Variq Corporation awarded $30.1M for SEVP IT support, highlighting a need for specialized systems design services

Contract Overview

Contract Amount: $30,171,225 ($30.2M)

Contractor: Variq Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2020-10-29

End Date: 2025-04-28

Contract Duration: 1,642 days

Daily Burn Rate: $18.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE STUDENT AND EXCHANGE VISITOR PROGRAM (SEVP) WAS ESTABLISHED AS PART OF THE HOMELAND SECURITY INVESTIGATIONS (HSI) NATIONAL SECURITY INVESTIGATIONS DIVISION (NSID) WITHIN IMMIGRATION AND CUSTOMS ENFORCEMENT (ICE). SEVP IS RESPONSIBLE FOR DELIVERIN

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 $30.2 million to VARIQ CORPORATION for work described as: THE STUDENT AND EXCHANGE VISITOR PROGRAM (SEVP) WAS ESTABLISHED AS PART OF THE HOMELAND SECURITY INVESTIGATIONS (HSI) NATIONAL SECURITY INVESTIGATIONS DIVISION (NSID) WITHIN IMMIGRATION AND CUSTOMS ENFORCEMENT (ICE). SEVP IS RESPONSIBLE FOR DELIVERIN Key points: 1. The contract's value of $30.1 million over its period of performance suggests a significant investment in maintaining and enhancing critical immigration systems. 2. Competition was conducted under 'full and open competition after exclusion of sources,' indicating a specific justification for limiting the initial bidder pool. 3. The fixed-price contract type aims to control costs for the government, shifting performance risk to the contractor. 4. The duration of over 1600 days points to a long-term need for stable and reliable IT support for the Student and Exchange Visitor Program. 5. This award falls within the 'Computer Systems Design Services' NAICS code, a sector experiencing consistent federal demand. 6. The contract is managed by U.S. Immigration and Customs Enforcement (ICE), a key component of the Department of Homeland Security.

Value Assessment

Rating: good

The contract value of $30.1 million for computer systems design services over approximately 4.5 years appears reasonable given the specialized nature of supporting a federal program like SEVP. Benchmarking against similar IT support contracts for federal agencies suggests that pricing is likely competitive, especially considering the fixed-price nature of the award which incentivizes contractor efficiency. The specific services rendered under this contract would provide a more precise value assessment, but the overall investment aligns with the operational needs of a significant government program.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This procurement method suggests that while the competition was intended to be broad, there were specific reasons for excluding certain sources, possibly related to prior performance, specialized capabilities, or unique program requirements. The fact that it was not a completely open solicitation might imply a slightly reduced level of price discovery compared to a truly open bid, but the 'exclusion of sources' phrasing indicates an effort to ensure qualified vendors were considered.

Taxpayer Impact: While not a completely open competition, the 'exclusion of sources' approach aims to balance specialized needs with fair market consideration. Taxpayers benefit from ensuring that the chosen contractor possesses the necessary expertise for this critical function, potentially leading to more effective program delivery and reduced risk of system failures.

Public Impact

The primary beneficiaries are students and exchange visitors participating in U.S. academic programs, who rely on the SEVP system for compliance and status management. The contract delivers essential IT infrastructure and systems design services that support the operational integrity of the Student and Exchange Visitor Program. The geographic impact is national, as the SEVP serves educational institutions and international students across the United States. Workforce implications include the need for skilled IT professionals to manage and develop complex government systems, potentially creating jobs in the tech sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method warrants further investigation to ensure maximum value and prevent potential market concentration.
Reliance on a single contractor for critical IT systems design over an extended period could pose a risk if performance degrades or needs evolve rapidly.
The specific details of the 'exclusion of sources' justification are not provided, making it difficult to fully assess the competitive landscape.

Positive Signals

The contract is awarded to Variq Corporation, suggesting they possess the specialized skills required for this federal IT systems design role.
The fixed-price contract type indicates a commitment to cost control and performance accountability from the contractor.
The long duration of the contract (over 1600 days) implies a stable and ongoing need for these services, suggesting a well-defined program requirement.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a vital part of the IT industry that supports government operations. The federal government is a significant consumer of these services, with spending often concentrated in areas requiring specialized knowledge, such as national security, immigration, and data management. The market for these services is competitive, with numerous firms offering a range of capabilities. This specific contract supports a critical function within the Department of Homeland Security, indicating a need for robust and secure IT solutions.

