DHS awards $11.9M for Kronos software and services to IMMIX TECHNOLOGY INC

Contract Overview

Contract Amount: $11,884,782 ($11.9M)

Contractor: Immixtechnology Inc

Awarding Agency: Department of Homeland Security

Start Date: 2024-08-01

End Date: 2026-07-31

Contract Duration: 729 days

Daily Burn Rate: $16.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DELIVERY ORDER FOR KRONOS SOFTWARE, HARDWARE, AND MAINTENANCE

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $11.9 million to IMMIXTECHNOLOGY INC for work described as: DELIVERY ORDER FOR KRONOS SOFTWARE, HARDWARE, AND MAINTENANCE Key points: 1. Value for money appears fair given the scope of software, hardware, and maintenance. 2. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 3. Risk indicators are moderate, with a firm-fixed-price contract type mitigating cost overrun risks. 4. Performance is context-dependent on the successful delivery of Kronos solutions. 5. This contract falls within the IT services sector, specifically computer-related services.

Value Assessment

Rating: fair

The contract value of $11.9 million over two years for software, hardware, and maintenance is within a reasonable range for enterprise-level solutions. Benchmarking against similar large-scale IT service contracts suggests this pricing is competitive, especially considering the inclusion of hardware and ongoing support. The firm-fixed-price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of a competitive bidding process generally leads to better price discovery and potentially lower costs for the government. The specific number of bidders is not provided, but the competition type suggests a healthy market response.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value and pricing for essential IT services.

Public Impact

The Transportation Security Administration (TSA) is the primary beneficiary, receiving critical software and hardware. Services delivered include Kronos software, hardware, and ongoing maintenance, ensuring operational continuity. The geographic impact is primarily within the TSA's operational areas. Workforce implications are tied to the efficient management and utilization of TSA personnel through the Kronos system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future upgrades or expansions are heavily reliant on IMMIX TECHNOLOGY INC.
Dependence on a single vendor for critical software and hardware could pose supply chain risks.
Ensuring continued technical support and software updates meet evolving TSA needs.

Positive Signals

Firm-fixed-price contract type limits cost escalation risks for the government.
Full and open competition suggests a robust market offering competitive solutions.
The contract duration provides stability for essential IT services.

Sector Analysis

This contract falls within the broader IT services sector, specifically 'Other Computer Related Services' (NAICS 541519). This category encompasses a wide range of IT support and services. The market for enterprise resource planning (ERP) software and associated services, like those provided by Kronos, is substantial, with significant government and commercial spending. Comparable spending benchmarks would involve looking at other large federal contracts for similar workforce management software and IT support.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless IMMIX TECHNOLOGY INC. voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices, with specific oversight by the Transportation Security Administration. The firm-fixed-price nature of the contract simplifies some aspects of financial oversight. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Workforce Management Systems
IT Software and Hardware Procurement
Department of Homeland Security IT Services
Transportation Security Administration Operations Support

Risk Flags

Potential for vendor lock-in
Dependence on single provider for critical systems
Ensuring continued technical support and software updates

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $11.9 million to IMMIXTECHNOLOGY INC. DELIVERY ORDER FOR KRONOS SOFTWARE, HARDWARE, AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is IMMIXTECHNOLOGY 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 $11.9 million.

What is the period of performance?

Start: 2024-08-01. End: 2026-07-31.

What is the track record of IMMIX TECHNOLOGY INC. with federal contracts, particularly for IT services and software?

IMMIX TECHNOLOGY INC. has a history of performing federal contracts, primarily within the IT services domain. Analysis of their contract history reveals a pattern of providing hardware, software, and related support services to various government agencies. While specific performance metrics for past contracts are not detailed here, their continued awards suggest a satisfactory performance record. It is important to review past performance evaluations and any reported issues for this contractor to fully assess their reliability for this specific delivery order. Their experience with similar software solutions and maintenance agreements would be a key indicator of their capability to fulfill the requirements of this contract effectively.

How does the pricing of this $11.9 million contract compare to similar IT service contracts awarded by the TSA or DHS?

Benchmarking this $11.9 million contract requires comparing it against similar IT service contracts for workforce management software, hardware, and maintenance awarded by the TSA or DHS. Given the firm-fixed-price structure and the two-year duration, the annual cost is approximately $5.95 million. This figure needs to be assessed against the scope of services, the specific Kronos modules licensed, the quantity of hardware, and the level of maintenance and support included. Without detailed service level agreements and specific product breakdowns, a precise comparison is challenging. However, for enterprise-level IT solutions of this nature, this value appears to be within a competitive range, assuming the scope is comprehensive and aligns with market rates for similar offerings.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential vendor lock-in, dependence on a single provider for critical software and hardware, and ensuring that the delivered solution meets the evolving operational needs of the TSA. Vendor lock-in is a common risk in specialized software contracts. Mitigation strategies include the firm-fixed-price contract type, which caps costs, and the initial award through full and open competition, which implies market alternatives exist. The contract duration of two years allows for periodic reassessment of needs and market conditions. Effective mitigation also relies on robust contract management by the TSA to monitor performance, ensure adherence to service level agreements, and proactively address any emerging technical or support issues.

How effective is the Kronos software and associated services likely to be in supporting the TSA's operational goals?

The effectiveness of the Kronos software and associated services in supporting the TSA's operational goals is contingent on several factors. Kronos is a widely recognized leader in workforce management solutions, offering capabilities in timekeeping, scheduling, payroll, and HR functions. If the TSA is leveraging these core functionalities to optimize staffing, manage labor costs, ensure compliance, and improve employee productivity, the potential for effectiveness is high. The success will depend on the proper implementation, user adoption, integration with existing TSA systems, and the ongoing quality of maintenance and support provided by IMMIX TECHNOLOGY INC. A clear understanding of the specific TSA objectives driving this procurement is crucial for a definitive assessment of its likely effectiveness.

What has been the historical spending pattern for similar IT services or Kronos solutions by the Department of Homeland Security?

Historical spending patterns by the Department of Homeland Security (DHS) on IT services and workforce management solutions like Kronos can provide valuable context. While specific historical data for DHS's spending on Kronos is not provided in this dataset, agencies of DHS's size and complexity typically invest significantly in such systems. Past procurements often involve substantial multi-year contracts for software licenses, implementation, hardware, and ongoing maintenance. Analyzing DHS's broader IT spending trends, particularly in areas like human capital management and operational support systems, would reveal patterns of investment and the typical contract values associated with enterprise-level solutions. This helps in understanding if the current $11.9 million award is consistent with historical investment levels or represents a significant shift.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70T03024Q7667N041

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arrow Electronics, Inc.

Address: 8444 WESTPARK DR STE 200, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $11,884,782

Exercised Options: $11,884,782

Current Obligation: $11,884,782

Actual Outlays: $4,051,196

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SC39B

IDV Type: GWAC

Timeline