Integrated Coast Guard Systems LLC awarded $64.4M contract for navigation systems by DHS

Contract Overview

Contract Amount: $64,375,344 ($64.4M)

Contractor: Integrated Coast Guard Systems LLC

Awarding Agency: Department of Homeland Security

Start Date: 2004-11-15

End Date: 2004-12-15

Contract Duration: 30 days

Daily Burn Rate: $2.1M/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NSC2/ICGS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $64.4 million to INTEGRATED COAST GUARD SYSTEMS LLC for work described as: NSC2/ICGS Key points: 1. Contract value represents a significant investment in critical maritime navigation technology. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. The fixed-price contract type aims to control costs and provide budget certainty. 4. The short duration of the delivery order may indicate a specific, time-sensitive need. 5. The contractor, Integrated Coast Guard Systems LLC, is positioned to deliver specialized solutions. 6. The contract falls within the broader category of defense and security systems manufacturing.

Value Assessment

Rating: good

The contract value of $64.4 million for a one-month delivery order appears substantial, but without specific details on the scope of work, a direct value-for-money assessment is challenging. Benchmarking against similar, multi-year contracts for navigation systems would provide better context. The firm fixed-price structure is a positive indicator for cost control. The relatively low contract value for the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' category suggests this may be a specific component or upgrade rather than a full system acquisition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the 'full and open' designation generally implies a competitive environment that should drive better pricing and innovation. This approach is favored for ensuring the government receives the best possible value by considering a wide range of potential providers.

Taxpayer Impact: A competitive bidding process like this one is beneficial for taxpayers as it helps ensure that the government is not overpaying for goods or services and that the contract is awarded to the most capable and cost-effective provider.

Public Impact

The U.S. Coast Guard is the primary beneficiary, receiving advanced navigation systems. This contract supports the Coast Guard's mission in search, detection, and guidance operations. The systems are crucial for maritime safety and security along U.S. waterways and coastlines. The contract likely involves specialized manufacturing and technical expertise, potentially impacting the aerospace and nautical instrument sector workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The short 30-day duration for a contract of this magnitude raises questions about the scope and potential for rushed delivery or unforeseen complexities.
Lack of detailed performance metrics or specific deliverables makes it difficult to fully assess the expected outcomes and potential risks.
The specific nature of 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' is broad; understanding the precise technology is key to assessing risk.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair selection process.
Firm Fixed Price contract type provides cost certainty and limits the government's exposure to cost overruns.
The contractor, Integrated Coast Guard Systems LLC, is likely experienced in this specialized field, reducing technical risk.
The contract supports critical national security and safety functions of the U.S. Coast Guard.

Sector Analysis

The contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector, a specialized niche within the broader aerospace and defense industry. This sector is characterized by high technological requirements and stringent quality standards. Spending in this area is often driven by national security needs, maritime safety regulations, and technological advancements in sensing and navigation. Comparable spending benchmarks would typically involve multi-year procurements for integrated systems or significant upgrades to existing platforms.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information on subcontracting plans. Given the specialized nature of the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' category, it is possible that larger prime contractors may engage specialized small businesses for specific components or services. However, without explicit set-aside provisions or subcontracting goals, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Coast Guard contracting officers and program managers within the Department of Homeland Security. Transparency is facilitated by the public nature of contract awards. The firm fixed-price structure inherently provides a level of accountability for the contractor to deliver within the agreed budget. Further oversight could involve quality assurance inspections and acceptance testing of the delivered systems.

Related Government Programs

Department of Defense Navigation Systems Contracts
Maritime Surveillance Technology Procurement
Homeland Security Sensor and Instrument Acquisition
Federal Aviation Administration Navigation Aid Development
National Oceanic and Atmospheric Administration Equipment Contracts

Risk Flags

Short performance period for a large contract value
Lack of specific system details
Potential for contractor risk in FFP with tight deadline

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $64.4 million to INTEGRATED COAST GUARD SYSTEMS LLC. NSC2/ICGS

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 $64.4 million.

