DHS FEMA awards $20.4M for IT services, with BAE Systems as prime contractor

Contract Overview

Contract Amount: $20,386,679 ($20.4M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2009-06-19

End Date: 2012-01-14

Contract Duration: 939 days

Daily Burn Rate: $21.7K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: COMMIT TASK ORDER FOR TOTAL ASSETS VISIBILITY(TAV)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20472, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $20.4 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: COMMIT TASK ORDER FOR TOTAL ASSETS VISIBILITY(TAV) Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear scope and cost expectations. 2. The contract was competed, suggesting potential for competitive pricing. 3. Duration of 939 days implies a significant, ongoing need for the services. 4. The North American Industry Classification System (NAICS) code 541519 points to general IT services. 5. Awarded by the Federal Emergency Management Agency (FEMA), likely supporting disaster response or preparedness IT infrastructure. 6. The contract value is moderate within the context of large federal IT procurements.

Value Assessment

Rating: good

The contract value of $20.4 million over approximately 2.5 years represents a moderate investment for IT services. Benchmarking against similar large-scale IT support contracts within federal agencies suggests this pricing is within a reasonable range, assuming the scope of work is comparable. The firm-fixed-price structure helps control costs, but detailed performance metrics would be needed for a full value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a competitive delivery order, indicating that multiple vendors had the opportunity to bid. The presence of 4 bids suggests a healthy level of competition for this requirement. Competitive bidding generally leads to better price discovery and ensures that the government receives offers from various providers, potentially leading to more innovative solutions and cost savings.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers as it likely resulted in a more favorable price compared to a sole-source or limited competition scenario.

Public Impact

Federal IT infrastructure and data management capabilities are enhanced, supporting agency operations. Personnel within the Department of Homeland Security, particularly FEMA, benefit from improved IT systems. The services delivered likely contribute to the agency's ability to manage assets and respond to emergencies. The contract supports IT service delivery within the District of Columbia, the agency's operational hub.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the awarded services are highly specialized and difficult to transition.
Reliance on a single contractor for critical IT functions could pose a risk if performance degrades.
Scope creep could lead to cost overruns if not managed tightly under the firm-fixed-price contract.

Positive Signals

Competitive award process suggests a fair market price was likely achieved.
Firm-fixed-price contract provides cost certainty for the government.
The contract duration indicates a stable, long-term need being met.

Sector Analysis

This contract falls within the broader Information Technology services sector, specifically focusing on computer-related services. The federal IT market is substantial, with agencies consistently investing in modernization, data management, and cybersecurity. Contracts like this, supporting asset visibility and IT infrastructure, are common across various departments. Comparable spending benchmarks for IT support services can range widely based on complexity, but this award is within the typical mid-to-large range for a specific task order.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to have a small business subcontracting plan explicitly mentioned in this summary. Therefore, the direct impact on the small business ecosystem is likely minimal unless BAE Systems voluntarily engages small business subcontractors. Further investigation into subcontracting reports would be needed to assess broader small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within FEMA. Performance monitoring against the firm-fixed-price contract terms and deliverables would be crucial. Transparency is generally maintained through federal procurement databases like FPDS. The Department of Homeland Security's Office of Inspector General may conduct audits or investigations if performance issues or potential fraud are identified.

Related Government Programs

IT Infrastructure Support Services
Asset Management Systems
Department of Homeland Security IT Modernization Efforts
Federal Emergency Management Agency Systems Modernization
Cloud Computing Services (potential component)

Risk Flags

Potential for scope creep in complex IT projects.
Reliance on a single vendor for critical IT functions.
Need for robust performance monitoring to ensure value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20.4 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. COMMIT TASK ORDER FOR TOTAL ASSETS VISIBILITY(TAV)

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 $20.4 million.

What is the period of performance?

Start: 2009-06-19. End: 2012-01-14.

What specific IT services are encompassed by the NAICS code 541519 for this contract?

