Coast Guard awards $1.99M for Marine-Grade Computers for Chart System

Contract Overview

Contract Amount: $1,996,916 ($2.0M)

Contractor: Strategic Communications LLC

Awarding Agency: Department of Homeland Security

Start Date: 2020-09-14

End Date: 2025-09-13

Contract Duration: 1,825 days

Daily Burn Rate: $1.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DELIVERY ORDER FOR MARINE-GRADE RACK-MOUNT COMPUTERS FOR THE SECOND GENERATION COAST GUARD ELECTRONIC CHART DISPLAY&INFORMATION SYSTEM (CG-ECDIS-2) INSTALLED ON U.S. COAST GUARD CUTTERS.

Place of Performance

Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40243

State: Kentucky Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.0 million to STRATEGIC COMMUNICATIONS LLC for work described as: DELIVERY ORDER FOR MARINE-GRADE RACK-MOUNT COMPUTERS FOR THE SECOND GENERATION COAST GUARD ELECTRONIC CHART DISPLAY&INFORMATION SYSTEM (CG-ECDIS-2) INSTALLED ON U.S. COAST GUARD CUTTERS. Key points: 1. Contract supports critical navigation systems for U.S. Coast Guard cutters. 2. Competition method indicates potential for fair pricing. 3. Risk of obsolescence for specialized hardware needs consideration. 4. IT hardware procurement falls within a common government spending sector.

Value Assessment

Rating: good

The award amount of $1.99M for a 5-year delivery order appears reasonable for specialized marine-grade computing hardware. Benchmarking against similar custom IT hardware contracts would provide further validation.

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, suggesting a competitive bidding process. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: The competitive nature of the award is expected to yield a fair price, minimizing unnecessary taxpayer expenditure for essential Coast Guard equipment.

Public Impact

Ensures operational readiness of U.S. Coast Guard vessels. Supports advanced navigation and situational awareness for maritime safety. Procurement of specialized hardware may have long-term maintenance implications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for hardware obsolescence over the 5-year period.
Reliance on a single vendor for specialized marine-grade equipment.

Positive Signals

Full and open competition utilized.
Firm fixed price contract provides cost certainty.

Sector Analysis

This procurement falls under IT hardware for specialized applications. Government spending on IT infrastructure and systems is substantial, with benchmarks varying widely based on system complexity and hardware specifications.

Small Business Impact

The contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had an opportunity to compete or if set-aside goals were met.

Oversight & Accountability

The U.S. Coast Guard, under the Department of Homeland Security, is responsible for overseeing this contract. Standard procurement oversight processes should ensure compliance and performance.

Related Government Programs

Other Computer Related Services
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Hardware obsolescence risk
Potential for high cost of specialized equipment
Limited visibility into small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.0 million to STRATEGIC COMMUNICATIONS LLC. DELIVERY ORDER FOR MARINE-GRADE RACK-MOUNT COMPUTERS FOR THE SECOND GENERATION COAST GUARD ELECTRONIC CHART DISPLAY&INFORMATION SYSTEM (CG-ECDIS-2) INSTALLED ON U.S. COAST GUARD CUTTERS.

Who is the contractor on this award?

The obligated recipient is STRATEGIC COMMUNICATIONS 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 $2.0 million.

What is the period of performance?

Start: 2020-09-14. End: 2025-09-13.

What is the expected lifespan of this marine-grade hardware beyond the contract period, and what are the plans for sustainment and replacement?

The expected lifespan of marine-grade hardware is typically longer than standard commercial-off-the-shelf equipment due to its ruggedized nature. However, the 5-year contract period necessitates planning for potential obsolescence or end-of-life support. The Coast Guard should have a lifecycle management plan that addresses sustainment, repair, and eventual replacement to ensure continued operational capability and avoid costly emergency procurements.

How does the pricing of these specialized marine-grade computers compare to similar ruggedized or industrial-grade computing solutions available in the market?

Benchmarking specialized marine-grade computers against similar ruggedized or industrial-grade solutions is crucial. While marine-grade implies specific environmental resilience (saltwater, vibration), the core computing components might be comparable. The 'marine-grade' premium needs justification. If the price is significantly higher than comparable industrial solutions without clear added value for the specific application, it could indicate a potential overpayment or lack of aggressive price negotiation.

What measures are in place to ensure the long-term effectiveness and reliability of these computers in the demanding maritime environment?

Effectiveness and reliability in a maritime environment are ensured through stringent testing, certification, and quality assurance protocols during manufacturing and deployment. The 'marine-grade' designation implies adherence to specific standards (e.g., MIL-STD). The Coast Guard's acceptance testing and ongoing performance monitoring are critical. Furthermore, robust maintenance schedules and contingency plans for hardware failures are essential to guarantee sustained operational effectiveness throughout the system's lifecycle.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70Z04420R20008000

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 310 EVERGREEN RD # 100, LOUISVILLE, KY, 40243

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Joint Venture Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $1,996,916

Exercised Options: $1,996,916

Current Obligation: $1,996,916

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC90B

IDV Type: GWAC

Timeline