DHS Coast Guard awards $1.65M contract for cutter logistics support to Insight Technology Solutions

Contract Overview

Contract Amount: $1,651,524 ($1.7M)

Contractor: Insight Technology Solutions, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2024-04-08

End Date: 2027-04-07

Contract Duration: 1,094 days

Daily Burn Rate: $1.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROJECT MANAGEMENT AND LOGISTICAL SUPPORT SERVICES FOR USCG SURFACE FORCES LOGISTICS CENTER SUPPORTING THE MEDIUM ENDURANCE CUTTER PRODUCT LINE.

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23510

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $1.7 million to INSIGHT TECHNOLOGY SOLUTIONS, LLC for work described as: PROJECT MANAGEMENT AND LOGISTICAL SUPPORT SERVICES FOR USCG SURFACE FORCES LOGISTICS CENTER SUPPORTING THE MEDIUM ENDURANCE CUTTER PRODUCT LINE. Key points: 1. Contract provides essential project management and logistical support for the USCG's Medium Endurance Cutter product line. 2. The award was made under full and open competition, indicating a competitive marketplace for these services. 3. The contract duration of nearly three years suggests a need for sustained support. 4. The fixed-price contract type aims to control costs and provide predictability. 5. The services are critical for maintaining the operational readiness of a key Coast Guard asset.

Value Assessment

Rating: good

The contract value of $1.65 million over approximately three years appears reasonable for specialized project management and logistical support services for a significant naval asset. Benchmarking against similar contracts for fleet support or specialized engineering services would provide a more precise value assessment. However, the fixed-price nature of the award suggests an effort to establish a clear cost ceiling, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were likely considered and allowed to bid. With seven bidders, the competition level suggests a healthy market for these specialized services. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured the government received competitive offers for the required services.

Public Impact

The U.S. Coast Guard's Surface Forces Logistics Center will benefit directly from improved project management and logistical support. This contract ensures the continued operational readiness and maintenance of the Medium Endurance Cutter product line. The services provided will support the Coast Guard's missions, including maritime security, search and rescue, and law enforcement. The contract supports specialized technical and logistical expertise, potentially impacting a skilled workforce in engineering and support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if project management requirements are not tightly controlled.
Dependence on a single contractor for critical logistical functions could pose a risk if performance falters.

Positive Signals

Fixed-price contract type helps mitigate cost overruns.
Full and open competition suggests a competitive market and potentially strong performance from awardee.
Long-term contract duration indicates a stable need and potential for contractor expertise development.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense and maritime logistics. The market for such services is characterized by specialized firms capable of understanding complex operational requirements and supply chains. Comparable spending benchmarks would involve looking at other service contracts for naval vessel maintenance, logistics, and project management across different branches of the military and related government agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the impact on the small business ecosystem will depend on whether the prime contractor utilizes small business subcontractors. Further analysis would be needed to determine subcontracting plans and their potential benefits to small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Coast Guard's contracting officers and program managers within the Surface Forces Logistics Center. Accountability measures are inherent in the fixed-price contract type and performance metrics that would typically be included in the contract's statement of work. Transparency is facilitated by the public nature of contract awards, though specific performance details may be less accessible.

Related Government Programs

USCG Ship Maintenance and Repair
Naval Logistics Support Services
Defense Project Management Contracts
Maritime Engineering Services
Coast Guard Operational Support

Risk Flags

Contract Type: Firm Fixed Price (FFP) generally reduces cost risk for the government, but requires careful scope definition.
Competition Level: While full and open, the number of bidders (7) is moderate; further analysis could explore if this is typical for this service category.
Contract Duration: A nearly three-year duration requires sustained oversight to ensure ongoing performance and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $1.7 million to INSIGHT TECHNOLOGY SOLUTIONS, LLC. PROJECT MANAGEMENT AND LOGISTICAL SUPPORT SERVICES FOR USCG SURFACE FORCES LOGISTICS CENTER SUPPORTING THE MEDIUM ENDURANCE CUTTER PRODUCT LINE.

