DHS awards $19M for STARR II support, with engineering services costing $1.84M per year

Contract Overview

Contract Amount: $19,047,333 ($19.0M)

Contractor: Starr II, a Joint Venture

Awarding Agency: Department of Homeland Security

Start Date: 2021-09-30

End Date: 2024-07-31

Contract Duration: 1,035 days

Daily Burn Rate: $18.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: STARR II PTS STANDARD OPS 6 FUNDING FOR MT-2 SUPP

Place of Performance

Location: MOUNT WEATHER, CLARKE County, VIRGINIA, 20135

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $19.0 million to STARR II, A JOINT VENTURE for work described as: STARR II PTS STANDARD OPS 6 FUNDING FOR MT-2 SUPP Key points: 1. Value for money appears fair, with an estimated annual cost of $1.84M for engineering services. 2. The contract was awarded through full and open competition, suggesting a competitive pricing environment. 3. Risk indicators are moderate, with a Cost Plus Fixed Fee contract type that can incentivize cost growth. 4. Performance context is for essential operational support to FEMA's STARR II program. 5. This contract fits within the broader engineering services sector for government support. 6. The duration of the contract is over three years, indicating a significant commitment.

Value Assessment

Rating: fair

The annual cost for this contract is estimated at $1.84M. Benchmarking against similar engineering services contracts for federal agencies is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) structure, while allowing for flexibility, can sometimes lead to higher costs compared to fixed-price contracts if not managed closely. The total value of $19M over approximately 3.5 years suggests a moderate level of investment for specialized support.

Cost Per Unit: $1,840,300 per year (estimated)

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, which can lead to better pricing and service quality. The number of bidders is not specified, but the open competition suggests that FEMA sought to maximize the pool of potential offerors to ensure a robust selection process.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a level playing field for contractors, which can drive down costs and improve the value received for public funds.

Public Impact

The primary beneficiary is the Department of Homeland Security, specifically the Federal Emergency Management Agency (FEMA). The contract provides essential operational support services for the STARR II program. The geographic impact is likely focused on supporting FEMA's national operations, with potential implications for disaster response and management across the United States. The contract supports specialized engineering and technical services, potentially impacting the workforce in these fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not closely monitored.
The specific nature of 'standard ops funding' requires clear definition to ensure scope alignment and prevent scope creep.
Dependence on a joint venture for critical operational support may introduce unique management and performance risks.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
The contract supports a critical federal agency (FEMA) in its operational mission.
The duration provides stability for the contractor and ensures continuity of essential services.

Sector Analysis

This contract falls within the Engineering Services (NAICS 541330) sector, which is a significant component of government contracting. This sector includes firms that provide engineering consulting and design services. Government spending in this area is often tied to infrastructure, defense, and operational support for various agencies. Comparable spending benchmarks would depend on the specific nature of the engineering services provided, but federal spending on engineering services is in the billions annually.

Small Business Impact

The contract indicates that small business participation was not a specific set-aside (ss: false, sb: false). This suggests that the primary focus was on full and open competition without specific targets for small business involvement. Subcontracting opportunities for small businesses may exist at the discretion of the prime contractor, STARR II, a joint venture, but are not explicitly mandated by the contract terms provided.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Emergency Management Agency (FEMA) contracting officers and program managers. Accountability measures are embedded within the CPFF contract structure, requiring the contractor to meet defined cost and performance targets. Transparency is facilitated through contract award databases, though detailed performance reports may not be publicly available. The Department of Homeland Security's Office of Inspector General may conduct audits or investigations if specific concerns arise.

Related Government Programs

STARR II Program
FEMA Operational Support Contracts
Engineering Services Contracts
Department of Homeland Security IT and Support Services

Risk Flags

Cost Plus Fixed Fee contract type requires robust oversight to manage costs.
Ambiguity in service description ('STANDARD OPS 6 FUNDING FOR MT-2 SUPP') may lead to scope creep or misaligned expectations.
Joint venture structure may introduce unique performance and management complexities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $19.0 million to STARR II, A JOINT VENTURE. STARR II PTS STANDARD OPS 6 FUNDING FOR MT-2 SUPP

Who is the contractor on this award?

