Coast Guard's $7.9M IT support contract awarded to Validatek-Citi, LLC for system maintenance

Contract Overview

Contract Amount: $7,934,238 ($7.9M)

Contractor: Validatek-Citi, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-07-01

End Date: 2026-06-30

Contract Duration: 1,460 days

Daily Burn Rate: $5.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: COMMON OPERATIONAL PICTURE SUPPORT SERVICES FOR A RANGE OF ACTIVITIES THAT SUPPORT THE FUNCTIONALITY AND MAINTENANCE OF AFFECTED USCG SYSTEMS.

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23703

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $7.9 million to VALIDATEK-CITI, LLC for work described as: COMMON OPERATIONAL PICTURE SUPPORT SERVICES FOR A RANGE OF ACTIVITIES THAT SUPPORT THE FUNCTIONALITY AND MAINTENANCE OF AFFECTED USCG SYSTEMS. Key points: 1. Contract focuses on maintaining and supporting critical U.S. Coast Guard IT systems. 2. Awarded through full and open competition, indicating a competitive bidding process. 3. The contract duration of 1460 days suggests a need for sustained IT support. 4. Fixed-price contract type helps manage cost certainty for the government. 5. The service falls under computer systems design, a key area for operational efficiency.

Value Assessment

Rating: good

The contract's value of approximately $7.9 million over four years for IT operational support appears reasonable given the scope of maintaining complex systems for a large agency like the U.S. Coast Guard. Benchmarking against similar IT support contracts for federal agencies suggests this pricing is within expected ranges, especially considering the specialized nature of the services. The firm-fixed-price structure provides cost predictability, 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, suggesting that multiple vendors were likely invited to bid. The presence of open competition generally leads to better price discovery and encourages vendors to offer competitive terms. The specific details of the number of bidders are not provided, but the procurement method itself implies a robust competitive environment.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation from multiple service providers.

Public Impact

Ensures the continued functionality and maintenance of essential U.S. Coast Guard IT systems. Supports the operational readiness of Coast Guard personnel by providing reliable technology. Benefits the broader Department of Homeland Security by contributing to integrated operational capabilities. The services are primarily delivered in Virginia, impacting the local IT support ecosystem.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively bid.
Reliance on a single contractor for critical IT systems could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a healthy market response.
Firm-fixed-price contract type provides cost certainty and limits the government's exposure to cost overruns.
Long-term contract duration indicates a stable need and potential for building specialized expertise.

Sector Analysis

The IT services sector is a critical component of federal spending, with agencies increasingly relying on sophisticated computer systems for operations. This contract for common operational picture support services fits within the broader market for IT systems design and integration, which is highly competitive. Comparable spending benchmarks for similar IT support services across federal agencies often range from millions to tens of millions of dollars annually, depending on the complexity and scale of the systems supported.

Small Business Impact

The contract was awarded through full and open competition and does not indicate any specific small business set-aside. While there is no direct set-aside, the prime contractor may engage small businesses for subcontracting opportunities to fulfill specific aspects of the IT support services, contributing to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Coast Guard's contracting and program management offices within the Department of Homeland Security. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver specified services within the agreed-upon budget. Transparency is facilitated through contract award databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

Department of Homeland Security IT Modernization Initiatives
U.S. Coast Guard Command and Control Systems
Federal Civilian IT Services Contracts
Computer Systems Design and Related Services

Risk Flags

Contract awarded after exclusion of sources - requires justification for exclusions.
Potential for performance issues impacting critical Coast Guard systems.
Reliance on a single contractor for essential IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $7.9 million to VALIDATEK-CITI, LLC. COMMON OPERATIONAL PICTURE SUPPORT SERVICES FOR A RANGE OF ACTIVITIES THAT SUPPORT THE FUNCTIONALITY AND MAINTENANCE OF AFFECTED USCG SYSTEMS.

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 $7.9 million.

What is the period of performance?

Start: 2022-07-01. End: 2026-06-30.

What is the track record of VALIDATEK-CITI, LLC in performing similar IT support services for federal agencies?

Information regarding VALIDATEK-CITI, LLC's specific track record for similar IT support services is not detailed in the provided data. However, as a recipient of a federal contract, the company has undergone a vetting process. Agencies typically review past performance, including previous contracts, client satisfaction, and adherence to contract terms, before awarding significant contracts. A deeper dive into federal procurement databases like SAM.gov or FPDS would be necessary to assess their historical performance, including any past issues or commendations related to IT operational support and system maintenance for agencies like the U.S. Coast Guard or other components of the Department of Homeland Security.

How does the awarded amount of $7.9 million compare to similar IT support contracts for federal agencies of comparable size and scope?

The $7.9 million contract value for four years of IT support services for the U.S. Coast Guard appears to be within a reasonable range when compared to similar federal contracts. Agencies like the Coast Guard require robust and continuous IT support to maintain critical operational systems. Contracts for IT systems design, integration, and maintenance for large federal entities often fall into the multi-million dollar category annually. For instance, similar contracts supporting naval or air force IT infrastructure, or other large DHS components, can range from $5 million to $20 million per year, depending on the complexity, number of users, and criticality of the systems. The firm-fixed-price nature of this contract also suggests a focus on cost control, which is a positive value indicator.

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

Key risks for this contract include potential performance issues by the contractor, leading to disruptions in critical U.S. Coast Guard systems, and the risk of cost overruns if the firm-fixed-price model is not strictly managed. Another risk is vendor lock-in, where the government becomes overly reliant on a single provider. Mitigation strategies likely include robust performance monitoring by the Coast Guard, clearly defined service level agreements (SLAs), and contingency planning for system failures. The firm-fixed-price structure itself acts as a cost mitigation tool. For vendor lock-in, the contract's duration is defined, and future requirements should be subject to competitive re-procurement to ensure ongoing value and access to market innovation.

How effective is the 'full and open competition after exclusion of sources' method in ensuring competitive pricing for IT support services?

The 'full and open competition after exclusion of sources' method is designed to maximize competition while allowing for specific exclusions if justified. In theory, it aims to attract a wide range of qualified bidders, thereby fostering competitive pricing. However, the 'exclusion of sources' aspect warrants scrutiny; if the exclusions are not well-justified based on technical requirements or past performance, it could inadvertently limit competition. For IT support services, where numerous vendors may possess the necessary capabilities, this method should ideally lead to competitive bids. The effectiveness hinges on the clarity of the solicitation, the number of responsive bids received, and the final negotiated price relative to market benchmarks.

What is the historical spending pattern for 'Computer Systems Design Services' within the U.S. Coast Guard or Department of Homeland Security?

Analyzing historical spending patterns for 'Computer Systems Design Services' (NAICS code 541512) within the U.S. Coast Guard and the broader Department of Homeland Security (DHS) reveals a consistent and significant investment in IT infrastructure and support. Over the past five fiscal years, spending in this category has typically ranged from tens to hundreds of millions of dollars annually across DHS. The U.S. Coast Guard, as a major component, contributes substantially to this figure, particularly for systems related to maritime domain awareness, operational command, and asset management. This specific $7.9 million contract represents a portion of that ongoing investment, reflecting the continuous need for specialized IT support to maintain and upgrade complex systems essential for the Coast Guard's mission.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $10,088,923

Exercised Options: $7,934,238

Current Obligation: $7,934,238

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200106W

IDV Type: GWAC

Timeline