DHS awards $107M for ICE data center migration, impacting federal IT infrastructure

Contract Overview

Contract Amount: $107,116,649 ($107.1M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2010-07-26

End Date: 2015-12-31

Contract Duration: 1,984 days

Daily Burn Rate: $54.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ICE ATLAS MODERNIZATION / DOJ MIGRATION. THE PURPOSE OF THE TASK ORDER IS TO MIGRATE ICE SYSTEMS FROM THE DEPARTMENT OF JUSTICE DATA CENTER LOCATIONS INTO THE DEPARTMENT'S ENTERPRISE DATA CENTER ENVIRONMENT ACCORDING TO PROJECT SCHEDULE MILESTONES SET BY THE CONGRESS AND THE FY 10 APPROPRIATION BILL.

Place of Performance

Location: DALLAS, COLLIN County, TEXAS, 75248, UNITED STATES OF AMERICA

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $107.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: ICE ATLAS MODERNIZATION / DOJ MIGRATION. THE PURPOSE OF THE TASK ORDER IS TO MIGRATE ICE SYSTEMS FROM THE DEPARTMENT OF JUSTICE DATA CENTER LOCATIONS INTO THE DEPARTMENT'S ENTERPRISE DATA CENTER ENVIRONMENT ACCORDING TO PROJECT SCHEDULE MILESTONES SET BY THE CONGRESS AND THE FY … Key points: 1. This contract represents a significant investment in modernizing federal data management capabilities. 2. The firm-fixed-price structure aims to control costs for the multi-year migration project. 3. Competition was robust, suggesting potential for competitive pricing and vendor innovation. 4. The project's success is tied to meeting congressionally mandated schedule milestones. 5. Performance is benchmarked against similar large-scale federal IT infrastructure projects. 6. The contract falls within the broader category of federal IT services and data management.

Value Assessment

Rating: good

The contract value of $107 million over approximately five years indicates a substantial undertaking. While specific cost breakdowns are not provided, the firm-fixed-price (FFP) award suggests an effort to cap expenses. Benchmarking against similar large-scale federal data center consolidations and migrations, this price appears within a reasonable range, assuming the scope and complexity align with industry standards. The absence of detailed cost-per-unit data makes a precise value-for-money assessment challenging, but the FFP structure is a positive indicator for cost control.

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. With two bids received, the competition level was moderate. While more bidders could potentially drive prices lower, two bids suggest that the market was sufficiently engaged and that the government received at least some level of price discovery. The government's ability to select a vendor implies a competitive process that likely yielded a fair market price.

Taxpayer Impact: A full and open competition with multiple bidders generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality.

Public Impact

Improves the operational efficiency and security of ICE's critical IT systems. Ensures compliance with federal mandates for data center modernization and consolidation. Supports the Department of Homeland Security's broader enterprise IT strategy. Potentially impacts federal IT workforce through the need for specialized migration and management skills. Enhances the reliability and availability of essential government services reliant on ICE systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays impacting critical government operations.
Risk of cost overruns if unforeseen technical challenges arise during migration.
Dependence on contractor performance for successful data integrity and system functionality.
Cybersecurity risks associated with migrating sensitive government data.

Positive Signals

Firm-fixed-price contract structure provides cost certainty.
Awarded under full and open competition, indicating market interest and potential for competitive pricing.
Clear project milestones set by Congress and appropriations bills provide defined objectives.
Long-term contract duration allows for focused execution and knowledge transfer.

Sector Analysis

This contract falls within the federal IT services sector, specifically focusing on data center management and migration. The federal government is a major consumer of such services, with significant ongoing investments in modernizing its IT infrastructure to improve efficiency, security, and cost-effectiveness. Comparable spending benchmarks in this area often involve multi-million dollar projects for cloud migration, data center consolidation, and infrastructure upgrades, reflecting the complexity and scale of government IT operations.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by the 'ss' field being false. Furthermore, the 'sb' field being false suggests no specific subcontracting goals for small businesses were mandated within this award. This means that opportunities for small businesses would primarily arise if the prime contractor, General Dynamics Information Technology, Inc., voluntarily includes them in their subcontracting plan, which is not explicitly detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Homeland Security's contracting officers and program managers. The firm-fixed-price nature of the award provides a degree of cost control. Transparency is facilitated through federal procurement databases like FPDS-NG, where contract awards are reported. While specific Inspector General (IG) jurisdiction for this particular task order isn't explicitly stated, the DHS OIG generally has oversight over DHS contracts to ensure efficiency and prevent fraud, waste, and abuse.

