DHS HSIN Program Management contract awarded to Blackstone Technology Group for over $24M

Contract Overview

Contract Amount: $24,387,359 ($24.4M)

Contractor: Blackstone Technology Group

Awarding Agency: Department of Homeland Security

Start Date: 2006-09-29

End Date: 2012-02-05

Contract Duration: 1,955 days

Daily Burn Rate: $12.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: NOT REPORTED

Sector: IT

Official Description: HSIN PROGRAM MANAGEMENT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $24.4 million to BLACKSTONE TECHNOLOGY GROUP for work described as: HSIN PROGRAM MANAGEMENT Key points: 1. Value for money appears fair given the duration and scope, though specific performance metrics are not detailed. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Contract duration of nearly 5.5 years indicates a significant, long-term need. 4. The contract falls within custom computer programming services, a common area for federal IT spending. 5. No small business set-aside was utilized, suggesting larger prime contractors were expected. 6. The award was made under a BPA, indicating a pre-negotiated framework agreement.

Value Assessment

Rating: fair

The total award amount of over $24 million spread across approximately 5.5 years suggests an average annual spend of roughly $4.4 million. Benchmarking this against similar custom computer programming services contracts is challenging without more specific details on the services rendered. However, the duration and the full and open competition award type imply that the pricing was likely subject to market forces. Further analysis would require comparing the specific deliverables and service levels to industry standards and other government contracts for similar IT program management.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but this award type generally indicates a robust competitive process. A higher number of bidders typically leads to better price discovery and potentially lower costs for the government. The use of a BPA (Blanket Purchase Agreement) suggests that this contract was likely established within an existing framework, which might streamline the competition process but still requires adherence to full and open principles.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive environment, which can drive down prices and encourage innovation from a wider pool of vendors.

Public Impact

The Department of Homeland Security (DHS) benefits from this contract through the management of its HSIN program. Services delivered include custom computer programming and program management, crucial for IT infrastructure. The geographic impact is primarily within the United States, supporting federal operations. Workforce implications include potential employment for IT professionals and program managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to fully assess value for money.
Specific details on the number of bidders are not available, limiting a deeper understanding of competition intensity.
The nature of 'program management' can be broad, requiring further definition to understand the exact services procured.

Positive Signals

Awarded under full and open competition, indicating a commitment to a broad vendor pool.
The contract was awarded under a BPA, suggesting an established procurement vehicle that may offer efficiencies.
The long duration suggests a stable and ongoing requirement for these services within DHS.

Sector Analysis

This contract falls within the Information Technology sector, specifically Custom Computer Programming Services. The federal IT market is substantial, with significant annual spending across various agencies. Contracts for program management and custom development are essential for maintaining and upgrading government IT systems. Benchmarking this contract's value would involve comparing its total value and duration against similar IT services contracts awarded by DHS or other large federal agencies for program management and software development.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). This suggests that the procurement was open to businesses of all sizes, and the prime contractor, Blackstone Technology Group, is likely a larger entity or was selected through a competitive process that did not prioritize small business participation as a primary set-aside criterion. There is no information provided on subcontracting plans or their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's program management and contracting offices. As a federal contract, it is subject to standard government oversight mechanisms, including potential reviews by the DHS Office of Inspector General (OIG) and Government Accountability Office (GAO) audits. Transparency is generally facilitated through public contract databases like FPDS, where basic award information is available. However, detailed performance reports and specific oversight activities are often internal.

Related Government Programs

DHS IT Services
Custom Computer Programming Services
Program Management Support
Blanket Purchase Agreements (BPAs)

Risk Flags

Contract Duration
Lack of Performance Metrics
Limited Competition Detail

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $24.4 million to BLACKSTONE TECHNOLOGY GROUP. HSIN PROGRAM MANAGEMENT

Who is the contractor on this award?

The obligated recipient is BLACKSTONE TECHNOLOGY GROUP.

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 $24.4 million.

What is the period of performance?

Start: 2006-09-29. End: 2012-02-05.

What specific program management functions were covered under this contract?

