State Department awards $183M contract for refugee processing system support and modernization to Development Infostructure LLC

Contract Overview

Contract Amount: $183,405,725 ($183.4M)

Contractor: Development Infostructure LLC

Awarding Agency: Department of State

Start Date: 2017-12-15

End Date: 2026-12-07

Contract Duration: 3,279 days

Daily Burn Rate: $55.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 13

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THE PURPOSE OF THIS CONTRACT IS TO PROVIDE OPERATIONAL SUPPORT OF THE REFUGEE PROCESSING CENTER (RPC) AND DEVELOPMENT, ENHANCEMENT, AND MODERNIZATION OF THE WORLDWIDE REFUGEE ADMISSIONS PROCESSING SYSTEM (WRAPS).

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $183.4 million to DEVELOPMENT INFOSTRUCTURE LLC for work described as: THE PURPOSE OF THIS CONTRACT IS TO PROVIDE OPERATIONAL SUPPORT OF THE REFUGEE PROCESSING CENTER (RPC) AND DEVELOPMENT, ENHANCEMENT, AND MODERNIZATION OF THE WORLDWIDE REFUGEE ADMISSIONS PROCESSING SYSTEM (WRAPS). Key points: 1. Contract focuses on critical operational support and system enhancements for refugee admissions. 2. The contract value of $183.4 million over its period of performance indicates a significant investment in IT infrastructure. 3. Competition was conducted under 'full and open competition after exclusion of sources,' suggesting a robust but potentially complex procurement process. 4. The contract type is Time and Materials, which can pose cost control challenges if not managed diligently. 5. The duration of the contract (3279 days) points to a long-term need for these services. 6. The awardee, Development Infostructure LLC, is tasked with modernizing the Worldwide Refugee Admissions Processing System (WRAPS).

Value Assessment

Rating: fair

The contract value of $183.4 million for IT support and system modernization appears substantial. Benchmarking against similar large-scale IT system development and support contracts within government agencies is necessary for a precise value-for-money assessment. The Time and Materials (T&M) contract type, while offering flexibility, can lead to higher costs if not closely monitored for scope creep and efficient labor utilization. Without specific per-unit cost data or comparison to market rates for similar services, it's difficult to definitively assess if the pricing is optimal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources.' This indicates that the agency sought proposals from all responsible sources but may have excluded certain sources based on specific criteria or prior determinations. The number of bidders (10) suggests a reasonable level of competition, which should theoretically drive competitive pricing. However, the 'after exclusion of sources' clause warrants further investigation into the specific reasons for exclusion to ensure fairness and maximize potential competition.

Taxpayer Impact: A competitive process, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and technical solutions. This helps prevent overpayment and ensures the government receives quality services at a reasonable cost.

Public Impact

Refugees and asylum seekers globally benefit from streamlined and modernized processing systems. The Department of State's Bureau of Population, Refugees, and Migration (PRM) is the primary beneficiary, enhancing its operational capacity. The contract supports the global processing of refugee applications, impacting various geographic regions where refugee crises occur. The IT workforce involved in developing, enhancing, and maintaining the WRAPS system will see continued employment and skill development opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not managed with strict oversight and clear task definitions.
The 'after exclusion of sources' clause in the competition method requires scrutiny to ensure it did not unduly limit competition.
The long contract duration (over 8 years) necessitates robust performance monitoring to ensure continued relevance and effectiveness of the system.
The complexity of modernizing a worldwide system could introduce unforeseen technical challenges and cost increases.

Positive Signals

The award was made under full and open competition, indicating a broad search for qualified vendors.
The contract aims to modernize a critical system (WRAPS), suggesting an investment in efficiency and improved service delivery.
The awardee, Development Infostructure LLC, has secured a significant contract, implying a level of trust and capability recognized by the agency.
The substantial contract value suggests a long-term commitment to addressing refugee processing needs.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a vital component of the broader IT services industry. The global refugee crisis necessitates robust and efficient processing systems, making IT solutions like WRAPS critical for governmental and humanitarian operations. The market for government IT services is highly competitive, with numerous firms vying for large-scale contracts. The value of this contract, at over $183 million, places it in the category of major IT procurements, comparable to other large system development and support contracts across federal agencies.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a primary set-aside objective for this specific award. While the prime contractor is Development Infostructure LLC, there is no explicit information regarding subcontracting plans with small businesses. Further analysis would be needed to determine if subcontracting opportunities exist and how they might impact the small business ecosystem. Agencies are often encouraged to promote small business participation through subcontracting, even on large prime contracts.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers responsible for the Bureau of Population, Refugees, and Migration (PRM). The contract's long duration and T&M nature necessitate continuous performance monitoring, regular reviews, and strict adherence to reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Refugee Assistance Programs
Global Humanitarian Aid IT Systems
Department of State IT Modernization Efforts
Worldwide Refugee Admissions Processing System (WRAPS)
Immigration and Customs Enforcement (ICE) Systems Support

