DHS awards $5.26M contract for Laredo Air Branch design services to Transystems Corporation

Contract Overview

Contract Amount: $5,261,795 ($5.3M)

Contractor: Transystems Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2020-09-28

End Date: 2027-03-31

Contract Duration: 2,375 days

Daily Burn Rate: $2.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LAREDO AIR BRANCH DESIGN

Place of Performance

Location: LAREDO, WEBB County, TEXAS, 78041

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $5.3 million to TRANSYSTEMS CORPORATION for work described as: LAREDO AIR BRANCH DESIGN Key points: 1. Contract awarded through full and open competition, suggesting a robust market for these engineering services. 2. The contract duration of nearly 4 years indicates a significant, long-term need for design expertise. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The award is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle. 5. The specific NAICS code (541330) points to a specialized engineering services market.

Value Assessment

Rating: good

The contract value of $5.26 million for engineering design services over approximately 4 years appears reasonable. Without specific benchmarks for Laredo Air Branch design projects, a direct comparison is difficult. However, the fixed-price nature of the contract provides cost certainty. The number of bidders (6) suggests a competitive environment that likely influenced pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. Six bids were received, indicating a healthy level of interest and competition within the engineering services market for this type of project. This competitive process is expected to yield fair market pricing.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which typically drives down costs and ensures the government receives services at a fair market value.

Public Impact

The primary beneficiary is U.S. Customs and Border Protection (CBP), which will receive design services for the Laredo Air Branch. This project supports critical infrastructure development for border security and aerial operations. The services will be delivered in Laredo, Texas, impacting the local economy and potentially creating or sustaining jobs in the region. The contract enables the modernization or expansion of CBP's aviation facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial design requirements are not clearly defined.
Reliance on a single contractor for a multi-year design project could pose risks if performance issues arise.

Positive Signals

Fixed-price contract structure provides cost predictability.
Awarded through full and open competition, indicating a competitive market.
Long-term duration allows for focused expertise and project continuity.

Sector Analysis

The engineering services sector (NAICS 541330) is a significant market supporting various government infrastructure and development projects. This contract fits within the broader defense and homeland security infrastructure development space. Comparable spending benchmarks for similar air branch or aviation facility design projects would provide further context, but the $5.26M value over nearly four years suggests a substantial, specialized design effort.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal unless the prime contractor voluntarily engages small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Customs and Border Protection (CBP) contracting officer and program managers. The fixed-price nature of the contract provides a degree of accountability. Transparency is generally maintained through contract award databases like FPDS. Specific Inspector General jurisdiction would depend on the nature of any potential issues or investigations.

Related Government Programs

Department of Homeland Security - Facilities Management
CBP Aviation Operations Support
Federal Design and Engineering Services Contracts
Infrastructure Development Contracts

Risk Flags

Potential for cost increases if scope changes significantly.
Dependence on contractor's specialized expertise for critical design elements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $5.3 million to TRANSYSTEMS CORPORATION. LAREDO AIR BRANCH DESIGN

Who is the contractor on this award?

The obligated recipient is TRANSYSTEMS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $5.3 million.

What is the period of performance?

Start: 2020-09-28. End: 2027-03-31.

What is the track record of Transystems Corporation with federal contracts, particularly with DHS or CBP?

A review of federal procurement data would be necessary to fully assess Transystems Corporation's track record. However, being awarded a contract by DHS/CBP suggests they have met the necessary qualifications and demonstrated capability. Further analysis would involve examining past performance reviews, contract history, and any reported issues or successes on previous federal engagements. Understanding their experience with similar aviation or infrastructure design projects would be particularly relevant.

How does the value of this contract compare to similar air branch design projects?

Directly comparing the $5.26 million value requires access to a database of similar projects, which is not publicly available in detail. However, considering the nearly four-year duration and the specialized nature of designing an air branch facility, the value appears to be within a reasonable range for a significant engineering undertaking. Factors such as the complexity of the site, specific technological requirements, and the scope of design services (e.g., architectural, structural, mechanical, electrical) would influence the final cost. Benchmarking against other large-scale aviation infrastructure design contracts, if available, would provide a more precise comparison.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential scope creep, delays in design approvals, and contractor performance issues. Mitigation strategies are embedded in the contract structure. The fixed-price type helps control costs, while the multi-year duration allows for sustained focus. Clear performance metrics, regular progress reviews by CBP, and defined milestones are crucial for managing contractor performance and ensuring timely delivery of design services. The competitive award process also implies a baseline level of contractor capability.

What is the expected effectiveness of the design services in meeting CBP's operational needs?

The effectiveness hinges on the clarity of CBP's requirements and the contractor's ability to translate those into functional and compliant designs. The contract's success will be measured by the final design's ability to support the Laredo Air Branch's mission, including operational efficiency, safety, and maintainability. Regular communication and feedback loops between CBP and Transystems Corporation throughout the design process are essential to ensure the final product aligns with operational needs and regulatory standards.

What are the historical spending patterns for engineering services by CBP or DHS in this region?

Analyzing historical spending patterns for engineering services by CBP or DHS in the Laredo, Texas region would require access to detailed historical procurement data. This contract represents a specific investment in aviation infrastructure design. Understanding broader trends in CBP's spending on facilities, infrastructure, and engineering support, both regionally and nationally, could provide context. Significant past investments in border infrastructure or aviation assets might indicate a pattern of prioritizing such projects.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2400 PERSHING RD STE 400, KANSAS CITY, MO, 64108

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,261,795

Exercised Options: $5,261,795

Current Obligation: $5,261,795

Actual Outlays: $1,746,816

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 70Z05018DTRANSY01

IDV Type: IDC

Timeline