DHS awards $282M contract for OBIM infrastructure O&M to General Dynamics IT

Contract Overview

Contract Amount: $282,039,419 ($282.0M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2023-12-31

End Date: 2026-12-30

Contract Duration: 1,095 days

Daily Burn Rate: $257.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: OPERATE AND MAINTAIN THE OBIM INFRASTRUCTURE COMPONENTS AND ASSOCIATED APPLICATIONS AND OTHER FUNCTIONALITY OF THE PRODUCTION AND NON-PRODUCTION ENVIRONMENTS AND ASSOCIATED BUSINESS SYSTEMS CURRENTLY DEPLOYED WITH THE DHS DATA CENTER 1, GOVERNMENT AN

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $282.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: OPERATE AND MAINTAIN THE OBIM INFRASTRUCTURE COMPONENTS AND ASSOCIATED APPLICATIONS AND OTHER FUNCTIONALITY OF THE PRODUCTION AND NON-PRODUCTION ENVIRONMENTS AND ASSOCIATED BUSINESS SYSTEMS CURRENTLY DEPLOYED WITH THE DHS DATA CENTER 1, GOVERNMENT AN Key points: 1. Contract focuses on operating and maintaining critical DHS biometric identity management infrastructure. 2. General Dynamics Information Technology, Inc. is the incumbent contractor. 3. The contract is structured as a Time and Materials award. 4. This award represents a significant investment in maintaining national security systems. 5. The duration of the contract is three years, ending in December 2026. 6. The contract was awarded under full and open competition.

Value Assessment

Rating: good

The contract value of $282 million over three years for operating and maintaining complex biometric infrastructure appears reasonable, especially given the critical nature of the OBIM system. Benchmarking against similar large-scale IT infrastructure O&M contracts within federal agencies suggests this pricing is within expected ranges. The Time and Materials (T&M) pricing structure, while offering flexibility, warrants close monitoring to ensure cost efficiency and prevent scope creep. Without specific details on the scope of work and service level agreements, a precise value-for-money assessment is challenging, but the overall investment aligns with the operational demands of such a system.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This process is designed to foster a competitive environment, potentially leading to better pricing and service offerings. The number of bidders is not specified, but the open competition suggests a robust market engagement. This approach is generally favorable for the government as it allows for a wider selection of qualified contractors and encourages innovation.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing the best value for money by driving down prices through market forces and encouraging a broad range of qualified providers.

Public Impact

The primary beneficiaries are the Department of Homeland Security (DHS) and its various components, which rely on the OBIM system for identity management. The contract ensures the continued operation and maintenance of essential IT infrastructure supporting biometric data. This impacts national security by maintaining the integrity and availability of biometric identification systems. The services delivered are crucial for border security, immigration processes, and national security vetting. The geographic impact is nationwide, as OBIM systems are integral to federal operations across the country.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not managed diligently.
Reliance on a single incumbent contractor for critical infrastructure O&M may limit future competitive options.
The complexity of biometric systems requires specialized expertise, and ensuring consistent performance can be a challenge.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
General Dynamics Information Technology has a track record with DHS, potentially indicating familiarity with the systems.
The contract duration of three years provides stability for essential IT operations.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader IT services industry. The federal government is a significant consumer of these services, particularly for maintaining and operating complex systems like the OBIM infrastructure. The market for IT infrastructure operation and maintenance is highly competitive, with numerous large and small firms vying for government contracts. Spending in this area is driven by the need for secure, reliable, and up-to-date technological capabilities to support agency missions.

Small Business Impact

This contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses in the provided data. The award to a large prime contractor like General Dynamics Information Technology suggests that the primary focus was on the prime's capabilities. This may limit direct opportunities for small businesses to participate as prime contractors on this specific award, although they could potentially be involved as subcontractors if GDIT chooses to engage them.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Homeland Security's contracting officers and program managers. Accountability measures are typically embedded within the contract's performance work statement (PWS) and service level agreements (SLAs). Transparency is facilitated through contract award databases and public reporting mechanisms. The DHS Office of Inspector General (OIG) may also conduct audits or investigations into the contract's performance and financial management to ensure proper use of funds and adherence to regulations.

Related Government Programs

DHS Biometric Identity Management System (IDENT)
US-VISIT Program
Federal Biometric Standards
Critical Infrastructure Protection
IT Operations and Maintenance Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Ensuring consistent performance and availability of critical biometric infrastructure.
Cybersecurity risks associated with managing sensitive identity data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $282.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. OPERATE AND MAINTAIN THE OBIM INFRASTRUCTURE COMPONENTS AND ASSOCIATED APPLICATIONS AND OTHER FUNCTIONALITY OF THE PRODUCTION AND NON-PRODUCTION ENVIRONMENTS AND ASSOCIATED BUSINESS SYSTEMS CURRENTLY DEPLOYED WITH THE DHS DATA CENTER 1, GOVERNMENT AN

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 (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $282.0 million.

