DHS awarded $71.7M for distributed and mainframe products, software, and education services to CA, Inc

Contract Overview

Contract Amount: $71,731,375 ($71.7M)

Contractor: CA, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2015-09-30

End Date: 2019-09-30

Contract Duration: 1,461 days

Daily Burn Rate: $49.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DISTRIBUTED AND MAINFRAME PRODUCTS, CA EDUCATION, AND CA CSA.

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $71.7 million to CA, INC. for work described as: DISTRIBUTED AND MAINFRAME PRODUCTS, CA EDUCATION, AND CA CSA. Key points: 1. The contract value of $71.7M over approximately four years represents a significant investment in software and related services. 2. Competition dynamics for this contract were characterized by a full and open approach, suggesting a broad market engagement. 3. The firm fixed-price contract type indicates a defined scope and cost structure, potentially mitigating cost overrun risks. 4. Performance was managed under the Virginia-based U.S. Customs and Border Protection, a key component of DHS. 5. The North American Industry Classification System (NAICS) code 511210 points to the Software Publishers sector, highlighting the nature of the goods and services procured.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service-level agreements or detailed product breakdowns. However, the total award of $71.7M over roughly four years suggests an average annual spend of approximately $17.9M. This figure needs to be compared against the typical costs for similar enterprise software licenses, maintenance, and support services within large federal agencies. The firm fixed-price nature provides some cost certainty, but the overall value proposition depends heavily on the criticality and effectiveness of the 'distributed and mainframe products, CA education, and CA CSA' procured.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a 'full and open competition' strategy, indicating that all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, encouraging multiple bidders to vie for the contract. The number of bidders is not specified, but a full and open competition generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competitions.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring that the government receives the best possible value for its investment.

Public Impact

U.S. Customs and Border Protection (CBP) personnel are the primary beneficiaries, utilizing the software and services for their operational needs. The contract supports the delivery of essential IT products and educational services critical for maintaining and enhancing CBP's technological infrastructure. The geographic impact is primarily within the United States, supporting federal operations managed by DHS. Workforce implications include the potential need for trained personnel to manage and utilize the software, as well as support for the IT professionals involved in its implementation and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or service level agreements makes it difficult to assess the true effectiveness and value delivered.
The duration of the contract (over 4 years) could lead to technology obsolescence if not managed proactively.
Reliance on a single vendor (CA, Inc.) for critical software products might create vendor lock-in and limit future flexibility.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government, reducing the risk of budget overruns.
Full and open competition suggests a robust procurement process that likely yielded competitive pricing.
The contract supports a critical agency (CBP) within the Department of Homeland Security, indicating its strategic importance.

Sector Analysis

This contract falls within the Software Publishers sector (NAICS 511210), a significant segment of the technology industry. The market for enterprise software, including mainframe and distributed systems, is characterized by large, established players and ongoing innovation. Federal spending in this area is substantial, driven by the need for robust IT infrastructure to support agency operations. Comparable spending benchmarks would involve analyzing other large federal software procurements for similar functionalities and scales, considering factors like licensing models, support agreements, and customization requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, CA, Inc., is a large entity, and any subcontracting would likely be at the discretion of the prime contractor, potentially involving specialized IT services or components.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Customs and Border Protection contracting officers and program managers within the Department of Homeland Security. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases and public reporting mechanisms, although specific details of performance and spending may be subject to confidentiality. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Homeland Security IT Modernization Programs
Customs and Border Protection Software Procurement
Federal Enterprise Software Licensing
Mainframe Modernization Initiatives
IT Services for Law Enforcement Agencies

Risk Flags

Potential for vendor lock-in
Risk of technology obsolescence
Uncertainty due to vendor consolidation (CA acquired by Broadcom)

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $71.7 million to CA, INC.. DISTRIBUTED AND MAINFRAME PRODUCTS, CA EDUCATION, AND CA CSA.

Who is the contractor on this award?

The obligated recipient is CA, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $71.7 million.

What is the period of performance?

