DHS awards $30M BPA for computing infrastructure, data processing, and web hosting services

Contract Overview

Contract Amount: $30,016,000 ($30.0M)

Contractor: Gemalto Cogent, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2005-06-22

End Date: 2006-06-21

Contract Duration: 364 days

Daily Burn Rate: $82.5K/day

Sector: IT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $30.0 million to GEMALTO COGENT, INC. for work described as: Key points: 1. The contract was awarded as a Blanket Purchase Agreement (BPA), suggesting a flexible framework for ongoing needs. 2. The duration of 364 days indicates a short-term or initial operational period. 3. The North American Industry Classification System (NAICS) code 518210 points to a focus on data processing and hosting services. 4. The awardee, GEMALTO COGENT, INC., is positioned to provide critical IT infrastructure support. 5. The contract's value of approximately $30 million warrants scrutiny for cost-effectiveness over its term. 6. The lack of specific performance metrics or detailed scope in the provided data makes a deep dive into value-for-money challenging.

Value Assessment

Rating: fair

Benchmarking the value of this $30 million Blanket Purchase Agreement (BPA) is difficult without more specific details on the services rendered and the period of performance. As a BPA, it likely represents a pre-negotiated ceiling for services, and actual spending could be lower. Comparing it to similar IT infrastructure and data processing contracts awarded by DHS or other agencies would provide better context for its pricing and overall value. The absence of detailed task orders makes it hard to assess if the government is receiving competitive pricing for the specific services procured under this agreement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data does not specify the competition level for this Blanket Purchase Agreement (BPA). BPAs can be established under existing contracts, and the competition for the underlying contract might have been robust. However, the specific competition for the establishment of this BPA and any subsequent task orders issued against it is not detailed. Understanding whether this was competed broadly, through limited sources, or as a sole-source action is crucial for assessing price discovery and potential for cost savings.

Taxpayer Impact: The level of competition directly impacts taxpayer value. More competition generally leads to better pricing and a wider range of innovative solutions, ensuring taxpayer dollars are used more efficiently.

Public Impact

The Department of Homeland Security (DHS) benefits from this contract by securing essential IT infrastructure and data processing capabilities. The services provided are critical for the operational functioning of DHS, supporting various internal and external facing applications. The geographic impact is primarily within the District of Columbia, where the contract is registered. The contract supports the workforce involved in IT infrastructure management, data processing, and web hosting within the federal government or its contractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the effectiveness and efficiency of the services provided.
The broad nature of the NAICS code could encompass a wide range of services, making it hard to pinpoint specific value.
Limited information on competition raises questions about whether the government secured the best possible pricing.
The short duration of the BPA might indicate a need for more stable, long-term solutions, potentially leading to future re-competition costs.

Positive Signals

The award to GEMALTO COGENT, INC. suggests a pre-vetted vendor capable of providing these specialized IT services.
Establishing a BPA framework allows for streamlined procurement of recurring IT needs, potentially reducing administrative burden.
The contract supports critical government functions related to data processing and infrastructure, ensuring operational continuity.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on data processing, web hosting, and related services. The market for these services is highly competitive, with numerous providers ranging from large cloud service providers to specialized IT firms. The total federal spending on IT services is in the hundreds of billions annually, with significant portions allocated to infrastructure, cloud computing, and data management. This BPA represents a portion of that broader spending, aimed at fulfilling specific IT operational requirements for the Department of Homeland Security.

Small Business Impact

The provided data does not indicate whether this contract included small business set-asides or subcontracting requirements. Analysis of small business participation would require further investigation into the specific terms of the BPA and any subsequent task orders. Without this information, it's difficult to assess the impact on the small business ecosystem or whether opportunities were specifically created for small and disadvantaged businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program offices within the Department of Homeland Security. The effectiveness of oversight depends on the clarity of the BPA's terms, the monitoring of task order performance, and adherence to procurement regulations. Transparency is enhanced through contract databases like FPDS, but detailed performance reviews and Inspector General audits would provide a more comprehensive assessment of accountability.

