DHS Coast Guard Awards $14.2M IT Services Contract to Allied Technology Group

Contract Overview

Contract Amount: $14,199,030 ($14.2M)

Contractor: Allied Technology Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2002-08-01

End Date: 2007-02-28

Contract Duration: 1,672 days

Daily Burn Rate: $8.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SHIP/SHORE IT

Place of Performance

Location: NORFOLK, NORFOLK (CITY) County, VIRGINIA, 23510

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $14.2 million to ALLIED TECHNOLOGY GROUP, INC. for work described as: SHIP/SHORE IT Key points: 1. Contract value of $14.2 million for IT services. 2. Awarded to Allied Technology Group, Inc. 3. Contract type is competitive delivery order. 4. Services fall under 'Other Computer Related Services' NAICS code. 5. Contract duration spans over 4 years.

Value Assessment

Rating: fair

The contract was awarded using a Time and Materials pricing structure. Without specific labor rates or hours, a direct comparison to similar contracts is difficult. However, the total award value of $14.2 million over 1672 days suggests a moderate daily rate.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This was a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. The competitive nature of the award is a positive sign for price discovery and potentially achieving a fair market price.

Taxpayer Impact: The competitive award process suggests that taxpayer funds were likely used efficiently, as multiple companies vied for the contract, driving potentially better pricing.

Public Impact

Ensures continued IT support for U.S. Coast Guard operations. Supports critical infrastructure and mission readiness. Provides employment opportunities within the IT sector. Contributes to the Department of Homeland Security's technological capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not closely managed.
Lack of specific performance metrics makes it hard to assess value for money.
Contract duration is relatively long, increasing risk of obsolescence or changing needs.

Positive Signals

Awarded competitively, suggesting potential for good value.
Supports a critical government agency (Coast Guard).
Long-term contract provides stability for service delivery.

Sector Analysis

This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. IT spending by government agencies is substantial, and contracts like this are common for maintaining and upgrading technological infrastructure. Benchmarks for similar IT service contracts vary widely based on scope and complexity.

Small Business Impact

The data indicates this contract was not awarded to a small business (ss: false, sb: false). Therefore, there is no direct benefit to small businesses from this specific award, and opportunities for subcontracting are not explicitly detailed.

Oversight & Accountability

Oversight would typically be managed by the U.S. Coast Guard contracting officers and program managers. Regular performance reviews and audits are standard procedures to ensure contract compliance and accountability for taxpayer funds.

Related Government Programs

Other Computer Related Services
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Time and Materials pricing risk
Potential for scope creep
Long contract duration
Lack of explicit small business subcontracting goals
Limited transparency on specific service details

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $14.2 million to ALLIED TECHNOLOGY GROUP, INC.. SHIP/SHORE IT

Who is the contractor on this award?

The obligated recipient is ALLIED TECHNOLOGY GROUP, INC..

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 $14.2 million.

What is the period of performance?

Start: 2002-08-01. End: 2007-02-28.

What was the specific scope of 'Other Computer Related Services' covered under this contract, and how did it align with the Coast Guard's evolving IT needs?

The specific scope of 'Other Computer Related Services' would encompass a range of IT support functions not covered by more specific NAICS codes. This could include IT system integration, IT support services, and IT consulting. For the Coast Guard, these services likely supported operational systems, administrative functions, and potentially cybersecurity measures, ensuring the agency could maintain and enhance its technological capabilities throughout the contract period.

Given the Time and Materials pricing, what mechanisms were in place to control costs and prevent overruns, and how effective were they?

Time and Materials contracts typically rely on pre-negotiated hourly labor rates and material markups, along with contract ceilings. Effective cost control would involve rigorous monitoring of hours worked, justification for materials purchased, and regular reporting by the contractor. The government contracting officer would be responsible for approving invoices and ensuring adherence to the contract ceiling. Without detailed performance data, assessing the effectiveness of these controls is challenging.

How did the competitive bidding process ensure that Allied Technology Group's pricing was fair and reasonable compared to market rates for similar IT services?

The competitive bidding process, by definition, involves multiple vendors submitting proposals, including their pricing structures. This competition theoretically drives prices down to a fair market level as companies vie for the award. The government would have evaluated these proposals based on technical merit and price. The presence of a competitive delivery order suggests that the market offered sufficient viable options, leading to a price that was deemed reasonable by the Coast Guard at the time of award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

Address: 1803 RES BLVD STE 601, ROCKVILLE, MD, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,199,030

Exercised Options: $14,199,030

Current Obligation: $14,199,030

Parent Contract

Parent Award PIID: GS07T00BGD0055

IDV Type: GWAC

Timeline