DHS awards $68.4M for Coast Guard navigation systems, highlighting potential for improved search and detection capabilities

Contract Overview

Contract Amount: $68,395,254 ($68.4M)

Contractor: Integrated Coast Guard Systems LLC

Awarding Agency: Department of Homeland Security

Start Date: 2003-03-15

End Date: 2005-03-25

Contract Duration: 741 days

Daily Burn Rate: $92.3K/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 $68.4 million to INTEGRATED COAST GUARD SYSTEMS LLC for work described as: Key points: 1. The contract value of $68.4 million for navigation systems indicates a significant investment in critical Coast Guard infrastructure. 2. The absence of competition suggests potential for higher costs and limited innovation compared to a competitive bidding process. 3. The long duration of the contract (741 days) may pose risks related to technological obsolescence and changing operational needs. 4. Spending in the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector is vital for national security and maritime safety.

Value Assessment

Rating: fair

The contract value of $68.4 million for navigation systems is substantial. Without specific per-unit cost data or benchmarks for similar systems, a precise pricing assessment is difficult, but the lack of competition raises concerns about potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method limits price discovery and may not leverage the full range of market capabilities, potentially leading to less favorable pricing for the government.

Taxpayer Impact: The lack of competition could result in taxpayers paying more than necessary for these navigation systems.

Public Impact

Enhanced maritime safety and security through advanced navigation and detection capabilities for the U.S. Coast Guard. Potential for improved search and rescue operations, contributing to saving lives at sea. Supports the operational readiness of the Coast Guard in monitoring U.S. waters and enforcing maritime laws.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for cost overruns
Risk of technological obsolescence

Positive Signals

Supports critical Coast Guard mission
Investment in national security infrastructure

Sector Analysis

Spending in the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector is crucial for maintaining national security and maritime domain awareness. Benchmarks for similar large-scale system procurements are essential for evaluating cost-effectiveness.

Small Business Impact

The data indicates this contract was awarded to INTEGRATED COAST GUARD SYSTEMS LLC and does not specify any subcontracting goals for small businesses. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The 'NOT COMPETED' designation warrants further oversight to ensure the justification for a sole-source award was robust and that the pricing was fair and reasonable. Accountability for procurement decisions is paramount.

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

Sole-source award lacks competitive pressure on pricing.
Potential for higher costs due to lack of competition.
Risk of technological obsolescence over the contract duration.
Limited transparency on procurement justification.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $68.4 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 $68.4 million.

What is the period of performance?

Start: 2003-03-15. End: 2005-03-25.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award is critical for understanding why competition was bypassed. Agencies typically cite reasons such as unique capabilities, urgent needs, or lack of market availability. Without this justification, it's difficult to assess if taxpayers received the best value or if alternative competitive approaches could have yielded better results or pricing.

How does the per-unit cost of these navigation systems compare to industry benchmarks or similar government procurements?

Comparing the per-unit cost to industry benchmarks or similar government contracts is essential for assessing value for money. If this contract's pricing is significantly higher, it suggests potential inefficiencies or overpricing, especially given the lack of competition. This comparison helps identify areas for cost savings in future procurements.

What measures were in place to ensure the technological relevance and long-term effectiveness of the selected navigation systems throughout the contract period?

Given the contract's duration, ensuring the technological relevance of the navigation systems is crucial. This involves assessing the vendor's ability to provide updates, upgrades, and support to prevent obsolescence. Effective oversight should confirm that the systems remain functional and meet evolving operational requirements.

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: $7,897,595

Exercised Options: $7,897,595

Current Obligation: $68,395,254

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTCG2302C2DW001

IDV Type: IDC

Timeline