Coast Guard awards $25.8M for C2 Afloat Integration Support, with 5 bidders competing

Contract Overview

Contract Amount: $25,832,207 ($25.8M)

Contractor: Validatek-Citi, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2020-08-27

End Date: 2025-08-28

Contract Duration: 1,827 days

Daily Burn Rate: $14.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: COMMAND AND CONTROL AFLOAT INTEGRATION SUPPORT SERVICES. CONTRACTOR SUPPORT TO INCLUDE SYSTEM ENGINEERING, SOFTWARE ENGINEERING, HARDWARE ENGINEERING, NETWORK ENGINEERING, TEST ENGINEERING, ELECTRONIC ENGINEERING, AND TECHNICAL WRITING.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $25.8 million to VALIDATEK-CITI, LLC for work described as: COMMAND AND CONTROL AFLOAT INTEGRATION SUPPORT SERVICES. CONTRACTOR SUPPORT TO INCLUDE SYSTEM ENGINEERING, SOFTWARE ENGINEERING, HARDWARE ENGINEERING, NETWORK ENGINEERING, TEST ENGINEERING, ELECTRONIC ENGINEERING, AND TECHNICAL WRITING. Key points: 1. Contract provides essential engineering and technical writing support for command and control systems. 2. Competition level suggests a potentially competitive pricing environment. 3. Firm-fixed-price contract type shifts cost risk to the contractor. 4. Contract duration of nearly five years indicates a long-term need for these services. 5. The award is a delivery order under a larger contract vehicle. 6. Contractor has experience in systems engineering and software development.

Value Assessment

Rating: good

The total contract value of $25.8 million over approximately five years appears reasonable for the scope of services, which includes system engineering, software engineering, hardware engineering, network engineering, test engineering, electronic engineering, and technical writing. Benchmarking against similar IT support contracts for federal agencies, particularly within the Department of Homeland Security, suggests this pricing is within expected ranges. The firm-fixed-price structure further supports value by incentivizing contractor efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that while competition was sought, certain sources may have been excluded based on specific criteria. With 5 bidders, the competition level is moderate, suggesting that the government received multiple proposals. This level of competition is generally sufficient to promote price discovery and encourage competitive bidding, though it may not be as robust as a completely unrestricted full and open competition.

Taxpayer Impact: The moderate competition level likely resulted in a fair market price for taxpayers, avoiding the potential overpricing associated with sole-source awards. However, a broader competition might have yielded even more aggressive pricing.

Public Impact

The U.S. Coast Guard benefits from enhanced command and control capabilities for its afloat assets. Services delivered include critical system engineering, software development, and technical documentation. The geographic impact is primarily within Coast Guard operational areas, supporting maritime security and safety. Workforce implications include support for specialized engineering and technical roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the contractor's proprietary solutions become deeply integrated.
Reliance on a single delivery order under a potentially larger contract vehicle could limit future flexibility.
Scope creep is a risk in long-term engineering support contracts if not managed tightly.

Positive Signals

Firm-fixed-price contract type aligns incentives for cost control.
Moderate competition among 5 bidders suggests a competitive pricing environment.
Contractor's broad range of engineering disciplines covers diverse technical needs.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. The U.S. Coast Guard, as part of DHS, requires sophisticated command and control (C2) systems to manage its diverse maritime operations. Spending in this area is crucial for maintaining operational readiness and modernizing legacy systems. Comparable spending benchmarks for similar engineering and integration support services for defense and homeland security agencies often range in the tens to hundreds of millions of dollars over several years, depending on the complexity and scale.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, VALIDATEK-CITI, LLC, is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this data. The absence of a small business set-aside suggests that opportunities for small businesses may be limited to potential subcontracting roles, if any, awarded by the prime contractor.

Oversight & Accountability

Oversight for this contract is managed by the U.S. Coast Guard, a component of the Department of Homeland Security. As a firm-fixed-price contract, oversight will focus on performance delivery against requirements and adherence to the contract schedule. Transparency is facilitated through contract award databases like FPDS. While specific Inspector General (IG) jurisdiction isn't detailed here, the DHS Office of Inspector General typically has oversight over DHS contracts, including those awarded by the Coast Guard, to ensure efficiency and prevent fraud.

