DHS awards $40.3M for LSCMS Manhattan Associates Systems O&M Support, a follow-on contract

Contract Overview

Contract Amount: $40,276,230 ($40.3M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2012-03-19

End Date: 2017-05-25

Contract Duration: 1,893 days

Daily Burn Rate: $21.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LSCMS MANHATTAN ASSOCIATES SYSTEMS O&M SUPORT LOGICAL FOLLOW-ON #2

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20472

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $40.3 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: LSCMS MANHATTAN ASSOCIATES SYSTEMS O&M SUPORT LOGICAL FOLLOW-ON #2 Key points: 1. Contract value represents a significant investment in critical IT infrastructure. 2. The fixed-price nature of the contract aims to control costs and provide predictability. 3. A 5-year duration suggests a long-term need for these services. 4. The contract is a follow-on, indicating a continuation of existing services. 5. The specific NAICS code points to specialized computer-related services.

Value Assessment

Rating: fair

The total award of $40.3 million over approximately five years averages to about $8 million annually. Benchmarking this against similar IT operations and maintenance contracts is challenging without more specific service details. However, the fixed-price structure suggests an attempt to manage costs effectively. The absence of a clear per-unit cost comparison makes a definitive value assessment difficult, but the duration and scope imply a substantial, ongoing need.

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 offers. The number of bidders is not specified, but full and open competition generally fosters a competitive environment, which can lead to better pricing and service innovation. This approach is intended to ensure the government receives the best value by leveraging the widest possible market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings and ensures that the government is not limited to a single provider, thereby encouraging competitive pricing.

Public Impact

The primary beneficiaries are the Department of Homeland Security (DHS) and its agencies, particularly FEMA, which rely on the LSCMS system. The contract ensures the continued operation and maintenance of the LSCMS Manhattan Associates Systems. Services delivered are critical for the functioning of FEMA's logistical and supply chain management. The geographic impact is primarily within the District of Columbia, where the contract is managed, but the system's function supports national operations. Workforce implications include the potential for continued employment for IT specialists and support staff involved in system maintenance and operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the follow-on nature limits future competitive opportunities.
Dependence on a single vendor for critical IT operations and maintenance.
Risk of cost overruns if the fixed-price contract does not adequately account for unforeseen technical challenges or scope creep.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Fixed-price contract type helps to control costs and provides budget certainty.
Long-term duration indicates a stable requirement and potential for vendor expertise development.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT services, operations, and maintenance. The market for such services is large and competitive, with numerous firms offering specialized support for complex government systems. Comparable spending benchmarks would typically involve analyzing other large-scale IT O&M contracts within federal agencies, particularly those supporting critical infrastructure or mission-essential functions. The $40.3 million award over five years places it as a significant, but not exceptionally large, IT services contract.

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 for small businesses arising from a set-aside provision. However, the prime contractor, BAE Systems, may engage small businesses as subcontractors for specific components or services, though this is not explicitly detailed in the provided data. The absence of a small business set-aside means the primary competition was open to all eligible firms, potentially limiting direct opportunities for smaller entities unless they are part of a larger bid.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Homeland Security's contracting officers and program managers. The Federal Emergency Management Agency (FEMA) would also have significant oversight responsibilities given its role. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse, with the DHS Office of Inspector General being the relevant body.

Related Government Programs

IT Operations and Maintenance Support
Logistics and Supply Chain Management Systems
Federal IT Services Contracts
Department of Homeland Security IT Spending
FEMA IT Modernization Efforts

Risk Flags

Follow-on contract may limit future competition.
Potential for vendor lock-in due to incumbent advantage.
Lack of detailed performance metrics in provided data.
Limited information on specific services rendered.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $40.3 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. LSCMS MANHATTAN ASSOCIATES SYSTEMS O&M SUPORT LOGICAL FOLLOW-ON #2

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 $40.3 million.

What is the period of performance?

Start: 2012-03-19. End: 2017-05-25.

What is the historical spending trend for LSCMS Manhattan Associates Systems O&M Support?

