GovernmentExecutive.com

The National Security Agency is planning to exercise the remaining option years of a $2 billion contract for information technology support services signed six years ago with a group of companies.

In an announcement Wednesday, the El Segundo, Calif.-based Computer Sciences Corp. said its Eagle Alliance joint venture has received notification that NSA plans to exercise the final three years of the contract, known as Groundbreaker. The value of the extension is $528 million. The group's work on the contract will continue through Sept. 30, 2011.

The team of more than 50 companies, which includes Northrop Grumman Corp., Raytheon Systems Corp. and BAE Systems, operates NSA's IT infrastructure. This includes telephone services, network services, computer support and security management at the agency's headquarters and offices.

"Exercising this option underscores NSA's confidence in the Eagle Alliance's experience and ability to deliver state-of-the-art information technology solutions that result in sound operational performance for the agency," said James Sheaffer, president of CSC's North American public sector business unit.

Groundbreaker is one of the largest IT outsourcing efforts the federal government has undertaken. The project was launched in late 2001, when 750 workers who provided IT support for the agency moved from being federal employees to contractors.

"Outstanding customer service is the hallmark of Eagle Alliance's strategy with Groundbreaker," said Tim Slusser, vice president of the Eagle Alliance. "We look forward to continuing to provide world-class, innovative technology solutions to the NSA."

According to CSC, more than half of the work goes to small businesses.

Groundbreaker was one of several management reforms implemented by former NSA director Air Force Lt. Gen. Michael Hayden, who now directs the CIA. At the time, he cited concerns that the agency would not be able to continue its mission of collecting electronic intelligence without making changes. He also said the agency could no longer afford to employ workers for basic technical tasks such as maintaining e-mail systems and operating help desks.

In more recent years, other agencies also have been working to outsource their back-end IT systems in an effort to improve efficiency and performance. At the Housing and Urban Development Department, for instance, contracts with Electronic Data Systems and Lockheed Martin Corp. each worth $400 million have reduced infrastructure expenses 20 percent and cut the department's IT staff from 385 to 280, officials have said.

But the Internal Revenue Service announced in November 2006 that it would not go forward with a public-private competition for computer service jobs. The contest was going to be conducted under the rules in the Office of Management and Budget's Circular A-76 and could have encompassed more than 2,000 positions.

COMMENTS

• Not only IT contractors, take a look at the other article in this issue about Labor contracting out their entire Admin staff. Why try to penetrate with a high priced IT person when you can use the secretaries & clerks to give you access to everything! No matter what contracting proponents say, the staff does not work for you, they work for the contractor. Rita G Posted June 8, 2007 10:31 AM
• I have been aware of this outsourcing "solution" since its inception, and can imagine the budget challenges Gen Hayden was dealing with, but the pervasive access of the contractor(s) to such a vital aspect of this agency internal operations is still chilling to me! Army Security Agency Vet Posted June 7, 2007 3:00 PM
• The Contractor decision is a massive government ripoff scheme, designed to allow former high ranking employees to make huge profits, and rip off the US Government. Having over 750 contractors is a boon to countries like China, Russia, Israel, South Korea, and many others to penetrate the NSA IT infrastructure. Basically greed is making it easier for the Chinese to penetrate NSA IT operations. The new Chinese embassy in Washington has very specific sections now, that concentrate completely on penetrating companies that do outsource work for the NSA, especially ones in California...as the outsourcing gets bigger and bigger...so does the risk of penetration... If anyone has any doubts on how screwed up the contractors are....Just take a look at the situation with some of the same contractors that screwed up the 8 cutters with the Coast Guard, just looking at the screw ups with the tempest specifications, as well as basic things like radios, or cracked hulls in the ships, you can't trust these same contractors to run anything at the NSA. If DeepWater is a complete screwup, where nobody will admitt anything, you can just imagine how screwed up things at the NSA are these days with the contractors. Congress should consider dragging Hayden in for some serious questions, and perhaps he should be Court Martialed now. The end result of this kind of IT outsourcing is going to be a very dark day, where Chinese operatives shut down the NSA, via penetrations from IT outsourcing.... Lisa Posted June 7, 2007 1:16 PM