DHS Coast Guard's $13.1M contract for navigation systems awarded to Integrated Coast Guard Systems LLC

Contract Overview

Contract Amount: $13,148,712 ($13.1M)

Contractor: Integrated Coast Guard Systems LLC

Awarding Agency: Department of Homeland Security

Start Date: 2003-08-15

End Date: 2005-08-14

Contract Duration: 730 days

Daily Burn Rate: $18.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $13.1 million to INTEGRATED COAST GUARD SYSTEMS LLC for work described as: Key points: 1. Contract awarded for navigation systems, a critical component for maritime safety and operations. 2. The awardee, Integrated Coast Guard Systems LLC, has a history with federal contracts. 3. The contract duration of two years suggests a need for ongoing support or specific project timelines. 4. The fixed-price contract type aims to provide cost certainty for the government. 5. This award falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' NAICS code. 6. The contract was not competed, raising questions about potential cost savings and broader market engagement.

Value Assessment

Rating: questionable

The contract value of $13.1 million over two years for navigation systems requires careful benchmarking. Without specific details on the systems procured or comparable contracts, it is difficult to definitively assess value for money. The lack of competition further complicates a direct price comparison. However, the firm fixed-price structure suggests an attempt to control costs, though the absence of competitive bidding may have led to a higher price than could have been achieved through an open market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in specific emergency situations. The lack of competition means that the government did not benefit from the price discovery and innovation that typically arises from a competitive bidding process.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without a competitive process, there is less assurance that the government secured the best possible price and terms.

Public Impact

The U.S. Coast Guard is the primary beneficiary, receiving essential navigation systems for its fleet. These systems are crucial for search and rescue operations, maritime law enforcement, and national security missions. The contract supports the operational readiness and effectiveness of the Coast Guard's maritime domain awareness capabilities. The procurement impacts the specialized manufacturing sector for nautical and aeronautical systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than a competed award.
Sole-source awards can limit opportunities for other qualified small and large businesses.
Transparency is reduced without a competitive bidding process to scrutinize proposals and pricing.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
The contract supports critical national security and safety functions of the U.S. Coast Guard.

Sector Analysis

The contract falls within the defense and security sector, specifically focusing on the manufacturing of navigation systems. This is a specialized niche within the broader aerospace and defense industry. The market for such systems is often characterized by high barriers to entry due to technological complexity and stringent quality requirements. Comparable spending in this area would involve other government agencies procuring similar advanced navigation and guidance equipment for their operational fleets.

Small Business Impact

The data indicates that small business participation was not a stated factor in this sole-source award (ss: false, sb: false). Without a competitive bidding process, there are no subcontracting opportunities explicitly set aside for small businesses. This award does not appear to directly benefit the small business ecosystem in this specialized manufacturing area.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's internal procurement regulations and the U.S. Coast Guard's program management. As a sole-source award, the justification for this procurement method would be subject to review. Transparency is limited due to the non-competitive nature, and specific Inspector General jurisdiction would depend on the nature of any potential issues or audits initiated by DHS.

Related Government Programs

Department of Defense Navigation Systems Procurement
Maritime Domain Awareness Systems
Coast Guard Fleet Modernization Programs
Federal Aviation Administration Navigation Equipment

Risk Flags

Sole-source award lacks competitive justification.
Potential for overpayment due to lack of competition.
Limited transparency in procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $13.1 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 $13.1 million.

What is the period of performance?

Start: 2003-08-15. End: 2005-08-14.

What specific navigation systems were procured under this contract, and what are their technical specifications?

The provided data does not specify the exact type of navigation systems procured, only that they fall under the NAICS code 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing.' These systems are critical for the U.S. Coast Guard's operations, likely including GPS receivers, inertial navigation units, radar systems, or integrated bridge systems. Without further details, it's impossible to ascertain the specific technical capabilities or advanced features included in this $13.1 million award. The Coast Guard typically requires robust, reliable, and often hardened systems capable of operating in harsh maritime environments.

What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The justification for a sole-source award is not provided in the data. Typically, sole-source contracts are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. For a contract of this value and duration, a detailed justification would be required, potentially involving proprietary technology, unique capabilities of Integrated Coast Guard Systems LLC, or a critical operational need that could not be met through a competitive process within the required timeframe. Without this justification, it is difficult to assess the necessity of the sole-source approach.

How does the $13.1 million contract value compare to historical spending on similar navigation systems by the U.S. Coast Guard?

The provided data does not include historical spending figures for the U.S. Coast Guard on similar navigation systems, making a direct comparison impossible. To assess if $13.1 million over two years is reasonable, one would need to analyze past contracts for comparable equipment, considering factors like system complexity, quantity, and technological advancements. The lack of competition in this award also makes it harder to benchmark against potentially lower prices achieved through competitive bidding in the past. A comprehensive review of historical procurement data would be necessary to determine if this contract represents a fair market value.

What is the track record of Integrated Coast Guard Systems LLC in fulfilling federal contracts, particularly for the Department of Homeland Security?

Integrated Coast Guard Systems LLC has a history of federal contracting, as indicated by its presence in federal procurement databases. However, the provided data does not offer specific details on their past performance, contract values, or the types of services/products delivered to the Department of Homeland Security or other agencies. A deeper dive into contract performance reports (like CPARS), past performance evaluations, and the scope of previous awards would be necessary to fully assess their track record and reliability in fulfilling complex federal contracts, especially those involving critical systems like navigation equipment.

What are the potential risks associated with a sole-source award for critical navigation systems?

The primary risk associated with a sole-source award for critical navigation systems is the potential for inflated pricing due to the lack of competitive pressure. This can lead to reduced value for taxpayer money. Another risk is the potential for vendor lock-in, where the government becomes overly reliant on a single provider, potentially limiting future flexibility and innovation. Furthermore, without the scrutiny of a competitive process, there's a reduced assurance of receiving the most advanced or cost-effective solutions available in the market. Ensuring robust contract management and oversight becomes even more critical in sole-source situations.

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: $7,767,687

Exercised Options: $7,767,687

Current Obligation: $13,148,712

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTCG2302C2DW001

IDV Type: IDC

Timeline