DHS's $48.7M IT support contract with General Dynamics saw 3 bidders, raising questions about value

Contract Overview

Contract Amount: $48,736,719 ($48.7M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2007-11-13

End Date: 2011-09-25

Contract Duration: 1,412 days

Daily Burn Rate: $34.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VERIFICATION INFORMATION SYSTEM SUPPORT & ENHANCEMENTS

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $48.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: VERIFICATION INFORMATION SYSTEM SUPPORT & ENHANCEMENTS Key points: 1. The contract's duration of 1412 days suggests a long-term need for IT support services. 2. A firm-fixed-price contract type indicates that the price was set at the time of award, potentially limiting cost overruns but also reducing flexibility. 3. The award was a competitive delivery order, implying some level of competition, though the number of bidders is a key factor in assessing its effectiveness. 4. The contract falls under Computer Facilities Management Services, a common IT support category. 5. The total value of $48.7 million over approximately 3.8 years averages to roughly $12.8 million annually. 6. The contract was awarded to General Dynamics Information Technology, Inc., a large federal contractor.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or detailed cost breakdowns. However, the average annual cost of approximately $12.8 million for IT support services of this nature can be considered moderate for a federal agency of the Department of Homeland Security's size. Further analysis would require comparing the specific services rendered against industry standards and the pricing of similar contracts awarded to other large IT service providers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that it was competed under a broader contract vehicle. With three bidders participating, the level of competition appears moderate. While three bidders suggest some market interest, a higher number of bidders typically leads to more robust price discovery and potentially better value for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: A moderate level of competition means taxpayers likely received a reasonably competitive price, but there may have been opportunities for even greater savings with a more robust bidding process.

Public Impact

The primary beneficiary is the U.S. Citizenship and Immigration Services (USCIS) within DHS, receiving essential IT support. Services delivered include the maintenance, support, and enhancement of IT systems crucial for USCIS operations. The geographic impact is primarily within Virginia, where the contractor is located, and potentially wherever USCIS IT infrastructure is managed. The contract supports jobs within the IT services sector, specifically in computer facilities management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The relatively long duration of the contract (1412 days) could indicate a lack of agility in adapting to changing technological needs or a potential for vendor lock-in.
Without detailed performance metrics, it's difficult to assess the true value for money and ensure the services provided were optimal.
The fixed-price nature, while controlling costs, might disincentivize innovation or proactive problem-solving by the contractor if not carefully managed.

Positive Signals

The contract was competitively awarded, suggesting that multiple vendors had the opportunity to bid, which is a positive signal for price discovery.
The use of a firm-fixed-price contract can provide cost certainty for the government, helping to manage the overall budget.
General Dynamics Information Technology is a well-established IT services provider with experience in the federal sector, potentially bringing expertise to the contract.

Sector Analysis

This contract falls within the Information Technology sector, specifically under Computer Facilities Management Services. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract represents a portion of that broader spending, focusing on the operational support and enhancement of existing systems rather than new development. Comparable spending benchmarks would involve analyzing other large-scale IT support contracts awarded by federal agencies for similar services.

Small Business Impact

There is no indication that this contract involved a small business set-aside, as the 'ss' field is false. Similarly, the 'sb' field is false, suggesting no explicit requirement for subcontracting to small businesses was noted in the provided data. This means the primary contractor, General Dynamics Information Technology, Inc., likely performed the majority of the work. The impact on the small business ecosystem is therefore minimal in terms of direct set-aside opportunities or mandated subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting officers and program managers. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

IT Infrastructure Support
Information Technology Services
Computer Systems Management
Federal IT Contracts
Department of Homeland Security IT Spending

Risk Flags

Long Contract Duration
Moderate Competition Level
Lack of Detailed Performance Metrics (in provided data)

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $48.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. VERIFICATION INFORMATION SYSTEM SUPPORT & ENHANCEMENTS

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 (U.S. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $48.7 million.

What is the period of performance?

Start: 2007-11-13. End: 2011-09-25.

