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Washington Technology home > 05/26/08 issue
05/26/08; Vol. 23 No. 09

TSA contract heats up
Next phase of competition under way for a $2 billion IT infrastructure prize

By Alice Lipowicz

In the hunt
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Bidders and prospective subcontractors are lining up to be part of the Transportation Security Administration’s massive $2 billion Information Technology Infrastructure Program (ITIP). The procurement is considered one of the largest and highest-profile IT contracts this year for the Homeland Security Department.

The TSA IT infrastructure contract is a follow-on to the $1 billion IT Managed Services contract, which aims to install and modernize IT networks and infrastructure. Unisys Corp. held the contract from 2002 to 2006. The company then won a bridge contract to extend the work through 2008.

Unisys has submitted a bid for the new contract, said spokesman Brad Bass. “This has been a very successful contract for Unisys, and we would like to continue the relationship,” he said.

Industry experts are closely watching the opportunity because it provides basic IT infrastructure for TSA, primarily in creating and linking computer networks between TSA and airports, presumably laying the groundwork for further agency IT work down the road.

“The TSA ITIP contract is in a sweet spot of IT architecture and networks,” said Jeremy Potter, senior analyst at Input Inc., a market research firm. “It is not mission-focused, in which you might have timing and priority issues. This is very basic IT ... modernizing the IT backbone.”

Even with those aspects in its favor, the project could be at risk. DHS infrastructure projects were placed on the Office of Management and Budget’s High Risk IT Project list in April.

Nonetheless, TSA’s IT infrastructure project is moving forward. After months of anticipation, TSA issued the request for proposals April 17, and bids were due May 14, said Ann Davis, a TSA spokeswoman. The value is estimated at $2 billion, she said.

Eligible companies are Category 2 operations and maintenance contractors on the department’s Enterprise Acquisition Gateway for Leading Edge Solutions procurement vehicle, Davis said. Those eligible include seven large contractors, counting Unisys, and 16 small businesses. She declined to provide information on which companies have submitted bids.

Among the seven large Category 2 companies, Lockheed Martin Corp. officials have confirmed that they have submitted a bid. Lockheed Martin executives recently created a Web site, LM4TSA.com, dedicated to the ITIP contract.

Northrop Grumman IT spokeswoman Juli Ballesteros confirmed the company is “looking at the opportunity with interest.” General Dynamics declined to comment, and several other companies did not respond to requests for comment.


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