DHS Coast Guard awards $149M for Navigation Systems, raising concerns over limited competition

Contract Overview

Contract Amount: $14,944,618 ($14.9M)

Contractor: Integrated Coast Guard Systems LLC

Awarding Agency: Department of Homeland Security

Start Date: 2002-11-26

End Date: 2009-04-14

Contract Duration: 2,331 days

Daily Burn Rate: $6.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20003

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $14.9 million to INTEGRATED COAST GUARD SYSTEMS LLC for work described as: Key points: 1. Significant contract value of $149.4M awarded. 2. Limited competition raises questions about price discovery. 3. Long contract duration of 2331 days suggests potential for cost overruns. 4. Sector focus on Navigation Systems is critical for maritime safety.

Value Assessment

Rating: questionable

The contract value of $149.4M is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar navigation system contracts. The lack of competition is a primary driver of this assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, indicating a limited source selection process. This lack of competition likely hindered robust price discovery, potentially leading to a higher price than if multiple vendors had bid.

Taxpayer Impact: The absence of full and open competition means taxpayers may not have received the best possible value for this significant expenditure on navigation systems.

Public Impact

Impacts U.S. Coast Guard's operational capabilities in search, detection, and navigation. Ensures critical maritime safety and security functions are supported. Potential for higher costs due to lack of competitive bidding.

Waste & Efficiency Indicators

Waste Risk Score: 64 / 10

Warning Flags

Lack of competition
Long contract duration
Potential for price inflation

Positive Signals

Critical system for national security
Established vendor relationship

Sector Analysis

This contract falls within the Navigation Systems manufacturing sector, crucial for maritime operations. Spending benchmarks in this niche area are hard to establish without competitive data, but the value suggests a significant program.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if small businesses were excluded from opportunities or if the prime contractor subcontracted.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to understand the justification for the limited competition and ensure accountability in the procurement process.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Lack of competitive bidding
Potential for overpricing
Long contract duration increases risk
Limited transparency in award justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $14.9 million to INTEGRATED COAST GUARD SYSTEMS LLC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is INTEGRATED COAST GUARD SYSTEMS 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 $14.9 million.

What is the period of performance?

Start: 2002-11-26. End: 2009-04-14.

What was the specific justification for not competing this contract, and were alternative procurement strategies considered?

The justification for not competing this contract is not provided in the data. Typically, reasons include urgency, sole-source availability of technology, or specific technical requirements. Without this information, it's impossible to assess if alternative strategies like phased competitions or sole-source justifications were adequately explored to ensure best value.

How does the $149.4M award compare to industry benchmarks for similar navigation systems, considering the lack of competition?

Direct comparison to industry benchmarks is challenging due to the 'NOT COMPETED' status. Without competitive bids, the $149.4M figure lacks a market-driven validation point. A thorough analysis would require benchmarking against publicly available data for comparable systems or seeking expert opinions on fair pricing in the absence of competition.

What measures are in place to ensure the effectiveness and reliability of these navigation systems over the contract's long duration?

The contract's long duration (2331 days) necessitates robust performance monitoring and quality assurance. While specific measures aren't detailed, typical oversight includes regular technical reviews, acceptance testing, and potentially service-level agreements. The Coast Guard would need to actively manage the contract to ensure the systems remain effective and meet evolving operational needs.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 300 M ST SE STE 685, WASHINGTON, DC, 20003

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,944,618

Exercised Options: $14,944,618

Current Obligation: $14,944,618

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTCG2302C2DW001

IDV Type: IDC

Timeline