DHS awards $5.5M engineering services contract to STARR II JV for Region 8 production and technical support

Contract Overview

Contract Amount: $5,514,256 ($5.5M)

Contractor: Starr II, a Joint Venture

Awarding Agency: Department of Homeland Security

Start Date: 2022-09-15

End Date: 2026-09-13

Contract Duration: 1,459 days

Daily Burn Rate: $3.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: FY22 REGION 8 PRODUCTION AND TECHNICAL SERVICES

Place of Performance

Location: DENVER, JEFFERSON County, COLORADO, 80225

State: Colorado Government Spending

Plain-Language Summary

Department of Homeland Security obligated $5.5 million to STARR II, A JOINT VENTURE for work described as: FY22 REGION 8 PRODUCTION AND TECHNICAL SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of 1459 days indicates a long-term need for these engineering services. 4. The award is a Delivery Order under a larger contract vehicle (STARR II). 5. The specific NAICS code (541330) points to a focus on engineering services. 6. The contract is for Region 8, implying a specific geographic focus for services.

Value Assessment

Rating: fair

The total award amount is $5.5 million over approximately four years. Benchmarking this specific delivery order against similar contracts is challenging without more detailed scope information. However, the Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control. While the fixed fee provides some predictability for the contractor's profit, the cost reimbursement portion requires diligent oversight to ensure the government pays only for reasonable and allocable costs. Without comparative data on per-unit costs or labor rates for similar engineering services within FEMA or DHS, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The specific contract vehicle used, STARR II, is a multiple-award indefinite-delivery/indefinite-quantity (IDIQ) contract, which typically allows for a competitive process among the awardees for task orders. The number of bidders for this specific delivery order is not provided, but the 'full and open' designation suggests a robust initial competition for the parent IDIQ and potentially for this order as well, which generally promotes price discovery.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and a wider range of innovative solutions. It ensures that the government is not limited to a single provider, increasing the likelihood of obtaining services at a reasonable cost.

Public Impact

The primary beneficiaries are the Department of Homeland Security (FEMA) and potentially other entities within Region 8 requiring engineering and technical services. The services delivered are related to production and technical support, crucial for operational readiness and infrastructure management. The geographic impact is focused on Region 8, which typically covers states like Colorado, Montana, North Dakota, South Dakota, Utah, and Wyoming. Workforce implications may include the need for specialized engineering and technical personnel, potentially sourced by the joint venture partner.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher spending if not closely monitored.
Lack of specific performance metrics or KPIs makes it difficult to assess efficiency.
Reliance on a joint venture structure may introduce complexities in accountability and oversight.
The 'STARR II' contract vehicle, while competitive, might have pre-set rates that are not always the most cost-effective for every task order.

Positive Signals

Awarded through a full and open competition, indicating a competitive marketplace was leveraged.
The contract is a Delivery Order under a larger, likely pre-vetted, contract vehicle (STARR II).
The fixed fee component provides some predictability in contractor profit margins.
The specific NAICS code suggests a focus on specialized engineering expertise.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the professional services market supporting government operations. The federal government is a major consumer of engineering services, utilizing them for infrastructure projects, technical support, research and development, and operational planning. Spending in this sector is often driven by national security, public works, and regulatory compliance needs. Comparable spending benchmarks would typically involve analyzing the average cost of similar engineering support contracts awarded by agencies like DHS, DOD, or GSA, considering factors like contract duration, scope of work, and labor categories.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false) and the contractor is identified as a joint venture (STARR II, A JOINT VENTURE). While the joint venture itself might be structured to include small businesses, this specific award does not appear to be a direct small business set-aside. The implications for the broader small business ecosystem depend on the subcontracting plan, if any, associated with this delivery order. Without details on subcontracting goals or actual performance, it's difficult to assess the direct impact on small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Emergency Management Agency (FEMA), a component of DHS. As a Cost Plus Fixed Fee contract, rigorous oversight of incurred costs is essential to ensure compliance with the contract terms and prevent unnecessary expenditures. FEMA's contracting officers and potentially program managers will be responsible for monitoring performance, approving invoices, and ensuring that the fixed fee is earned. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

STARR II IDIQ Contract
FEMA Engineering Services Contracts
DHS Professional Services Contracts
Region 8 Federal Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration may lead to scope creep or outdated methodologies.
Lack of detailed performance metrics in the provided data hinders assessment.
Joint venture structure may require careful management of accountability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $5.5 million to STARR II, A JOINT VENTURE. FY22 REGION 8 PRODUCTION AND TECHNICAL SERVICES

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 $5.5 million.

What is the period of performance?

Start: 2022-09-15. End: 2026-09-13.

What is the specific scope of 'production and technical services' covered under this delivery order?

The provided data does not detail the specific scope of 'production and technical services.' However, given the NAICS code 541330 (Engineering Services), these services likely encompass a range of activities such as design, analysis, testing, and technical consultation related to engineering projects or systems. For FEMA, this could involve support for disaster response infrastructure, facility management, or technical assessments. A deeper dive into the contract's Statement of Work (SOW) or Performance Work Statement (PWS) would be necessary to ascertain the precise deliverables and technical requirements.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar engineering services?

The Cost Plus Fixed Fee (CPFF) structure is often used when the scope of work is not precisely defined at the outset, or when there is uncertainty about the costs involved. It reimburses the contractor for allowable costs plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but less cost certainty for the government, potentially leading to higher final costs if not managed diligently. Cost-reimbursement contracts like CPFF are generally considered riskier for the government in terms of cost control than FFP, but may be necessary for R&D or complex services where cost estimation is difficult. Other types like Cost Plus Incentive Fee (CPIF) add performance incentives.

What is the track record of STARR II, A JOINT VENTURE, in delivering similar engineering services to the federal government?

The provided data identifies 'STARR II, A JOINT VENTURE' as the contractor. To assess their track record, one would need to examine past performance information available through federal procurement databases (like FPDS or SAM.gov) or past performance questionnaires submitted during the original STARR II IDIQ competition. This would involve looking at previous contracts awarded to this specific joint venture or its principal members, evaluating their performance ratings, on-time delivery, quality of work, and any history of disputes or contract terminations. Without this external data, assessing their specific track record is not possible based solely on the provided award details.

What are the potential risks associated with the 1459-day duration of this contract?

A contract duration of 1459 days (approximately four years) presents several potential risks. Firstly, the scope of work may evolve significantly over such a long period, potentially leading to scope creep or the need for costly contract modifications if not managed proactively. Secondly, technology and best practices in engineering services can change rapidly, meaning the services provided later in the contract might be based on outdated methods or technologies if the contract doesn't include mechanisms for adaptation. Thirdly, long-term contracts can sometimes lead to complacency from both the contractor and the government oversight team, potentially impacting performance and value. Finally, market rates for labor and materials can fluctuate, impacting the cost-effectiveness of the fixed fee over time.

How does FEMA's spending on engineering services in Region 8 compare to other regions or other agencies?

The provided data focuses on a single contract award and does not offer sufficient information to compare FEMA's spending on engineering services in Region 8 to other regions or agencies. A comprehensive analysis would require aggregating spending data across multiple contracts, regions, and agencies, filtering by relevant NAICS codes (like 541330), and analyzing trends over several fiscal years. Such an analysis could reveal patterns in regional needs, agency priorities, and overall federal investment in engineering support services, highlighting potential areas of concentration or disparity.

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: ARCHITECT-ENGINEER FAR 6.102

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: $5,514,256

Exercised Options: $5,514,256

Current Obligation: $5,514,256

Actual Outlays: $4,030,964

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 70FA6021D00000005

IDV Type: IDC

Timeline