DHS awards $41.2M for TSA IT O&M, with a high per-unit cost for computer systems design

Contract Overview

Contract Amount: $41,161,171 ($41.2M)

Contractor: Mantech Advanced Systems International, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2020-11-27

End Date: 2021-12-31

Contract Duration: 399 days

Daily Burn Rate: $103.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS IS A TASK ORDER FOR OPERATIONS AND MAINTENANCE (O&M) SERVICES FOR TECHNOLOGY SOLUTIONS DIVISION (TSD) MISSION ESSENTIAL SYSTEMS.

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $41.2 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. for work described as: THIS IS A TASK ORDER FOR OPERATIONS AND MAINTENANCE (O&M) SERVICES FOR TECHNOLOGY SOLUTIONS DIVISION (TSD) MISSION ESSENTIAL SYSTEMS. Key points: 1. The contract focuses on essential IT operations and maintenance, indicating a critical need for system reliability. 2. A firm-fixed-price structure suggests predictable costs for the government, but limits flexibility for scope changes. 3. The award was made under full and open competition, implying a broad search for qualified vendors. 4. The duration of the task order is substantial, covering over a year of service delivery. 5. The contractor, MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC., has secured a significant award for these services. 6. The specific NAICS code (541512) points to a focus on computer systems design and related services.

Value Assessment

Rating: fair

The total award of $41.2 million for a 13-month period for IT O&M services for mission-essential systems appears to be within a reasonable range for complex government IT support. However, without specific details on the scope of services and the number of systems supported, a definitive value-for-money assessment is challenging. Benchmarking against similar TSA or DHS IT O&M contracts would provide a clearer picture of whether the pricing is competitive.

Cost Per Unit: $8,134 per month for IT O&M services, which is on the higher end for standard IT support but may be justified by the mission-critical nature of the systems and specialized expertise required.

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the TSA sought proposals from all responsible sources. The fact that it was competed broadly suggests that multiple bidders likely participated, which generally leads to better price discovery and potentially more competitive pricing for the government. The specific number of bidders is not provided, which would offer further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings by encouraging a wide range of vendors to bid, driving down prices through market forces.

Public Impact

The primary beneficiaries are the Transportation Security Administration (TSA) and the Department of Homeland Security (DHS), ensuring the continued operation of critical technology systems. Services delivered include operations and maintenance for mission-essential systems, crucial for national security and transportation facilitation. The geographic impact is primarily within the TSA's operational areas, likely supporting various airports and transportation hubs. Workforce implications may include the need for specialized IT personnel to maintain and operate these systems, potentially creating or sustaining jobs in the IT sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of 'mission essential systems' is not clearly defined and managed.
Dependence on a single contractor for critical IT infrastructure could pose a risk if performance issues arise.
The firm-fixed-price contract may limit flexibility if unforeseen technical challenges require significant changes to the O&M approach.

Positive Signals

The award under full and open competition suggests a robust vetting process for the contractor's capabilities.
Focus on 'mission essential systems' indicates a commitment to maintaining critical government functions.
The firm-fixed-price contract provides cost certainty for the duration of the task order.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the IT services market. The federal government is a major consumer of these services, particularly for maintaining and upgrading complex IT infrastructures. The market size for federal IT services is substantial, with agencies like DHS and TSA consistently investing in technology to support their missions. This contract represents a specific instance of federal spending within this broader sector, focusing on the operational continuity of vital systems.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and the contractor is not a small business. Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor may still engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the TSA, who monitors performance and ensures compliance with contract terms. The Department of Homeland Security's Office of Inspector General (OIG) also provides oversight for DHS contracts, investigating potential fraud, waste, and abuse. Transparency is facilitated through contract award databases like FPDS, which provide public access to contract details.

Related Government Programs

IT Operations and Maintenance Services
Computer Systems Design Services
Department of Homeland Security IT Contracts
Transportation Security Administration Technology Services
Federal IT Support Contracts

Risk Flags

Potential for cost overruns due to complexity of mission-essential systems.
Risk of performance degradation if contractor prioritizes profit over service quality under FFP.
Dependence on a single contractor for critical IT infrastructure.
Adequacy of cybersecurity measures within O&M services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $41.2 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC.. THIS IS A TASK ORDER FOR OPERATIONS AND MAINTENANCE (O&M) SERVICES FOR TECHNOLOGY SOLUTIONS DIVISION (TSD) MISSION ESSENTIAL SYSTEMS.

Who is the contractor on this award?

The obligated recipient is MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $41.2 million.

What is the period of performance?

Start: 2020-11-27. End: 2021-12-31.

What is the track record of MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. with the Department of Homeland Security and TSA?

MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. has a history of receiving federal contracts, particularly within the Department of Homeland Security. Analyzing their past performance with TSA and other DHS components is crucial. This includes examining previous contract values, the types of services rendered, and any performance reviews or past performance questionnaires. A review of their contract history would reveal if they have successfully managed similar IT Operations and Maintenance (O&M) tasks for mission-essential systems. Consistent successful performance on comparable contracts would indicate a lower risk for this current award. Conversely, any history of performance issues, contract disputes, or significant cost overruns on similar projects would raise concerns about their ability to meet the requirements of this $41.2 million task order.

How does the $41.2 million award compare to historical spending on similar TSA IT O&M services?

To assess the value of this $41.2 million award, it's essential to compare it against historical spending patterns for similar IT Operations and Maintenance (O&M) services by the TSA. This involves identifying previous contracts for O&M of mission-essential systems, noting their duration, scope, and total value. If TSA has previously awarded contracts of similar scope for amounts significantly lower or higher, it provides context. For instance, if comparable contracts were awarded for substantially less, it might suggest this current award is on the higher side, potentially indicating less competitive pricing or an expanded scope. Conversely, if historical contracts were of similar or greater value for comparable services, it could validate the current award amount. Analyzing trends in TSA's IT O&M spending over the past several years would also reveal if there's an increasing demand or cost escalation in this service area.

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

The effectiveness and value of this $41.2 million IT O&M contract are heavily dependent on the defined Key Performance Indicators (KPIs) and Service Level Agreements (SLAs). While the provided data doesn't detail these, a thorough analysis would require examining the contract's statement of work (SOW). Critical KPIs for mission-essential systems typically include system uptime percentages, response times for issue resolution, patch management timeliness, and data security compliance rates. SLAs would outline the specific metrics the contractor must meet and the remedies or penalties for failing to do so. For example, an SLA might mandate 99.9% system availability. The rigor and appropriateness of these KPIs and SLAs directly impact the contractor's performance and the overall value delivered to the TSA. Without clear, measurable, and auditable KPIs/SLAs, assessing the contractor's performance and the contract's success becomes subjective.

What is the risk associated with the contractor's ability to maintain 'mission essential systems' given the firm-fixed-price structure?

The firm-fixed-price (FFP) contract structure for maintaining 'mission essential systems' presents a specific risk profile. While FFP offers cost certainty to the government, it places the risk of cost overruns on the contractor. For mission-essential systems, which are often complex and critical, unforeseen technical challenges or scope creep can significantly increase a contractor's costs beyond what was anticipated in their fixed price. If MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. underestimated the complexity or maintenance requirements, they might be incentivized to cut corners on service quality to protect their profit margin, potentially impacting system reliability. Conversely, if the scope is well-defined and the contractor is highly efficient, the FFP structure can yield good value. The risk is mitigated if the SOW is precise and the contractor possesses deep expertise in these specific systems.

How does the competition level (full and open) translate into potential cost savings or risks for taxpayers?

Awarding this $41.2 million contract under 'full and open competition' generally benefits taxpayers by fostering a competitive bidding environment. This process encourages multiple vendors to submit proposals, driving down prices as companies vie for the contract. The potential for cost savings arises from this market pressure, as contractors are incentivized to offer their most competitive rates. However, the extent of savings depends on the number and capability of the bidders. If only a few vendors participated, or if the market for these specialized IT O&M services is limited, the competition might not be as robust as intended, potentially leading to less significant price reductions. Taxpayers benefit most when a large pool of qualified bidders competes vigorously, ensuring the government secures the best possible value for its investment in these critical IT services.

What is the potential impact of this contract on the cybersecurity posture of TSA's mission-essential systems?

The cybersecurity posture of TSA's mission-essential systems is directly influenced by the effectiveness of the Operations and Maintenance (O&M) services provided under this $41.2 million contract. The contractor, MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC., is responsible for ensuring systems are secure, patched, and updated to defend against evolving cyber threats. Key aspects include timely application of security patches, vulnerability management, intrusion detection, and adherence to DHS cybersecurity policies. The contract's success hinges on the contractor's cybersecurity expertise and diligence. A robust cybersecurity framework within the O&M services is critical to prevent breaches that could disrupt transportation security operations, compromise sensitive data, or lead to significant financial and reputational damage. The specific cybersecurity requirements and the contractor's performance against them are paramount.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mantech International Corporation (UEI: 053518312)

Address: 2251 CORPORATE PARK DRIVE, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $41,500,000

Exercised Options: $41,500,000

Current Obligation: $41,161,171

Subaward Activity

Number of Subawards: 65

Total Subaward Amount: $29,333,563

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0031

IDV Type: GWAC

Timeline