DHS awards $158.6M for Coast Guard navigation systems, raising value concerns
Contract Overview
Contract Amount: $15,855,668 ($15.9M)
Contractor: Integrated Coast Guard Systems LLC
Awarding Agency: Department of Homeland Security
Start Date: 2002-08-16
End Date: 2004-07-30
Contract Duration: 714 days
Daily Burn Rate: $22.2K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: NOT AVAILABLE
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $15.9 million to INTEGRATED COAST GUARD SYSTEMS LLC for work described as: NOT AVAILABLE Key points: 1. Spending of $158.6M on navigation systems. 2. Contract awarded to Integrated Coast Guard Systems LLC. 3. Potential value concerns due to cost-plus award fee structure. 4. Sector: IT/Defense systems manufacturing.
Value Assessment
Rating: questionable
The contract uses a Cost Plus Award Fee (CPAF) structure, which can incentivize cost overruns. Without detailed performance metrics and award fee criteria, assessing the value for money is difficult. The total award value is $158.6 million.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract type is listed as 'COMPETITIVE DELIVERY ORDER', but the specific competition method and the number of bidders are not detailed. This lack of transparency makes it hard to assess if true price discovery was achieved.
Taxpayer Impact: The significant award value suggests a substantial impact on taxpayer funds, especially if the CPAF structure leads to costs exceeding initial estimates.
Public Impact
Enhances Coast Guard's search, detection, and navigation capabilities. Supports critical maritime safety and security operations. Long-term implications for operational efficiency and effectiveness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure
- Lack of detailed competition information
- Potential for cost overruns
Positive Signals
- Supports critical Coast Guard functions
- Long-term contract duration
Sector Analysis
This contract falls within the IT/Defense sector, specifically focusing on the manufacturing of advanced navigation and guidance systems for maritime use. Benchmarks for similar complex system development and manufacturing contracts vary widely based on technological sophistication and scope.
Small Business Impact
There is no indication in the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine small business participation.
Oversight & Accountability
The data does not provide specific details on oversight mechanisms for this contract. Given the CPAF structure and long duration, robust oversight would be crucial to ensure performance and control costs.
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
- Cost Plus Award Fee structure
- Lack of detailed competition information
- Potential for cost overruns
- Limited transparency on performance metrics
Tags
search-detection-navigation-guidance-aer, department-of-homeland-security, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $15.9 million to INTEGRATED COAST GUARD SYSTEMS LLC. NOT AVAILABLE
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 $15.9 million.
What is the period of performance?
Start: 2002-08-16. End: 2004-07-30.
What were the specific performance metrics and award fee criteria used to determine the 'award fee' component of this contract, and how did they align with achieving optimal value for the government?
The provided data does not detail the specific performance metrics or award fee criteria. Understanding these is crucial for assessing if the CPAF structure effectively incentivized Integrated Coast Guard Systems LLC to deliver high-quality systems within reasonable cost parameters and achieve true value for the taxpayer.
What was the competitive landscape for this delivery order, and how did the chosen procurement method ensure the best possible price and technical solution for the U.S. Coast Guard?
While labeled 'COMPETITIVE DELIVERY ORDER,' the data lacks specifics on the number of bidders or the evaluation process. A thorough analysis of the competition would reveal if multiple vendors were genuinely considered, thereby driving down costs and ensuring the Coast Guard received the most advantageous offer.
How does the total awarded amount of $158.6 million compare to the estimated cost of similar advanced navigation system procurements for other federal agencies or international maritime organizations?
Benchmarking this $158.6 million award against similar procurements is challenging without more detailed specifications of the systems acquired. However, for complex, integrated systems, this figure could be within a reasonable range if it includes significant research, development, and customization.
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: COMPETITIVE DELIVERY ORDER
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
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: $15,855,668
Exercised Options: $15,855,668
Current Obligation: $15,855,668
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DTCG2302C2DW001
IDV Type: IDC
Timeline
Start Date: 2002-08-16
Current End Date: 2004-07-30
Potential End Date: 2004-07-30 00:00:00
Last Modified: 2026-01-30
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