DHS awards $33.4M contract for IT systems design, with a significant portion for enterprise delivery

Contract Overview

Contract Amount: $33,413,154 ($33.4M)

Contractor: Steampunk, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2021-07-01

End Date: 2026-02-28

Contract Duration: 1,703 days

Daily Burn Rate: $19.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 35

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SERVICES FOR PRODUCT ENGINEERING AND ENTERPRISE DELIVERY (SPEED)

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $33.4 million to STEAMPUNK, INC. for work described as: SERVICES FOR PRODUCT ENGINEERING AND ENTERPRISE DELIVERY (SPEED) Key points: 1. Contract focuses on computer systems design and enterprise delivery, indicating a need for robust IT infrastructure. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. A Time and Materials pricing structure may lead to cost variability depending on actual effort. 4. The duration of the contract (over 4 years) suggests a long-term need for these services. 5. The award is for delivery orders, implying flexibility in tasking and resource allocation. 6. The specific NAICS code (541512) points to a focus on integrating hardware, software, and communication technologies.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific task orders and detailed performance metrics. The Time and Materials (T&M) pricing structure, while common for IT services, carries inherent risks of cost overruns if not managed closely. Comparing it to similar contracts for enterprise IT delivery within DHS or other agencies would require access to more granular data on scope and deliverables. The total award amount of $33.4 million over approximately 4 years suggests a moderate investment in IT modernization or support.

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 indicates that the initial solicitation was broad, but specific sources may have been excluded later in the process, or it could refer to a specific type of competitive procedure. Without further clarification on the exclusion, it's difficult to definitively assess the breadth of competition. However, the 'full and open' aspect suggests multiple bidders were likely considered.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve service quality.

Public Impact

Citizens and immigrants will benefit from improved IT systems supporting services provided by U.S. Citizenship and Immigration Services (USCIS). The contract delivers essential computer systems design and enterprise delivery services. The geographic impact is primarily within the operational areas of USCIS, likely nationwide. Workforce implications include potential demand for IT professionals specializing in systems design and enterprise solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) pricing model can lead to unpredictable costs if not carefully monitored and controlled.
The 'exclusion of sources' clause, if not clearly defined, could limit competition and potentially increase costs.
The long contract duration necessitates robust performance monitoring to ensure continued value and alignment with evolving needs.
Reliance on a single contractor for significant IT systems design could pose a risk if the contractor faces performance issues or financial instability.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield fair pricing.
The contract addresses critical IT needs for USCIS, indicating a strategic investment in government operations.
The long duration allows for sustained development and integration of complex IT solutions.
The focus on 'enterprise delivery' implies a comprehensive approach to IT infrastructure management.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and integration. The market for such services is vast and highly competitive, with numerous firms offering specialized expertise. The total federal spending on IT services is in the hundreds of billions annually. This contract represents a portion of the Department of Homeland Security's investment in maintaining and modernizing its IT infrastructure to support its critical mission functions, particularly those related to immigration services.

Small Business Impact

The contract data indicates that small business participation is not explicitly mandated or highlighted (ss: false, sb: false). This suggests that the primary award was not set aside for small businesses. While the prime contractor, STEAMPUNK, INC., may be a large business, there is potential for subcontracting opportunities for small businesses within the scope of computer systems design and enterprise delivery. However, without specific subcontracting plans or goals outlined in the award details, the direct impact on the small business ecosystem remains uncertain.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Citizenship and Immigration Services (USCIS) contracting officers and program managers. Performance monitoring, adherence to contract terms, and quality assurance are key oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected within the contract's execution.

Related Government Programs

IT Modernization Programs
Enterprise Resource Planning (ERP) Systems
Cloud Computing Services
Cybersecurity Services
Software Development Contracts

Risk Flags

Potential for cost overruns due to T&M pricing
Unclear scope of 'exclusion of sources' impacting competition
Long contract duration requires sustained oversight
Dependence on a single contractor for critical IT functions

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $33.4 million to STEAMPUNK, INC.. SERVICES FOR PRODUCT ENGINEERING AND ENTERPRISE DELIVERY (SPEED)

Who is the contractor on this award?

