DHS Awards $35.4M for VUAV Production and Assembly to Integrated Coast Guard Systems LLC

Contract Overview

Contract Amount: $35,361,918 ($35.4M)

Contractor: Integrated Coast Guard Systems LLC

Awarding Agency: Department of Homeland Security

Start Date: 2005-05-09

End Date: 2005-06-10

Contract Duration: 32 days

Daily Burn Rate: $1.1M/day

Competition Type: FOLLOW ON TO COMPETED ACTION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE

Sector: IT

Official Description: VUAV PRODUCTION AND ASSEMBLY

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $35.4 million to INTEGRATED COAST GUARD SYSTEMS LLC for work described as: VUAV PRODUCTION AND ASSEMBLY Key points: 1. Contract awarded for VUAV production and assembly, a critical component for Coast Guard operations. 2. Integrated Coast Guard Systems LLC is the contractor, with a follow-on to a competed action. 3. The contract type is Cost Plus Incentive, suggesting potential for cost overruns if not managed closely. 4. The sector is primarily IT/Defense, given the nature of aeronautical and nautical systems.

Value Assessment

Rating: fair

The contract is a Cost Plus Incentive type, which can lead to higher costs than fixed-price contracts if performance incentives are not well-defined or achieved. Benchmarking per-unit cost is difficult without more detailed product specifications.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract is a follow-on to a previously competed action, indicating some level of competition existed in the past. However, the specific competition details and how they influenced pricing for this follow-on are not fully clear from the provided data.

Taxpayer Impact: The Cost Plus Incentive structure requires careful oversight to ensure taxpayer funds are used efficiently and that the government receives good value for the investment in VUAV systems.

Public Impact

Enhances Coast Guard's search, detection, and navigation capabilities. Supports national security and maritime safety through advanced technology. Potential for technological advancements in unmanned aerial vehicle systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive contract type can lead to higher final costs.
Limited visibility into the specifics of the 'follow on to competed action'.

Positive Signals

Supports critical Coast Guard mission functions.
Follow-on to a previously competed action suggests some market validation.

Sector Analysis

The contract falls within the IT and Defense sectors, specifically related to aeronautical and nautical systems manufacturing. Spending benchmarks for similar VUAV production and assembly contracts would be valuable for assessing value for money.

Small Business Impact

No specific information is provided regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved or had opportunities.

Oversight & Accountability

The Cost Plus Incentive contract type necessitates robust oversight to manage costs and ensure performance objectives are met. The 'follow on to competed action' status suggests prior oversight and evaluation.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Potential for cost overruns due to Cost Plus Incentive structure.
Lack of detailed information on the 'follow on to competed action'.
Need for clear performance metrics to ensure contractor accountability.
Limited transparency on small business involvement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $35.4 million to INTEGRATED COAST GUARD SYSTEMS LLC. VUAV PRODUCTION AND ASSEMBLY

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 $35.4 million.

What is the period of performance?

Start: 2005-05-09. End: 2005-06-10.

What specific performance metrics are tied to the incentive portion of this Cost Plus Incentive contract, and how do they ensure value for money?

The incentive portion of a Cost Plus Incentive contract is designed to motivate the contractor to achieve specific performance goals, such as cost savings, schedule adherence, or technical performance. The effectiveness in ensuring value for money depends on how well these metrics are defined, measured, and aligned with the government's objectives. Without detailed contract clauses, it's difficult to assess the specific value-driving mechanisms.

What were the results of the original competed action, and how does this follow-on contract build upon or differ from it in terms of scope and pricing?

Understanding the results of the original competed action is crucial for evaluating the rationale and potential risks of this follow-on contract. Information on the initial competition's outcomes, such as the number of bidders, winning price, and contractor performance, would provide context for the current award. Differences in scope, technology, or market conditions could justify variations in pricing and contract structure.

How does the $35.4 million award compare to industry benchmarks for similar VUAV production and assembly contracts, considering the specific capabilities required?

Benchmarking this award against similar contracts is essential for assessing its financial reasonableness. Factors such as the complexity of the VUAV system, required technological capabilities, production volume, and the contractor's experience would influence cost. A comparative analysis with publicly available data on similar procurements would highlight potential areas of overspending or cost efficiency.

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: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FOLLOW ON TO COMPETED ACTION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE (V)

Evaluated Preference: NONE

Contractor Details

Address: 300 M ST SE STE 685, WASHINGTON, DC, 98

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $35,361,918

Exercised Options: $35,361,918

Current Obligation: $35,361,918

Contract Characteristics

Multi-Year Contract: Yes

Parent Contract

Parent Award PIID: DTCG2302C2DW001

IDV Type: IDC

Timeline