significantly impact FEMA's ability to manage hazard mitigation efforts. Furthermore, changes in technology or agency requirements could necessitate modifications or extensions to the contract, potentially leading to scope creep if not managed carefully. The firm fixed-price nature places cost overrun risk on the contractor, but could incentivize cutting corners if not monitored closely.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical 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

Solicitation ID: 70FA3020Q00000099

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ball Corporation

Address: 520 GAITHER RD, ROCKVILLE, MD, 20850

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

Financial Breakdown

Contract Ceiling: $27,663,911

Exercised Options: $25,791,628

Current Obligation: $25,791,628

Actual Outlays: $9,072,190

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $734,373

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70FA3019D00000003

IDV Type: IDC

Timeline