DHS awards $5.16M contract for Alaska utility, geotechnical, and environmental services to Transystems Corporation

Contract Overview

Contract Amount: $5,160,393 ($5.2M)

Contractor: Transystems Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2024-04-19

End Date: 2026-04-15

Contract Duration: 726 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TASK 1: UTILITY, PPI, SURVEYS. TASK 2: GEOTECH INVESTIGATION. TASK 3: ENVIRO DOCUMENTATION/SAMPLING. TASK 4: ENVIRO ASSESSMENT/PERMITS. OPTION 4: UXO: REMOVE/DISPOSE.

Place of Performance

Location: KODIAK, KODIAK ISLAND County, ALASKA, 99615

State: Alaska Government Spending

Plain-Language Summary

Department of Homeland Security obligated $5.2 million to TRANSYSTEMS CORPORATION for work described as: TASK 1: UTILITY, PPI, SURVEYS. TASK 2: GEOTECH INVESTIGATION. TASK 3: ENVIRO DOCUMENTATION/SAMPLING. TASK 4: ENVIRO ASSESSMENT/PERMITS. OPTION 4: UXO: REMOVE/DISPOSE. Key points: 1. Contract focuses on essential infrastructure support services in Alaska, including utility, geotechnical, and environmental assessments. 2. The firm-fixed-price contract structure aims to control costs by establishing a set price for services. 3. Competition was full and open, suggesting a robust bidding process that should yield competitive pricing. 4. The contract duration of 726 days indicates a significant, multi-year commitment to these critical services. 5. Services include specialized tasks like UXO (unexploded ordnance) removal, highlighting potential environmental and safety risks. 6. The geographic focus on Alaska presents unique logistical and operational challenges.

Value Assessment

Rating: good

The contract value of $5.16 million for a 726-day period appears reasonable given the specialized nature of the services and the challenging Alaskan environment. Benchmarking against similar multi-task engineering and environmental support contracts in remote or hazardous locations would provide further insight. The firm-fixed-price (FFP) award type suggests that the government has a clear understanding of the scope and is seeking cost certainty, which is generally a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With two bids received, the competition level was moderate. While more bidders could potentially drive prices lower, full and open competition generally ensures a fair process and allows the government to select the best value offer.

Taxpayer Impact: Full and open competition, even with two bidders, provides a baseline for fair pricing and ensures taxpayer funds are used efficiently by selecting from a range of qualified offerors.

Public Impact

The U.S. Coast Guard benefits from enhanced operational readiness and infrastructure support in Alaska. Services include critical utility, geotechnical, and environmental documentation and assessment, ensuring compliance and safety. The geographic impact is concentrated in Alaska, addressing specific regional needs. The contract supports specialized engineering and environmental services, potentially involving a skilled workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen environmental hazards (like UXO) are more extensive than anticipated.
Logistical complexities in remote Alaska could lead to delays and increased operational costs.
Limited competition (2 bidders) might not have fully explored the lowest possible price point.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition process aims for best value.
Contract addresses critical infrastructure and environmental needs in a challenging region.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which encompasses a wide range of professional services related to engineering design, consulting, and project management. The market for these services is competitive, with numerous firms capable of undertaking complex projects. The specific tasks, including environmental assessments and UXO disposal, indicate a specialized niche within the broader engineering services market, often requiring specific certifications and expertise, particularly in challenging environments like Alaska.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless Transystems Corporation actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Coast Guard contracting officer and their representatives. Transparency is facilitated through contract award databases like FPDS. Accountability measures are inherent in the firm-fixed-price structure, requiring the contractor to deliver specified services within the agreed budget. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Homeland Security - General Services
U.S. Coast Guard - Infrastructure Support
Environmental Consulting Services
Geotechnical Engineering Services
Utility Infrastructure Services
Alaska Regional Contracts

Risk Flags

Potential for UXO discovery requires specialized safety protocols.
Logistical challenges in remote Alaska may impact schedule and cost.
Environmental compliance risks need careful management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $5.2 million to TRANSYSTEMS CORPORATION. TASK 1: UTILITY, PPI, SURVEYS. TASK 2: GEOTECH INVESTIGATION. TASK 3: ENVIRO DOCUMENTATION/SAMPLING. TASK 4: ENVIRO ASSESSMENT/PERMITS. OPTION 4: UXO: REMOVE/DISPOSE.

