DHS awards $41M IT services contract to STEAMPUNK, INC. for computer systems design

Contract Overview

Contract Amount: $41,057,595 ($41.1M)

Contractor: Steampunk, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2021-09-14

End Date: 2026-06-30

Contract Duration: 1,750 days

Daily Burn Rate: $23.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: ITSS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $41.1 million to STEAMPUNK, INC. for work described as: ITSS Key points: 1. Contract value of $41M over approximately 5 years suggests a significant investment in IT support. 2. The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', indicating a competitive process but with specific exclusions. 3. The 'TIME AND MATERIALS' pricing structure carries inherent risk of cost overruns if not closely managed. 4. The award to STEAMPUNK, INC. for computer systems design services positions them as a key provider for DHS. 5. The contract's duration and value warrant close monitoring for performance and cost-effectiveness. 6. The geographic location is Washington D.C., indicating a focus on the capital region's IT infrastructure needs.

Value Assessment

Rating: fair

The contract value of $41 million over nearly five years for IT systems design services is substantial. Benchmarking this against similar contracts for computer systems design services requires detailed analysis of scope and deliverables. The 'TIME AND MATERIALS' pricing model, while flexible, can lead to higher costs if not managed diligently, making direct value-for-money assessment challenging without detailed cost breakdowns and performance metrics. The contract's duration suggests a long-term need, but the pricing structure necessitates robust oversight to ensure fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the competition was intended to be broad, certain sources were excluded from the outset. The number of bidders is not specified, but the exclusion clause suggests a potentially narrowed field compared to a truly open competition. This could impact the level of price discovery and potentially lead to less competitive pricing than if all potential sources were allowed to bid.

Taxpayer Impact: Taxpayers may not have benefited from the full spectrum of competitive pricing that a completely open bid process could have offered. The exclusion of certain sources limits the government's ability to secure the absolute lowest price.

Public Impact

The primary beneficiaries are the Department of Homeland Security, which will receive computer systems design services. The services delivered are crucial for maintaining and potentially enhancing the IT infrastructure of a major federal agency. The geographic impact is centered in Washington D.C., suggesting support for operations within the capital region. The contract supports the IT workforce, likely involving skilled professionals in systems design and integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'TIME AND MATERIALS' pricing model presents a risk of cost escalation if not rigorously managed and monitored.
The 'EXCLUSION OF SOURCES' clause in the competition type warrants scrutiny to understand the rationale and potential impact on competition.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's efficiency and effectiveness.
The contract's significant value over a multi-year period requires sustained oversight to ensure continued value for money.

Positive Signals

The award was made under a competitive process, indicating that multiple entities likely vied for the contract.
The contract duration of nearly five years suggests a stable, long-term need for these IT services within DHS.
The award to STEAMPUNK, INC. signifies their capability to meet the complex IT design needs of a federal agency.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The federal IT services market is vast, with agencies consistently investing in maintaining and upgrading their technological infrastructure. Comparable spending benchmarks would involve analyzing other large-scale IT design and integration contracts awarded by federal agencies, considering factors like scope, duration, and specific service requirements. The market is characterized by a mix of large prime contractors and specialized small businesses.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The primary contractor, STEAMPUNK, INC., will likely manage the entire scope of work. However, depending on the specific nature of the computer systems design services, the prime contractor might engage subcontractors, which could include small businesses, though this is not explicitly detailed in the award information.

Oversight & Accountability

The Office of the Inspector General (OIG) for the Department of Homeland Security (sa: Office of the Inspector General) is likely responsible for overseeing this contract. Oversight mechanisms would typically include regular performance reviews, audits, and investigations into potential fraud, waste, or abuse. Transparency is generally facilitated through contract award databases and reporting requirements. The OIG's jurisdiction would extend to ensuring the contractor meets performance standards and adheres to contractual terms and conditions.

Related Government Programs

IT Systems Integration Services
Computer Facilities Management
IT Consulting Services
Software Development Services
Cloud Computing Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited competition due to exclusion of sources.
Need for robust oversight to manage contractor performance and costs.
Complexity of IT systems design requires specialized expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $41.1 million to STEAMPUNK, INC.. ITSS

Who is the contractor on this award?

