DHS's $104M software and services contract with ESCGOV, Inc. awarded under full and open competition

Contract Overview

Contract Amount: $104,005,087 ($104.0M)

Contractor: Escgov, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2014-03-30

End Date: 2016-03-31

Contract Duration: 732 days

Daily Burn Rate: $142.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ORDER FOR SOFTWARE AND SERVICES SPECIAL OPTION FOR ESS IBM BPA PRODCUTS

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $104.0 million to ESCGOV, INC. for work described as: ORDER FOR SOFTWARE AND SERVICES SPECIAL OPTION FOR ESS IBM BPA PRODCUTS Key points: 1. Contract awarded for software and services, indicating a need for IT solutions. 2. The contract duration of 732 days suggests a medium-term engagement. 3. Awarded by the Department of Homeland Security (DHS), a major federal agency. 4. The use of a BPA Call indicates a streamlined procurement process for specific needs. 5. The contract type is Firm Fixed Price, which helps control costs. 6. No small business set-aside was utilized, suggesting the primary contractor is not a small business.

Value Assessment

Rating: fair

Benchmarking the value of this $104 million contract for software and services is challenging without specific performance metrics or detailed service descriptions. The firm fixed-price structure is a positive indicator for cost control. However, without comparable contract data for similar software and services within DHS or other agencies, it's difficult to definitively assess if the pricing represents excellent value for money. The contract's duration and the nature of the services procured would be key factors in a more thorough value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. This approach generally fosters a competitive environment, which can lead to better pricing and innovation. The fact that it was a BPA Call suggests that a broader contract vehicle was already in place, and this specific order was then competed or fulfilled under that existing framework. The number of bidders is not specified, but the 'full and open' designation implies a robust competitive process.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it increases the likelihood of obtaining competitive pricing and ensures that government funds are used efficiently by leveraging the widest possible market.

Public Impact

This contract likely supports the operational needs of U.S. Customs and Border Protection (CBP) within the Department of Homeland Security. The services procured are related to software and IT solutions, potentially enhancing border security or internal operational efficiency. The geographic impact is primarily within Virginia, where the contractor is located. The contract may impact the IT workforce through the development, implementation, or maintenance of the software and services provided.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the software and services.
The broad nature of 'software and services' could mask potential inefficiencies or scope creep if not tightly managed.
Reliance on a single BPA call for a significant dollar amount might indicate a lack of ongoing strategic sourcing for these IT needs.

Positive Signals

Firm Fixed Price contract type helps to mitigate cost overruns.
Awarded under Full and Open Competition, suggesting a competitive process that should yield fair market value.
The contract is managed by the Department of Homeland Security, a critical agency with established procurement oversight processes.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on software and related services. The federal IT market is vast, with agencies consistently investing in solutions to modernize operations, enhance security, and improve data management. Spending benchmarks for similar software and services contracts can vary widely based on complexity, duration, and specific functionalities. However, contracts in the tens of millions of dollars are common for enterprise-level IT solutions within large federal departments like DHS.

Small Business Impact

The data indicates that this contract was not awarded under a small business set-aside, and the 'sb' field is false. This suggests that the primary contract was not specifically targeted towards small businesses. While the prime contractor's size is not explicitly stated, the absence of a set-aside implies it may not be a small business, or that the nature of the requirement did not lend itself to a small business set-aside. There is no information provided on subcontracting plans or their impact on the small business ecosystem.

Oversight & Accountability

The Department of Homeland Security, as a major federal agency, has established oversight mechanisms for its contracts. This includes contract administration by the U.S. Customs and Border Protection, and potentially oversight from DHS's Office of the Inspector General (OIG) for significant expenditures. Transparency is generally maintained through contract databases like FPDS, where basic award information is publicly available. The firm fixed-price nature of the contract provides a degree of accountability regarding cost.

Related Government Programs

Department of Homeland Security IT Modernization Programs
Customs and Border Protection Technology Modernization
Federal Enterprise Software Licensing
IT Services and Support Contracts

Risk Flags

Potential for scope creep in complex software/services
Risk of outdated technology if not actively managed/updated
Dependence on contractor performance for critical IT functions

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $104.0 million to ESCGOV, INC.. ORDER FOR SOFTWARE AND SERVICES SPECIAL OPTION FOR ESS IBM BPA PRODCUTS

Who is the contractor on this award?