What is the period of performance?

Start: 2023-12-31. End: 2026-12-30.

What is the historical spending trend for OBIM infrastructure operation and maintenance by DHS?

Analyzing historical spending on OBIM infrastructure O&M is crucial for understanding cost trends and forecasting future needs. While specific historical data for this exact contract is not provided, the OBIM program itself has undergone significant evolution and investment over the years. Previous contracts supporting the legacy US-VISIT program and subsequent OBIM enhancements indicate a consistent need for substantial funding to maintain and upgrade these complex biometric systems. Federal procurement data often shows multi-year investments in the hundreds of millions for such critical national security IT infrastructure. Understanding the year-over-year expenditure, including any fluctuations due to system upgrades, security enhancements, or changes in operational scope, would provide valuable context for assessing the current $282 million award's reasonableness and identifying potential cost efficiencies or areas of concern.

How does the per-unit cost of this contract compare to similar federal IT infrastructure O&M contracts?

A direct per-unit cost comparison for this contract is challenging without a clearly defined unit of service (e.g., per user, per transaction, per server). However, the total contract value of $282 million over three years, for operating and maintaining a large-scale biometric identity management infrastructure, can be benchmarked against similar large federal IT O&M contracts. Contracts for managing complex, mission-critical IT systems within agencies like the FBI, DoD, or SSA often range from tens to hundreds of millions of dollars annually, depending on scope and complexity. Given that OBIM is a foundational national security system, the allocated budget appears to be in line with the scale and criticality of the services required. Further analysis would require comparing specific service elements and performance metrics against industry benchmarks and other government contracts of comparable scope.

What are the key performance indicators (KPIs) for this contract, and how is performance measured?

The provided data does not detail the specific Key Performance Indicators (KPIs) for this contract. However, for an IT infrastructure Operation and Maintenance (O&M) contract of this nature, typical KPIs would likely include system uptime and availability (e.g., 99.9% availability), response times for incident resolution, data processing throughput, security compliance metrics (e.g., successful security audits, vulnerability remediation rates), and user satisfaction. Performance is generally measured against a Performance Work Statement (PWS) and Service Level Agreements (SLAs) established within the contract. Regular performance reviews, reporting by the contractor, and government oversight are used to track adherence to these KPIs. Failure to meet critical KPIs could result in contractually defined remedies, such as service credits or performance improvement plans.

What is General Dynamics Information Technology's track record with DHS and similar biometric systems?

General Dynamics Information Technology (GDIT) has a significant history of supporting the Department of Homeland Security (DHS) across various IT services and mission support areas. They have been involved in providing IT infrastructure management, cybersecurity, and application development for numerous federal agencies, including DHS. While specific details on their prior work directly on the OBIM infrastructure are not explicitly stated in the provided data, GDIT's extensive experience with large-scale federal IT systems suggests they possess the requisite capabilities. Their track record often includes managing complex networks, data centers, and mission-critical applications, which are relevant to the operational demands of the OBIM system. A deeper dive into their past performance evaluations and contract history with DHS would provide a more comprehensive understanding of their suitability for this role.

What are the potential risks associated with relying on a Time and Materials (T&M) contract for this service?

Time and Materials (T&M) contracts, like the one awarded for OBIM infrastructure O&M, carry inherent risks, primarily related to cost control. In a T&M structure, the government pays for the actual labor hours and materials used, plus a fixed fee or percentage for profit. This can lead to cost uncertainty and potential overruns if the scope of work expands or if labor hours are not efficiently managed. For critical infrastructure O&M, there's a risk that unforeseen technical issues or increased operational demands could significantly drive up costs beyond initial estimates. To mitigate these risks, robust government oversight, detailed tracking of labor hours and material costs, clear definition of work requirements, and potentially incorporating cost ceilings or incentives are essential. Without strong management, T&M contracts can be less cost-effective than fixed-price alternatives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70RDA124Q00000010

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3211 JERMANTOWN RD, FAIRFAX, VA, 22030

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

Financial Breakdown

Contract Ceiling: $386,368,951

Exercised Options: $361,674,401

Current Obligation: $282,039,419

Actual Outlays: $179,696,041

Subaward Activity

Number of Subawards: 126

Total Subaward Amount: $180,763,033

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0003

IDV Type: GWAC

Timeline