The obligated recipient is STEAMPUNK, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of the Inspector General).

What is the total obligated amount?

The obligated amount is $41.1 million.

What is the period of performance?

Start: 2021-09-14. End: 2026-06-30.

What is the track record of STEAMPUNK, INC. in performing similar IT systems design services for federal agencies?

Assessing STEAMPUNK, INC.'s track record requires a deeper dive into their past performance history with federal contracts. This would involve reviewing past performance evaluations, any documented issues or commendations, and the complexity and scale of previous IT systems design projects they have undertaken. Federal procurement databases and agency performance information systems can provide insights into their reliability, quality of work, and adherence to schedules and budgets on prior engagements. Without specific historical data on STEAMPUNK, INC.'s performance, it is difficult to definitively gauge their suitability and past success in delivering comparable services.

How does the estimated cost per year for this contract compare to industry benchmarks for similar IT systems design services?

The total contract value is approximately $41 million over roughly 1750 days (approx. 4.8 years), equating to an average annual value of about $8.5 million. To benchmark this, one would compare this annual figure against the average cost of similar IT systems design services provided to large organizations. Factors influencing this comparison include the specific technologies involved, the complexity of the systems being designed, the level of expertise required, and the geographic location of the service delivery. A 'TIME AND MATERIALS' contract makes direct cost comparison difficult as it depends on actual hours worked and material costs, but the annual run rate can be a starting point for evaluating if the overall investment is within expected ranges for the scope of work.

What are the primary risks associated with the 'TIME AND MATERIALS' pricing structure for this contract?

The primary risk of a 'TIME AND MATERIALS' (T&M) contract is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual labor hours and material costs incurred. If the project scope is not well-defined, or if project management is weak on either the government or contractor side, the contractor may incur more hours or use more expensive materials than initially anticipated, driving up the total cost. This necessitates robust government oversight, including detailed tracking of hours, validation of material costs, and clear communication to manage scope creep and ensure efficient resource utilization to mitigate financial risk to the government.

What specific IT systems design services will STEAMPUNK, INC. be providing to the Department of Homeland Security under this contract?

The contract specifies 'Computer Systems Design Services' (na: 541512). This broad category typically encompasses a range of activities related to planning, designing, developing, and implementing computer systems. This could include requirements analysis, system architecture design, hardware and software selection and integration, network design, database design, and potentially project management for system implementation. The specific deliverables would be detailed in the contract's Statement of Work (SOW), outlining the exact systems or components to be designed, the methodologies to be used, and the expected outcomes for the Department of Homeland Security's IT infrastructure.

How does the competition level ('FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES') potentially impact the government's ability to secure competitive pricing?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation indicates that while the competition was intended to be broad, certain potential bidders were explicitly excluded. The reasons for exclusion could range from specific technical requirements not met by all vendors to pre-existing relationships or specific government directives. While it is still a form of competition, the exclusion narrows the field of potential offerors. This could limit the number of bids received and potentially reduce the downward pressure on pricing that a completely unrestricted open competition might generate. The government may have determined that the excluded sources were not capable or suitable, but the impact on price discovery is a key consideration.

What is the historical spending pattern for computer systems design services by the Department of Homeland Security?

Analyzing historical spending patterns for computer systems design services by DHS would involve examining procurement data over several fiscal years. This would reveal trends in contract values, types of services procured (e.g., design, integration, maintenance), primary contractors, and the overall budget allocated to this category. Understanding these patterns helps in assessing whether the current $41 million award is consistent with past investments, represents an increase or decrease in spending, and identifies any shifts in procurement strategies or reliance on specific vendors. Such analysis provides context for the current contract's significance and potential future spending trajectories.

Industry Classification

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

Product/Service Code: IT AND TELECOM - DATA CENTER

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: 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: $44,909,581

Exercised Options: $44,909,581

Current Obligation: $41,057,595

Actual Outlays: $24,789,939

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 75N98120D00251

IDV Type: GWAC

Timeline