DHS to recompete unrestricted portion of EAGLE contract

The Homeland Security Department long has been planning a follow-on contract for its technology services contract, called EAGLE small business.

But agency officials would not commit to a new competition for the unrestricted part of the $45 billion EAGLE vehicle.

DHS officials last week confirmed after all they have begun a new unrestricted EAGLE. Industry and agency officials say DHS will recompete the highly successful multiple award contract even though it still has up to four more years of life.

DHS awarded both EAGLE contracts in 2006 for five years, plus two one-year options.

"DHS just got started up in 2003 and EAGLE was up and running three years later so it's not a major surprise for them to rethink their strategy and end it at base period and recompete it," says Josh Temple, an analyst for market research firm Input. "There will be a lot of attention from industry."

Greg Mundell, a vice president at Pragmatics Corp., says DHS made the announcement at its quarterly EAGLE vendor meeting and it created a mini-buzz among contractors.

He says DHS hopes to issue a request for information later this summer and a request for proposals by Dec. 31.

"In some regards, it makes sense to recompete it now given the fact they can leverage off what they are doing EAGLE small business recomplete and carry out same processes," Mundell says. "It also provides industry adequate time to prepare for competition by creating a team, and doing all the capture activities. Industry always prefers as much advanced notice as possible."

DHs did not respond to e-mails asking for comment on its plans around the unrestricted EAGLE 2.

There will be a lot of interest in the recompete. In 2006, DHS awarded 25 large businesses a spot on the contract with a $45 billion ceiling.

Temple says a number of vendors got shut out of the DHS and want an opportunity to get back in.

Former DHS chief information officer Scott Charbo and DHS procurement executive Greg Rothwell required all agency components consider EAGLE before any other contract vehicle. And because of that, DHS components have spent more than $6.7 billion dollars on 297 task orders in about three-and-a-half years.

"If you look at the growth from 2006 to 2008, it's just astronomical," Temple says. "From talking to the government, they love using this vehicle because it cuts down on time and sets up an effective and efficient way to buy IT."

In 2008, components spent $3.4 billion on 158 task orders, up from $2.8 billion on 130 task orders the year before.

Pragmatics, EDS and CSC won at least 11 task orders in 2008, while Booz Allen Hamilton, SAIC and General Dynamics won at least nine task orders in 2007.

"It has met expectations because it allowed the department to acquire IT through a singular vehicle," Rothwell says. "It also enabled integration in the department and made buying of IT simpler. In many ways, it exceeded expectations."

He adds that when DHS originally awarded EAGLE, officials expected components to slowly move to it and the follow on, EAGLE 2, would receive most of the business. But that was not the case from the beginning, Rothwell says.

Rothwell says before DHS automatically renews EAGLE, it should consider other options, including the General Services Administration's Alliant contracts. GSA awarded places on Alliant, also an IT services contract, to 59 large businesses and 72 small businesses earlier this year.

"I think it would make lot of sense for the department to have a discussion with GSA to find out whether there are other vehicles that could be used in lieu of recompeting," he says. "When I got to DHS, we had those types of discussions and I felt at the time GSA was not in position to help the department. I felt like we had to go forward with the EAGLE program. But things are different now."

He adds DHS also contacted the National Institutes of Health and NASA about their governmentwide acquisition contracts, but those procurement vehicles didn't meet DHS's needs either.

Pragmatics Mundell says he is not sure using Alliant or another GWAC would make sense for DHS. He says vendors need not only a strong understanding of providing IT services, but how to meet DHS's mission.

He says there are some changes DHS may want to consider.

"One of things would be some type of inclusion of systems engineering, which wasn't spelled out in EAGLE," he says. "Another option is not to have functional categories and just award large and small business contracts."

Input's Temple says the trend is for agencies to keep functional areas.

"With EAGLE 2 Small Business, they still are trying to figure out whether to go by NAICS code or functional area," he says. "I think DHS is leaning toward functional categories because it provides organizations with a proven track record in that specialty. You can cut down on the procurement timeline, and DHS agencies know exactly which companies to direct the specific opportunity to."

A DHS spokesman says the agency plans to award EAGLE 2, Small Business late in 2010. The agency is developing plans for an industry briefing in late July in responses to an EAGLE II Small Business RFI. DHS released the RFI in February.

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