GSA to cancel BearingPoint HSPD-12 contract

Originally posted Oct. 30 at 6:59 PM and updated Oct. 31 at 11:01 AM

(UPDATED) The General Services Administration is expected to cancel a contested contract with BearingPoint Inc. of McLean, Va., to provide Homeland Security Presidential Directive-12 services, industry and government sources said.

In its place, GSA likely will recompete the contract through its schedules program, which already includes more than 15 HSPD-12 approved integrators, sources said, speaking on the condition of anonymity.

Steve Lunceford, BearingPoint spokesman, said that his company wants to participate once GSA determines how it will proceed. 'We feel we have a great solution and look forward to continuing to help GSA,' Lunceford said. "We worked very hard to meet an extremely tight deadline and we were able to do so."

GSA tapped BearingPoint in mid-August to help set up its Managed Services Office, which is overseeing HSPD-12 implementation for the agency and about 40 others. The MSO with Bearingpoint's help set up card enrollment and issuance stations at four locations throughout the country. Under HSPD-12, agencies were to begin issuing new identification cards by Oct. 27.

Because the five-year contract contained one base period with four option years, BearingPoint will continue enrolling employees and issuing cards at the four locations through Jan. 7, Lunceford said.

GSA officials were not immediately available for comment.

Shortly after it issued the BearingPoint award, three companies protested the deal, claiming that GSA favored BearingPoint's offer from the outset. Other bids could have provided the solution at a lower price, according to industry officials, who alleged that GSA essentially performed a sole-source procurement.

Sources said the contract was not cancelled because of the protests themselves, but because GSA officials wanted more competition now that the Oct. 27 deadline has passed. Sources also said GSA was not canceling the contract because of BearingPoint's performance.

GCN assistant managing editor for news Jason Miller contributed to this story.

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