DHS Coast Guard awards $26.6M IT services contract to The Centech Group Inc

Contract Overview

Contract Amount: $26,557,149 ($26.6M)

Contractor: THE Centech Group Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2005-10-03

End Date: 2010-10-15

Contract Duration: 1,838 days

Daily Burn Rate: $14.4K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INFORMATION TECHNOLOGY SERVICES CONTRACT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $26.6 million to THE CENTECH GROUP INC. for work described as: INFORMATION TECHNOLOGY SERVICES CONTRACT Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. Delivery order under a larger contract structure suggests potential for follow-on work. 3. Contract duration of over 1800 days points to a long-term service requirement. 4. The North American Industry Classification System (NAICS) code 541519 covers a broad range of IT services. 5. Contract awarded by the Department of Homeland Security, a major federal IT consumer. 6. The Centech Group Inc. has a history of federal contracting, requiring review of past performance. 7. Awarded in 2005, this contract predates many modern cybersecurity and cloud computing trends.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details and comparable market rates from 2005. The total award amount of $26.6 million over approximately five years suggests an average annual value of around $5.3 million. This figure needs to be assessed against the scope of IT services provided, such as network management, software development, or hardware maintenance. Without more granular data on the specific services rendered and their market value at the time, a definitive value-for-money assessment is difficult. However, the firm-fixed-price structure implies that the government aimed to control costs upfront.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. The specific competition dynamics, such as the number of bids received and the evaluation criteria, are not detailed in the provided data. However, the 'competitive' designation suggests a degree of market engagement. The existence of a delivery order implies it was placed against an existing indefinite-delivery indefinite-quantity (IDIQ) contract or a similar vehicle, which itself would have undergone a competitive process.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering price discovery and potentially leading to more favorable pricing compared to sole-source procurements. It encourages vendors to offer competitive bids to secure the work.

Public Impact

The U.S. Coast Guard, a component of DHS, is the primary beneficiary, receiving IT services to support its operations. Services likely include a range of IT support, potentially encompassing network administration, system maintenance, and possibly software development or integration. The contract's performance period spans over five years, indicating sustained IT support for critical Coast Guard functions. The contract was awarded to a firm based in the District of Columbia, suggesting potential local or regional workforce implications, though federal contracts often have broader reach.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific service details makes it hard to assess if the full scope was delivered effectively.
The contract's age (awarded 2005) means technology and service needs may have evolved significantly, potentially impacting current relevance.
Limited information on performance metrics makes it difficult to gauge contractor success beyond contract completion.
The broad NAICS code (541519) could encompass services that are now outdated or have been superseded by newer technologies.

Positive Signals

Awarded through a competitive process, suggesting multiple vendors vied for the contract.
Firm-fixed-price contract type helps manage cost certainty for the government.
Long contract duration (over 1800 days) indicates a stable, long-term IT support relationship.
The Centech Group Inc. has experience as a federal contractor, implying familiarity with government processes.

Sector Analysis

Information Technology (IT) services represent a significant portion of federal spending. This contract falls under the broader IT services sector, which includes areas like custom software development, IT management, cloud computing, and cybersecurity. The NAICS code 541519, 'Other Computer Related Services,' is quite broad. Federal spending in IT services is consistently high, driven by the need to modernize legacy systems, enhance cybersecurity, and leverage new technologies. Comparable contracts would involve other federal agencies procuring similar IT support services, often through IDIQ vehicles or competitive delivery orders.

Small Business Impact

The provided data indicates that small business (SB) and small business set-aside (SS) flags are both false. This suggests the contract was not specifically set aside for small businesses and was likely awarded to a large business or a company that did not qualify for small business status at the time of award. Consequently, there are likely no direct subcontracting implications mandated by a small business set-aside requirement for this specific contract. The impact on the small business ecosystem would be indirect, primarily through the competitive landscape for larger contracts.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's internal contracting and program management offices. The U.S. Coast Guard, as the end-user agency, would also have oversight responsibilities. Given the contract's age, it predates some of the more recent, enhanced transparency initiatives. However, standard federal procurement regulations and oversight mechanisms, including potential reviews by the Government Accountability Office (GAO) or the DHS Inspector General, would have been applicable throughout its performance period.