What is the period of performance?

Start: 2004-11-15. End: 2004-12-15.

What is the specific technology or system being procured under this contract, and what are its key capabilities?

The contract, valued at $64.4 million, falls under the Product Service Code (PSC) '334511' for Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing. While the specific system is not detailed in the provided data, this PSC typically covers a range of equipment including radar systems, GPS receivers, sonar, inertial navigation units, flight control instruments, and related components. Given the client is the U.S. Coast Guard, the systems are likely intended to enhance maritime domain awareness, search and rescue capabilities, vessel traffic management, and operational safety in challenging marine environments. The exact capabilities would depend on whether this is for new equipment, upgrades, or replacement parts for existing platforms.

How does the $64.4 million contract value compare to typical spending for similar navigation systems by the U.S. Coast Guard or other agencies?

Benchmarking the $64.4 million contract value requires understanding the scope and duration. As a single delivery order with a 30-day performance period, this amount is substantial for a short timeframe, suggesting a significant procurement of high-value components or a critical, time-sensitive upgrade. For context, larger, multi-year contracts for integrated navigation suites or major platform upgrades can range from tens to hundreds of millions of dollars. For instance, the Coast Guard's Integrated Deepwater Systems Program involved billions in modernization. This $64.4 million award, if for a specific system or a batch of advanced instruments, could be considered within the expected range for specialized, high-tech maritime equipment, especially when procured under full and open competition which typically yields competitive pricing.

What are the potential risks associated with a firm fixed-price contract for advanced navigation systems, especially given the short performance period?

Firm Fixed Price (FFP) contracts are generally preferred for cost control, but they can introduce risks if the scope of work is not precisely defined or if unforeseen technical challenges arise. For advanced navigation systems, risks include potential contractor underestimation of costs or technical difficulties, leading to potential quality compromises if the contractor seeks to maintain profitability. The short 30-day performance period for a $64.4 million contract is particularly noteworthy. This compressed timeline could increase the risk of delivery delays or performance issues if the system requires extensive integration, testing, or customization. The government's risk is mitigated by the FFP nature, but the agency must ensure the Statement of Work is exceptionally clear and that the contractor has the capacity to meet the demanding schedule without sacrificing quality.

What is the track record of Integrated Coast Guard Systems LLC in delivering similar navigation systems or fulfilling government contracts?

Integrated Coast Guard Systems LLC (ICGS) is a joint venture formed by major defense contractors, often including companies like Lockheed Martin and Northrop Grumman, specifically to address the U.S. Coast Guard's needs. Its track record is therefore tied to the capabilities and past performance of its parent companies. ICGS has historically been involved in large-scale Coast Guard modernization efforts, such as the Deepwater program, which aimed to upgrade the service's aging fleet and surveillance capabilities. While specific performance details for this particular $64.4 million delivery order are not public, the formation of ICGS itself signifies a strategic approach by the government to consolidate expertise for complex maritime systems, suggesting a baseline of capability and experience in delivering sophisticated solutions to the Coast Guard.

How does the 'full and open competition' aspect of this award influence the potential value and innovation received by the government?

Awarding this contract under 'full and open competition' is a significant positive indicator for value and innovation. It means that the U.S. Coast Guard solicited bids from all responsible sources, allowing a wide range of companies, including potentially new entrants or smaller specialized firms, to compete. This broad competition typically drives down prices as contractors vie for the award. Furthermore, it encourages innovation because companies are incentivized to offer their best technologies and solutions to win the contract. The government benefits from a wider pool of options, increasing the likelihood of selecting a system that not only meets requirements but also offers superior performance, advanced features, or a more cost-effective design compared to a sole-source or limited-competition scenario.

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: SHIP AND MARINE EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

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: $64,375,344

Exercised Options: $64,375,344

Current Obligation: $64,375,344

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTCG2302C2DW001

IDV Type: IDC

Timeline