DHS Coast Guard awards $26.9M IT contract for software development and O&M to Synergy Business Innovation & Solutions Inc

Contract Overview

Contract Amount: $26,935,813 ($26.9M)

Contractor: Synergy Business Innovation & Solutions Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-10-16

End Date: 2026-01-15

Contract Duration: 456 days

Daily Burn Rate: $59.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INFORMATION TECHNOLOGY (IT) SERVICES FOR SOFTWARE DEVELOPMENT AND OPERATIONS AND MAINTENANCE (O&M) NECESSARY FOR FULL LIFECYCLE SUPPORT.

Place of Performance

Location: KEARNEYSVILLE, BERKELEY County, WEST VIRGINIA, 25430

State: West Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $26.9 million to SYNERGY BUSINESS INNOVATION & SOLUTIONS INC. for work described as: INFORMATION TECHNOLOGY (IT) SERVICES FOR SOFTWARE DEVELOPMENT AND OPERATIONS AND MAINTENANCE (O&M) NECESSARY FOR FULL LIFECYCLE SUPPORT. Key points: 1. Contract focuses on full lifecycle support for IT services, including software development and ongoing maintenance. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. Performance period spans over 1.5 years, indicating a medium-term engagement. 5. The North American Industry Classification System (NAICS) code 541519 suggests a broad range of computer-related services. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: fair

Benchmarking the value of this $26.9 million contract is challenging without more specific details on the scope of work and deliverables. The firm fixed-price structure is generally favorable for cost control. However, the broad NAICS code (541519) for 'Other Computer Related Services' indicates a wide range of potential services, making direct comparisons difficult. Further analysis would require understanding the specific software development and O&M tasks to assess if the pricing is competitive against similar specialized IT support contracts.

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. This suggests a robust bidding process designed to foster price discovery and potentially secure competitive pricing. The number of bidders is not specified, but the open competition framework is a positive sign for market engagement and taxpayer value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and innovative solutions, leading to potentially lower costs and higher quality services.

Public Impact

The U.S. Coast Guard benefits from enhanced IT capabilities for software development and maintenance. Services delivered will support the full lifecycle of critical IT systems. The contract's geographic impact is primarily within West Virginia, where the contractor is located. Workforce implications may include job creation or utilization of skilled IT professionals by Synergy Business Innovation & Solutions Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The broad NAICS code could lead to scope creep if not managed carefully.
Lack of specific details on performance metrics makes it difficult to assess contractor performance proactively.
Reliance on a single delivery order without knowing the parent contract structure raises questions about long-term strategic IT planning.

Positive Signals

Firm Fixed Price contract type shifts cost risk to the contractor.
Awarded under full and open competition, indicating a competitive process.
Contract duration of over 1.5 years provides stability for service delivery.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on software development and operations & maintenance (O&M). The IT services market is vast and highly competitive, with significant government spending allocated to software lifecycle support. Comparable spending benchmarks would typically involve analyzing other government contracts for similar IT development and O&M services, often categorized by NAICS codes like 541511 (Custom Computer Programming Services) or 541512 (Computer Systems Design Services), though 541519 is broader. The total award amount of $26.9 million positions this as a mid-sized contract within the federal IT landscape.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, if Synergy Business Innovation & Solutions Inc. chooses to engage small businesses for specialized tasks. Without a small business set-aside, larger, established firms are more likely to compete and win these types of contracts, potentially limiting direct opportunities for smaller entities unless they are part of a larger team or subcontracting chain.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Coast Guard contracting officers and program managers. Accountability measures are typically embedded within the contract's performance work statement (PWS) and terms, including delivery schedules, quality standards, and reporting requirements. Transparency is facilitated by contract award databases like FPDS, which provide basic information on the award. The Inspector General for the Department of Homeland Security would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

IT Software Development Services
IT Operations and Maintenance (O&M)
Department of Homeland Security IT Contracts
U.S. Coast Guard IT Modernization
Federal Software Lifecycle Support

Risk Flags

Broad NAICS code may indicate unclear scope definition.
Potential for cost overruns if scope is not tightly managed under FFP.
Contractor performance history needs verification for risk assessment.
Lack of specific performance metrics in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $26.9 million to SYNERGY BUSINESS INNOVATION & SOLUTIONS INC.. INFORMATION TECHNOLOGY (IT) SERVICES FOR SOFTWARE DEVELOPMENT AND OPERATIONS AND MAINTENANCE (O&M) NECESSARY FOR FULL LIFECYCLE SUPPORT.

