DHS awards $2.4M cloud interview solution to EC America, Inc. for CBP, citing sole-source justification

Contract Overview

Contract Amount: $2,396,237 ($2.4M)

Contractor: EC America, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-30

End Date: 2026-09-29

Contract Duration: 729 days

Daily Burn Rate: $3.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CONTRACT AWARD FOR HIREVUE, INC. CLOUD BASED INTERVIEW SOLUTION SUPPORT SERVICE IN SUPPORT OF U.S. CUSTOMS AND BORDER PROTECTION'S ENTERPRISE SERVICES.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.4 million to EC AMERICA, INC for work described as: CONTRACT AWARD FOR HIREVUE, INC. CLOUD BASED INTERVIEW SOLUTION SUPPORT SERVICE IN SUPPORT OF U.S. CUSTOMS AND BORDER PROTECTION'S ENTERPRISE SERVICES. Key points: 1. Contract awarded for cloud-based interview solution support services. 2. Focus on enhancing U.S. Customs and Border Protection's enterprise services. 3. Contract duration is 729 days, ending September 29, 2026. 4. Award type is a definitive contract with a firm-fixed-price structure. 5. No small business set-aside was applied to this award. 6. The North American Industry Classification System (NAICS) code is 513210 (Software Publishers).

Value Assessment

Rating: questionable

Benchmarking the value of this $2.4 million contract is challenging without detailed service descriptions and performance metrics. The firm-fixed-price structure suggests a defined scope, but the lack of competitive bidding raises questions about whether the government secured the best possible price. Without comparable contract data or market analysis for similar cloud-based interview solutions, it's difficult to definitively assess value for money. The price appears reasonable for a two-year software support contract, but the absence of competition prevents a robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available alternatives. The absence of a competitive process means that potential cost savings that could arise from bidding are not realized. This approach limits the government's ability to explore a wider range of solutions and potentially negotiate more favorable terms.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government does not benefit from the price reductions typically driven by competitive bidding. This limits the potential for cost savings and efficient allocation of public funds.

Public Impact

Benefits U.S. Customs and Border Protection by providing essential cloud-based interview solutions. Enhances the efficiency and effectiveness of CBP's enterprise services. Supports the operational needs of a critical federal agency responsible for border security. Likely impacts the administrative and HR functions within CBP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source award limits transparency and potential for innovation from other vendors.
Dependence on a single vendor for critical software support services.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Contract is for essential support services for a key federal agency.
Clear end date for the contract limits long-term commitment without review.

Sector Analysis

The software publishing industry, classified under NAICS code 513210, encompasses companies that develop and publish software. This contract falls within the broader IT services sector, specifically focusing on cloud-based solutions for enterprise use. The market for such solutions is competitive, with many vendors offering various platforms for recruitment, onboarding, and interview management. However, sole-source awards bypass this competitive landscape. Comparable spending benchmarks are difficult to establish without knowing the specific features and scale of the solution provided to CBP.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to EC America, Inc. suggests a focus on established vendors rather than promoting small business participation in this particular procurement. This means that opportunities for small businesses to contribute to this specific service delivery are likely limited.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security and U.S. Customs and Border Protection's contracting and program management offices. The firm-fixed-price nature of the contract provides some level of financial accountability. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse, but specific oversight mechanisms beyond standard contract management are not detailed.

Related Government Programs

Cloud Computing Services
Software Development and Publishing
Enterprise Resource Planning (ERP) Software
Human Resources Software
Federal IT Services

Risk Flags

Sole-source award lacks competitive pricing.
Limited transparency on vendor selection justification.
Potential for vendor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.4 million to EC AMERICA, INC. CONTRACT AWARD FOR HIREVUE, INC. CLOUD BASED INTERVIEW SOLUTION SUPPORT SERVICE IN SUPPORT OF U.S. CUSTOMS AND BORDER PROTECTION'S ENTERPRISE SERVICES.

Who is the contractor on this award?

The obligated recipient is EC AMERICA, 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 $2.4 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-09-29.

What specific features and functionalities does the HireVue Cloud Based Interview Solution offer to CBP?

The provided data does not detail the specific features of the HireVue Cloud Based Interview Solution. However, typically, such solutions offer capabilities like automated interview scheduling, video interviewing (live and on-demand), candidate assessment tools, interview analytics, and integration with existing HR or applicant tracking systems. For CBP, these features likely aim to streamline the recruitment and vetting process for personnel, potentially handling a high volume of applicants efficiently and ensuring consistent evaluation criteria across different interviewers. The 'support service' aspect suggests ongoing maintenance, updates, and technical assistance for the platform.

What is the historical spending by DHS/CBP on similar cloud-based interview or recruitment solutions?

The provided data does not include historical spending information for DHS/CBP on similar solutions. To assess this contract's context, one would need to analyze past procurements for recruitment software, video interviewing platforms, or other HR technology solutions by these agencies. Understanding previous investments would help determine if this $2.4 million award represents an increase, decrease, or consistent level of spending in this category. It would also reveal if previous solutions were also sole-sourced or competitively procured, offering insights into procurement patterns.

What is the justification for awarding this contract on a sole-source basis to EC America, Inc. (HireVue)?

The justification for a sole-source award is not detailed in the provided data. Typically, sole-source contracts are awarded when only one vendor can provide the required goods or services due to unique capabilities, proprietary technology, urgent and compelling needs, or when competition is deemed not feasible or cost-effective. For HireVue, it might be due to specific integrations with CBP's existing systems, unique features not available elsewhere, or a prior investment that makes switching vendors prohibitively expensive or disruptive. A formal justification document (e.g., a Justification and Approval - J&A) would normally be required and publicly accessible for such awards.

How does the $2.4 million contract value compare to market rates for similar enterprise-level cloud interview solutions?

Directly comparing the $2.4 million contract value to market rates for similar enterprise-level cloud interview solutions is difficult without specific details on the scope, user count, and feature set. However, enterprise solutions from major providers can range significantly, from tens of thousands to millions of dollars annually, depending on scale and complexity. Given this is a two-year contract, the annual cost would be approximately $1.2 million. This figure is plausible for a large federal agency like CBP, especially if it involves extensive user licenses, advanced analytics, and integration services. The lack of competition, however, prevents a definitive assessment of whether this represents a market-competitive price.

What are the potential risks associated with a sole-source award for critical IT support services?

Sole-source awards for critical IT support services carry several risks. Firstly, the absence of competition can lead to higher prices than might be achieved through a competitive bidding process, resulting in less value for taxpayer money. Secondly, it can foster vendor lock-in, making it difficult and costly to switch to alternative solutions in the future, even if better options emerge. Thirdly, it may reduce the incentive for the sole-source provider to innovate or maintain high service levels, as there is no direct competitive pressure. Finally, it limits the government's ability to explore a diverse range of technological solutions that could potentially offer greater efficiency or security.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70B06C24Q00000423

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arrow Electronics, Inc.

Address: 8444 WESTPARK DR STE 200, MC LEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $4,792,492

Exercised Options: $2,396,237

Current Obligation: $2,396,237

Actual Outlays: $798,749

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline