Falls Church-based General Dynamics has won a billion-dollar contract for a new headquarters facility for the Department of Homeland Security.
The $1 billion contract, as announced by the General Services Administration this week, will include the development of an information technology system for transmitting voice, video and data at the new facility, which will be established on the campus of St. Elizabeth’s Hospital in Southeast D.C.
The GSA says that the major cost difference resulted from more tailored bids and a shorter time span for the work to be completed.
The deal comes after the government backed out of a $2.6 billion deal with Northrop Grumman for the same project last year. Several vendors complained that the work solicitation for the contract was too vague and, at the time, Northrop was the only bidder to submit a proposal that met the department’s needs.
"Additional details in the performance work statement helped the bidders improve their proposals, improving quality and lowering the cost to the taxpayer," GSA spokeswoman Cara Battaglini said in a statement.
In addition to the lowered cost, the new contract with General Dynamics calls for a seven-year work period, rather than the decade Northrop Grumman said they’d need to complete the work.
General Dynamics is currently involved in the renovation of the Pentagon and the Walter Reed Army Medical Center service transition.