DHS's $16.2M financial support services contract with Netstar-1 Government Consulting, Inc. awarded in 2007

Contract Overview

Contract Amount: $16,234,330 ($16.2M)

Contractor: Netstar-1 Government Consulting, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2007-03-05

End Date: 2011-06-30

Contract Duration: 1,578 days

Daily Burn Rate: $10.3K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 5

Pricing Type: LABOR HOURS

Sector: Other

Official Description: FINANCIAL SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20536, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $16.2 million to NETSTAR-1 GOVERNMENT CONSULTING, INC. for work described as: FINANCIAL SUPPORT SERVICES Key points: 1. The contract provided financial support services, indicating a need for specialized accounting and financial management expertise. 2. Awarded to Netstar-1 Government Consulting, Inc., the contract's duration of over 4 years suggests a sustained requirement. 3. The contract was a competitive delivery order, implying multiple vendors were considered. 4. The North American Industry Classification System (NAICS) code 541211 points to accounting services, a critical function for government operations. 5. The contract was performed in the District of Columbia, a common location for federal agency support services. 6. The contract type was labor hours, which allows for flexibility in resource allocation based on evolving needs.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or detailed service descriptions. The total value of $16.2 million over approximately four years suggests a moderate annual spend. Comparing this to similar financial support contracts within DHS or other agencies would provide better context on whether the pricing was competitive and represented good value for the services rendered. The labor hours contract type can sometimes lead to cost overruns if not managed tightly, but also offers flexibility.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that it was competed under a broader contract vehicle where multiple vendors could bid. The presence of 5 bidders suggests a reasonable level of competition for this specific delivery order. A competitive process generally leads to better price discovery and ensures that the government selects the offer that provides the best value, considering both price and technical factors.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries of this contract are U.S. Immigration and Customs Enforcement (ICE) within the Department of Homeland Security, receiving essential financial support services. The services delivered likely include accounting, financial analysis, budgeting, and potentially audit support, crucial for the agency's operational and administrative functions. The geographic impact is concentrated in the District of Columbia, where the contract was performed. The contract supported specialized roles within the financial services sector, potentially impacting the workforce through the engagement of skilled professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the true value for money.
The labor hours contract type can be susceptible to scope creep and cost overruns if not meticulously managed.
Limited information on the specific deliverables and outcomes achieved by Netstar-1 Government Consulting, Inc.

Positive Signals

Awarded through a competitive delivery order process, indicating multiple vendors were considered.
The contract duration suggests a sustained need and potentially a successful working relationship.
The services provided are critical for the functioning of a major federal agency like ICE.

Sector Analysis

The financial support services sector within the federal government encompasses a wide range of activities, including accounting, auditing, payroll, and financial management. This contract falls under the professional services category, specifically accounting services (NAICS 541211). The market for these services is competitive, with numerous firms, from large corporations to specialized small businesses, vying for government contracts. Annual federal spending on professional services, including financial and accounting support, often runs into billions of dollars, highlighting the significance of such contracts for both government operations and the contracting industry.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside. The fact that it was a competitive delivery order with 5 bidders suggests that both large and small businesses may have had the opportunity to compete, depending on the underlying contract vehicle. Further analysis would be needed to determine if any small business subcontracting goals were established or met.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Immigration and Customs Enforcement (ICE) contracting officer and program managers within the Department of Homeland Security. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases like FPDS-NG, which provide basic information on contract values, dates, and awardees. The Inspector General for the Department of Homeland Security would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Financial Management Services
Accounting Services
Professional Services Contracts
Department of Homeland Security Contracts
U.S. Immigration and Customs Enforcement Support

Risk Flags

Contract Duration
Labor Hours Contract Type
Lack of Specific Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $16.2 million to NETSTAR-1 GOVERNMENT CONSULTING, INC.. FINANCIAL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is NETSTAR-1 GOVERNMENT CONSULTING, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $16.2 million.

What is the period of performance?

Start: 2007-03-05. End: 2011-06-30.

What specific financial support services were rendered under this contract?

The contract, identified by NAICS code 541211 (Offices of Certified Public Accountants), indicates that the services provided were related to accounting and financial management. While the exact deliverables are not detailed in the summary data, typical services under such contracts include financial statement preparation, auditing support, budget analysis, financial planning, accounting system support, and potentially forensic accounting or fraud detection services. These services are critical for agencies like U.S. Immigration and Customs Enforcement (ICE) to manage their appropriations, ensure compliance with financial regulations, and support operational decision-making.

How does the $16.2 million contract value compare to similar financial support contracts within DHS?

Direct comparison of the $16.2 million value requires access to a broader dataset of similar contracts within DHS for the period of 2007-2011. However, as a delivery order under a larger contract vehicle, its value is relative to the specific task order. Annual spending on financial and accounting services across the federal government can range from hundreds of thousands to tens of millions of dollars per contract, depending on the scope and duration. For a multi-year contract supporting a major component like ICE, $16.2 million is a substantial but not necessarily outlier amount, suggesting a significant need for specialized financial expertise over the contract's lifespan.

What were the key performance indicators (KPIs) used to evaluate Netstar-1 Government Consulting, Inc.'s performance?

The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate Netstar-1 Government Consulting, Inc.'s performance. Typically, for financial support services contracts, KPIs would focus on accuracy of financial reporting, timeliness of deliverables (e.g., reports submitted by deadlines), adherence to accounting standards (e.g., GAAP, FASAB), responsiveness to inquiries, and overall client satisfaction. The effectiveness of oversight by ICE contracting officers and program managers would be crucial in monitoring these KPIs and ensuring the contractor met its contractual obligations.

What is the historical spending trend for financial support services by U.S. Immigration and Customs Enforcement?

Analyzing the historical spending trend for financial support services by U.S. Immigration and Customs Enforcement (ICE) would require examining contract data over multiple fiscal years. This specific $16.2 million contract (2007-2011) represents a significant investment during that period. To understand the trend, one would need to aggregate spending on similar NAICS codes (e.g., 541211) and related service descriptions awarded by ICE over time. This would reveal whether spending in this category has increased, decreased, or remained relatively stable, potentially indicating changes in agency needs, budget allocations, or reliance on external support.

Were there any notable risks or challenges associated with this contract or contractor?

The provided data does not highlight specific risks or challenges encountered during the performance of this contract. However, general risks associated with financial support services contracts include potential for errors in financial reporting, delays in delivering critical financial information, and challenges in adapting to evolving regulatory requirements. For the contractor, Netstar-1 Government Consulting, Inc., risks could involve maintaining adequate staffing levels with the necessary expertise, managing project scope, and ensuring compliance with government security and data handling protocols. The competitive nature of the award suggests that risks were assessed during the selection process.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Offices of Certified Public Accountants

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Netstar-1 Inc. (UEI: 024234004)

Address: 205 S WHITING ST STE 600, ALEXANDRIA, VA, 22304

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $25,047,960

Exercised Options: $16,234,330

Current Obligation: $16,234,330

Parent Contract

Parent Award PIID: GS23F0010T

IDV Type: FSS

Timeline