DHS Coast Guard awards $25.3M contract for business operations support to Sev1Tech, LLC

Contract Overview

Contract Amount: $25,324,928 ($25.3M)

Contractor: Sev1tech, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2019-04-17

End Date: 2024-04-16

Contract Duration: 1,826 days

Daily Burn Rate: $13.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS IS FOR PROFESSIONAL SUPPORT SERVICES FOR THE BUSINESS OPERATIONS DIVISION (BOD) AT ALC.

Place of Performance

Location: ELIZABETH CITY, PASQUOTANK County, NORTH CAROLINA, 27909

State: North Carolina Government Spending

Plain-Language Summary

Department of Homeland Security obligated $25.3 million to SEV1TECH, LLC for work described as: THIS IS FOR PROFESSIONAL SUPPORT SERVICES FOR THE BUSINESS OPERATIONS DIVISION (BOD) AT ALC. Key points: 1. Contract provides professional support services for the Business Operations Division. 2. The contract duration is 5 years, indicating a long-term need for these services. 3. Sev1Tech, LLC, is the sole awardee for this delivery order. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The award was made under full and open competition after exclusion of sources. 6. The North Carolina-based contractor will provide services to the U.S. Coast Guard.

Value Assessment

Rating: good

The contract value of $25.3 million over five years suggests a significant investment in business operations support. Benchmarking this against similar professional support services contracts within DHS or other agencies would provide a clearer picture of value for money. The firm fixed-price structure is generally favorable for cost control, assuming the scope of work is well-defined and stable. Without specific performance metrics or comparisons to industry standards for similar support services, a definitive value assessment is challenging.

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,' indicating that while the competition was broad, specific sources may have been excluded based on predefined criteria. The presence of 6 bidders suggests a reasonably competitive environment. This level of competition is generally positive for price discovery and ensuring the government receives competitive offers. However, the 'exclusion of sources' aspect warrants further investigation to understand its potential impact on the breadth of competition.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down prices. The exclusion of sources, if justified, can streamline the process while still allowing for multiple bids.

Public Impact

The Business Operations Division (BOD) at the U.S. Coast Guard benefits from enhanced support services. Services are expected to improve the efficiency and effectiveness of business operations. The contract supports the Coast Guard's overall mission readiness and operational capabilities. Workforce implications include the potential for Sev1Tech, LLC to utilize its personnel in North Carolina or other locations to fulfill contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition type could limit the pool of potential bidders, potentially impacting price competitiveness.
Lack of detailed performance metrics makes it difficult to assess the true value and effectiveness of the services provided.
The long-term nature of the contract (5 years) requires ongoing vigilance to ensure continued value and alignment with evolving needs.

Positive Signals

The firm fixed-price contract type shifts cost risk to the contractor, potentially leading to more predictable expenses for the government.
Awarding to a single contractor after a competitive process can streamline management and ensure a dedicated focus on the BOD's needs.
The contract duration suggests a stable and ongoing requirement, indicating the services are critical to the agency's functions.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically supporting business operations. This sector is crucial for government efficiency, encompassing a wide range of support functions from administrative to strategic planning. The market for such services is large and competitive, with numerous firms capable of providing specialized support. The value of this contract is moderate within the broader context of federal IT and professional services spending.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Sev1Tech, LLC, is likely a large business given the contract value. There is no explicit information on subcontracting plans for small businesses. Further analysis would be needed to determine if small business participation is a requirement or if opportunities exist for them to engage with Sev1Tech, LLC.

Oversight & Accountability

Oversight for this contract would typically reside with the U.S. Coast Guard contracting officer and program managers. The firm fixed-price nature provides some cost control. Transparency is facilitated by the contract award notice. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. Specific performance monitoring mechanisms would be detailed in the contract's statement of work.

Related Government Programs

DHS Professional Support Services
Coast Guard Business Operations
Federal Management Consulting Services
Government Administrative Support Contracts

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Risk of scope creep in a long-term fixed-price contract.
Dependence on contractor performance for critical business operations.
Lack of detailed public information on performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $25.3 million to SEV1TECH, LLC. THIS IS FOR PROFESSIONAL SUPPORT SERVICES FOR THE BUSINESS OPERATIONS DIVISION (BOD) AT ALC.

Who is the contractor on this award?

The obligated recipient is SEV1TECH, 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 $25.3 million.

What is the period of performance?

Start: 2019-04-17. End: 2024-04-16.

What is Sev1Tech, LLC's track record with the Department of Homeland Security and the U.S. Coast Guard?

Sev1Tech, LLC has a history of receiving federal contracts, including those with the Department of Homeland Security (DHS) and its components like the U.S. Coast Guard. Analyzing their past performance on similar contracts is crucial. This includes examining past award values, contract durations, types of services rendered, and any reported performance issues or successes. A review of contract databases and performance assessment reports (if publicly available) would reveal their experience in providing professional support services, their ability to meet deadlines, and their overall client satisfaction within the federal space. Their specific experience with the Coast Guard's Business Operations Division would be a key indicator of their suitability for this particular award.

How does the $25.3 million contract value compare to similar business operations support contracts within the federal government?

The $25.3 million contract value over five years, averaging approximately $5 million annually, is a substantial but not extraordinary figure for professional support services within a large federal agency like the U.S. Coast Guard. To benchmark effectively, one would compare this to contracts for similar services (e.g., management consulting, administrative support, program management) awarded by other DHS components, the Department of Defense, or civilian agencies. Factors like the scope of work, required expertise, geographic location, and contract duration significantly influence pricing. If comparable contracts for similar scope and duration are consistently awarded at lower or higher price points, it would indicate whether this contract represents good, fair, or potentially over-valued pricing. The firm fixed-price nature also suggests a focus on predictable costs for the government.

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

Key risks include potential scope creep if the statement of work is not precisely defined, leading to cost overruns despite the fixed-price nature. Contractor performance failure is another risk; if Sev1Tech, LLC underperforms, it could disrupt the Coast Guard's business operations. Market volatility or changes in agency needs could also pose risks over the five-year period. Mitigation strategies likely include robust contract management by the Coast Guard, clear performance metrics and deliverables outlined in the contract, regular progress reviews, and potentially incentive clauses. The firm fixed-price structure itself mitigates financial risk for the government by capping costs, provided the scope is managed effectively. The exclusion of sources, while potentially streamlining, could also be a risk if it inadvertently excluded highly capable bidders.

How effective is the 'full and open competition after exclusion of sources' method in ensuring optimal value for taxpayer money in this context?

This competition method aims to balance broad market reach with specific requirements. 'Full and open competition' generally ensures a wide range of potential offerors can compete, fostering price reduction and innovation. However, the 'exclusion of sources' clause indicates that certain entities were deliberately not considered. The effectiveness in ensuring optimal value depends heavily on the justification for these exclusions. If the exclusions were based on legitimate, objective criteria (e.g., specific technical capabilities, past performance issues with certain contractors, or national security concerns), then the remaining competition among qualified bidders could still yield good value. If the exclusions were arbitrary or overly restrictive, they might have limited competition unnecessarily, potentially leading to higher prices or less optimal solutions than a truly open competition might have provided. The presence of 6 bidders suggests some level of competition was maintained.

What are the historical spending patterns for business operations support within the U.S. Coast Guard?

Analyzing historical spending patterns for business operations support within the U.S. Coast Guard is essential for context. This involves examining previous contracts for similar services, including their values, durations, awarded contractors, and competition levels. Understanding trends—whether spending has increased, decreased, or remained stable—can reveal shifts in agency priorities or operational needs. Comparing this $25.3 million award to past expenditures helps determine if it aligns with historical norms or represents a significant deviation. For instance, if previous support was handled by a larger number of smaller contracts or through different means (e.g., in-house staff), this single large award might signify a strategic shift. Consistent high spending in this area suggests a persistent need and potentially a mature market for these services.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12700 BLACK FOREST LN, WOODBRIDGE, VA, 22192

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

Financial Breakdown

Contract Ceiling: $34,617,093

Exercised Options: $29,689,437

Current Obligation: $25,324,928

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $25,784,035

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADS137

IDV Type: IDC

Timeline