Related Government Programs

Department of Homeland Security IT Modernization Programs
U.S. Coast Guard Command and Control Systems
Federal Civilian IT Services Contracts
System Engineering and Integration Support

Risk Flags

Contract duration exceeds 3 years
Contract type is Firm Fixed Price
Competition level is moderate (5 bidders)

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $25.8 million to VALIDATEK-CITI, LLC. COMMAND AND CONTROL AFLOAT INTEGRATION SUPPORT SERVICES. CONTRACTOR SUPPORT TO INCLUDE SYSTEM ENGINEERING, SOFTWARE ENGINEERING, HARDWARE ENGINEERING, NETWORK ENGINEERING, TEST ENGINEERING, ELECTRONIC ENGINEERING, AND TECHNICAL WRITING.

Who is the contractor on this award?

The obligated recipient is VALIDATEK-CITI, 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 $25.8 million.

What is the period of performance?

Start: 2020-08-27. End: 2025-08-28.

What is the track record of VALIDATEK-CITI, LLC with the federal government, particularly in providing command and control integration support?

VALIDATEK-CITI, LLC has a history of federal contracting, primarily within the Department of Homeland Security and other agencies requiring IT and engineering services. While specific details on their past performance on C2 afloat integration are not provided in this data snippet, their award for this contract suggests they possess the requisite capabilities and experience. A deeper dive into their contract history, past performance reviews, and any prior C2-related projects would offer a more comprehensive understanding of their track record. Federal procurement databases often contain award histories and sometimes performance metrics that can shed light on their reliability and expertise in similar domains.

How does the $25.8 million contract value compare to similar C2 integration support contracts awarded by the Coast Guard or DHS?

The $25.8 million contract value for approximately 1827 days (roughly 5 years) of Command and Control Afloat Integration Support Services appears to be within a reasonable range for specialized federal IT and engineering support. To provide a precise comparison, one would need to benchmark against contracts with similar scopes (system engineering, software/hardware/network engineering, test engineering, technical writing) and durations awarded by the U.S. Coast Guard or other Department of Homeland Security components. Factors like the specific technologies involved, the number of platforms supported, and the level of security clearance required can significantly influence pricing. However, given the moderate competition (5 bidders) and firm-fixed-price structure, the value is likely competitive for the services rendered.

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

Key risks include potential technical obsolescence of C2 systems over the contract's five-year duration, the possibility of scope creep if requirements are not clearly defined and managed, and contractor performance issues. Mitigation strategies are embedded in the contract structure: the firm-fixed-price (FFP) nature shifts cost overrun risks to the contractor, incentivizing efficiency. The moderate competition (5 bidders) suggests a market that can provide qualified vendors, reducing the risk of selecting an underperforming contractor. Clear performance work statements (PWS), regular progress reviews, and defined acceptance criteria are crucial for managing technical risks and scope. The Coast Guard's contract management team will be responsible for active oversight.

How effective is the 'full and open competition after exclusion of sources' approach in ensuring value for money for this specific contract?

The 'full and open competition after exclusion of sources' approach aims to balance broad competition with specific requirements that might necessitate excluding certain vendors. In this case, with 5 bidders, it achieved a moderate level of competition, which is generally effective in driving competitive pricing and ensuring multiple vendors have a chance to propose. This method can be valuable when specific technical expertise or security clearances are paramount, justifying the exclusion of vendors who don't meet these stringent criteria. While potentially less competitive than unrestricted full and open competition, it likely provided better value than a sole-source award, ensuring the Coast Guard received proposals from qualified, albeit potentially pre-screened, sources.

What are the historical spending patterns for Command and Control Afloat Integration Support Services within the U.S. Coast Guard?

Historical spending patterns for C2 Afloat Integration Support Services within the U.S. Coast Guard would likely show a consistent need for such services, reflecting the Coast Guard's reliance on technology for its operational missions. Spending may fluctuate based on modernization initiatives, the lifecycle of existing C2 systems, and budget allocations. Analyzing past contracts for similar services, including their values, durations, and competition levels, would reveal trends. For instance, periods of significant fleet modernization or upgrades to communication infrastructure would likely correlate with increased spending in this category. This $25.8M award represents a significant investment, suggesting a current focus on enhancing or maintaining these critical systems.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70Z044R2020000500

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1660 INTERNATIONAL DRIVE, STE 400, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,832,207

Exercised Options: $25,832,207

Current Obligation: $25,832,207

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200106W

IDV Type: GWAC

Timeline