DHS awards $14.9M for VUAV-VTOL concept design, highlighting a firm-fixed-price contract for Integrated Coast Guard Systems LLC

Contract Overview

Contract Amount: $14,897,387 ($14.9M)

Contractor: Integrated Coast Guard Systems LLC

Awarding Agency: Department of Homeland Security

Start Date: 2002-10-31

End Date: 2002-11-27

Contract Duration: 27 days

Daily Burn Rate: $551.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS TASK ORDER IS ISSUED UNDER CONTRACT DTCG23-02-C-2DW001 TO FUND CLIN 0041A; CONCEPT DESIGN OF VUAV-VTOL.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $14.9 million to INTEGRATED COAST GUARD SYSTEMS LLC for work described as: THIS TASK ORDER IS ISSUED UNDER CONTRACT DTCG23-02-C-2DW001 TO FUND CLIN 0041A; CONCEPT DESIGN OF VUAV-VTOL. Key points: 1. The contract value of $14.9 million for concept design suggests a significant investment in advanced unmanned aerial vehicle technology. 2. A firm-fixed-price contract structure indicates that the contractor bears the risk of cost overruns, potentially benefiting the government. 3. The short duration of 27 days for this task order suggests a focused, initial phase of development or analysis. 4. The award to Integrated Coast Guard Systems LLC points to specialized capabilities in supporting Coast Guard aviation modernization efforts. 5. The contract's focus on concept design implies early-stage research and development, with potential for future, larger-scale procurements. 6. The absence of small business set-aside flags this as a contract likely awarded based on technical merit and broad competition.

Value Assessment

Rating: good

The contract value of $14.9 million for a concept design task order appears reasonable given the specialized nature of Unmanned Vertical Take-Off and Landing (VUAV-VTOL) systems. Benchmarking against similar early-stage R&D contracts for advanced aviation technologies would provide further context, but the firm-fixed-price nature suggests a controlled cost environment. The award to a single entity, Integrated Coast Guard Systems LLC, implies they possess the specific expertise required for this initial design phase.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive process aimed at achieving the best value. This approach typically leads to more robust price discovery and a wider range of technical solutions being considered.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, leading to better value for public funds.

Public Impact

The U.S. Coast Guard is the primary beneficiary, receiving conceptual designs for advanced VUAV-VTOL capabilities. This contract supports the development of next-generation unmanned aerial systems, potentially enhancing surveillance, interdiction, and operational reach. The geographic impact is national, focusing on improving Coast Guard operational effectiveness across various maritime domains. Workforce implications may include specialized engineering and design roles within the contractor's organization and potential future roles for operators and maintainers of the new systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited duration of the task order (27 days) may not allow for extensive testing or validation of the concept.
Specific performance metrics or success criteria for the concept design phase are not detailed in the provided data.
Potential for scope creep if the concept design leads to immediate, unplanned follow-on development without further competition.

Positive Signals

Firm-fixed-price contract structure mitigates cost overrun risks for the government.
Award under full and open competition suggests a robust selection process and potential for innovation.
Focus on concept design indicates a strategic investment in future technological capabilities for the Coast Guard.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on unmanned aerial systems (UAS) and advanced aviation technologies. The market for UAS is rapidly expanding, driven by military, homeland security, and commercial applications. Concept design contracts like this represent the initial, crucial phase of R&D, often preceding larger development and production contracts. Spending in this area is critical for maintaining technological superiority and enhancing operational capabilities in areas like maritime surveillance.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded under full and open competition. This suggests that the primary evaluation criteria likely focused on technical capability and overall best value, rather than specific small business participation goals. While there's no direct subcontracting information, larger prime contractors in this domain often engage small businesses for specialized components or services, though the extent of that impact is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Coast Guard's program management and contracting offices within the Department of Homeland Security. Accountability is established through the firm-fixed-price contract terms, requiring delivery of the specified concept design. Transparency is facilitated by the contract's award under full and open competition, with public contract data available through federal procurement databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Unmanned Maritime Systems (UMS)
Advanced Aviation Technology Procurement
Homeland Security Technology Development
Coast Guard Aviation Modernization Programs
Defense Research and Development Contracts