Who is the contractor on this award?

The obligated recipient is TRANSYSTEMS CORPORATION.

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 $5.2 million.

What is the period of performance?

Start: 2024-04-19. End: 2026-04-15.

What is Transystems Corporation's track record with the Department of Homeland Security and the U.S. Coast Guard?

A review of federal procurement data indicates that Transystems Corporation has a history of receiving contracts from various federal agencies, including the Department of Homeland Security and its components like the U.S. Coast Guard. While this specific award is for engineering and environmental services, their past performance across different contract types and agencies would be a key factor in assessing their suitability. Analyzing the value, duration, and complexity of previous awards, as well as any performance reviews or disputes, would provide a more comprehensive understanding of their reliability and capability in fulfilling government requirements. Without specific historical data on their performance with DHS/USCG, it's difficult to definitively assess their track record beyond their general presence in the federal contracting space.

How does the $5.16 million contract value compare to similar engineering and environmental services contracts in Alaska?

Benchmarking the $5.16 million contract value requires comparing it against similar contracts for utility, geotechnical, and environmental services awarded within Alaska over a comparable timeframe and duration (726 days). Contracts in Alaska often command higher prices due to logistical challenges, remote locations, and specialized labor requirements. A preliminary assessment suggests the value is within a reasonable range for multi-faceted support in such an environment. However, a detailed analysis would involve identifying comparable contracts, adjusting for inflation and scope differences, and examining the number of bidders and award types. The presence of specialized tasks like UXO removal further complicates direct comparisons, as these can significantly increase project costs.

What are the primary risks associated with this contract, particularly concerning environmental compliance and safety?

The primary risks associated with this contract stem from the nature of the services and the operating environment. Environmental risks include potential discovery of hazardous materials beyond initial assessments, leading to increased remediation costs and delays. The specific mention of UXO (unexploded ordnance) removal presents a significant safety risk to personnel and requires specialized handling and disposal protocols. Logistical challenges in remote Alaskan locations increase the risk of supply chain disruptions, equipment failure, and extended timelines. Furthermore, ensuring compliance with stringent federal and state environmental regulations throughout the project lifecycle is critical. The firm-fixed-price nature of the contract means that the contractor bears the risk of cost overruns related to these factors, but significant issues could still impact project completion and potentially lead to claims or disputes.

What is the expected program effectiveness and impact of these services for the U.S. Coast Guard's operations in Alaska?

The program's effectiveness is expected to be high, as the services directly support the U.S. Coast Guard's operational readiness and infrastructure integrity in Alaska. By ensuring the reliability of utilities, understanding the geotechnical stability of sites, and managing environmental documentation and permits, the Coast Guard can maintain and enhance its facilities and operational capabilities. This includes supporting critical missions such as search and rescue, maritime law enforcement, and port security in a region with unique environmental and operational demands. The environmental assessments and potential UXO remediation contribute to safe and compliant operations, minimizing risks to personnel and the environment. Ultimately, the contract's success will be measured by the timely and effective delivery of these foundational support services, enabling the Coast Guard to fulfill its mission objectives.

How has federal spending on engineering and environmental services in Alaska trended in recent years?

Federal spending on engineering and environmental services in Alaska has generally remained substantial due to the region's vastness, critical infrastructure needs, and environmental sensitivities. Agencies like the Department of Defense, Department of the Interior, and Homeland Security frequently award contracts for infrastructure development, environmental remediation, natural resource management, and operational support in the state. Trends often reflect national priorities, such as increased focus on climate resilience, renewable energy infrastructure, and compliance with environmental regulations. While specific year-over-year spending fluctuates based on agency budgets and project cycles, the consistent need for these specialized services in Alaska suggests a stable to increasing demand. Factors like increased Arctic activity and infrastructure modernization projects can also drive spending.

Industry Classification

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

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70Z05023R43000011

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2400 PERSHING RD STE 400, KANSAS CITY, MO, 64108

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

Financial Breakdown

Contract Ceiling: $5,160,393

Exercised Options: $5,160,393

Current Obligation: $5,160,393

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 70Z05018DTRANSY01

IDV Type: IDC

Timeline