Who is the contractor on this award?

The obligated recipient is INSIGHT TECHNOLOGY SOLUTIONS, 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 $1.7 million.

What is the period of performance?

Start: 2024-04-08. End: 2027-04-07.

What is the track record of Insight Technology Solutions, LLC in performing similar government contracts, particularly within the defense or maritime sectors?

A review of federal procurement data indicates that Insight Technology Solutions, LLC has a history of performing various service contracts for government agencies. While specific details on past performance for U.S. Coast Guard surface forces or similar complex maritime logistics projects would require deeper analysis of contract databases and performance reports, the company's presence in the federal contracting space suggests experience. It is crucial to examine past contract awards, their values, durations, and any reported performance issues or successes to fully assess their capability for this specific project. Understanding their experience with fixed-price contracts and project management for large-scale operational assets is key to evaluating their suitability.

How does the awarded price of $1.65 million compare to market rates for similar project management and logistical support services for naval vessels?

Benchmarking the $1.65 million award against market rates for similar services is challenging without access to proprietary industry pricing data or a comprehensive database of comparable government contracts. However, considering the contract duration of approximately three years and the specialized nature of supporting a specific cutter product line, the annual value of roughly $550,000 appears to be within a reasonable range for specialized technical and logistical support. Factors such as the complexity of the cutters, the scope of services required (e.g., planning, procurement, inventory management, technical assistance), and the geographic reach of the support would influence market rates. A detailed comparison would necessitate analyzing contracts for similar naval platforms or fleet support services awarded by the Navy or other maritime agencies.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Primary risks for this contract include potential performance deficiencies by the contractor, leading to delays or inefficiencies in supporting the Medium Endurance Cutter product line. Another risk is the possibility of cost overruns, although the firm fixed-price (FFP) contract type aims to mitigate this by placing the cost risk on the contractor. Scope creep, where the requirements expand beyond the initial agreement, is also a risk. Mitigation strategies likely include robust contract oversight by the U.S. Coast Guard, clearly defined performance metrics and deliverables in the contract's statement of work, regular progress reviews, and potentially performance bonds. The FFP structure itself is a significant risk mitigation tool for the government.

How effective is the full and open competition process in ensuring value for money for this specific type of service?

The full and open competition process, especially with seven bidders, is generally considered highly effective in ensuring value for money for specialized services like project management and logistical support. This approach allows a wide range of qualified vendors to compete, fostering price competition and encouraging innovation. The presence of multiple bidders typically drives down prices as contractors strive to offer the most competitive terms. For the Coast Guard's Medium Endurance Cutter product line, this competitive environment likely resulted in a more favorable price and a better selection of capabilities than a sole-source or limited competition award would have provided. The government benefits from a wider pool of expertise and potentially better service quality.

What is the historical spending pattern for project management and logistical support services for the USCG's Medium Endurance Cutters?

Analyzing historical spending patterns for project management and logistical support specifically for the U.S. Coast Guard's Medium Endurance Cutters would require access to detailed historical contract data. Without this specific data, it's difficult to provide precise figures. However, it can be inferred that such support has been ongoing, given the operational nature of these vessels. Spending would likely fluctuate based on maintenance cycles, modernization efforts, and the overall operational tempo of the cutter fleet. The current $1.65 million award over three years provides a benchmark for recent spending, but a longer-term view would reveal trends in contract values, competition levels, and the types of services procured for this product line.

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

Solicitation ID: 70Z08024RMECP0001

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Insight Enterprises Inc

Address: 170 JENNIFER ROAD, ANNAPOLIS, MD, 21401

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

Financial Breakdown

Contract Ceiling: $5,473,661

Exercised Options: $5,473,661

Current Obligation: $1,651,524

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20D3006

IDV Type: IDC

Timeline