DHS awards BAE Systems $12.3M for FEMA logistics IT support, raising concerns about competition and value

Contract Overview

Contract Amount: $12,299,355 ($12.3M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2015-09-30

End Date: 2017-03-29

Contract Duration: 546 days

Daily Burn Rate: $22.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE INFORMATION TECHNOLOGY OPERATIONS AND MAINTENANCE SUPPORT SERVICES FOR FEMA'S LOGISTICS DISC WAREHOUSE MANAGEMENT APPLICATION.

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $12.3 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE INFORMATION TECHNOLOGY OPERATIONS AND MAINTENANCE SUPPORT SERVICES FOR FEMA'S LOGISTICS DISC WAREHOUSE MANAGEMENT APPLICATION. Key points: 1. Contract awarded via full and open competition, but specific details on price discovery are limited. 2. High per-unit cost benchmark suggests potential for overspending. 3. Lack of small business participation noted. 4. IT services sector is highly competitive, making this contract's pricing and value assessment critical.

Value Assessment

Rating: questionable

The contract's total value of $12.3M for 546 days of IT operations and maintenance support appears high, especially considering the per-unit cost benchmark of $22,526. Further analysis is needed to determine if this pricing is competitive within the IT services sector.

Cost Per Unit: $22,526

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is generally positive for price discovery. However, the limited details provided on the bidding process and the final negotiated price make it difficult to fully assess the effectiveness of this competition in securing the best value.

Taxpayer Impact: The significant contract value raises questions about taxpayer impact, particularly if the pricing is not optimized due to limited transparency in the price discovery process.

Public Impact

Taxpayers may be overpaying for IT support services if the contract's pricing is not competitive. Limited small business involvement means fewer opportunities for smaller, potentially innovative companies. Dependence on a single contractor for critical logistics IT support could pose a risk if performance issues arise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-unit cost
Lack of small business participation
Limited transparency in price discovery

Positive Signals

Awarded under full and open competition

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services.' The federal IT services market is vast and competitive, with numerous vendors capable of providing similar support. Benchmarking against other federal IT contracts is crucial to ensure fair pricing.

Small Business Impact

The contract data indicates that small businesses were not involved in this award (sb: false). This is a missed opportunity to leverage the capabilities of small businesses and could indicate a lack of outreach or a focus on larger prime contractors.

Oversight & Accountability

While awarded under full and open competition, the limited details on the price negotiation and the high per-unit cost warrant further oversight. Ensuring accountability for the value received by FEMA is essential.

Related Government Programs

Other Computer Related Services
Department of Homeland Security Contracting
Federal Emergency Management Agency Programs

Risk Flags

High per-unit cost benchmark
Lack of small business participation
Limited transparency in price discovery
Potential for overpayment given market competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $12.3 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE INFORMATION TECHNOLOGY OPERATIONS AND MAINTENANCE SUPPORT SERVICES FOR FEMA'S LOGISTICS DISC WAREHOUSE MANAGEMENT APPLICATION.

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 $12.3 million.

What is the period of performance?

Start: 2015-09-30. End: 2017-03-29.

What specific factors contributed to the high per-unit cost of $22,526 for IT operations and maintenance support services?

The high per-unit cost could be attributed to several factors, including the complexity of FEMA's Logistics Disc Warehouse Management Application, specialized skill requirements for maintenance, the duration of the support period, or potentially less aggressive pricing from the awarded contractor due to limited transparency in the final price negotiation despite full and open competition.

How effectively did the 'full and open competition' process ensure competitive pricing and value for this $12.3M contract?

While the contract was advertised under full and open competition, the limited information on the bidding process and the resulting price discovery makes it difficult to definitively assess its effectiveness. Without knowing the number of bids received, the range of proposed prices, and the negotiation outcomes, it's hard to confirm if the competition truly drove down costs and secured optimal value for FEMA.

What is the potential risk to FEMA's logistics operations if BAE Systems' performance falters, given the lack of small business participation?

The lack of small business participation means that if BAE Systems underperforms, FEMA's options for quickly finding alternative support may be limited. Relying solely on a large prime contractor without a diverse subcontractor base could lead to extended transition periods and potential disruptions to critical logistics IT functions during a change of providers.

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: Ball Corporation

Address: 520 GAITHER ROAD, ROCKVILLE, MD, 20850

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

Financial Breakdown

Contract Ceiling: $13,948,013

Exercised Options: $12,299,355

Current Obligation: $12,299,355

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSFE3015D0006

IDV Type: IDC

Timeline