DHS Awards $26.5M for ICE Tech Modernization Software Design to Raytheon Company

Contract Overview

Contract Amount: $26,468,084 ($26.5M)

Contractor: Raytheon Company

Awarding Agency: Department of Homeland Security

Start Date: 2011-09-27

End Date: 2014-09-10

Contract Duration: 1,079 days

Daily Burn Rate: $24.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: ICE TECS MODERNIZATION SOFTWARE DESIGN/DEVELOPMENT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20536

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $26.5 million to RAYTHEON COMPANY for work described as: ICE TECS MODERNIZATION SOFTWARE DESIGN/DEVELOPMENT Key points: 1. Significant contract value of $26.5 million for software design and development. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. Contract duration of nearly three years suggests a substantial project scope. 4. The sector is IT services, specifically computer systems design. 5. Cost Plus Award Fee contract type can lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

The Cost Plus Award Fee (CPAF) structure allows for costs plus a fee that is adjusted based on performance. Without specific performance metrics and benchmarks, it's difficult to assess if the final price represents excellent value. The award fee component aims to incentivize performance, but the total cost can fluctuate.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting multiple bidders participated. This method generally promotes price discovery and competitive pricing. The specific impact on price is not detailed, but the process itself is designed to yield a fair market price.

Taxpayer Impact: Taxpayer funds are utilized for this contract. The competitive nature of the award is intended to ensure a reasonable price, but the CPAF structure introduces some uncertainty regarding the final cost.

Public Impact

Modernization of ICE technology systems could improve operational efficiency and data management. Impacts immigration and customs enforcement processes, potentially affecting border security and internal operations. Software development projects carry inherent risks of delays and scope creep, impacting timelines and costs. The use of CPAF may incentivize contractor performance but also requires robust government oversight to control costs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contract type can lead to higher costs if not managed effectively.
Long contract duration increases the risk of scope changes and cost escalation.
Potential for performance issues impacting the modernization timeline.
Lack of specific performance metrics makes value assessment difficult.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Contract aims to modernize critical ICE technology infrastructure.
Potential for improved efficiency and effectiveness in immigration and customs enforcement.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and development services. IT spending benchmarks vary widely by service type and agency, but modernization efforts often represent significant investments to maintain or upgrade aging systems.

Small Business Impact

The data indicates this contract was awarded to Raytheon Company, a large business. There is no specific information provided regarding set-asides for small businesses or their participation in this particular contract.

Oversight & Accountability

The contract type (CPAF) necessitates strong government oversight to monitor performance and control costs effectively. Regular reviews of contractor progress, adherence to scope, and justification of award fees are crucial for accountability and ensuring taxpayer value.

Related Government Programs

Computer Systems Design Services
Department of Homeland Security Contracting
U.S. Immigration and Customs Enforcement Programs

Risk Flags

Cost Plus Award Fee (CPAF) contract type.
Long contract duration (nearly 3 years).
Potential for scope creep in software development.
Lack of detailed performance metrics in public data.
Awarded to a large business, with no explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $26.5 million to RAYTHEON COMPANY. ICE TECS MODERNIZATION SOFTWARE DESIGN/DEVELOPMENT

Who is the contractor on this award?

The obligated recipient is RAYTHEON COMPANY.

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 $26.5 million.

What is the period of performance?

Start: 2011-09-27. End: 2014-09-10.

What specific performance metrics were used to determine the award fee, and how did Raytheon perform against them?

The provided data does not detail the specific performance metrics tied to the award fee. A Cost Plus Award Fee (CPAF) contract structure implies that the contractor's fee is contingent upon meeting or exceeding certain performance standards set by the government. Without access to the contract's statement of work and performance evaluation reports, it's impossible to assess the effectiveness of these metrics or Raytheon's performance in achieving them.

How does the per-unit cost of this software development compare to industry benchmarks for similar modernization projects?

A direct per-unit cost benchmark for this specific software design and development contract is not available. The total award amount of $26.5 million over approximately three years for ICE tech modernization is substantial. However, without detailed breakdowns of labor hours, complexity, and specific deliverables, comparing it to industry benchmarks for similar projects is challenging and requires further analysis of the contract's scope and deliverables.

What is the anticipated impact of this modernization on ICE's operational efficiency and data security?

The primary goal of this contract is the modernization of ICE's technology systems, which is anticipated to enhance operational efficiency through improved data management, streamlined workflows, and potentially better analytical capabilities. Modernization efforts also typically aim to bolster data security by implementing updated protocols and defenses against cyber threats, thereby improving the agency's overall effectiveness and security posture.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HSCETC11R00005

Offers Received: 5

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp (UEI: 001344142)

Address: 22270 PACIFIC BLVD STE 600, DULLES, VA, 20166

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $45,542,732

Exercised Options: $28,128,571

Current Obligation: $26,468,084

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q09BGD0047

IDV Type: GWAC

Timeline