DHS awarded $14M to Computer Sciences Corporation for HSIN program deployment, a contract that was not competed

Contract Overview

Contract Amount: $14,051,148 ($14.1M)

Contractor: Computer Sciences Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2005-09-30

End Date: 2010-10-31

Contract Duration: 1,857 days

Daily Burn Rate: $7.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: HSIN PROGRAM DEPLOYMENT TO THE PRIVATE SECTOR.

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $14.1 million to COMPUTER SCIENCES CORPORATION for work described as: HSIN PROGRAM DEPLOYMENT TO THE PRIVATE SECTOR. Key points: 1. The contract's value of $14.05 million over its period of performance suggests a significant investment in the HSIN program. 2. The sole-source nature of this award raises questions about potential price inflation and the absence of market-driven cost efficiencies. 3. A lack of competition increases the risk of contractor lock-in and potentially limits the government's access to innovative solutions. 4. The contract's duration of over 1800 days indicates a long-term commitment to the HSIN program's development and deployment. 5. The 'not competed' status warrants scrutiny to ensure the government received fair value and explored all viable alternatives. 6. The cost-plus-fixed-fee (CPFF) contract type may incentivize cost overruns if not closely monitored by the agency.

Value Assessment

Rating: questionable

Benchmarking the value of this $14.05 million contract is challenging without comparable sole-source awards for similar IT program deployments. The cost-plus-fixed-fee structure, while offering flexibility, can lead to higher costs if not managed diligently. The absence of competition means there's no direct price comparison to assess if the fixed fee was reasonable or if the government secured optimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent need. The lack of competition limits the government's ability to leverage market forces to achieve the best possible price and terms.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of benefiting from competitive pricing, potentially leading to higher overall expenditure for the government.

Public Impact

The HSIN program deployment benefits the private sector by providing a secure platform for information sharing and collaboration with DHS. This contract facilitated the delivery of critical cybersecurity and threat information sharing capabilities to private sector entities. The geographic impact is likely nationwide, as the HSIN program is designed to support businesses across the United States. Workforce implications include the potential for specialized IT roles within Computer Sciences Corporation to support the program's development and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can limit access to potentially more innovative or cost-effective solutions from other vendors.
The CPFF contract type requires robust oversight to prevent cost overruns.
The long contract duration necessitates sustained government monitoring and management.

Positive Signals

The HSIN program aims to improve critical infrastructure security through public-private partnerships.
Deployment of HSIN enhances information sharing between government and private sector entities, a key national security objective.
Computer Sciences Corporation has a significant track record in providing IT services to the federal government.

Sector Analysis

The Information Technology sector is characterized by rapid innovation and evolving market dynamics. Contracts for program deployment and IT services often represent substantial government investments. This $14.05 million award for the HSIN program falls within the broader category of government IT services, specifically focusing on secure information sharing platforms. Comparable spending benchmarks for similar large-scale IT deployments can vary widely based on scope, complexity, and the specific technologies involved.

Small Business Impact

There is no indication from the provided data that this contract included small business set-asides or subcontracting requirements. As a sole-source award to a large contractor like Computer Sciences Corporation, the direct impact on the small business ecosystem may be limited unless CSC actively engages small businesses for subcontracting opportunities, which is not specified here.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Contracting Officer's Representative (COR) and the Contracting Officer (CO) within the Department of Homeland Security. Accountability measures would be tied to the performance metrics outlined in the contract and the CPFF structure. Transparency is often limited in sole-source awards, but contract award details are usually made public. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Homeland Security Information Network (HSIN)
Critical Infrastructure Protection Programs
Cybersecurity Information Sharing Programs
Federal IT Services Contracts

Risk Flags

Sole-source award
Lack of competition
Cost-plus contract type requires close monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $14.1 million to COMPUTER SCIENCES CORPORATION. HSIN PROGRAM DEPLOYMENT TO THE PRIVATE SECTOR.

Who is the contractor on this award?

The obligated recipient is COMPUTER SCIENCES CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $14.1 million.

What is the period of performance?

Start: 2005-09-30. End: 2010-10-31.

What was the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED'. A formal justification for a sole-source award is typically required under federal procurement regulations (e.g., FAR Part 6). Common justifications include that only one responsible source is available, or that the government's need is of such a nature that it would be seriously impaired without the unique qualifications of the prospective contractor. Without the specific justification document, it's impossible to determine the exact reason DHS chose not to compete this award. This lack of competition raises concerns about whether the government explored all available options and obtained the best possible value.

How does the $14.05 million cost compare to similar HSIN program deployments or related IT security platforms?

Direct cost comparisons for the HSIN program deployment are difficult without access to specific program details and historical spending on similar initiatives, especially given this was a sole-source award. However, $14.05 million over approximately five years (September 2005 to October 2010) suggests an average annual expenditure of roughly $2.8 million. This figure needs to be evaluated against the scope of services provided, the number of users or entities supported, and the complexity of the technology. For context, large-scale federal IT security and information sharing platform deployments can range from millions to tens of millions of dollars annually, depending on their scale and sophistication. The lack of competition here prevents a direct benchmark against market rates.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this program?

The Cost Plus Fixed Fee (CPFF) contract type means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. The primary risk for the government is that the contractor has less incentive to control costs compared to fixed-price contracts, as their profit (the fixed fee) is not directly tied to cost savings. If the contractor's costs increase, their fee remains the same, but the total government expenditure rises. This necessitates robust government oversight, detailed cost accounting, and stringent monitoring of contract performance to ensure costs remain reasonable and within budget expectations. Without effective oversight, CPFF contracts can lead to cost overruns.

What was Computer Sciences Corporation's track record with DHS or similar federal IT contracts prior to this award?

Computer Sciences Corporation (CSC) has historically been a major federal contractor, providing a wide range of IT services and solutions to various government agencies, including the Department of Homeland Security (DHS). While specific details of their prior performance with DHS on programs analogous to HSIN are not provided in this data snippet, CSC's extensive experience in large-scale IT system integration, cybersecurity, and government program support suggests they possessed the necessary qualifications and capacity. Federal procurement databases often contain past performance information, which would have been a key factor in DHS's decision-making, even for a sole-source award, to ensure the contractor could successfully execute the requirement.

How has spending on the HSIN program evolved since this contract's completion?

This contract for HSIN program deployment concluded in October 2010. To understand the evolution of spending, one would need to examine subsequent contracts awarded for the HSIN program or related initiatives by DHS. Federal spending databases (like USASpending.gov) would be the primary source for tracking this. It's common for major government programs to undergo multiple contract actions over time, reflecting changes in technology, requirements, and strategic priorities. Analyzing post-2010 spending would reveal whether the program continued to grow, was consolidated, or transitioned to different technologies or service providers, and whether future procurements were competed.

What specific services or functionalities did this $14.05 million award cover for the HSIN program?

The data indicates this award was for 'HSIN PROGRAM DEPLOYMENT TO THE PRIVATE SECTOR.' This suggests the contract covered the technical implementation, integration, and potentially the initial operational support of the Homeland Security Information Network platform for use by private sector entities. Specific functionalities could include setting up secure user accounts, configuring access controls, integrating data feeds, providing training materials or support, and ensuring the platform's availability and security for private sector partners. The 'deployment' aspect implies the transition from development to an operational state for the intended user base.

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2100 E GRAND AVE, EL SEGUNDO, CA, 90245

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,379,685

Exercised Options: $15,379,685

Current Obligation: $14,051,148

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 26301D0049

IDV Type: IDC

Timeline