The obligated recipient is STARR II, A JOINT VENTURE.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $19.0 million.

What is the period of performance?

Start: 2021-09-30. End: 2024-07-31.

What is the specific nature of the 'STARR II PTS STANDARD OPS 6 FUNDING FOR MT-2 SUPP' services being procured?

The provided data abbreviates the service description as 'STARR II PTS STANDARD OPS 6 FUNDING FOR MT-2 SUPP'. While 'STARR II' likely refers to a program name, and 'PTS' could indicate 'Program Technical Support' or similar, the exact nature of the 'STANDARD OPS 6 FUNDING FOR MT-2 SUPP' is not detailed. It suggests funding for standard operations, possibly related to a specific module or phase ('MT-2 SUPP'). Without further clarification, it's difficult to ascertain if these are purely administrative, technical, or specialized engineering services beyond the general NAICS code. This ambiguity highlights a need for more descriptive contract language to fully understand the scope and value.

How does the estimated annual cost of $1.84M compare to similar engineering support contracts for FEMA or DHS?

Benchmarking the estimated annual cost of $1.84M for STARR II PTS STANDARD OPS 6 FUNDING FOR MT-2 SUPP against similar contracts is challenging without more granular data on the specific services rendered. Engineering services can vary widely in scope and complexity. However, considering the Cost Plus Fixed Fee (CPFF) structure, this annual figure represents the target cost plus a fixed fee. If this contract involves complex technical analysis, system integration, or specialized consulting, the cost might be within a reasonable range. Conversely, if it's for more routine operational support, it could be on the higher side. A direct comparison would require access to detailed statements of work and pricing structures for comparable FEMA/DHS contracts.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this specific procurement?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the 'fixed fee' provides a ceiling for the contractor's profit, the 'cost' portion is reimbursable up to a certain point (often with an overall ceiling). This structure can incentivize contractors to incur higher costs, as their fee remains constant regardless of the actual expenses. For FEMA's operational support, effective oversight is crucial to ensure that costs are reasonable, allocable, and necessary. Without stringent monitoring and clear performance metrics, the government might end up paying more than necessary for the services rendered, especially if the scope is not tightly controlled.

What is the historical spending pattern for the STARR II program or similar operational support contracts at FEMA?

The provided data focuses on a single delivery order under the STARR II program. To understand historical spending patterns, one would need to examine the overall STARR II contract (if it's an IDIQ or similar vehicle) and previous delivery orders or task orders issued under it. Additionally, analyzing FEMA's historical spending on operational support services, particularly those related to disaster preparedness, response, and recovery, would provide context. Without access to broader contract data or FEMA's historical procurement records for this specific program, it's impossible to establish a trend or pattern. This single award suggests a specific need at a particular time, rather than a continuous, large-scale spending initiative based solely on this data point.

How does the contractor, STARR II (a joint venture), perform on other government contracts, particularly within DHS?

The provided data identifies 'STARR II, A JOINT VENTURE' as the contractor. To assess their track record, one would need to search federal procurement databases (like SAM.gov or FPDS) for other contracts awarded to this specific joint venture or its constituent members. Key performance indicators to look for would include past performance ratings, any instances of contract disputes, termination for default, or significant overruns on previous projects. Understanding their experience with similar types of services (engineering, operational support) and their performance within the Department of Homeland Security or FEMA specifically would be crucial for evaluating their reliability and capability on this current contract.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3901 CALVERTON BLVD STE 400, CALVERTON, MD, 20705

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,165,255

Exercised Options: $19,047,333

Current Obligation: $19,047,333

Actual Outlays: $6,141,180

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSFE6015D0005

IDV Type: IDC

Timeline