DHS Coast Guard Awards $105.9M for Navigation Systems, Lacking Competition

Contract Overview

Contract Amount: $105,885,420 ($105.9M)

Contractor: Integrated Coast Guard Systems LLC

Awarding Agency: Department of Homeland Security

Start Date: 2003-03-15

End Date: 2005-03-18

Contract Duration: 734 days

Daily Burn Rate: $144.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

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 $105.9 million to INTEGRATED COAST GUARD SYSTEMS LLC for work described as: Key points: 1. Significant contract value of $105.9 million awarded. 2. Sole-source award raises concerns about price discovery and competition. 3. Focus on critical navigation systems for the Coast Guard. 4. Potential for higher costs due to lack of competitive bidding.

Value Assessment

Rating: questionable

The contract value of $105.9 million is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar navigation system procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating no competition. This significantly limits price discovery and may lead to inflated costs for taxpayers.

Taxpayer Impact: The lack of competition likely results in higher costs for taxpayers than a competitively bid contract would yield.

Public Impact

Ensures critical navigation and guidance systems for the U.S. Coast Guard fleet. Supports national security and maritime safety through advanced technology. Potential for taxpayer overspending due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Critical system for Coast Guard operations
Long-term contract duration

Sector Analysis

This contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is crucial for defense and maritime operations, but competitive procurement is key to cost efficiency.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). There is no indication of subcontracting opportunities for small businesses.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Further oversight is needed to ensure the justification for not competing the contract was sound and that the price is reasonable.

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 limits competition.
Potential for inflated pricing.
Lack of transparency in price justification.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $105.9 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 $105.9 million.

What is the period of performance?

Start: 2003-03-15. End: 2005-03-18.

What was the specific justification for awarding this contract on a sole-source basis, and was it thoroughly vetted?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that cannot be met by other vendors. A thorough vetting process would involve market research to confirm no other sources exist and a detailed cost analysis to ensure the price is fair and reasonable, even without competition.

How does the cost of this sole-source contract compare to similar, competitively procured navigation systems?

Without access to specific benchmark data for comparable systems, a direct cost comparison is challenging. However, sole-source contracts are inherently at a disadvantage regarding price discovery. A detailed cost breakdown and comparison with industry standards for similar functionalities would be necessary to assess potential overpricing.

What measures are in place to ensure the effectiveness and reliability of these navigation systems, given the lack of competitive pressure on the vendor?

Effectiveness and reliability are typically ensured through stringent contract performance requirements, detailed specifications, acceptance testing, and warranty clauses. The government would still hold the contractor accountable for meeting all technical and performance standards outlined in the contract, regardless of the procurement method.

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: $34,356,279

Exercised Options: $34,356,279

Current Obligation: $105,885,420

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTCG2302C2DW001

IDV Type: IDC

Timeline