Coast Guard's $2.5M technical support contract awarded to Dynamo Technologies, LLC, with limited competition

Contract Overview

Contract Amount: $2,555,121 ($2.6M)

Contractor: Dynamo Technologies, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2020-08-11

End Date: 2023-09-28

Contract Duration: 1,143 days

Daily Burn Rate: $2.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS IS A FIRM, FIXED-PRICED CONTRACT FOR TECHNICAL AND PROGRAM MANAGEMENT SUPPORT SERVICES FOR THE U.S. COAST GUARD (USCG) HEADQUARTERS OFFICE OF SPECIALIZED CAPABILITIES (CG-721) IN ACCORDANCE WITH ATTACHMENT 1 - STATEMENT OF WORK.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20593

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.6 million to DYNAMO TECHNOLOGIES, LLC for work described as: THIS IS A FIRM, FIXED-PRICED CONTRACT FOR TECHNICAL AND PROGRAM MANAGEMENT SUPPORT SERVICES FOR THE U.S. COAST GUARD (USCG) HEADQUARTERS OFFICE OF SPECIALIZED CAPABILITIES (CG-721) IN ACCORDANCE WITH ATTACHMENT 1 - STATEMENT OF WORK. Key points: 1. The contract provides essential technical and program management support to the U.S. Coast Guard's Office of Specialized Capabilities. 2. Awarded as a definitive contract, it signifies a long-term commitment for specialized services. 3. The firm-fixed-price structure aims to control costs by establishing a set price for the services rendered. 4. Limited competition raises questions about potential price discovery and value for taxpayer dollars. 5. The contract duration of over three years suggests a significant need for ongoing support. 6. The services are categorized under 'Other Scientific and Technical Consulting Services,' indicating a focus on specialized expertise.

Value Assessment

Rating: fair

Benchmarking the value of this $2.56 million contract is challenging without more detailed cost breakdowns or comparisons to similar support services. The firm-fixed-price nature suggests an attempt to control costs, but the lack of robust competition could mean the government did not secure the most competitive pricing. Without data on the specific deliverables and their market rates, a definitive value assessment is difficult. However, the duration and scope indicate a substantial investment in specialized support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed broadly, falling under a 'not available for competition' category. This suggests that either a specific exception to full and open competition was invoked, or the requirement was tailored in a way that only one vendor could meet. The limited competition means there were likely few, if any, other bidders, which can reduce the pressure on pricing and potentially lead to higher costs for the government compared to a fully competed contract.

Taxpayer Impact: The limited competition means taxpayers may not have received the benefit of the lowest possible price that could have been achieved through a wider bidding process. This could result in a less efficient use of public funds.

Public Impact

The U.S. Coast Guard's Office of Specialized Capabilities benefits from enhanced technical and program management support. This contract ensures the continued operational effectiveness and modernization efforts of specialized Coast Guard programs. The services delivered are crucial for maintaining and improving the Coast Guard's advanced capabilities. The primary geographic impact is within the District of Columbia, where Coast Guard Headquarters is located. The contract supports specialized technical roles, potentially impacting a skilled workforce within the consulting services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than could have been achieved through a broader solicitation.
Lack of transparency in the justification for limited competition makes it difficult to assess if taxpayer funds were used optimally.
The long-term nature of the contract could create vendor lock-in, reducing future flexibility.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
Awarding to Dynamo Technologies, LLC, suggests they possess the specialized skills required by the Coast Guard.
The contract supports critical functions within the Office of Specialized Capabilities, indicating alignment with strategic goals.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically 'Other Scientific and Technical Consulting Services' (NAICS 541690). This sector is characterized by firms providing specialized expertise to government and commercial clients. The U.S. Coast Guard, as part of the Department of Homeland Security, relies on such services for complex technical and program management needs, particularly in areas requiring advanced capabilities. Comparable spending in this sector often involves significant investments in areas like cybersecurity, engineering support, and strategic planning.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The focus appears to be on securing specialized capabilities, with the primary contractor being Dynamo Technologies, LLC.

Oversight & Accountability

Oversight for this contract would typically reside with the U.S. Coast Guard contracting officer and program managers. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency is generally maintained through contract award databases, but specific performance metrics and detailed oversight reports may not be publicly available. The Department of Homeland Security's Office of Inspector General could potentially audit this contract if specific concerns arise regarding performance or financial management.

