DHS awards $19.5M for TSA property management, highlighting competition challenges

Contract Overview

Contract Amount: $19,495,661 ($19.5M)

Contractor: Solutions Through Innovative Technologies Inc

Awarding Agency: Department of Homeland Security

Start Date: 2018-09-26

End Date: 2023-11-25

Contract Duration: 1,886 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF TASK ORDER 70T01018F3NPRO300 IS TO PROVIDE PROPERTY MANAGEMENT SUPPORT SERVICES FOR THE TRANSPORTATION SECURITY ADMINISTRATION (TSA).

Place of Performance

Location: COPPELL, DALLAS County, TEXAS, 75019

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $19.5 million to SOLUTIONS THROUGH INNOVATIVE TECHNOLOGIES INC for work described as: THE PURPOSE OF TASK ORDER 70T01018F3NPRO300 IS TO PROVIDE PROPERTY MANAGEMENT SUPPORT SERVICES FOR THE TRANSPORTATION SECURITY ADMINISTRATION (TSA). Key points: 1. Significant contract value for property management services. 2. Competition method raises questions about price discovery. 3. Long duration may impact cost-effectiveness. 4. Services are critical for TSA's operational infrastructure.

Value Assessment

Rating: fair

The contract value of $19.5M over five years for property management support is substantial. Benchmarking against similar TSA or DHS contracts for property management services would be necessary to fully assess value, but the duration and competition method suggest potential for overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method can restrict the pool of potential bidders and may not result in the most competitive pricing, potentially impacting price discovery.

Taxpayer Impact: The limited competition may lead to higher costs for taxpayers compared to a truly full and open competition, although the specific impact is difficult to quantify without further data.

Public Impact

Ensures continued operational support for TSA facilities. Supports the agency's mission of ensuring transportation security. Potential for cost savings if competition were broader.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition method
Long contract duration
Lack of clear small business participation

Positive Signals

Clear purpose and agency served
Firm fixed price contract type

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to property management. Spending in this area is crucial for maintaining government infrastructure, but efficiency can vary significantly based on contract structure and competition.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses on this contract. Further analysis would be needed to determine if small businesses had an opportunity to participate or if there were efforts to subcontract to them.

Oversight & Accountability

The contract was awarded by the Department of Homeland Security to support the Transportation Security Administration. Oversight would involve monitoring performance and adherence to the firm fixed price terms throughout the contract's duration.

Related Government Programs

Engineering Services
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Limited competition may result in suboptimal pricing.
Long contract duration increases risk of cost escalation.
Potential for service obsolescence over the contract term.
Lack of transparency regarding source exclusion.
No clear indication of small business utilization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $19.5 million to SOLUTIONS THROUGH INNOVATIVE TECHNOLOGIES INC. THE PURPOSE OF TASK ORDER 70T01018F3NPRO300 IS TO PROVIDE PROPERTY MANAGEMENT SUPPORT SERVICES FOR THE TRANSPORTATION SECURITY ADMINISTRATION (TSA).

Who is the contractor on this award?

The obligated recipient is SOLUTIONS THROUGH INNOVATIVE TECHNOLOGIES INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $19.5 million.

What is the period of performance?

Start: 2018-09-26. End: 2023-11-25.

What was the rationale for excluding sources in the competition, and did it lead to a fair price?

The specific rationale for excluding sources under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is not provided. This method inherently limits competition, which can lead to higher prices than a truly open bid process. Without details on the exclusion criteria or comparative bids, assessing price fairness is challenging.

How does the five-year duration impact the risk of cost overruns or outdated service delivery?

A five-year duration for property management services carries a moderate risk of cost overruns if market rates increase significantly or if the scope of work evolves beyond initial projections. It also increases the risk of service delivery becoming outdated if technology or best practices advance rapidly within the sector during the contract period.

What is the expected effectiveness of property management services under this contract for TSA's mission?

The effectiveness is expected to be high in terms of maintaining TSA's physical assets and facilities, directly supporting their transportation security mission. However, the limited competition and long duration introduce risks that could diminish overall effectiveness if not actively managed through performance monitoring and potential contract modifications.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70T01018R3NPRO300

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3152 PRESIDENTIAL DR, FAIRBORN, OH, 45324

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,703,711

Exercised Options: $19,703,711

Current Obligation: $19,495,661

Actual Outlays: $5,866,254

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $3,391,382

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS139

IDV Type: IDC

Timeline