DHS CBP awards $184M for cargo systems IT support, with 12 offers received

Contract Overview

Contract Amount: $184,005,383 ($184.0M)

Contractor: DEV Technology Group Inc

Awarding Agency: Department of Homeland Security

Start Date: 2019-04-29

End Date: 2025-09-26

Contract Duration: 2,342 days

Daily Burn Rate: $78.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THE PURPOSE OF THIS TASK ORDER (TO) IS TO PROCURE APPLICATION DEVELOPMENT AND OPERATION AND MAINTENANCE SUPPORT SERVICES FOR THE DEPARTMENT OF HOMELAND SECURITY (DHS), U.S. CUSTOMS AND BORDER PROTECTION (CBP) CARGO SYSTEMS PROGRAM DIRECTORATE (CSPD) TO DEVELOP AND SUPPORT CARGO SYSTEMS APPLICATIONS. THE SCOPE OF THE SUPPORT REQUIRED FOR THIS TO SHALL INCLUDE BUT, IS NOT LIMITED TO, COLLECTIONS FEATURES, CARGO RELEASE/SE FEATURES, POST RELEASE FEATURES, ITDS SINGLE WINDOW FEATURES, MANIFEST FEATURES, AND CARGO EXPORT FUNCTIONALITY.

Place of Performance

Location: ALEXANDRIA, LOUDOUN County, DISTRICT OF COLUMBIA, 20598

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $184.0 million to DEV TECHNOLOGY GROUP INC for work described as: THE PURPOSE OF THIS TASK ORDER (TO) IS TO PROCURE APPLICATION DEVELOPMENT AND OPERATION AND MAINTENANCE SUPPORT SERVICES FOR THE DEPARTMENT OF HOMELAND SECURITY (DHS), U.S. CUSTOMS AND BORDER PROTECTION (CBP) CARGO SYSTEMS PROGRAM DIRECTORATE (CSPD) TO DEVELOP AND SUPPORT CARGO S… Key points: 1. Contract focuses on critical cargo systems development and maintenance for U.S. Customs and Border Protection. 2. Significant investment in IT infrastructure to support trade facilitation and border security. 3. The contract was awarded under full and open competition, indicating a robust bidding process. 4. Performance period spans over six years, suggesting a long-term need for these services. 5. The use of Time and Materials pricing may present cost control challenges if not closely managed. 6. This award represents a substantial portion of IT services spending within CBP's cargo directorate.

Value Assessment

Rating: good

The contract value of $184 million over approximately six years suggests a significant investment in IT services for CBP's cargo operations. Benchmarking this against similar large-scale IT development and maintenance contracts within federal agencies indicates a competitive pricing structure, especially given the broad scope of services. The number of offers received (12) further supports the notion that the pricing was attractive enough to elicit strong interest from multiple vendors. However, the Time and Materials (T&M) contract type requires diligent oversight to ensure costs remain aligned with the value delivered and do not escalate beyond initial projections.

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 a bid. The solicitation attracted 12 offers, indicating a healthy level of competition for these critical IT services. A competitive environment like this generally leads to better price discovery and encourages contractors to offer their best value propositions to secure the award. The substantial number of bidders suggests that the market has sufficient capacity and interest in supporting CBP's cargo systems needs.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it drives down costs through competitive bidding and ensures that the government receives services at a fair market price. It also promotes innovation by allowing a wide range of companies to compete, potentially leading to more efficient and effective solutions.

Public Impact

Benefits U.S. Customs and Border Protection (CBP) by enhancing the functionality and reliability of cargo systems. Supports the facilitation of international trade by streamlining cargo release and export processes. Contributes to national security by improving the systems used to monitor and manage goods entering the country. Impacts the IT sector by providing significant contract opportunities for software development and maintenance firms. Ensures the continued operation of essential IT services that underpin CBP's border security mission.

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 meticulously managed and monitored.
The long performance period (over six years) necessitates ongoing vigilance to ensure continued value and alignment with evolving technological needs.
Reliance on a single contractor for such a critical IT function could pose a risk if performance issues arise or if the contractor faces financial instability.

Positive Signals

Awarded under full and open competition with 12 offers, indicating strong market interest and competitive pricing.
The contract addresses essential IT needs for CBP's cargo operations, crucial for trade and security.
The contractor, DEV TECHNOLOGY GROUP INC, has a track record of performing federal IT contracts.
The defined scope of work covers a comprehensive range of cargo system functionalities.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on application development and maintenance for government systems. The market for federal IT services is substantial, with agencies continually investing in modernizing their infrastructure to improve efficiency and security. Comparable spending benchmarks for large-scale IT support contracts within agencies like DHS often run into hundreds of millions of dollars over several years, reflecting the complexity and criticality of these systems. This award is consistent with the trend of agencies outsourcing complex IT functions to specialized firms.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'ss': false and 'sb': false. The prime contractor, DEV TECHNOLOGY GROUP INC, is likely a large business. While there is no explicit small business set-aside requirement mentioned, large federal contracts often include subcontracting plans that mandate a certain percentage of work be performed by small businesses. The impact on the small business ecosystem would depend on whether DEV TECHNOLOGY GROUP INC actively pursues small business subcontractors for specialized services within the scope of this task order.

Oversight & Accountability

Oversight for this contract is primarily the responsibility of the U.S. Customs and Border Protection (CBP) contracting officer and program managers within the Cargo Systems Program Directorate (CSPD). They will monitor performance, review deliverables, and manage payments. The Department of Homeland Security (DHS) Office of Inspector General (OIG) may also conduct audits or investigations into the contract's performance and financial management to ensure accountability and prevent fraud, waste, and abuse. Transparency is facilitated through contract award databases like FPDS.