The obligated recipient is STEAMPUNK, INC..

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 $33.4 million.

What is the period of performance?

Start: 2021-07-01. End: 2026-02-28.

What is the track record of STEAMPUNK, INC. with federal contracts, particularly within DHS?

STEAMPUNK, INC. has a history of federal contracting, though specific details on their performance with DHS require a deeper dive into contract databases. Analyzing past performance reviews, contract modifications, and any reported disputes or awards can provide insight into their reliability and capability. For this specific contract, understanding their prior experience in 'Computer Systems Design Services' and 'Enterprise Delivery' is crucial. A review of their past projects, especially those of similar scope and value, would help assess their suitability and potential risks associated with their performance on this $33.4 million award.

How does the $33.4 million award compare to similar IT systems design contracts awarded by DHS or other agencies?

Comparing the $33.4 million award requires context regarding the specific services rendered and the duration. Contracts for 'Computer Systems Design Services' can vary widely in price based on complexity, technology stack, and the scope of integration. For enterprise-level IT delivery, this amount over approximately four years suggests a moderate-sized project. Benchmarking against similar contracts within DHS or agencies like the General Services Administration (GSA) or Department of Defense (DoD) would involve analyzing the number of users supported, the criticality of the systems, and the specific deliverables. Without task-order level data, a precise comparison is difficult, but it appears to be a significant investment in IT infrastructure.

What are the primary risks associated with the Time and Materials (T&M) pricing structure for this contract?

The primary risk with a Time and Materials (T&M) pricing structure is the potential for cost overruns, as the government pays for the actual labor hours and material costs incurred by the contractor. This can lead to unpredictable expenditures if the project scope is not well-defined or if contractor efficiency is low. For taxpayers, this means the final cost could exceed the initial $33.4 million estimate if not managed rigorously. Effective oversight, including detailed tracking of hours, labor categories, and material usage, is essential to mitigate these risks and ensure value for money. The government must actively manage the contractor's effort to prevent scope creep and ensure efficient resource utilization.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' in ensuring competitive pricing?

The effectiveness of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' in ensuring competitive pricing is nuanced. 'Full and open competition' is the gold standard, designed to maximize the number of potential bidders and drive down prices through market forces. However, the 'after exclusion of sources' clause introduces a potential limitation. If legitimate reasons exist for excluding certain sources (e.g., lack of capability, past performance issues), then the remaining competition can still be robust. Conversely, if sources are excluded without clear justification, it could artificially limit competition, potentially leading to higher prices for taxpayers. A thorough review of the justification for exclusion is necessary to assess its impact on price discovery.

What are the potential long-term implications of this contract on USCIS's IT infrastructure and service delivery?

This contract, with its focus on 'SERVICES FOR PRODUCT ENGINEERING AND ENTERPRISE DELIVERY (SPEED),' suggests a strategic initiative to enhance or modernize USCIS's IT infrastructure. The long duration (over 4 years) implies a commitment to significant system development, integration, or overhaul. Successful execution could lead to more efficient, secure, and user-friendly IT systems, ultimately improving the delivery of services to citizens and immigrants. Conversely, if the project faces delays, cost overruns, or fails to meet performance objectives, it could hinder USCIS's operational capabilities and lead to increased costs. The long-term impact hinges on effective program management and the contractor's ability to deliver on the defined objectives.

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

Solicitation ID: 70SBUR21R00000007

Offers Received: 35

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1753 PINNACLE DR STE 900, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $82,038,757

Exercised Options: $33,413,154

Current Obligation: $33,413,154

Actual Outlays: $19,420,709

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 75N98120D00251

IDV Type: GWAC

Timeline