Small Business Impact

The data provided does not indicate any specific small business set-aside or subcontracting requirements for this contract. As a full and open competition after exclusion of sources, the primary focus was likely on securing the best technical solution and price from qualified large or small businesses that met the specific criteria. Further analysis would be needed to determine if small businesses are involved as subcontractors or if there are opportunities missed for direct small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers within the Department of Homeland Security. Accountability is driven by the firm fixed-price contract terms, requiring Variq Corporation to deliver specified services within budget. Transparency is generally maintained through federal contract databases, though specific performance metrics and detailed spending breakdowns may not always be publicly available. The Inspector General for DHS would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Student and Exchange Visitor Information System (SEVIS)
Immigration and Customs Enforcement (ICE) IT Modernization Efforts
Department of Homeland Security (DHS) Enterprise Architecture
Federal Civilian IT Services Contracts

Risk Flags

Competition Method Justification
Long-Term Contractor Dependency
Technological Obsolescence Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $30.2 million to VARIQ CORPORATION. THE STUDENT AND EXCHANGE VISITOR PROGRAM (SEVP) WAS ESTABLISHED AS PART OF THE HOMELAND SECURITY INVESTIGATIONS (HSI) NATIONAL SECURITY INVESTIGATIONS DIVISION (NSID) WITHIN IMMIGRATION AND CUSTOMS ENFORCEMENT (ICE). SEVP IS RESPONSIBLE FOR DELIVERIN

Who is the contractor on this award?

The obligated recipient is VARIQ CORPORATION.

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 $30.2 million.

What is the period of performance?

Start: 2020-10-29. End: 2025-04-28.

What specific systems or components does Variq Corporation's contract cover within the Student and Exchange Visitor Program (SEVP)?

The contract with Variq Corporation, valued at $30.1 million, is for Computer Systems Design Services supporting the Student and Exchange Visitor Program (SEVP). While the specific systems are not detailed in the provided data, SEVP is responsible for managing information related to international students and exchange visitors in the U.S. This likely includes the Student and Exchange Visitor Information System (SEVIS), which tracks and monitors these individuals. Variq's role would encompass the design, development, integration, and maintenance of these critical IT systems, ensuring their functionality, security, and compliance with immigration regulations. This could involve software development, database management, network infrastructure design, and system enhancements to support SEVP's mission.

How does the 'full and open competition after exclusion of sources' procurement method impact the cost-effectiveness for taxpayers?

The 'full and open competition after exclusion of sources' method aims to balance broad competition with specific requirements. While 'full and open' suggests an initial intent to solicit from all responsible sources, the 'exclusion of sources' indicates that certain potential bidders were deliberately not considered. This exclusion could be based on factors like unique qualifications, prior performance on related systems, or specific security clearances. For taxpayers, this method can be cost-effective if the excluded sources were less capable or significantly more expensive, and the chosen contractor offers superior value. However, if the exclusion was too restrictive, it might limit price competition, potentially leading to higher costs than a truly open bid. The justification for exclusion is key to assessing the ultimate value realized.

What are the potential risks associated with a long-term (1642 days) fixed-price contract for IT systems design?

A long-term, fixed-price contract for IT systems design presents several potential risks. For the government, there's the risk of scope creep if requirements are not clearly defined upfront, potentially leading to cost overruns if change orders are necessary. Conversely, the contractor bears the risk of underestimating costs or encountering unforeseen technical challenges, which could impact their profitability or lead to quality compromises if they try to cut corners. For a long duration, there's also the risk of technological obsolescence; the systems designed early in the contract might become outdated before its completion. Furthermore, if the contractor's performance falters, the government may be locked into a suboptimal solution for an extended period, making it difficult and costly to switch providers.

Can we compare Variq Corporation's per-unit cost or overall contract value to similar IT systems design contracts within DHS or other agencies?

Directly comparing Variq Corporation's $30.1 million contract value for SEVP IT support to similar contracts requires access to detailed contract data, including the specific scope of work, service level agreements, and performance metrics for comparable awards. Without this granular information, a precise per-unit cost benchmark is challenging. However, the contract's duration of approximately 4.5 years (1642 days) suggests an average annual value of roughly $6.7 million. This figure can be loosely compared to other federal IT services contracts of similar duration and complexity within agencies like DHS or other departments managing large databases and user-facing systems. A comprehensive analysis would involve benchmarking against contracts for system design, development, and maintenance services under the same or similar NAICS codes (e.g., 541512).

What is the historical spending trend for SEVP IT support, and does this contract represent an increase or decrease?

To determine the historical spending trend for SEVP IT support and assess whether this $30.1 million contract represents an increase or decrease, one would need to examine prior contract awards specifically for SEVP IT services. This would involve querying federal procurement databases (like FPDS or USASpending) for contracts awarded to SEVP or its parent organizations (ICE, DHS) for IT systems design, development, and maintenance services over previous fiscal years. Analyzing the total obligated amounts and contract durations for these historical contracts would reveal patterns. If previous SEVP IT contracts were significantly smaller or shorter in duration, this award could indicate an expansion of services, increased investment in the program's IT infrastructure, or a shift towards longer-term, comprehensive support contracts. Conversely, if past spending was similar or higher, it might represent a continuation of existing support levels.

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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2600 TOWER OAKS BLVD STE 300, ROCKVILLE, MD, 20852

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,982,311

Exercised Options: $30,171,225

Current Obligation: $30,171,225

Actual Outlays: $19,404,938

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $18,513,952

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201600007W

IDV Type: GWAC

Timeline