Related Government Programs

ICE IT Modernization Programs
DHS Data Center Consolidation Initiatives
Federal Cloud Computing Strategy
IT Infrastructure Modernization Contracts
Department of Justice IT Services

Risk Flags

Potential for schedule slippage impacting congressionally mandated milestones.
Risk of data integrity issues during migration.
Cybersecurity vulnerabilities during transition.
Dependence on contractor's technical expertise for successful outcome.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $107.1 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. ICE ATLAS MODERNIZATION / DOJ MIGRATION. THE PURPOSE OF THE TASK ORDER IS TO MIGRATE ICE SYSTEMS FROM THE DEPARTMENT OF JUSTICE DATA CENTER LOCATIONS INTO THE DEPARTMENT'S ENTERPRISE DATA CENTER ENVIRONMENT ACCORDING TO PROJECT SCHEDULE MILESTONES SET BY THE CONGRESS AND THE FY 10 APPROPRIATION BILL.

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 $107.1 million.

What is the period of performance?

Start: 2010-07-26. End: 2015-12-31.

What is the track record of General Dynamics Information Technology, Inc. in managing large-scale federal IT data center migrations?

General Dynamics Information Technology, Inc. (GDIT) has a substantial history of performing complex IT services for various federal agencies, including large-scale data center operations, cloud migrations, and infrastructure modernizations. They have been a significant player in the federal IT contracting space for many years, often handling mission-critical systems. Their experience includes managing infrastructure for agencies like the Department of Defense and NASA. While specific details on past ICE data center migrations by GDIT are not provided in this data, their general profile suggests they possess the technical expertise and project management capabilities required for such a significant undertaking. Evaluating their past performance on similar contracts, including adherence to schedules, budget management, and successful system transitions, would be crucial for a comprehensive assessment.

How does the cost of this contract compare to similar federal data center migration projects?

The total contract value of approximately $107 million over roughly five years translates to an average annual value of about $21.4 million. Benchmarking this against similar large-scale federal IT infrastructure projects, such as data center consolidations or cloud migrations, suggests this is a substantial but not necessarily exorbitant figure. The complexity, scope, and specific technologies involved in migrating ICE systems from the Department of Justice data centers to the Department's enterprise environment are key determinants of cost. Without detailed breakdowns of labor, hardware, software, and transition services, a precise comparison is difficult. However, given the critical nature of ICE systems and the federal mandate for modernization, this investment appears aligned with the scale of such endeavors in the federal IT landscape.

What are the primary risks associated with this ICE data center migration contract?

The primary risks associated with this contract revolve around the inherent complexities of large-scale IT migrations. These include potential schedule delays if unforeseen technical challenges arise during the migration process, impacting the congressionally mandated milestones. There's also a risk of data integrity issues or system downtime if the transition is not managed flawlessly, which could disrupt critical ICE operations. Cybersecurity risks are paramount, given the sensitive nature of the data being moved; any breach during migration could have severe consequences. Furthermore, cost overruns, although mitigated by the firm-fixed-price structure, remain a possibility if scope creep occurs or if unexpected infrastructure requirements emerge. Contractor performance and the ability to meet stringent security and operational requirements are also key risk factors.

What is the expected impact of this contract on ICE's operational effectiveness and IT infrastructure?

This contract is expected to significantly enhance ICE's operational effectiveness and modernize its IT infrastructure. By migrating systems from the Department of Justice data centers to the Department's enterprise data center environment, ICE aims to achieve greater efficiency, improved security, and better scalability. This consolidation should lead to reduced operational costs associated with managing disparate data centers and streamline IT support. The modernization effort is also crucial for ensuring compliance with federal mandates and adopting more current, secure technologies, thereby reducing vulnerabilities and improving system reliability. Ultimately, a more robust and modern IT infrastructure will better support ICE's core missions and data management needs.

How has federal spending in IT infrastructure modernization evolved, and where does this contract fit?

Federal spending on IT infrastructure modernization has been a consistent priority, driven by the need to replace aging systems, enhance cybersecurity, improve efficiency, and leverage emerging technologies like cloud computing. Agencies are increasingly consolidating data centers and migrating services to more secure, scalable, and cost-effective environments. This contract, valued at $107 million for ICE's data center migration, fits squarely within this trend. It represents a significant investment in consolidating and modernizing critical IT assets, aligning with broader government-wide initiatives like the Federal Cloud Computing Strategy and efforts to reduce the federal IT footprint. Such projects are essential for agencies to meet their missions while adhering to budget constraints and evolving technological landscapes.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $107,116,649

Exercised Options: $107,116,649

Current Obligation: $107,116,649

Parent Contract

Parent Award PIID: HSHQDC06D00021

IDV Type: IDC

Timeline