What is the track record of General Dynamics Information Technology, Inc. in fulfilling federal IT support contracts?

General Dynamics Information Technology, Inc. (GDIT) has a significant track record as a large federal contractor, frequently awarded contracts for IT support, systems integration, and professional services across various government agencies. Their experience spans decades, and they are known for handling complex IT infrastructure management, cybersecurity, and modernization projects. While specific performance details for individual contracts are often proprietary or embedded within agency performance reports, GDIT's consistent presence and substantial contract awards suggest a capacity to meet federal requirements. However, like any large contractor, they may have faced performance challenges or disputes on certain contracts, which would typically be documented in contract performance databases or agency oversight records.

How does the average annual cost of this contract compare to similar IT support contracts?

The average annual cost of approximately $12.8 million for this contract ($48.7 million over 1412 days, roughly 3.8 years) places it in the mid-to-large tier for federal IT support services. Without access to a detailed breakdown of the services provided and the specific Service Level Agreements (SLAs), a precise comparison is difficult. However, for comprehensive IT facilities management, including system maintenance, help desk support, network operations, and potential minor enhancements for a large agency component like USCIS, this annual figure is within a plausible range. Agencies often benchmark such costs against similar contracts awarded by other departments or against commercial IT service provider rates, adjusted for the complexities of government contracting.

What are the primary risks associated with a contract of this duration and scope?

A primary risk with a contract spanning over 1400 days (nearly four years) is technological obsolescence. The IT landscape evolves rapidly, and a system or support structure established at the beginning of the contract might be outdated by its end. Another significant risk is vendor lock-in, where the contractor becomes so integrated into the agency's systems that switching providers becomes prohibitively expensive or disruptive. Performance degradation over time is also a risk, as is the potential for cost increases if the firm-fixed-price contract doesn't adequately account for unforeseen complexities or scope creep, despite its initial cost certainty. Ensuring continuous alignment with evolving agency needs and security requirements is paramount.

How effective was the competition level (3 bidders) in ensuring value for taxpayers?

A competition level of three bidders for a contract of this size and scope suggests moderate effectiveness in ensuring value for taxpayers. While competition is generally beneficial, a higher number of bidders typically drives prices down more aggressively and encourages more innovative solutions. Three bidders indicate that the market was sufficiently interested and that the requirements were clear enough for multiple firms to respond. However, it leaves open the possibility that with more bidders, even greater cost savings or superior technical solutions might have been achieved. The specific nature of the services and the qualifications required could influence the number of viable bidders.

What is the historical spending pattern for similar IT support services at DHS or USCIS?

Historical spending patterns for IT support services at DHS and its components like USCIS generally show consistent and significant investment. Agencies of this scale require robust IT infrastructure to manage vast amounts of data, citizen interactions, and internal operations. Spending on IT support, maintenance, and enhancements is a perennial requirement. While the specific amount of $48.7 million for this particular contract is a data point, broader trends indicate that DHS is a major consumer of IT services, with annual IT budgets often in the billions. Analyzing past contracts for similar services (e.g., help desk, network management, system administration) would reveal whether this contract's value aligns with or deviates from historical norms, considering inflation and evolving technological needs.

What are the potential implications of the 'Computer Facilities Management Services' NAICS code (541513) on contract performance?

The NAICS code 541513, 'Computer Facilities Management Services,' defines the core scope of this contract. This classification typically encompasses services such as operating, controlling, and maintaining data centers and other computer facilities. This includes managing the day-to-day operations, providing technical support, ensuring system availability, and performing routine maintenance. Contracts under this code often involve significant personnel resources dedicated to system administration, network operations, and help desk functions. The implications for performance are that the contractor is expected to ensure the reliable and efficient functioning of the agency's IT infrastructure, directly impacting the operational capabilities of USCIS.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

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: $52,729,054

Exercised Options: $48,736,719

Current Obligation: $48,736,719

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSHQDC06D00021

IDV Type: IDC

Timeline