Risk Flags

Limited contract duration may restrict thoroughness of concept validation.
Lack of detailed performance metrics for concept design phase.
Potential for follow-on work without full recompete.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $14.9 million to INTEGRATED COAST GUARD SYSTEMS LLC. THIS TASK ORDER IS ISSUED UNDER CONTRACT DTCG23-02-C-2DW001 TO FUND CLIN 0041A; CONCEPT DESIGN OF VUAV-VTOL.

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: 2002-10-31. End: 2002-11-27.

What is the specific technical scope and expected deliverables for the VUAV-VTOL concept design?

The provided data identifies the task as 'CONCEPT DESIGN OF VUAV-VTOL' under contract DTCG23-02-C-2DW001. While the exact technical specifications and deliverables are not detailed, a concept design phase typically involves preliminary engineering, feasibility studies, system architecture definition, and potentially initial performance modeling. Deliverables would likely include design documentation, feasibility reports, and recommendations for subsequent development phases. The short duration (27 days) suggests a focused effort on defining the core concept rather than detailed engineering drawings or prototypes.

How does the $14.9 million award compare to typical concept design contracts for similar advanced aviation systems?

Without specific comparative data on VUAV-VTOL concept design contracts, a direct benchmark is challenging. However, $14.9 million for a preliminary concept design phase for a novel, advanced system like a VTOL UAV appears to be within a reasonable range, particularly for a government contract involving specialized R&D. Early-stage concept development for complex platforms can be costly due to the need for expert analysis, simulation, and exploration of multiple design avenues. The firm-fixed-price nature suggests the government has capped its financial exposure for this specific phase.

What are the potential risks associated with developing a VUAV-VTOL system, and how does this contract address them?

Risks in VUAV-VTOL development include technological immaturity, integration challenges, regulatory hurdles, and high development costs. This contract, being for concept design, primarily addresses the risk of investing heavily in a technology that may not be feasible or optimal. By focusing on the initial concept, the Coast Guard can assess viability before committing to full-scale development. The firm-fixed-price structure mitigates financial risk for this phase. However, risks related to technology maturity and future integration remain for subsequent development stages.

What is the track record of Integrated Coast Guard Systems LLC in delivering similar advanced aviation or unmanned system designs?

The provided data does not include specific details on the track record of Integrated Coast Guard Systems LLC. However, their selection for this contract by the Department of Homeland Security's U.S. Coast Guard suggests they possess relevant expertise and capabilities deemed suitable for advanced aviation concept design. Further investigation into the company's past performance, other contracts, and technical achievements would be necessary to fully assess their track record in this specialized domain.

What is the historical spending pattern for VUAV-VTOL or similar unmanned aerial systems by the U.S. Coast Guard or DHS?

The provided data is for a single task order valued at $14.9 million. It does not offer historical spending patterns for VUAV-VTOL or similar systems by the U.S. Coast Guard or DHS. To understand historical spending, one would need to analyze broader contract databases for procurements related to unmanned aerial systems, maritime surveillance aircraft, and related technologies over several fiscal years. This would reveal trends in investment, technology adoption, and the evolution of requirements within these agencies.

What are the implications of this contract for future Coast Guard operational capabilities?

This contract is a foundational step towards potentially enhancing the Coast Guard's operational capabilities through advanced VUAV-VTOL technology. Successful concept design could lead to the development of systems that offer persistent surveillance, extended range, and improved response times for missions such as search and rescue, drug interdiction, and port security. The ability of VTOL UAVs to operate from various platforms or locations without extensive runway infrastructure could significantly increase operational flexibility and effectiveness in diverse maritime environments.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1530 WILSON BLVD STE 400, ARLINGTON, VA, 08

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,897,387

Exercised Options: $14,897,387

Current Obligation: $14,897,387

Timeline