January 21 2011 Copyright 2011 Business Research Services Inc. 301-229-5561 All rights reserved.

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Customs-Border Agency Outlines IT Insourcing

The Homeland Security Department’s Customs and Border Protection bureau reportedly plans to insource 1,200 IT contractor jobs as it moves to modernize its network infrastructure.

CBP is estimating it will save $40,000 for each job insourced, and twice that much for some highly skilled positions, according to Ken Ritchhart, the bureau’s deputy chief information officer. He spoke to a conference in Washington sponsored by the American Council on Technology-Industry Advisory Council, according to published reports.

While the Defense Department has concluded that its estimates of potential savings were too high and has dialed back its insourcing initiative, CBP’s plan would replace more than one-third of its IT contractors with federal employees.

“About 70% of the contractors are not qualified for the new target environment,” Ritchhart said. CBP plans to recompete IT contracts worth about $1 billion over the next six months as part of its modernization effort.

Richhart said the RFPs have been delayed as the agency rewrote them to move toward performance-based contracts, rather than time-and-material types. Budget cuts and staff reductions have complicated the acquisition planning.

He said the department plans to shift to commercial systems. An industry day is set for February to provide details of the forthcoming RFPs.

The Homeland Security Department has been moving to reduce its dependence on contractors after members of Congress complained that DHS contractors outnumbered its employees.


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