Risk Flags

Potential for cost overruns due to T&M contract type.
Need for rigorous oversight to manage scope creep.
Ensuring fair competition despite 'exclusion of sources' clause.
Long contract duration requires sustained performance monitoring.
Complexity of modernizing a global IT system.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $183.4 million to DEVELOPMENT INFOSTRUCTURE LLC. THE PURPOSE OF THIS CONTRACT IS TO PROVIDE OPERATIONAL SUPPORT OF THE REFUGEE PROCESSING CENTER (RPC) AND DEVELOPMENT, ENHANCEMENT, AND MODERNIZATION OF THE WORLDWIDE REFUGEE ADMISSIONS PROCESSING SYSTEM (WRAPS).

Who is the contractor on this award?

The obligated recipient is DEVELOPMENT INFOSTRUCTURE LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $183.4 million.

What is the period of performance?

Start: 2017-12-15. End: 2026-12-07.

What is the track record of Development Infostructure LLC in performing similar large-scale government IT contracts?

A thorough review of Development Infostructure LLC's past performance is crucial. This includes examining their history with the Department of State and other federal agencies, specifically focusing on contracts of similar size, scope, and complexity. Key areas to investigate would be their on-time delivery record, adherence to budget, quality of deliverables, and any past performance issues or disputes. Understanding their experience with refugee processing systems or similar sensitive data management platforms would provide further insight into their capability to successfully execute this contract. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would be invaluable in this assessment.

How does the awarded amount of $183.4 million compare to the estimated value or budget for the WRAPS system modernization and support?

The awarded amount of $183.4 million represents the total ceiling value for this definitive contract, which spans from December 15, 2017, to December 7, 2026. To assess value for money, this figure needs to be compared against the agency's independent government cost estimate (IGCE) and the overall budget allocated for the WRAPS system's development, enhancement, and modernization. If the awarded amount is significantly higher than the IGCE, it could indicate potential overpricing or scope creep. Conversely, if it aligns with or is below estimates, it suggests competitive pricing. Analyzing the spending patterns throughout the contract's life will also reveal if the funds are being utilized efficiently against the defined objectives.

What are the specific risks associated with the Time and Materials (T&M) contract type for this project?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns, as the government pays for the actual labor hours and materials used, plus a fixed fee or percentage. For a project involving the modernization and operational support of a complex system like WRAPS over several years, there's a heightened risk of scope creep and inefficient labor utilization if not managed rigorously. Without clear task definitions and strong oversight, the contractor might extend tasks or increase hours beyond what is necessary. This necessitates robust monitoring by the government to ensure that all hours billed are reasonable, allocable, and directly related to the contract's objectives, and that the materials procured are necessary and cost-effective.

How effective has the Worldwide Refugee Admissions Processing System (WRAPS) been historically, and what improvements are expected from this contract?

The effectiveness of the WRAPS system prior to this contract's modernization efforts would need historical performance data and user feedback analysis. Generally, refugee processing systems aim to manage applicant data, track case progress, ensure security compliance, and facilitate efficient decision-making. Improvements expected from this contract likely focus on enhancing system speed, reliability, user interface, data security, interoperability with other government systems, and incorporating new features to meet evolving processing requirements and international standards. The contract's objective to 'develop, enhance, and modernize' suggests a proactive approach to addressing past limitations and future needs, aiming for a more streamlined and secure global refugee admissions process.

What has been the historical spending trend for refugee processing IT systems at the Department of State?

Analyzing historical spending on refugee processing IT systems at the Department of State prior to this $183.4 million contract would provide valuable context. This would involve examining budgets and expenditures for similar systems over the past 5-10 years. Understanding the trend—whether spending has been increasing, decreasing, or remaining stable—can indicate the agency's long-term commitment and investment strategy in this area. It also helps in benchmarking the current contract's value against previous investments and assessing if the current funding level is consistent with the perceived importance and complexity of the mission. Significant deviations from historical spending might warrant further investigation into the underlying reasons.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SAQMMA17R0175

Offers Received: 13

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 2101 WILSON BLVD STE 300, ARLINGTON, VA, 22201

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $194,949,760

Exercised Options: $186,847,396

Current Obligation: $183,405,725

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $31,881,245

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline