DHS Spends $101.8M on Data Center Operations & Maintenance with General Dynamics

Contract Overview

Contract Amount: $101,762,624 ($101.8M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2022-12-31

End Date: 2023-12-30

Contract Duration: 364 days

Daily Burn Rate: $279.6K/day

Competition Type: NOT COMPETED

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: DATA CENTERS OPERATIONS & MAINTENANCE UNDER THE DATA CENTER 1 BRIDGE CONTRACT 70RTAC21D00000002 LEVEL 2 & 3 SUPPORT FOR ARIES, IODS, OPSS/TRACS POP: 31 DEC 2022 - 30 DEC 2023 COR: JULIE KOSTRO 202 295 5413 JULIE.K.KOSTRO@OBIM.DHS.GOV

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $101.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: DATA CENTERS OPERATIONS & MAINTENANCE UNDER THE DATA CENTER 1 BRIDGE CONTRACT 70RTAC21D00000002 LEVEL 2 & 3 SUPPORT FOR ARIES, IODS, OPSS/TRACS POP: 31 DEC 2022 - 30 DEC 2023 COR: JULIE KOSTRO 202 295 5413 JULIE.K.KOSTRO@OBIM.DHS.GOV Key points: 1. The contract covers Level 2 & 3 support for critical data center systems. 2. General Dynamics Information Technology, Inc. is the sole awardee. 3. The contract was not competed, raising potential concerns about price discovery. 4. This spending falls within the IT sector, specifically Computer Facilities Management Services.

Value Assessment

Rating: fair

The total award amount is $101.8 million for a one-year period. Without specific unit costs or detailed service breakdowns, a precise value assessment is difficult. However, the benchmark for similar IT services can vary significantly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for a significant contract value could lead to suboptimal pricing and reduced taxpayer value.

Public Impact

Ensures continuity of essential data center operations for the Department of Homeland Security. Supports critical IT infrastructure, impacting national security and public services. Lack of competition may limit innovation and cost-saving opportunities for the government.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Ensures critical IT operations continuity
Supports national security functions

Sector Analysis

This contract falls under the IT sector, specifically Computer Facilities Management Services (NAICS 541513). Spending in this area is crucial for government operations, but benchmarks can vary widely based on service scope and complexity.

Small Business Impact

The awardee is General Dynamics Information Technology, Inc., a large business. There is no indication that small businesses were involved in this specific contract, either as prime or subcontractors.

Oversight & Accountability

The contract is managed by the Department of Homeland Security's Office of Procurement Operations. Oversight is crucial to ensure the services meet requirements and that pricing remains reasonable, especially given the sole-source nature.

Related Government Programs

Computer Facilities Management Services
Department of Homeland Security Contracting
Office of Procurement Operations Programs

Risk Flags

Sole-source award limits competition.
Potential for higher costs due to lack of price discovery.
No small business participation noted.
Lack of detailed cost breakdown for value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $101.8 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. DATA CENTERS OPERATIONS & MAINTENANCE UNDER THE DATA CENTER 1 BRIDGE CONTRACT 70RTAC21D00000002 LEVEL 2 & 3 SUPPORT FOR ARIES, IODS, OPSS/TRACS POP: 31 DEC 2022 - 30 DEC 2023 COR: JULIE KOSTRO 202 295 5413 JULIE.K.KOSTRO@OBIM.DHS.GOV

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 $101.8 million.

What is the period of performance?

Start: 2022-12-31. End: 2023-12-30.

What is the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED'. A sole-source award typically requires a documented justification, such as the existence of only one responsible source, or in rare cases, an emergency. Without this justification, it's difficult to assess if this was the most appropriate procurement method.

How does the per-unit cost of support services compare to industry benchmarks for similar data center operations?

The data does not provide specific per-unit cost breakdowns for the support services rendered. To assess value, a detailed analysis comparing the labor hours, skill levels, and associated rates against industry benchmarks for Level 2 & 3 data center support would be necessary. This comparison is currently not possible with the given information.

What are the potential risks associated with a sole-source contract for essential data center operations?

The primary risks of a sole-source contract include a lack of competitive pressure, which can lead to inflated prices and reduced service quality. It also limits the government's ability to explore innovative solutions or leverage market competition for better terms. This can result in a less cost-effective outcome for taxpayers over the contract's duration.

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 › IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70RDAD23Q00000010

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corporation

Address: 3150 FAIRVIEW PARK DR STE 100, FALLS CHURCH, VA, 22042

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

Financial Breakdown

Contract Ceiling: $101,762,624

Exercised Options: $101,762,624

Current Obligation: $101,762,624

Actual Outlays: $100,971,339

Subaward Activity

Number of Subawards: 68

Total Subaward Amount: $53,113,633

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RTAC21D00000002

IDV Type: IDC

Timeline