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General Dynamics Wins DHS IT Contract

by: Matthew Potter
June 30, 2011

Category: Business Line, Companies, Contract Additions, Contract Awards, Events, General Dynamics, IT, logistics, Northrop Grumman Corp., Protest, Services, U.S. Dept. of Homeland Security | RSS 2.0

After a lengthy protest and a new contest General Dynamics (GD) was able to win an IT support contract with the Department of Homeland Security (DHS). The company will support the building of the agency’s new headquarters and the move and integration of its employees into the facility.

Total value of the award could be up to $876 million as it also covers some time of dedicated support to the DHS. The original contract, though, won by Northrop Grumman (NOC) was much larger, lasting ten years and potentially worth over $2 billion.

After the award to Northrop late last year several of the losing bidders protested. The Government Accountability Office (GAO) upheld the protests and decided that a new contract should be awarded. This led to a new source selection process this spring with Northrop being the winner.

The new contract is much smaller as it was decided to de-scope the work and also eliminate many of the years of support after completion of the move. This means that in a few years there will be another contest to do that work and offers hope to Northrop that they can win that to counter the loss of the original contract.

The Federal Government stills has a hard time doing major IT work in-house and relies on large contracts such as this to carry out that work. There has been much discussion of the best way to move this work within the civil service but it has often foundered on how to integrate IT pay scales into the more rigid GS pay system. IT as illustrated does remain a significant contract cost for all parts of the Federal government as no matter what work they do from buying weapons to processing taxes they need IT support.

This area will remain a major market for the near future.

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