The provided data represents a single award of $40,276,230.26 for LSCMS MANHATTAN ASSOCIATES SYSTEMS O&M SUPORT LOGICAL FOLLOW-ON #2, spanning from March 19, 2012, to May 25, 2017, with a duration of 1893 days. This indicates a specific period of funding for this particular follow-on contract. To understand the historical spending trend, one would need to examine previous contracts for LSCMS Manhattan Associates Systems, including the original contract and any preceding follow-ons or related support agreements. Analyzing the total obligated amounts and award dates for these prior contracts would reveal patterns in investment and the evolution of support requirements over time. Without data on earlier contracts, it's impossible to establish a trend solely from this single award.

How does the pricing of this contract compare to similar IT O&M contracts within DHS?

Comparing the pricing of this $40.3 million contract for LSCMS Manhattan Associates Systems O&M Support to similar IT Operations and Maintenance (O&M) contracts within DHS requires detailed benchmarking. The contract's average annual cost is approximately $8 million ($40.3M / ~5 years). To assess value, this figure should be compared against contracts for comparable systems in terms of complexity, criticality, and user base within DHS. Factors such as the scope of services (e.g., software maintenance, hardware support, help desk, system administration), the number of users supported, and the specific technologies involved are crucial. Without access to a database of comparable DHS IT O&M contracts with detailed service breakdowns and pricing, a precise comparison is difficult. However, the full and open competition suggests an effort to achieve competitive pricing.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for IT Operations and Maintenance (O&M) contracts, typical KPIs often include system uptime and availability (e.g., 99.9% uptime), response times for issue resolution (e.g., critical issues resolved within 4 hours), incident resolution rates, user satisfaction scores, and adherence to security protocols. For a system like LSCMS Manhattan Associates, KPIs would likely focus on ensuring the continuous and reliable operation of logistics and supply chain management functions, minimizing disruptions to FEMA's operations. Performance would be monitored by the contracting officer's representative (COR) and assessed against the terms outlined in the contract's Performance Work Statement (PWS).

What is the track record of BAE Systems Technology Solutions & Services Inc. in delivering similar IT support services to the federal government?

BAE Systems Technology Solutions & Services Inc. has a significant track record of delivering IT support services to the federal government across various agencies. As a large defense and technology contractor, they possess extensive experience in managing complex IT infrastructure, software development, system integration, and maintenance. Their portfolio often includes contracts related to command and control systems, intelligence, surveillance, reconnaissance, and enterprise IT services. While specific performance details for this particular LSCMS contract are not provided, BAE Systems' general profile suggests a capability to handle large-scale, mission-critical IT projects. Government contract databases and past performance reviews would offer more granular insights into their specific performance history on similar contracts, including adherence to schedules, budget management, and technical execution.

What are the potential risks associated with the follow-on nature of this contract?

The follow-on nature of this contract, 'LOGICAL FOLLOW-ON #2', presents several potential risks. Firstly, it may indicate a lack of robust market research or planning for future procurements, potentially leading to a perception of limited competition in subsequent contract cycles if not managed carefully. Secondly, there's a risk of vendor lock-in, where the incumbent contractor develops deep institutional knowledge and system-specific expertise that makes it difficult and costly for new competitors to enter the market in the future. This can reduce competitive pressure and potentially lead to higher prices or less innovation over time. Lastly, if the previous contract had performance issues that were not fully resolved, those issues could carry forward into this follow-on award, impacting the effectiveness of the services provided.

How does the $40.3M award compare to overall DHS IT spending in the relevant fiscal years?

The $40.3 million award for LSCMS Manhattan Associates Systems O&M Support, spanning from 2012 to 2017, represents a portion of the Department of Homeland Security's (DHS) overall IT spending during those fiscal years. DHS is a large agency with a substantial IT budget encompassing various domains, including cybersecurity, infrastructure, data management, and mission-specific systems. For context, DHS's total IT budget has historically been in the billions of dollars annually. Therefore, this $40.3 million contract, while significant for the specific system it supports, would constitute a relatively small fraction of DHS's total IT expenditure. To provide a precise comparison, one would need to access DHS's IT budget reports for FY2012 through FY2017 and identify the total IT spending figures for those years.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: BAE Systems PLC (UEI: 217304393)

Address: 2525 NETWORK PL, 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: $40,276,230

Exercised Options: $40,276,230

Current Obligation: $40,276,230

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSFEHQ09D0485

IDV Type: IDC

Timeline