DHS awards $24.3M for data center LAN upgrades to General Dynamics IT

Contract Overview

Contract Amount: $24,269,521 ($24.3M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2010-07-23

End Date: 2015-12-31

Contract Duration: 1,987 days

Daily Burn Rate: $12.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DATA CENTER ONE (DC1) LAN UPGRADES (PRE-PROVISIONING LAN END OF ROW (EOR) SOLUTIONS WITHIN DHS ZONES)

Place of Performance

Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39529

State: Mississippi Government Spending

Plain-Language Summary

Department of Homeland Security obligated $24.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: DATA CENTER ONE (DC1) LAN UPGRADES (PRE-PROVISIONING LAN END OF ROW (EOR) SOLUTIONS WITHIN DHS ZONES) Key points: 1. Value for money appears fair, with a significant investment in critical infrastructure. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Contract duration of nearly 2000 days indicates a long-term need for these services. 4. The contract is for pre-provisioning LAN end-of-row solutions, a key component of data center networking. 5. This spending aligns with broader federal efforts to modernize IT infrastructure.

Value Assessment

Rating: fair

The contract value of $24.3 million over approximately five years represents a substantial investment in data center networking. Benchmarking this against similar large-scale LAN upgrade projects within federal agencies is challenging without more granular data on the scope and specific technologies deployed. However, the firm fixed-price contract type suggests that the government has a clear understanding of the costs involved, which can be a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method is generally preferred as it fosters a competitive environment, potentially leading to better pricing and innovative solutions. The number of bidders is not specified, but the use of this procurement method suggests a robust market for these services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive market rates, preventing potential overspending.

Public Impact

The Department of Homeland Security benefits from upgraded data center networking capabilities. Services delivered include the pre-provisioning of LAN end-of-row solutions. The geographic impact is likely concentrated within DHS data center facilities. This contract supports IT professionals involved in network infrastructure deployment and management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to technology obsolescence if not managed proactively.
Reliance on a single large contractor for a critical infrastructure upgrade may pose risks if performance falters.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a healthy market and potential for competitive pricing.
The contract addresses a fundamental need for data center network modernization.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on network infrastructure for data centers. The market for data center networking solutions is large and competitive, with numerous vendors offering a range of hardware and services. Federal spending in this area is significant as agencies continue to modernize their IT environments, often migrating to cloud or hybrid solutions, which still require robust on-premises networking.

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 requirement explicitly mentioned. Given the scale and nature of the work, it is likely that larger prime contractors would be involved. Further analysis would be needed to determine if small businesses are participating as subcontractors.

Oversight & Accountability

The contract is a delivery order under a larger contract vehicle, implying that oversight mechanisms are in place at the contract vehicle level. The firm fixed-price nature provides some cost control. Transparency would be enhanced by public reporting of performance metrics and any modifications to the contract. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

DHS Data Center Consolidation
Federal Data Center Optimization Initiative
IT Infrastructure Modernization Programs

Risk Flags

Long contract duration may lead to technology obsolescence.
Lack of specific performance metrics in provided data.
Potential for vendor lock-in with long-term infrastructure contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $24.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. DATA CENTER ONE (DC1) LAN UPGRADES (PRE-PROVISIONING LAN END OF ROW (EOR) SOLUTIONS WITHIN DHS ZONES)

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..

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 $24.3 million.

What is the period of performance?

Start: 2010-07-23. End: 2015-12-31.

What specific technologies or solutions were included in the 'pre-provisioning LAN end-of-row solutions'?

The provided data does not specify the exact technologies or solutions encompassed by 'pre-provisioning LAN end-of-row solutions.' Typically, this would involve the procurement, staging, and initial configuration of network switches, cabling, power distribution units, and other hardware necessary to establish the network connectivity at the 'end of row' within a data center rack. This process prepares the infrastructure for the installation of servers and storage devices. A more detailed review of the contract statement of work (SOW) or related documentation would be required to ascertain the precise technical specifications and vendor products involved.

How does the $24.3 million cost compare to similar LAN upgrade projects in other federal agencies?

Direct comparison of the $24.3 million cost to similar LAN upgrade projects in other federal agencies is difficult without a standardized benchmark for 'LAN end-of-row solutions' and considering variations in scope, scale, and technology. However, the duration of nearly five years suggests a phased implementation or a very large deployment. Federal agencies often spend millions on data center infrastructure upgrades. For context, other large agencies like the Department of Defense or the General Services Administration undertake similar multi-million dollar projects for network modernization. The firm fixed-price nature of this contract provides a degree of cost certainty, but a true value assessment would require comparing the delivered capabilities and performance against the price paid, relative to market rates for comparable services.

What are the potential risks associated with a nearly five-year contract for network hardware and services?

A significant risk associated with a contract spanning nearly five years (1987 days) for network hardware and services is technological obsolescence. The pace of innovation in networking technology is rapid, and hardware or solutions deployed early in the contract could be outdated by the time the contract concludes. This could lead to performance limitations or increased maintenance costs. Another risk is vendor lock-in or performance degradation over time. If the contractor's performance declines, or if they become the sole provider of a specific, now-legacy technology, the agency may face challenges in seeking alternatives or negotiating favorable terms for ongoing support. Proactive contract management, including regular reviews and potential for technology refresh clauses, is crucial to mitigate these risks.

What is the track record of General Dynamics Information Technology, Inc. in delivering similar IT infrastructure projects for the federal government?

General Dynamics Information Technology, Inc. (GDIT) is a major federal contractor with a long history of delivering a wide range of IT services and infrastructure projects for various government agencies. They have experience in areas such as network modernization, cybersecurity, cloud migration, and enterprise IT support. While specific performance details for this particular contract are not provided, GDIT's extensive portfolio suggests they possess the capability to handle large-scale projects. However, like any large contractor, their performance can vary across different contracts and agencies. A thorough assessment would involve reviewing past performance evaluations, contract award histories, and any reported issues or successes on similar federal IT infrastructure endeavors.

How does the 'Computer Facilities Management Services' NAICS code (541513) align with the described 'LAN Upgrades' contract?

The NAICS code 541513, 'Computer Facilities Management Services,' aligns well with a contract for data center LAN upgrades. Computer facilities management encompasses a broad range of services related to the operation and maintenance of computer systems and related telecommunications and network infrastructure. Pre-provisioning LAN end-of-row solutions is a critical component of ensuring the effective operation and readiness of a data center's computing facilities. This includes managing the physical network infrastructure that supports the data processing and storage capabilities within the facility, making it a direct fit under this NAICS code.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management 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: General Dynamics Corp (UEI: 001381284)

Address: 4151 LAFAYETTE CENTER DR STE 700, CHANTILLY, VA, 20151

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,269,521

Exercised Options: $24,269,521

Current Obligation: $24,269,521

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSHQDC06D00021

IDV Type: IDC

Timeline