ICE awards $22.2M for criminal alien identification software, with 5 bidders competing

Contract Overview

Contract Amount: $22,249,672 ($22.2M)

Contractor: Credence Management Solutions Limited Liability Company

Awarding Agency: Department of Homeland Security

Start Date: 2019-09-20

End Date: 2024-09-19

Contract Duration: 1,826 days

Daily Burn Rate: $12.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: CRIMINAL ALIEN IDENTIFICATION INITIATIVES (CAII) AGILE SOFTWARE DEVELOPMENT AND TIER II SUPPORT SERVICES TO SUPORT ICE/ERO

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20536

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $22.2 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY for work described as: CRIMINAL ALIEN IDENTIFICATION INITIATIVES (CAII) AGILE SOFTWARE DEVELOPMENT AND TIER II SUPPORT SERVICES TO SUPORT ICE/ERO Key points: 1. Value for money assessed through competitive bidding and comparison to similar IT services. 2. Competition dynamics indicate a healthy market for agile software development and support. 3. Risk indicators include reliance on Time and Materials pricing, potentially leading to cost overruns. 4. Performance context is within ICE's mission to identify and process criminal aliens. 5. Sector positioning is in government IT services, specifically custom software development and support.

Value Assessment

Rating: fair

The contract's value is difficult to definitively assess without more granular data on the specific services delivered and the hours billed. The Time and Materials (T&M) pricing structure, while common for agile development, carries inherent risks of cost escalation if not closely managed. Benchmarking against similar agile software development contracts for federal agencies would provide a clearer picture of whether the per-hour rates and overall cost are competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which suggests an initial broad solicitation followed by a specific exclusion, or a competitive process where only certain sources were eligible. With 5 bidders, the competition level appears moderate, which can lead to reasonable price discovery. However, the 'exclusion of sources' aspect warrants further investigation to understand its impact on the breadth of competition.

Taxpayer Impact: A moderate level of competition generally benefits taxpayers by encouraging competitive pricing. However, the exclusion of certain sources could potentially limit the most competitive offers from reaching the government.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and its Enforcement and Removal Operations (ERO) division. Services delivered include agile software development and Tier II support for systems used to identify criminal aliens. The geographic impact is national, supporting ICE/ERO's nationwide operations. Workforce implications include the need for skilled software developers and support personnel, potentially both government and contractor staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure.
Complexity of managing agile development contracts to ensure scope and budget adherence.
Dependence on contractor expertise for critical identification systems.

Positive Signals

Awarded through a competitive process, indicating market interest and potential for value.
Supports a critical law enforcement mission for national security and public safety.
Contract duration provides stability for ongoing system development and support.

Sector Analysis

This contract falls within the Government IT Services sector, a large and dynamic market. The specific niche is custom software development and ongoing technical support for mission-critical applications. Comparable spending benchmarks would involve looking at other federal contracts for similar agile development and support services, particularly within law enforcement or national security agencies, to gauge cost-effectiveness.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. Therefore, the direct impact on the small business ecosystem is not evident from this information. Further analysis would be needed to determine if small businesses are involved as subcontractors or if the prime contractor has small business subcontracting goals.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within ICE/ERO. Accountability measures would be tied to performance metrics outlined in the contract's statement of work and delivery orders. Transparency is generally facilitated through contract databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Criminal Alien Program
ICE Enforcement and Removal Operations Systems
Federal Agile Software Development Contracts
Homeland Security IT Modernization

Risk Flags

Potential for cost overruns due to T&M pricing.
Ambiguity in 'Exclusion of Sources' clause impacting competition.
Need for robust oversight of agile development scope and deliverables.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $22.2 million to CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY. CRIMINAL ALIEN IDENTIFICATION INITIATIVES (CAII) AGILE SOFTWARE DEVELOPMENT AND TIER II SUPPORT SERVICES TO SUPORT ICE/ERO

Who is the contractor on this award?

The obligated recipient is CREDENCE MANAGEMENT SOLUTIONS LIMITED LIABILITY COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $22.2 million.

What is the period of performance?

Start: 2019-09-20. End: 2024-09-19.

What is the specific nature of the 'criminal alien identification initiatives' supported by this contract, and how critical are these systems to ICE/ERO operations?

The 'Criminal Alien Identification Initiatives (CAII)' supported by this contract are crucial for ICE's Enforcement and Removal Operations (ERO) to identify, process, and remove non-citizens who have violated U.S. immigration laws, particularly those with criminal records. These systems likely involve databases, analytical tools, and software that help ERO officers track individuals, assess their immigration status and criminal history, and manage removal proceedings. The criticality stems from national security, public safety, and the enforcement of U.S. immigration laws. The software development and Tier II support ensure these systems remain functional, up-to-date, and capable of handling the complex data required for these operations.

How does the 'Time and Materials' (T&M) pricing structure compare to other contract types for similar agile software development services, and what are the associated risks?

Time and Materials (T&M) contracts are common for agile software development where the scope may evolve or is not fully defined at the outset. Unlike fixed-price contracts, T&M pays the contractor for the actual labor hours and material costs incurred. This offers flexibility but carries risks for the government, primarily cost overruns if the project takes longer than anticipated or if labor rates are high. Compared to firm-fixed-price (FFP) contracts, T&M provides less cost certainty. However, for rapidly evolving agile projects, it can be more efficient than trying to define a rigid scope upfront. Effective oversight, including labor hour limitations and regular reviews, is essential to mitigate T&M risks.

What does 'Full and Open Competition After Exclusion of Sources' imply for the competition level and potential value for money?

The term 'Full and Open Competition After Exclusion of Sources' is somewhat contradictory and requires careful interpretation. Typically, 'Full and Open Competition' means all responsible sources are permitted to compete. 'Exclusion of Sources' implies that certain potential sources were deliberately excluded from the competition, possibly due to specific requirements, past performance issues, or other justifications. While 5 bidders suggest a degree of competition, the exclusion of sources could mean that the most competitive offers might not have been considered, potentially impacting the ultimate value for money achieved. The justification for excluding sources would be critical to understanding the true competitive landscape.

What is the historical spending pattern for similar IT services by ICE or DHS, and how does this contract's value compare?

Historical spending data for ICE and DHS on IT services, particularly for software development and support, would reveal trends in contract values, types, and durations. Without access to specific historical data for CAII or similar initiatives, a direct comparison is difficult. However, federal agencies like DHS consistently invest significant amounts in IT to support their broad mandates. Contracts in the range of $20 million over several years for specialized software development and support are not uncommon within large federal departments. Benchmarking against similar-sized contracts for comparable services within DHS or other law enforcement agencies would provide context on whether this $22.2 million award represents a typical investment or deviates significantly.

What are the key performance indicators (KPIs) or metrics used to evaluate the contractor's performance on this contract?

Key Performance Indicators (KPIs) for a contract like this, involving agile software development and Tier II support, would likely focus on several areas. For software development, metrics might include adherence to sprint goals, code quality (e.g., defect density), on-time delivery of features, and user satisfaction. For Tier II support, KPIs could involve response times to incidents, resolution times, system uptime, and customer satisfaction ratings for support services. The contract's Service Level Agreements (SLAs) would detail these specific metrics, their targets, and any associated remedies or incentives for performance.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70CTD019Q00000100

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 8609 WESTWOOD CTR DR STE 300, VIENNA, VA, 22182

Business Categories: 8(a) Program Participant, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,767,548

Exercised Options: $22,249,672

Current Obligation: $22,249,672

Actual Outlays: $8,265,062

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N98119D00015

IDV Type: GWAC

Timeline