DHS USCIS awards $69.2M for Enterprise Gateway and Integration Services to Alethix, LLC

Contract Overview

Contract Amount: $69,208,795 ($69.2M)

Contractor: Alethix, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2019-11-07

End Date: 2023-07-14

Contract Duration: 1,345 days

Daily Burn Rate: $51.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 20

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: ENTERPRISE GATEWAY AND INTEGRATION SERVICES (EGIS)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20529

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $69.2 million to ALETHIX, LLC for work described as: ENTERPRISE GATEWAY AND INTEGRATION SERVICES (EGIS) Key points: 1. Contract value represents a significant investment in IT infrastructure modernization. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Performance period spans over three years, indicating a need for sustained IT support. 4. The award type is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The contractor, Alethix, LLC, has secured a substantial award, highlighting their role in federal IT services. 6. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services.

Value Assessment

Rating: good

The total award of $69.2 million over approximately 3.7 years (1345 days) for custom computer programming services appears reasonable given the scope of enterprise gateway and integration services. Benchmarking against similar large-scale IT integration contracts within DHS or other agencies would provide a more precise value assessment. However, the time and materials (T&M) pricing structure, while common for evolving IT needs, can sometimes lead to cost overruns if not closely managed. The contract's duration and value suggest a significant undertaking.

Cost Per Unit: N/A

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 a bid. The presence of 20 offers suggests a robust competitive environment. A high number of bidders generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award by offering competitive pricing and technical solutions.

Taxpayer Impact: The full and open competition likely resulted in a more cost-effective solution for taxpayers by driving down prices through market forces. It also ensures that the government has access to a wide range of innovative solutions from various providers.

Public Impact

Citizens and immigrants benefit from improved efficiency and reliability of USCIS systems. The contract delivers essential IT services for managing and integrating critical government data gateways. Services are primarily delivered within the District of Columbia, impacting the federal IT workforce. The contract supports the operational needs of U.S. Citizenship and Immigration Services, a key component of DHS.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost uncertainty if not managed diligently.
The broad scope of 'enterprise gateway and integration services' may present challenges in defining clear deliverables and performance metrics.
Reliance on a single contractor for critical integration services could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should yield value.
The contractor, Alethix, LLC, has secured a significant contract, suggesting a level of trust and capability.
The contract duration of over three years allows for stability and continuity in critical IT services.

Sector Analysis

This contract falls within the custom computer programming services sector, a vital part of the broader IT services industry. The federal government is a major consumer of these services, particularly for developing, integrating, and maintaining complex systems. Spending in this sector is driven by the need for modernization, cybersecurity, and enhanced data management capabilities across various agencies. Comparable spending benchmarks would involve analyzing other large-scale IT integration and custom development contracts awarded by agencies like DHS, GSA, or DoD.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions. Therefore, it is unlikely that small businesses were specifically targeted for this prime contract. However, the prime contractor, Alethix, LLC, may engage small businesses for subcontracting opportunities to fulfill specific aspects of the contract, contributing to the small business ecosystem indirectly. Further analysis of subcontracting plans would be needed to confirm this impact.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Citizenship and Immigration Services (USCIS) contracting officers and program managers within the Department of Homeland Security (DHS). They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and managing any modifications or disputes. Transparency is facilitated through contract award databases like FPDS. Inspector General oversight from DHS may also be involved if performance issues or potential fraud are identified.

Related Government Programs

Department of Homeland Security IT Modernization Initiatives
Custom Computer Programming Services Contracts
Enterprise Resource Planning (ERP) System Integration
Cloud Computing and Integration Services
Federal Civilian Agency IT Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Complexity of integrating diverse enterprise systems.
Risk of technology obsolescence over the contract duration.
Ensuring robust cybersecurity for critical data gateways.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $69.2 million to ALETHIX, LLC. ENTERPRISE GATEWAY AND INTEGRATION SERVICES (EGIS)

Who is the contractor on this award?

The obligated recipient is ALETHIX, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $69.2 million.

What is the period of performance?

Start: 2019-11-07. End: 2023-07-14.

What is the track record of Alethix, LLC in performing similar large-scale federal IT integration contracts?

A review of federal procurement data indicates that Alethix, LLC has a history of performing IT services for various federal agencies. While this specific $69.2 million award for Enterprise Gateway and Integration Services (EGIS) is substantial, the company has likely been involved in other contracts related to custom programming, system integration, and IT support. To fully assess their track record, one would need to examine past performance evaluations, contract completion history, and any documented issues or successes on previous government projects. Understanding their experience with similar complexity and scale is crucial for evaluating the risk associated with this current award.

How does the pricing structure (Time and Materials) for this contract compare to industry standards for similar services?

Time and Materials (T&M) is a common contract type for IT services, especially when the scope of work is not fully defined or is expected to evolve. It allows for flexibility but can be less predictable in terms of final cost compared to fixed-price contracts. For custom computer programming and integration services, T&M is often used for tasks involving research, development, or ongoing support where effort is difficult to estimate upfront. Industry standards suggest that T&M contracts require robust oversight to manage labor hours and rates effectively. Benchmarking the specific hourly rates and indirect cost structures against market data for comparable roles and services would be necessary to determine if this contract's pricing is competitive and represents good value for the government.

What are the primary risks associated with the 'Enterprise Gateway and Integration Services' scope of work?

The primary risks associated with 'Enterprise Gateway and Integration Services' (EGIS) often revolve around complexity, interoperability, and data security. Integrating disparate systems (gateways) requires deep technical expertise to ensure seamless data flow and functionality. Risks include potential compatibility issues between different software and hardware, delays in development and deployment due to unforeseen technical challenges, and the critical need to maintain robust cybersecurity measures to protect sensitive government data. Furthermore, vendor lock-in and the potential for scope creep, especially with a Time and Materials contract, are also significant risks that require diligent program management and oversight.

How has USCIS historically spent on custom computer programming and integration services, and how does this award fit?

USCIS, as a major component of DHS, consistently invests in IT services to manage its vast operations, including citizen services, immigration processing, and data management. Historical spending patterns would likely show significant allocations towards custom programming, system integration, and IT support to maintain and modernize its legacy systems and develop new capabilities. This $69.2 million award for EGIS represents a substantial, but likely proportionate, investment within the context of USCIS's overall IT budget. It signifies a focus on enhancing the foundational IT infrastructure that supports critical agency functions, potentially aiming to improve efficiency, data accuracy, and user experience.

What are the potential implications of a 1345-day performance period for this type of IT service contract?

A performance period of 1345 days (approximately 3.7 years) for Enterprise Gateway and Integration Services suggests a long-term need for these capabilities. For IT services, this duration allows for the full lifecycle of development, implementation, and stabilization of complex systems. It provides continuity and stability for the contractor, enabling them to build deep institutional knowledge. However, it also necessitates careful contract management to ensure that the services remain relevant and that the government is not locked into outdated technology. Regular reviews and potential adjustments to the scope or technology stack may be required to mitigate the risk of obsolescence over such an extended period.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70SBUR19R00000019

Offers Received: 20

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 4114 LEGATO RD STE 440, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $90,443,329

Exercised Options: $69,208,795

Current Obligation: $69,208,795

Actual Outlays: $12,974,992

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F443CA

IDV Type: FSS

Timeline