The obligated recipient is ESCGOV, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $104.0 million.

What is the period of performance?

Start: 2014-03-30. End: 2016-03-31.

What specific software and services were procured under this contract, and how do they align with CBP's mission objectives?

The contract, identified as an 'ORDER FOR SOFTWARE AND SERVICES SPECIAL OPTION FOR ESS IBM BPA PRODCUTS,' suggests the procurement of IBM-related software and associated services. While the exact nature of these products and services is not detailed in the provided data, they likely support critical functions within U.S. Customs and Border Protection (CBP). This could range from data analytics and border management systems to internal IT infrastructure support and cybersecurity solutions. The 'ESS' designation might refer to Enterprise Software Solutions or a specific program within CBP. The alignment with mission objectives would depend on whether these IT assets enhance border security operations, improve cargo processing, facilitate traveler screening, or bolster internal administrative functions. Further analysis would require access to the specific BPA and the individual order details.

How does the $104 million expenditure compare to historical spending on similar software and services by DHS or CBP?

Comparing this $104 million contract to historical spending requires access to detailed historical procurement data for DHS and CBP. Without that granular data, a direct comparison is difficult. However, $104 million represents a significant investment, indicative of a substantial IT requirement. Federal agencies, particularly those with large operational mandates like DHS and CBP, often have multi-year IT budgets in the hundreds of millions or even billions of dollars. This specific contract, awarded in 2014 and ending in 2016, would need to be viewed within the context of IT spending trends during that period. Analyzing trends in IT modernization, cloud adoption, and specific technology procurements (e.g., data analytics, surveillance technology) would provide a better benchmark for assessing whether this expenditure was typical, high, or low relative to similar needs.

What is the track record of ESCGOV, INC. in fulfilling federal contracts, particularly those of similar size and scope?

Information regarding ESCGOV, INC.'s track record with federal contracts is not fully detailed in the provided data snippet. The award of a $104 million contract by the Department of Homeland Security suggests that the company has experience and capabilities deemed sufficient by the agency to handle a requirement of this magnitude. To assess their track record thoroughly, one would need to examine their past performance on other federal contracts, looking at factors such as on-time delivery, quality of work, adherence to budget, and any past performance issues or disputes. Databases like the Federal Procurement Data System (FPDS) and potentially contractor performance assessment reports (CPARS) would be essential resources for a comprehensive review of ESCGOV, INC.'s history.

What are the potential risks associated with a firm fixed-price contract for complex software and services, and how might they have been mitigated?

Firm Fixed Price (FFP) contracts, while beneficial for cost certainty, carry inherent risks when procuring complex software and services. One primary risk is that the contractor may cut corners on quality or scope to maintain profitability if the initial price was underestimated. Conversely, if the price was overestimated, the government may overpay. For complex IT projects, scope creep is another significant risk; if requirements evolve, managing changes under an FFP contract can lead to disputes or costly change orders. Mitigation strategies typically involve clearly defined requirements and statements of work, robust contract management and oversight, performance metrics, and a well-defined process for managing contract modifications. The government's ability to clearly articulate needs and monitor progress is crucial for mitigating risks in FFP arrangements for IT.

Given the contract was awarded in 2014 and ended in 2016, what is the current relevance of this spending in today's IT landscape?

A contract awarded in 2014 and completed in 2016 reflects the IT landscape and priorities of that era. The technology environment evolves rapidly, and software solutions procured then may be outdated or superseded by newer technologies today. For instance, advancements in cloud computing, artificial intelligence, cybersecurity threats, and data analytics have significantly reshaped IT needs and solutions since 2014-2016. While the services provided were likely critical at the time for CBP, the specific software and systems implemented may require modernization or replacement to meet current operational demands and security standards. Understanding the contract's legacy involves assessing whether the implemented solutions have been maintained, upgraded, or replaced, and how they contributed to the agency's long-term technological evolution.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Commercial and Industrial Machinery and Equipment Rental and Leasing › Office Machinery and Equipment Rental and Leasing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 8300 GREENSBORO DR. SUITE 1150, MC LEAN, VA, 22102

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $110,000,000

Exercised Options: $104,005,087

Current Obligation: $104,005,087

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: HSHQDC11A00040

IDV Type: BPA

Timeline