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 $26.9 million.

What is the period of performance?

Start: 2024-10-16. End: 2026-01-15.

What is the track record of Synergy Business Innovation & Solutions Inc. with federal contracts, particularly in IT software development and O&M?

Synergy Business Innovation & Solutions Inc. has a track record of federal contracting, though specific details on their performance in IT software development and O&M require deeper analysis of past awards and performance reviews. Examining their contract history within the Federal Procurement Data System (FPDS) can reveal the types of agencies they've served, the value of previous contracts, and the services rendered. Performance evaluations, if publicly available through sources like the Contractor Performance Assessment Reporting System (CPARS), would offer insights into their reliability, quality of work, and adherence to schedules and budgets on prior federal engagements. Understanding their past performance is crucial for assessing the risk associated with this current $26.9 million award.

How does the $26.9 million award compare to similar IT software development and O&M contracts awarded by the U.S. Coast Guard or DHS?

Comparing this $26.9 million award requires analyzing the scope, duration, and specific services of comparable contracts. The U.S. Coast Guard and DHS procure a wide range of IT services, from large-scale system development to specialized O&M. Benchmarking this contract's value against others with similar NAICS codes (like 541519, or more specific ones if applicable) and contract types (Firm Fixed Price) provides context. If this award represents a significant portion of the Coast Guard's IT budget for such services, or if it's substantially higher or lower than typical awards for similar work, it warrants further investigation into the specific requirements and market conditions.

What are the primary risks associated with this contract, considering its scope and the contractor's profile?

Primary risks for this contract include potential scope creep due to the broad 'Other Computer Related Services' NAICS code (541519), which could lead to cost overruns if not managed tightly, despite the Firm Fixed Price (FFP) structure. Contractor performance risk is always present; if Synergy Business Innovation & Solutions Inc. lacks sufficient experience or resources for the specific software development and O&M tasks, it could lead to delays or subpar quality. Furthermore, the reliance on a single delivery order, without full transparency into the parent contract or task order details, introduces uncertainty regarding the long-term strategic alignment and potential for future funding adjustments. The geographic concentration of the contractor in West Virginia might also pose logistical challenges if significant on-site presence is required.

How effective is the 'full and open competition' strategy likely to be in ensuring value for money for this specific IT contract?

The 'full and open competition' strategy is generally effective in promoting value for money by encouraging a wide range of vendors to submit bids, fostering price competition and innovation. For this IT contract, its effectiveness hinges on whether the solicitation clearly defined the technical requirements and evaluation criteria, attracting qualified bidders capable of meeting the Coast Guard's needs. If the competition resulted in multiple strong proposals, it likely drove down prices and improved the quality of offers. However, the broad NAICS code could potentially attract bidders who may not be perfectly aligned with the specific software development and O&M needs, requiring careful evaluation to ensure the 'best value' is selected, not just the lowest price.

What are the historical spending patterns for IT software development and O&M services by the U.S. Coast Guard?

Historical spending patterns for IT software development and O&M by the U.S. Coast Guard reveal a consistent need for these services to maintain and modernize its operational systems. Analyzing past fiscal years' spending data, often available through federal procurement databases, would show trends in contract values, types of services procured (e.g., specific software languages, cloud migration, cybersecurity enhancements), and the primary contractors utilized. Understanding these patterns helps contextualize the $26.9 million award, indicating whether it aligns with historical investment levels or represents a significant shift in spending priorities. It also highlights the Coast Guard's ongoing reliance on external vendors for critical IT functions.

What are the implications of the Firm Fixed Price (FFP) contract type for cost control and risk management in this IT project?

The Firm Fixed Price (FFP) contract type is generally considered advantageous for cost control and risk management when the scope of work is well-defined. In this scenario, Synergy Business Innovation & Solutions Inc. assumes the primary risk for cost overruns. This incentivizes the contractor to manage resources efficiently and accurately estimate costs upfront. For the U.S. Coast Guard, an FFP contract provides budget certainty, as the price is fixed regardless of the contractor's actual costs. However, if the scope is not precisely defined or if unforeseen technical challenges arise, the contractor might be tempted to cut corners on quality or scope to maintain profitability, necessitating robust oversight to ensure contract requirements are fully met.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70Z0G324QOIPL0005

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1902 CAMPUS COMMONS DR STE 430, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small 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: $35,540,386

Exercised Options: $26,935,813

Current Obligation: $26,935,813

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0495Y

IDV Type: FSS

Timeline