The NAICS code 541519, 'Other Computer Related Services,' is a broad category that includes services such as computer facilities management, computer disaster recovery services, computer virus scanning services, computer network management services, and computer system integration design services. For this specific FEMA contract, 'Total Assets Visibility (TAV)' suggests the services likely involve managing, integrating, and maintaining IT systems that track and provide visibility into the agency's physical and digital assets. This could include database management, software development/maintenance, network operations, and potentially cybersecurity measures related to asset tracking.

How does the $20.4 million contract value compare to FEMA's overall IT spending?

FEMA's overall IT spending can fluctuate significantly based on disaster events and ongoing modernization initiatives. In fiscal years where major disasters occur, IT spending can surge. However, $20.4 million over approximately 2.5 years represents a substantial, but not exceptionally large, portion of FEMA's IT budget. For context, federal agencies often spend billions annually on IT. This contract likely supports a specific, critical program area like asset visibility, rather than encompassing all of FEMA's IT needs. Comparing it to FEMA's total IT obligations in the relevant fiscal years (2009-2012) would provide better context, but generally, it's a significant investment for a focused IT service requirement.

What are the key performance indicators (KPIs) expected for the 'Total Assets Visibility' service?

While specific KPIs are not detailed in the provided data, for a 'Total Assets Visibility' contract, key performance indicators would likely focus on the accuracy, completeness, and timeliness of asset data. This could include metrics such as the percentage of known assets successfully cataloged, the frequency of data updates, the system's uptime and availability, the time required to retrieve specific asset information, and the reduction in data discrepancies. Security metrics related to unauthorized access or data breaches concerning asset information would also be critical. Performance would be measured against the requirements outlined in the contract's Statement of Work (SOW).

What is BAE Systems' track record with FEMA and similar federal IT contracts?

BAE Systems is a large, established defense and technology contractor with a significant presence across various U.S. federal agencies, including the Department of Homeland Security (DHS) and its components like FEMA. They have a broad portfolio of IT, systems engineering, and support services. While this specific contract was awarded in 2009, BAE Systems has historically secured numerous contracts for complex IT solutions, cybersecurity, and mission support for defense and civilian agencies. Their track record generally indicates experience with large-scale federal procurements, though performance can vary across individual contracts. A deeper dive into their specific performance history with FEMA and similar TAV-related contracts would be necessary for a comprehensive assessment.

What are the potential risks associated with a firm-fixed-price contract for complex IT services like asset visibility?

Firm-fixed-price (FFP) contracts offer cost certainty but can introduce risks if the scope of work is not perfectly defined or if unforeseen technical challenges arise. For complex IT services like 'Total Assets Visibility,' the primary risk is that the contractor may underestimate the effort required, leading to reduced profit margins or potential quality compromises to stay within budget. Conversely, if the government's requirements change significantly, scope adjustments can be difficult and costly to negotiate under an FFP structure. There's also a risk that the contractor might cut corners on innovation or service quality to maximize profit, especially if performance metrics are not robustly defined and monitored. The government bears more risk for cost overruns in FFP contracts if changes are initiated by the government.

How does the competition level (4 bidders) impact the likelihood of cost savings for taxpayers?

A competition level with 4 bidders is generally considered healthy and suggests a good degree of market interest in the requirement. This level of competition typically provides the government with multiple proposals to evaluate, allowing for comparison of technical approaches and pricing. It increases the likelihood that the offered prices are competitive and reflect market rates, as bidders are incentivized to offer their best value to win the contract. While not the highest possible number of bidders, four indicates that the requirement was attractive enough to draw significant interest from multiple capable firms, which is generally positive for taxpayer value by fostering price discipline among offerors.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

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: $31,032,668

Exercised Options: $20,706,330

Current Obligation: $20,386,679

Parent Contract

Parent Award PIID: HSFEHQ09D0485

IDV Type: IDC

Timeline