TSA contract heats up

Bidders and prospective subcontractors arelining up to be part of the TransportationSecurity Administration's massive$2 billion InformationTechnology Infrastructure Program (ITIP).The procurement is considered one of thelargest and highest-profile IT contracts thisyear for the Homeland Security Department.The TSA IT infrastructure contract is afollow-on to the $1 billion IT ManagedServices contract, which aims to install andmodernize IT networks and infrastructure.Unisys Corp. held the contract from 2002 to2006. The company then won a bridge contractto extend the work through 2008.Unisys has submitted a bid for the new contract,said spokesman Brad Bass. "This hasbeen a very successful contract for Unisys, andwe would like to continue the relationship," hesaid.Industry experts are closely watching theopportunity because it provides basic IT infrastructurefor TSA, primarily in creating andlinking computer networks between TSA andairports, presumably laying the groundworkfor further agency IT work down the road."The TSA ITIP contract is in a sweet spot ofIT architecture and networks," said JeremyPotter, senior analyst at Input Inc., a marketresearch firm. "It is not mission-focused, inwhich you might have timing and priorityissues. This is very basic IT ... modernizing theIT backbone."Even with those aspects in its favor, theproject could be at risk. DHS infrastructureprojects were placed on the Office ofManagement and Budget's High Risk ITProject list in April.Nonetheless, TSA's IT infrastructure projectis moving forward. After months of anticipation,TSA issued the request for proposalsApril 17, and bids were due May 14, said AnnDavis, a TSA spokeswoman. The value is estimatedat $2 billion, she said.Eligible companies areCategory 2 operations and maintenance contractorson the department's EnterpriseAcquisition Gateway for Leading EdgeSolutions procurement vehicle, Davis said.Those eligible include seven large contractors,counting Unisys, and 16 small businesses. Shedeclined to provide information on whichcompanies have submitted bids.Among the seven large Category 2 companies,Lockheed Martin Corp. officials haveconfirmed that they have submitted a bid.Lockheed Martin executives recently created aWeb site, LM4TSA.com, dedicated to the ITIPcontract.Northrop Grumman IT spokeswoman JuliBallesteros confirmed the company is "lookingat the opportunity with interest." GeneralDynamics declined to comment, and severalother companies did not respond to requestsfor comment."We have gotten quite a lot of interest inthis from vendors," Potter said. "The size of the contract suggests there will be teamingrelationships."Potter said he believes the majority of theCategory 2 large companies probably will bid,and he thinks Unisys stands a good chance."With their previous win and their relationships,Unisys is just as well-positioned as anyone,"Potter said.Industry sources expect a prequalificationthe week of May 26 and a request for a secondround of proposals in June, with a final awardto be made in August.The program has been challenging. Unisyswas hired to connect TSA IT networks at hundredsof airports. In February 2006, DHS'inspector general recommended rebidding theUnisys contract. According to the IG's report,although TSA initially expected the work toextend through 2009, Unisys had spent thebulk of the funding, $834 million, by the endof fiscal 2005. "TSA spent most of the contractceiling without receiving many of the contractdeliverables critical to airport security andcommunications," the IG said.However, TSA and Unisys defended theoriginal contract and performance. In 2005,TSA awarded Unisys the bridge contract tocontinue working."Unisys is proud of the work and accomplishmentswe have performed for TSA, andTSA has given us consistently high marks forperformance. TSA has said publicly that theissues raised in the inspector general's reporthad been addressed and that they consider thematter closed," said Unisys in a March 2007statement.Nonetheless, the IG has continued to raiseconcerns. As of May 2007, TSA had been 70percent successful in creating high-speed connectivityto passenger-screening areas in airportsand 57 percent successful in implementinghigh-speed connectivity to baggagescreeninglocations, according to an IG reportissued in November 2007.In addition, House Homeland SecurityCommittee Chairman Bennie Thompson (DMiss.)held a hearing in September 2007 toinvestigate allegations that Unisys failed to protectthe department's networks against Chinesehackers and attempted to hide evidence relatedto those attacks. The allegations also blame DHSofficials for failing to act on information provided.At the hearing, Unisys said it performedaccording to protocol and acted in good faith.