IBM Top DHS Prime Contractor in FY ’09

IBM [IBM] last year was the top prime contractor with the Department of Homeland Security (DHS), receiving $512.4 million in FY ’09 prime contracts, primarily for ADP system services to a handful of agencies.

Customs and Border Protection was the company’s largest customer, accounting for $330.4 million of prime contracts. The Transportation Security Administration, the DHS Office of the Secretary, and the Federal Emergency Management Association, each accounted for between $50 million and $60 million of IBM’s prime contract awards.

Lockheed Martin [LMT], with $429.3 million, was the second largest DHS prime contractor. TSA accounted for more than half the contracts, $250 million, with CBP responsible for $102.5 million. The company’s largest obligations, $137.6 million, were for TSA’s Integrated Hiring Operations and Personnel Program.

Last year IBM was the second largest DHS prime contractor, behind Boeing [BA], with just under $500 million in prime contracts, according to USAspending.gov (TR2, March 4, 2009). Boeing in FY ’09 dropped just outside the top 10 as its contracts with CBP for the Secure Border Initiative shrank by more than half.

As for total prime contract awards, DHS obligated $13.6 billion down slightly from $13.8 billion in FY ’08. The decline is interesting given that DHS received over $1 billion in funds to disperse through the American Recovery and Reinvestment Act (ARRA). However, not all of the ARRA funds have been obligated.

The agency obligating the most money once again was CBP, $2.6 billion, with the Coast Guard again second, $2.5 billion. Immigration and Customs Enforcement awarded a little more than $2 billion in prime contracts, the DHS Office of the Secretary $1.9 billion, and TSA $1.8 billion.

A list of the top 25 contractors follows.