DHS awards $12M for IT operational support, with a 3-year duration

Contract Overview

Contract Amount: $12,002,331 ($12.0M)

Contractor: Global Solutions Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2023-09-29

End Date: 2026-09-28

Contract Duration: 1,095 days

Daily Burn Rate: $11.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PCEC-23-00009 ECD PRIORITY SERVICES OPERATIONAL SUPPORT

Place of Performance

Location: OAK PARK, OAKLAND County, MICHIGAN, 48237

State: Michigan Government Spending

Plain-Language Summary

Department of Homeland Security obligated $12.0 million to GLOBAL SOLUTIONS GROUP, INC. for work described as: PCEC-23-00009 ECD PRIORITY SERVICES OPERATIONAL SUPPORT Key points: 1. Contract awarded for computer systems design services, indicating a need for specialized IT support. 2. The contract is a delivery order under a larger contract vehicle, suggesting potential for follow-on work. 3. Fixed-price contract type aims to control costs and provide predictability for the government. 4. The award was made under full and open competition, implying a robust bidding process. 5. The duration of 1095 days (3 years) suggests a significant, ongoing operational requirement. 6. The North American Industry Classification System (NAICS) code 541512 points to a focus on IT infrastructure and support.

Value Assessment

Rating: good

The contract value of $12,002,330.81 over three years averages to approximately $4 million annually. Without specific benchmarks for 'ECD PRIORITY SERVICES OPERATIONAL SUPPORT,' a direct value-for-money assessment is challenging. However, the fixed-price nature of the contract provides cost certainty. Further analysis would require comparing the scope of services and pricing to similar IT operational support contracts within DHS or other federal agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which typically means the solicitation was broadly advertised, but specific sources were initially excluded before a full competition was opened. This suggests a competitive process was intended to ensure fair pricing and access to a wide range of qualified vendors. The presence of 4 bidders (indicated by 'no': 4) further supports a competitive environment.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality services. It ensures that the government is not limited to a narrow selection of contractors, increasing the likelihood of obtaining the best value.

Public Impact

The Department of Homeland Security (DHS) benefits from enhanced operational support for its IT systems. Services delivered include computer systems design and operational support, crucial for maintaining government IT infrastructure. The geographic impact is likely national, given DHS's broad mission, though specific operational locations are not detailed. Workforce implications may include the creation or sustainment of jobs in the IT services sector, both within the contractor's organization and potentially through subcontracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if 'operational support' is not clearly defined.
Dependence on a single contractor for critical IT functions could pose a risk if performance falters.
The 'after exclusion of sources' clause warrants understanding the rationale behind the initial exclusion.

Positive Signals

Awarded under full and open competition, indicating a broad search for qualified vendors.
Fixed-price contract type helps manage cost overruns.
The contract has a defined duration, providing clarity on the expected service period.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and operational support. The federal IT services market is substantial, with agencies continually investing in maintaining and upgrading their technological infrastructure. This contract likely supports critical functions within DHS, aligning with broader government efforts to modernize IT systems and ensure cybersecurity. Benchmarks for similar IT support contracts within federal agencies would typically range from hundreds of thousands to millions of dollars annually, depending on the complexity and criticality of the systems supported.

Small Business Impact

The data indicates that small business participation (sb: false) was not a specific set-aside requirement for this contract. There is no explicit mention of subcontracting goals for small businesses. This suggests that the primary focus was on securing the best value through open competition, rather than specifically targeting small business participation. The impact on the small business ecosystem would depend on whether Global Solutions Group, Inc. utilizes small businesses as subcontractors, which is not detailed in this award notice.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant program managers within the Department of Homeland Security. As a delivery order under a larger contract vehicle, the oversight mechanisms of that parent contract would also apply. Transparency is facilitated by the public nature of contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

DHS IT Modernization Programs
Federal Civilian IT Services Contracts
Computer Systems Design and Related Services
Government Operational Support Contracts

Risk Flags

Potential for undefined scope in 'operational support'.
Reliance on contractor for critical IT functions.
Need to verify rationale for 'exclusion of sources' in competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $12.0 million to GLOBAL SOLUTIONS GROUP, INC.. PCEC-23-00009 ECD PRIORITY SERVICES OPERATIONAL SUPPORT

Who is the contractor on this award?

The obligated recipient is GLOBAL SOLUTIONS GROUP, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $12.0 million.

What is the period of performance?

Start: 2023-09-29. End: 2026-09-28.

What is the specific nature of the 'ECD PRIORITY SERVICES OPERATIONAL SUPPORT' and how does it align with DHS's core mission?

The contract description 'ECD PRIORITY SERVICES OPERATIONAL SUPPORT' suggests services related to the operational maintenance, support, and potentially enhancement of critical IT systems within the Department of Homeland Security (DHS). 'ECD' could refer to a specific program, division, or system. Priority services imply that these IT functions are essential for the immediate and ongoing operations of DHS, potentially related to national security, border security, emergency response, or other core mission areas. The computer systems design services (NAICS 541512) indicate that the support may involve system configuration, integration, troubleshooting, and potentially minor development or upgrades to ensure these priority systems function effectively and reliably. Without more specific information on 'ECD,' it's difficult to pinpoint the exact alignment, but it is clearly tied to maintaining the operational readiness of critical DHS IT infrastructure.

How does the pricing of this $12 million contract compare to similar IT operational support contracts within DHS or other federal agencies?

A direct comparison of the $12,002,330.81 contract value is challenging without detailed knowledge of the specific services rendered and the complexity of the IT systems supported. However, for a three-year duration, this averages to approximately $4 million per year. Federal IT operational support contracts can vary widely in cost based on factors such as the number of users supported, the criticality of the systems, the required service levels (e.g., 24/7 support), and the specific technologies involved. Generally, contracts of this magnitude for comprehensive IT operational support are common within large federal agencies like DHS. To benchmark effectively, one would need to compare the hourly rates, labor categories, and scope of work against other similar contracts awarded by DHS or agencies with comparable IT needs, looking at metrics like cost per user or cost per system supported.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract to ensure effective performance?

The provided award data does not explicitly detail the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a contract of this nature ('ECD PRIORITY SERVICES OPERATIONAL SUPPORT') with a fixed-price structure, it is highly probable that specific performance metrics are defined within the contract's statement of work. These would typically include metrics related to system uptime, response times for issue resolution, security compliance, and potentially project milestones if any development or enhancement work is included. The contracting officer and program managers at DHS would be responsible for monitoring these KPIs/SLAs to ensure Global Solutions Group, Inc. is meeting its obligations. Failure to meet these agreed-upon standards could lead to penalties or impact future contract awards.

What is the track record of Global Solutions Group, Inc. in performing similar federal IT operational support contracts?

Assessing the track record of Global Solutions Group, Inc. requires examining their past performance on federal contracts, particularly those involving IT operational support and computer systems design. Information on past performance, including contract history, past performance evaluations (if available through systems like the Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations, would be crucial. A review of federal procurement databases (like FPDS or SAM.gov) could reveal previous awards to this contractor. Positive past performance on similar contracts would indicate a lower risk for DHS, while a history of issues might raise concerns about the contractor's ability to meet the requirements of this new $12 million award.

What is the potential impact of this contract on the overall IT spending trends within the Department of Homeland Security?

This $12 million contract represents a specific investment within DHS's broader IT budget. Its impact on overall spending trends depends on the context of DHS's total IT expenditure. If DHS's overall IT budget is increasing, this contract might be part of a larger modernization or expansion effort. Conversely, if the budget is stable or decreasing, this award could signify a reallocation of resources towards operational support. The fact that it's a three-year contract suggests a sustained commitment to this particular area of IT support. Analyzing this award in conjunction with other recent DHS IT contracts and budget documents would provide a clearer picture of its significance within the department's strategic IT spending priorities.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 31681 DEQUINDRE RD, MADISON HEIGHTS, MI, 48071

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $18,350,028

Exercised Options: $12,002,331

Current Obligation: $12,002,331

Actual Outlays: $7,794,593

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB21D0281

IDV Type: GWAC

Timeline