Related Government Programs

IT Infrastructure Services
Data Processing Services
Cloud Computing Services
Web Hosting Services
IT Support Services

Risk Flags

Limited competition information
Lack of detailed performance metrics
Potential for cost overruns without strict management
Security risks inherent in data processing and hosting

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $30.0 million to GEMALTO COGENT, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is GEMALTO COGENT, 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 $30.0 million.

What is the period of performance?

Start: 2005-06-22. End: 2006-06-21.

What is the track record of GEMALTO COGENT, INC. with federal contracts, particularly in IT infrastructure and data processing?

GEMALTO COGENT, INC. has a history of federal contracting, primarily associated with identity solutions and secure technology. Their involvement in IT infrastructure, data processing, and web hosting would need to be examined through contract databases to ascertain the volume, value, and performance history of such awards. A review of past performance evaluations and any reported issues would provide insight into their reliability and capability in delivering services under this BPA. Understanding their specific experience in government IT environments is crucial for assessing risk and ensuring successful service delivery.

How does the approximate $30 million award value compare to similar IT infrastructure and data processing contracts awarded by DHS or other agencies?

Without specific details on the services procured under this $30 million BPA, a direct comparison is challenging. However, federal spending on IT infrastructure, data processing, and web hosting is substantial. Contracts of this magnitude are common for agencies like DHS, which have extensive IT needs. Benchmarking would involve identifying comparable BPAs or Indefinite Delivery/Indefinite Quantity (IDIQ) contracts for similar services, considering factors like duration, scope, and the specific technologies involved. A higher value might be justified if the contract covers a broad range of advanced services or supports a large user base, while a lower value could indicate a more focused or limited scope.

What are the primary risks associated with this contract, considering the limited information available?

Key risks include potential cost overruns if the BPA's ceiling is not managed effectively, and performance issues if the vendor fails to meet service level agreements (which are not detailed here). The lack of transparency regarding competition also poses a risk, as it may indicate a missed opportunity for better pricing. Furthermore, reliance on a single vendor for critical IT services can create vendor lock-in and reduce flexibility. Security risks related to data processing and hosting are also inherent and require robust oversight and compliance measures from the vendor.

How effective is the current IT infrastructure and data processing support provided by this contract in meeting DHS's mission objectives?

Assessing the effectiveness requires detailed performance data, user feedback, and alignment with DHS's strategic IT goals. The provided data is insufficient to determine effectiveness. A comprehensive evaluation would examine metrics such as system uptime, data integrity, response times for support requests, and the successful implementation of new services or upgrades. Ultimately, the contract's effectiveness is measured by its contribution to DHS's ability to carry out its mission securely and efficiently, which is not quantifiable with the current information.

What are the historical spending patterns for computing infrastructure, data processing, and web hosting services at DHS?

Historical spending patterns for these services at DHS would reveal trends in procurement, vendor relationships, and overall IT investment. Analyzing past contracts, including their values, durations, and awarded vendors, can indicate whether spending has been consistent, increasing, or decreasing. This context helps in evaluating whether the current $30 million BPA aligns with historical investment levels or represents a significant shift. Understanding these patterns can also highlight areas where cost savings might have been achieved or missed in the past, informing future procurement strategies.

What is the typical duration and value for BPAs awarded under NAICS code 518210 by agencies similar to DHS?

Blanket Purchase Agreements (BPAs) under NAICS code 518210 (Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services) can vary significantly in duration and value. Typical durations might range from one to five years, depending on the agency's needs and the nature of the services. Values are often tied to pre-existing contract vehicles or negotiated ceilings. For agencies like DHS, with substantial IT requirements, BPAs in the tens of millions of dollars are not uncommon, especially if they are intended to cover a broad spectrum of services or a large number of users over their term. However, many BPAs are established with lower ceilings and are used for more specific, recurring needs.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Contractor Details

Parent Company: 3M Company (UEI: 006173082)

Address: 209 FAIR OAKS AVE, SOUTH PASADENA, CA, 91030

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $30,026,000

Exercised Options: $30,026,000

Current Obligation: $30,016,000

Parent Contract

Parent Award PIID: COW2A0052

IDV Type: BPA

Timeline