Related Government Programs

CBP Cargo Systems Modernization Programs
DHS IT Modernization Initiatives
Federal Application Development Services
IT Operations and Maintenance Contracts
Trade Facilitation and Enforcement Systems

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Long contract duration requires sustained oversight.
Dependence on a single contractor for critical systems.
Need for continuous adaptation to evolving trade and security requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $184.0 million to DEV TECHNOLOGY GROUP INC. THE PURPOSE OF THIS TASK ORDER (TO) IS TO PROCURE APPLICATION DEVELOPMENT AND OPERATION AND MAINTENANCE SUPPORT SERVICES FOR THE DEPARTMENT OF HOMELAND SECURITY (DHS), U.S. CUSTOMS AND BORDER PROTECTION (CBP) CARGO SYSTEMS PROGRAM DIRECTORATE (CSPD) TO DEVELOP AND SUPPORT CARGO SYSTEMS APPLICATIONS. THE SCOPE OF THE SUPPORT REQUIRED FOR THIS TO SHALL INCLUDE BUT, IS NOT LIMITED TO, COLLECTIONS FEATURES, CARGO RELEASE/SE FEATURES, POST RELEASE FEATURES, ITDS SINGLE WINDOW FEATURES, MANIFEST FEAT

Who is the contractor on this award?

The obligated recipient is DEV TECHNOLOGY GROUP INC.

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 $184.0 million.

What is the period of performance?

Start: 2019-04-29. End: 2025-09-26.

What is the track record of DEV TECHNOLOGY GROUP INC with federal IT contracts, particularly those involving large-scale application development and maintenance?

DEV TECHNOLOGY GROUP INC has a significant history of performing federal IT contracts. A review of public contract databases reveals numerous awards to the company across various agencies, including the Department of Homeland Security, Department of Justice, and others. Their portfolio often includes services related to software development, system integration, and IT support. While specific performance metrics for past contracts are not always publicly detailed, their consistent receipt of awards suggests a generally satisfactory performance history. For this specific contract with CBP, ongoing monitoring by the agency and potential reviews by the DHS OIG would provide further insights into their performance.

How does the $184 million contract value compare to similar IT support contracts awarded by DHS or CBP in recent years?

The $184 million value for this six-year task order is substantial and aligns with the typical scale of major IT development and sustainment contracts within large federal agencies like DHS. CBP, in particular, manages complex, mission-critical systems that require significant ongoing investment. When compared to other large IT contracts for system modernization, application support, or cybersecurity within DHS, this award appears to be within the expected range. Agencies often award multi-year contracts in the tens or hundreds of millions for services that are essential to their operations, especially for systems handling vast amounts of data and critical functions like cargo processing.

What are the primary risks associated with the Time and Materials (T&M) contract type for this application development and maintenance task order?

The primary risk with a Time and Materials (T&M) contract type, such as this one, is the potential for cost escalation. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual labor hours and material costs incurred. If not managed diligently, this can lead to costs exceeding initial estimates, especially in complex IT projects where scope can evolve or unforeseen challenges arise. For CBP, this means rigorous oversight is needed to ensure that labor hours are reasonable, staff are appropriately skilled, and materials are necessary and cost-effective. Without strong performance monitoring and cost controls, the government may end up paying more than anticipated for the services rendered.

How effective are the current cargo systems expected to be after the development and support services under this contract are implemented?

The effectiveness of the cargo systems post-contract implementation is contingent on several factors, including the clarity of requirements, the contractor's execution, and the agency's project management. The stated purpose is to 'develop and support cargo systems applications,' covering areas like collections, release, post-release, single window, manifest, and export functionality. Successful execution should lead to more robust, efficient, and potentially modernized systems that better support trade facilitation and border security objectives. However, the effectiveness will ultimately be measured by improvements in processing times, data accuracy, system uptime, and the ability of CBP to adapt to evolving trade regulations and security threats.

What has been the historical spending trend for similar IT services by CBP's Cargo Systems Program Directorate?

Historical spending data for CBP's Cargo Systems Program Directorate (CSPD) indicates a consistent and significant investment in IT services. Agencies responsible for managing large-scale trade and border operations, like CBP, typically allocate substantial portions of their budgets to IT infrastructure, application development, and maintenance. Over the past several years, spending in this area has often been in the tens to hundreds of millions annually, reflecting the ongoing need to upgrade legacy systems, comply with new regulations, and enhance operational capabilities. This $184 million award over six years represents a continuation of this trend, focusing on critical cargo processing and facilitation systems.

What are the potential implications of having 12 bidders for this contract on the overall value and innovation delivered?

Having 12 bidders for this contract is a strong positive signal for value and potential innovation. A large number of competitive offers typically drives down prices as companies vie for the award, ensuring the government secures services at a more favorable rate. Furthermore, a diverse pool of bidders brings a wider range of technical approaches, expertise, and innovative solutions to the table. This competition encourages companies to differentiate themselves not just on price but also on the quality and novelty of their proposed solutions, potentially leading to more advanced and efficient cargo systems for CBP. The agency can leverage this competitive landscape to select a vendor that offers the best combination of cost-effectiveness and forward-thinking technology.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 12

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 11480 COMMERCE PARK DR STE 400, RESTON, VA, 20191

Business Categories: Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $185,207,203

Exercised Options: $184,005,383

Current Obligation: $184,005,383

Actual Outlays: $177,887,364

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0897R

IDV Type: FSS

Timeline