Related Government Programs

Department of Homeland Security IT Services
U.S. Coast Guard IT Modernization
Federal IT Services Procurement
Information Technology Support Contracts
NAICS 541519 Services

Risk Flags

Contract awarded in 2005 may involve outdated technology or service models.
Limited detail on specific services provided hinders performance assessment.
Lack of explicit small business subcontracting requirements.
Broad NAICS code requires further investigation into specific service delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $26.6 million to THE CENTECH GROUP INC.. INFORMATION TECHNOLOGY SERVICES CONTRACT

Who is the contractor on this award?

The obligated recipient is THE CENTECH GROUP INC..

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 $26.6 million.

What is the period of performance?

Start: 2005-10-03. End: 2010-10-15.

What specific IT services were delivered under this contract?

The provided data identifies the contract under NAICS code 541519 ('Other Computer Related Services') and indicates it was for IT services for the U.S. Coast Guard. However, the specific nature of these services is not detailed. This broad category can encompass a wide array of IT functions, including but not limited to, IT system design and integration, computer facilities management, data processing services, IT consulting, and potentially custom software development or maintenance. Without further documentation, such as the Statement of Work (SOW) or contract modifications, it is impossible to ascertain the precise services rendered. The contract's duration of over 1800 days suggests a sustained need for ongoing IT support rather than a one-off project.

How does the $26.6 million award compare to similar IT services contracts awarded by DHS around 2005?

Comparing the $26.6 million award to similar DHS IT services contracts from 2005 requires access to historical federal procurement databases and analysis tools that track contract values by agency, service type (NAICS code), and award year. The provided data indicates this was a competitive delivery order, suggesting it was part of a larger IDIQ contract. The average annual value was approximately $5.3 million. To benchmark effectively, one would need to identify other DHS contracts for 'Other Computer Related Services' (NAICS 541519) or similar IT service codes awarded in the same timeframe. Factors like contract duration, specific services, and competition level would influence comparisons. Given the scale, it appears to be a significant contract, but its relative value depends heavily on the market conditions and specific requirements of the time.

What is the track record of The Centech Group Inc. with federal contracts, particularly with DHS?

The Centech Group Inc. has a history of federal contracting. While the provided data confirms this contract award from DHS, a comprehensive review of their track record would involve examining other contracts awarded to them across various federal agencies. Key aspects to investigate include their performance history on past contracts (e.g., CPARS reports), the types of services they have provided, their success rate in competitive bidding, and any past issues or disputes. Understanding their experience, particularly with the Department of Homeland Security, provides insight into their capabilities and reliability as a federal contractor. Without access to detailed contract performance data, it's difficult to provide a specific assessment beyond acknowledging their presence in the federal contracting space.

What were the potential risks associated with a contract of this duration and scope awarded in 2005?

A contract awarded in 2005 with a duration exceeding 1800 days (nearly five years) carried several potential risks. Technological obsolescence is a primary concern; IT systems and services evolve rapidly, and a long-term contract might lock the government into outdated solutions. Scope creep is another risk, where the requirements might expand beyond the original agreement, potentially leading to cost overruns if not managed properly, although the firm-fixed-price structure aims to mitigate this. Contractor performance risk is always present; ensuring the contractor consistently meets performance standards requires diligent oversight. Furthermore, changes in agency priorities or budget constraints could impact the contract's relevance or funding. Finally, security risks associated with IT systems, especially given the era, would require continuous attention.

How has federal spending on IT services like those potentially provided under this contract evolved since 2005?

Federal spending on IT services has seen substantial growth and transformation since 2005. Key trends include a significant shift towards cloud computing (IaaS, PaaS, SaaS), increased investment in cybersecurity to combat evolving threats, and a greater emphasis on data analytics and artificial intelligence. While traditional IT support, network management, and infrastructure maintenance remain crucial, the nature of these services has adapted to newer paradigms. Spending has also increasingly focused on modernizing legacy systems and adopting agile development methodologies. The overall federal IT budget has grown considerably, reflecting the critical role of technology in government operations, national security, and citizen services. Contracts awarded today often reflect these shifts, with greater emphasis on cloud migration, cybersecurity solutions, and data-driven capabilities.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ALTERNATIVE SOURCES

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4600 FAIRFAX DR STE 400, ARLINGTON, VA, 08

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $35,775,192

Exercised Options: $35,775,192

Current Obligation: $26,557,149

Parent Contract

Parent Award PIID: GS09F0027Z

IDV Type: GWAC

Timeline