Start: 2015-09-30. End: 2019-09-30.

What specific 'distributed and mainframe products' were procured under this contract, and what is their criticality to CBP operations?

The contract details 'DISTRIBUTED AND MAINFRAME PRODUCTS, CA EDUCATION, AND CA CSA.' While 'CA CSA' likely refers to CA Service Assurance or a similar CA Technologies product suite, the specific distributed and mainframe products are not itemized in the provided data. These could range from operating systems, database management systems, middleware, or application development tools essential for CBP's mission-critical functions. Their criticality is presumed high given the agency's role in border security and trade facilitation, suggesting they support core operational systems, data processing, and analytics. Further details would require access to the contract's statement of work or product descriptions.

How does the $71.7M award compare to historical spending on similar software and services by CBP or DHS?

Comparing the $71.7M award requires analyzing historical spending patterns for comparable IT software and services by CBP and DHS. Without access to historical contract databases or specific line-item data, a direct comparison is difficult. However, $71.7M over approximately four years ($17.9M annually) represents a substantial investment. Agencies often spend significant portions of their IT budgets on software licenses, maintenance, and support for enterprise systems. To benchmark effectively, one would need to identify similar procurements for mainframe and distributed software solutions, considering factors like the number of users, scope of services, and contract duration. This figure should be evaluated against the agency's overall IT budget and the criticality of the systems supported.

What were the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract, and how was performance measured?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. Typically, firm fixed-price contracts include performance standards related to delivery timelines, software functionality, uptime, and support response times. Performance measurement would likely involve regular reporting by the contractor, government acceptance testing, and ongoing monitoring by contracting officers and program managers. The absence of explicit KPI/SLA data in the summary makes it challenging to quantitatively assess the contractor's performance and the value derived from the $71.7M expenditure.

What is the track record of CA, Inc. (now Broadcom) in fulfilling large federal IT contracts, particularly with DHS?

CA, Inc., now part of Broadcom, has a long history of providing software solutions to the federal government, including the Department of Homeland Security. Their offerings often span enterprise management, security, and infrastructure software. While specific performance details for this particular $71.7M contract are not detailed here, CA has historically been a significant vendor in the federal space. Assessing their track record would involve reviewing past contract performance evaluations (e.g., CPARS reports), any past performance issues or commendations, and their overall success in delivering complex IT solutions to large agencies like DHS. Their experience suggests a capability to handle large-scale federal procurements, but individual contract success can vary.

What are the potential risks associated with relying on CA, Inc. for critical mainframe and distributed software products over the contract's duration?

Potential risks associated with relying on CA, Inc. (Broadcom) include vendor lock-in, where switching to alternative solutions becomes difficult and costly. There's also the risk of technology obsolescence if the procured software is not updated or supported adequately to keep pace with evolving IT landscapes. Price increases upon contract renewal or changes in licensing models could impact future budgets. Furthermore, the consolidation of software vendors (like CA's acquisition by Broadcom) can sometimes lead to shifts in product strategy, support levels, or pricing structures, introducing uncertainty. Ensuring robust contract management and exploring multi-vendor strategies where feasible can mitigate some of these risks.

How does the 'full and open competition' for this contract align with broader federal procurement goals for IT services?

The 'full and open competition' approach for this $71.7M contract aligns well with broader federal procurement goals, which emphasize maximizing competition to achieve best value and fair pricing. Federal Acquisition Regulation (FAR) policies encourage full and open competition unless specific exceptions apply. For IT services and software, this approach allows a wide range of vendors, including established players and potentially innovative newcomers, to bid. This maximizes the government's opportunity to find solutions that meet its needs at competitive prices, fostering innovation and preventing monopolies. It signals a commitment to transparency and leveraging market forces to acquire necessary technology.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 0020085813

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: CA Inc. (UEI: 081331561)

Address: 2291 WOOD OAK DR, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $95,851,399

Exercised Options: $71,731,375

Current Obligation: $71,731,375

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0823M

IDV Type: FSS

Timeline