DHS awards $36.75M for IT support services to Systems Integration, Inc. over 7 years
Contract Overview
Contract Amount: $36,750,252 ($36.8M)
Contractor: Systems Integration, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2004-04-15
End Date: 2011-06-08
Contract Duration: 2,610 days
Daily Burn Rate: $14.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 19
Pricing Type: FIXED PRICE AWARD FEE
Sector: IT
Official Description: SUPPORT SERVICES
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $36.8 million to SYSTEMS INTEGRATION, INC. for work described as: SUPPORT SERVICES Key points: 1. Contract value of $36.75M over 7 years indicates significant investment in IT support. 2. Systems Integration, Inc. secured the award, suggesting strong capabilities in computer-related services. 3. The contract's duration and fixed-price award fee structure warrant scrutiny for cost control. 4. Spending falls within the 'Other Computer Related Services' NAICS code, a common area for IT outsourcing.
Value Assessment
Rating: fair
The contract value of $36.75M over 7 years averages approximately $5.25M annually. Benchmarking against similar IT support contracts requires detailed service scope comparison, but this appears to be a moderate-sized award.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary IT support services.
Public Impact
Ensures continued IT support for critical transportation security functions. Supports a private sector company and its employees. Potential for technology upgrades and service improvements through contract performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (7 years) may limit flexibility for future technology adoption.
- Fixed Price Award Fee structure can incentivize performance but requires careful monitoring of award criteria.
- Lack of specific small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Supports a key agency (TSA) within DHS.
- Long-term contract provides stability for service delivery.
Sector Analysis
This contract falls under IT services, specifically 'Other Computer Related Services'. Spending in this sector is substantial across government, driven by the need for ongoing system maintenance, development, and support.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the prime contractor is likely a larger entity, and opportunities for small businesses may have been limited to subcontracting roles.
Oversight & Accountability
The contract's fixed-price award fee structure implies performance metrics and oversight are in place to manage contractor delivery and ensure value. Regular reviews by the TSA would be expected.
Related Government Programs
- Other Computer Related Services
- Department of Homeland Security Contracting
- Transportation Security Administration Programs
Risk Flags
- Long contract duration may lead to outdated technology.
- Potential for vendor lock-in.
- Lack of explicit small business participation.
- Award fee structure requires diligent oversight to ensure value.
Tags
other-computer-related-services, department-of-homeland-security, va, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $36.8 million to SYSTEMS INTEGRATION, INC.. SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is SYSTEMS INTEGRATION, INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Transportation Security Administration).
What is the total obligated amount?
The obligated amount is $36.8 million.
What is the period of performance?
Start: 2004-04-15. End: 2011-06-08.
What specific IT support services are included in this contract, and how do they align with TSA's current and future operational needs?
The contract covers 'Other Computer Related Services,' a broad category. A detailed analysis would require reviewing the Statement of Work (SOW) to understand the exact services provided, such as system maintenance, network support, software development, or cybersecurity. Understanding this scope is crucial to assess if the $36.75M investment effectively addresses TSA's evolving technological requirements and mission objectives.
How effectively has Systems Integration, Inc. performed under this contract, particularly concerning the award fee structure and overall value delivered?
Assessing performance requires examining historical award fee determinations and any performance reviews or contractor feedback. The fixed-price award fee structure suggests performance incentives were tied to specific metrics. Evaluating whether the awarded fees reflect exceptional service delivery or merely satisfactory performance is key to determining the true value for money and identifying any potential cost overruns or underperformance.
What is the long-term strategic impact of this 7-year contract on TSA's IT infrastructure modernization and potential vendor lock-in?
A 7-year contract duration, while providing stability, can pose risks related to technological obsolescence and vendor lock-in. It's important to understand if TSA has built-in flexibility for technology refreshes or competitive re-competition towards the end of the term. This contract's length could potentially slow down the adoption of newer, more cost-effective solutions if not managed proactively.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 19
Pricing Type: FIXED PRICE AWARD FEE (M)
Contractor Details
Address: 8201 CORPORATE DRIVE, LANDOVER, MD, 04
Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $37,317,777
Exercised Options: $36,750,252
Current Obligation: $36,750,252
Contract Characteristics
Multi-Year Contract: Yes
Timeline
Start Date: 2004-04-15
Current End Date: 2011-06-08
Potential End Date: 2011-06-08 00:00:00
Last Modified: 2011-06-08
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