The provided data identifies the contract under NAICS code 541511 (Custom Computer Programming Services) and describes the service as 'HSIN PROGRAM MANAGEMENT'. While 'program management' is broad, it typically encompasses planning, organizing, securing, and managing resources to bring about the successful completion of specific project goals and objectives. For the HSIN (Homeland Security Information Network) program, this likely involved overseeing the development, implementation, maintenance, and operational support of the network and its associated applications. Specific functions could include requirements gathering, system design oversight, vendor management, risk management, quality assurance, and stakeholder communication, all aimed at ensuring the HSIN program effectively meets its mission objectives for DHS.

How does the $24.3 million award compare to typical spending on similar IT program management contracts within DHS?

Comparing the $24.3 million award for HSIN Program Management to typical DHS IT spending requires context on the scope and duration. This contract spanned approximately 5.5 years (from Sept 2006 to Feb 2012), averaging about $4.4 million annually. DHS is a large agency with significant IT investments. Annual IT spending across DHS can range from billions to tens of billions of dollars, depending on the fiscal year and agency priorities. Contracts for program management and custom development vary widely in value. A $4.4 million annual spend for a specific program's management is substantial but not extraordinary within the context of a department like DHS. To provide a precise comparison, one would need to analyze other DHS contracts for similar program management services, considering factors like contract duration, complexity, number of users supported, and specific deliverables.

What are the potential risks associated with a contract of this duration (nearly 5.5 years)?

Contracts with a duration of nearly 5.5 years, like this HSIN Program Management award, carry several potential risks. Firstly, technology can rapidly evolve, meaning the systems and services procured at the beginning of the contract might become outdated or less efficient by its end, potentially leading to increased sustainment costs or the need for costly modifications. Secondly, long-term contracts can reduce flexibility; if DHS's requirements change significantly, adapting the contract or switching vendors might be difficult or expensive. Thirdly, there's a risk of vendor lock-in, where the contractor gains significant institutional knowledge, making it harder for the government to transition to a new provider. Finally, over such an extended period, there's an increased chance of performance degradation, cost overruns, or shifts in strategic priorities that could render the original contract objectives less relevant, necessitating careful ongoing oversight and potential contract modifications.

What does the 'FULL AND OPEN COMPETITION' award type imply about the contractor selection process and potential value?

The 'FULL AND OPEN COMPETITION' award type signifies that the Department of Homeland Security allowed all responsible sources to submit bids for the HSIN Program Management contract. This process is generally considered the gold standard for federal procurement, aiming to maximize competition and achieve the best value for the government. It implies that the agency did not restrict the pool of potential contractors through set-asides or other limitations. The expectation is that this broad competition would drive down prices, encourage innovation, and ensure that the selected contractor, Blackstone Technology Group in this case, offered the most advantageous solution based on price and other evaluation factors. While it doesn't guarantee the lowest price, it creates a strong market dynamic that favors cost-effectiveness and quality for the taxpayer.

How has spending on Custom Computer Programming Services (NAICS 541511) evolved within DHS over time?

Spending on Custom Computer Programming Services (NAICS 541511) within the Department of Homeland Security (DHS) has likely seen significant evolution, mirroring broader trends in federal IT procurement. While this specific contract (awarded in 2006) represents a snapshot from over a decade ago, DHS, like other large agencies, has continuously invested in modernizing its IT infrastructure. Post-2006, there has been a growing emphasis on cloud computing, agile development methodologies, cybersecurity enhancements, and data analytics. Consequently, spending patterns may have shifted from traditional custom development towards more integrated solutions, platform-as-a-service (PaaS), and software-as-a-service (SaaS) models, although custom programming remains essential for unique mission requirements. Analyzing historical spending data from FPDS would reveal trends in the volume and value of contracts under NAICS 541511 awarded by DHS, potentially showing increases or decreases influenced by budget allocations, technological shifts, and evolving security needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: NOT REPORTED (NO)

Evaluated Preference: NONE

Contractor Details

Address: 605 MARKET ST, SAN FRANCISCO, CA, 90

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $24,402,811

Exercised Options: $24,387,359

Current Obligation: $24,387,359

Parent Contract

Parent Award PIID: HSHQPA06A00019

IDV Type: BPA

Timeline