DHS awards $102.7M task order for IT services to Synergy Business Innovation & Solutions Inc

Contract Overview

Contract Amount: $102,706,514 ($102.7M)

Contractor: Synergy Business Innovation & Solutions Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2018-07-01

End Date: 2023-10-15

Contract Duration: 1,932 days

Daily Burn Rate: $53.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: APLES II -- TASK ORDER #1 O&M

Place of Performance

Location: KEARNEYSVILLE, BERKELEY County, WEST VIRGINIA, 25430

State: West Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $102.7 million to SYNERGY BUSINESS INNOVATION & SOLUTIONS INC. for work described as: APLES II -- TASK ORDER #1 O&M Key points: 1. The contract was awarded under the APLES II IDIQ, suggesting a pre-competed framework. 2. The fixed-price contract type may offer cost certainty for the government. 3. The duration of the task order is over 5 years, indicating a long-term need. 4. The contract was awarded on a full and open competition basis. 5. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services. 6. The contract was awarded to a single vendor, Synergy Business Innovation & Solutions Inc.

Value Assessment

Rating: fair

Benchmarking the value of this specific task order is challenging without more granular data on the services provided and comparable market rates for custom computer programming. The firm-fixed-price structure provides some cost control, but the total value over nearly five years is substantial. Further analysis would require understanding the specific deliverables and comparing them to industry standards and other government contracts for similar IT services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under a full and open competition after exclusion of sources, indicating that multiple vendors were likely considered or had the opportunity to bid. The specific details of the competition, such as the number of proposals received and the evaluation criteria, are not provided. However, the 'full and open' designation generally suggests a robust competitive process.

Taxpayer Impact: A full and open competition aims to ensure the government receives the best value by soliciting offers from all responsible sources. This process can lead to more competitive pricing and a wider range of innovative solutions for taxpayers.

Public Impact

The U.S. Coast Guard benefits from enhanced IT operations and maintenance services. Custom computer programming services are delivered to support the Coast Guard's mission. The contract's performance is located in West Virginia. The contract supports the federal government's IT infrastructure and operational capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in given the long-term nature of the contract.
Scope creep could increase costs if not managed effectively.
Reliance on a single vendor for critical IT services poses a risk.

Positive Signals

Firm-fixed-price contract type provides cost predictability.
Awarded through full and open competition, suggesting competitive pricing.
Long-term contract allows for sustained support and development.

Sector Analysis

The Information Technology sector is a critical component of federal spending, encompassing a wide range of services from custom software development to cloud computing. This contract, focused on custom computer programming services (NAICS 541511), falls within the IT services sub-sector. Federal IT spending is consistently one of the largest categories of government expenditure, with significant investments made annually across various agencies to maintain and modernize systems. Comparable spending benchmarks would involve analyzing other large IT service contracts awarded by agencies like DHS or the Coast Guard for similar custom development work.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Synergy Business Innovation & Solutions Inc., is not explicitly identified as a small business in the provided data. Analysis of subcontracting opportunities would require further investigation into the prime contractor's subcontracting plan, if any.

Oversight & Accountability

Oversight for this task order would typically be managed by the U.S. Coast Guard contracting officers and program managers. The contract's performance period and deliverables would be monitored to ensure compliance with the terms and conditions. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

APLES II IDIQ
Department of Homeland Security IT Services
U.S. Coast Guard IT Support
Custom Computer Programming Services Contracts

Risk Flags

Long-term contract duration may increase risk of vendor lock-in.
Performance details and value benchmarking require further investigation.
Potential for scope creep on custom programming services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $102.7 million to SYNERGY BUSINESS INNOVATION & SOLUTIONS INC.. APLES II -- TASK ORDER #1 O&M

Who is the contractor on this award?

The obligated recipient is SYNERGY BUSINESS INNOVATION & SOLUTIONS INC..

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 $102.7 million.

What is the period of performance?

Start: 2018-07-01. End: 2023-10-15.

What specific custom computer programming services were delivered under this task order, and how do they align with the U.S. Coast Guard's mission requirements?

The provided data identifies the NAICS code as 541511 (Custom Computer Programming Services) and the contracting agency as the U.S. Coast Guard. However, it does not detail the specific services rendered. These could range from developing new software applications, modifying existing systems, integrating disparate IT platforms, or providing specialized coding expertise. To understand the alignment with the Coast Guard's mission, one would need to review the Statement of Work (SOW) for this task order. This would likely involve IT systems supporting maritime security, search and rescue operations, port security, or other operational and administrative functions critical to the Coast Guard's mandate.

How does the $102.7 million value of this task order compare to other similar custom computer programming contracts awarded by the Department of Homeland Security or the U.S. Coast Guard?

Comparing the $102.7 million value requires access to historical contract data for similar services. The APLES II IDIQ, under which this task order was issued, is a multiple-award contract vehicle, suggesting that other task orders for custom programming services have been and will be awarded. To benchmark this value, one would analyze the average and median values of task orders issued under APLES II and other DHS/Coast Guard IT contracts with NAICS code 541511 over a comparable period. Factors such as contract duration, scope complexity, and vendor rates would need to be considered for a fair comparison. Without this comparative data, it's difficult to definitively state if $102.7 million represents a high, low, or average expenditure for such services.

What is the track record of Synergy Business Innovation & Solutions Inc. in performing large-scale IT service contracts for the federal government?

Synergy Business Innovation & Solutions Inc. has been awarded this $102.7 million task order, indicating a capacity to handle significant federal contracts. To assess their track record, a review of their past performance on other government contracts, particularly those involving custom computer programming and IT services for agencies like the Department of Homeland Security, would be necessary. This would involve examining contract performance evaluations (e.g., CPARS reports), any past performance issues or disputes, and the types and sizes of previous awards. A history of successful, on-time, and within-budget project completion would suggest a strong track record, while recurring problems might raise concerns.

What are the potential risks associated with a single vendor, Synergy Business Innovation & Solutions Inc., performing this task order for nearly five years?

The primary risks associated with a single vendor performing a large, long-term task order include potential vendor lock-in, reduced incentive for innovation or cost reduction over time, and the impact of vendor performance issues. If Synergy Business Innovation & Solutions Inc. underperforms, experiences financial instability, or faces key personnel departures, it could significantly disrupt the U.S. Coast Guard's IT operations. Furthermore, the government may have less leverage to negotiate favorable terms in future procurements if it becomes heavily reliant on one provider. Mitigation strategies often involve robust contract management, clear performance metrics, and contingency planning.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type impact price discovery and overall value for taxpayers?

The award type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while the competition was intended to be broad, certain sources may have been excluded prior to the final solicitation. This could occur for various reasons, such as pre-qualification requirements or specific technical capabilities. Ideally, full and open competition maximizes the number of potential bidders, fostering robust price discovery and driving down costs through market forces. However, any exclusion of sources, even if justified, could potentially limit the competitive landscape compared to a truly unrestricted full and open competition. The impact on taxpayers depends on whether the exclusion significantly narrowed the field and whether the resulting price was demonstrably competitive.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1902 CAMPUS COMMONS DRIVE, SUITE 600, RESTON, VA, 20191

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $102,706,514

Exercised Options: $102,706,514

Current Obligation: $102,706,514

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z0G318DPWX00500

IDV Type: IDC

Timeline