Related Government Programs

U.S. Coast Guard IT Support Services
Department of Homeland Security Program Management Support
Federal Technical Consulting Contracts
Defense and Security Support Services

Risk Flags

Limited Competition
Potential for Overpricing
Lack of Detailed Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.6 million to DYNAMO TECHNOLOGIES, LLC. THIS IS A FIRM, FIXED-PRICED CONTRACT FOR TECHNICAL AND PROGRAM MANAGEMENT SUPPORT SERVICES FOR THE U.S. COAST GUARD (USCG) HEADQUARTERS OFFICE OF SPECIALIZED CAPABILITIES (CG-721) IN ACCORDANCE WITH ATTACHMENT 1 - STATEMENT OF WORK.

Who is the contractor on this award?

The obligated recipient is DYNAMO TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2020-08-11. End: 2023-09-28.

What specific technical and program management support services are detailed in Attachment 1 - Statement of Work?

Attachment 1, the Statement of Work (SOW), would detail the precise nature of the technical and program management support required by the U.S. Coast Guard's Office of Specialized Capabilities (CG-721). This typically includes tasks such as project planning, execution oversight, risk management, technical analysis, system integration support, documentation, and potentially advising on technology adoption or upgrades. The SOW is critical for understanding the scope of work, deliverables, performance standards, and the specific expertise Dynamo Technologies, LLC is expected to provide to ensure the Coast Guard's specialized capabilities are effectively managed and advanced.

What was the justification for awarding this contract on a 'not available for competition' basis?

The 'not available for competition' designation indicates that the contract was awarded without a full and open competitive process. Federal Acquisition Regulation (FAR) Part 6 outlines the policies for contracting without full and open competition. Common justifications include that only one responsible source can satisfy agency requirements (e.g., unique capabilities, proprietary data), or that the agency is a sole-source acquisition for a specific reason. Without the specific justification document (e.g., a Justification and Approval - J&A), it's impossible to know the exact reason. This lack of competition warrants scrutiny to ensure it was a necessary exception and not a missed opportunity for better pricing.

How does the $2.56 million contract value compare to similar technical support contracts for federal agencies?

Comparing the $2.56 million value requires context on the duration and scope of services. For a contract spanning over three years (1143 days), this equates to roughly $700,000 per year. This figure can be considered moderate for specialized technical and program management support within the federal government, especially for agencies like the Coast Guard with complex operational needs. However, without knowing the specific deliverables, labor mix, and required expertise, a direct comparison is difficult. Contracts for similar services can range from hundreds of thousands to tens of millions of dollars annually, depending on the agency's mission, the criticality of the support, and the level of expertise required.

What is Dynamo Technologies, LLC's track record with the U.S. Coast Guard or Department of Homeland Security?

Dynamo Technologies, LLC's track record with the U.S. Coast Guard (USCG) and the broader Department of Homeland Security (DHS) is a key indicator of their capability and reliability. Information from contract databases (like FPDS or SAM.gov) would reveal previous awards, contract types, and performance history. A history of successful contract performance, particularly with similar agencies or for comparable services, would suggest a lower performance risk for this current contract. Conversely, any past performance issues, disputes, or contract terminations would raise concerns about their ability to meet the requirements effectively and on time.

What are the potential risks associated with a firm-fixed-price contract for these services?

While firm-fixed-price (FFP) contracts are generally preferred for cost control, they carry specific risks. For the contractor, the primary risk is performing the work within the agreed-upon price, especially if unforeseen technical challenges or scope creep occur. For the government, the risk is that the contractor may cut corners on quality or service to maintain profitability if the price was set too low or if performance issues arise. In this case, with limited competition, the risk is that the FFP might be higher than it would have been under a competitive scenario, and the government has less flexibility to adjust the scope or price if needs evolve significantly.

How does this contract align with the U.S. Coast Guard's strategic objectives for specialized capabilities?

This contract directly supports the U.S. Coast Guard's (USCG) mission by providing essential technical and program management services to the Office of Specialized Capabilities (CG-721). Specialized capabilities often encompass advanced technologies, unique operational platforms, or critical mission support systems. By ensuring robust program management and technical expertise, the USCG can more effectively develop, implement, and maintain these specialized assets. This alignment is crucial for the Coast Guard to fulfill its diverse roles, from maritime security and law enforcement to search and rescue and environmental protection, particularly in areas requiring cutting-edge solutions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70Z02320RMNC01200

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1951 KIDWELL DR STE 550, VIENNA, VA, 22182

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,456,206

Exercised Options: $2,555,121

Current Obligation: $2,555,121

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline