DHS Coast Guard Awards $44.6M for System of Systems, Follow-on to Competed Action
Contract Overview
Contract Amount: $44,586,985 ($44.6M)
Contractor: Integrated Coast Guard Systems LLC
Awarding Agency: Department of Homeland Security
Start Date: 2006-06-25
End Date: 2007-06-26
Contract Duration: 366 days
Daily Burn Rate: $121.8K/day
Competition Type: FOLLOW ON TO COMPETED ACTION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: CLIN 0005 - SYSTEM OF SYSTEMS
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $44.6 million to INTEGRATED COAST GUARD SYSTEMS LLC for work described as: CLIN 0005 - SYSTEM OF SYSTEMS Key points: 1. The contract is a follow-on to a competed action, suggesting prior competition may have influenced pricing. 2. The award value of $44.6M is significant for a single delivery order. 3. The Cost Plus Fixed Fee (CPFF) contract type carries inherent risk of cost overruns. 4. The sector is IT/Defense, specifically related to navigation and guidance systems.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs compared to fixed-price contracts if not managed carefully. Benchmarking is difficult without specific cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract is a 'FOLLOW ON TO COMPETED ACTION,' which implies some level of competition occurred previously. However, the current award mechanism (Delivery Order) and lack of explicit competition details make it difficult to assess the current price discovery.
Taxpayer Impact: The use of a CPFF contract type and the lack of clear current competition could potentially lead to higher costs for taxpayers than a fully competitive fixed-price award.
Public Impact
Enhances U.S. Coast Guard's operational capabilities through advanced navigation and guidance systems. Supports national security by ensuring effective search and detection operations. Impacts maritime safety and efficiency through improved system performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Lack of explicit current competition details
- Potential for cost overruns
Positive Signals
- Follow-on to a competed action
- Supports critical Coast Guard mission
Sector Analysis
This contract falls within the IT and Defense sectors, specifically manufacturing instruments for search, detection, navigation, and guidance. Spending in this area is crucial for national security and maritime operations, with benchmarks varying widely based on system complexity.
Small Business Impact
There is no indication of small business participation in this specific delivery order. Further analysis would be needed to determine if small businesses were involved in the original competed action or subcontracting opportunities.
Oversight & Accountability
The contract is a delivery order under a larger contract, suggesting oversight may be managed at both the contract and order levels. The CPFF structure requires diligent oversight to control costs and ensure performance.
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
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Limited visibility into current competition
- Need for detailed performance benchmarking
Tags
search-detection-navigation-guidance-aer, department-of-homeland-security, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $44.6 million to INTEGRATED COAST GUARD SYSTEMS LLC. CLIN 0005 - SYSTEM OF SYSTEMS
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 $44.6 million.
What is the period of performance?
Start: 2006-06-25. End: 2007-06-26.
What was the outcome of the original competed action, and did it result in competitive pricing that is being leveraged in this follow-on order?
The data indicates this is a 'FOLLOW ON TO COMPETED ACTION,' suggesting prior competition. However, without details on the original competition's results, it's unclear if that competitive pressure is effectively translating into optimal pricing for this specific delivery order. Further investigation into the original solicitation and award is needed to assess value.
What are the specific cost drivers and profit margins within the Cost Plus Fixed Fee structure for this contract?
The Cost Plus Fixed Fee (CPFF) structure means the government reimburses allowable costs plus a predetermined fixed fee. Understanding the specific cost drivers (e.g., labor rates, material costs, overhead) and the negotiated fixed fee is crucial for assessing the contractor's profit margin and identifying potential areas for cost savings or efficiency improvements.
How does the performance of this 'System of Systems' compare to industry benchmarks for similar navigation and guidance systems?
Assessing the effectiveness requires comparing the system's performance metrics against industry benchmarks for similar navigation and guidance systems. This includes evaluating factors like accuracy, reliability, maintainability, and integration capabilities. Without specific performance data and comparative benchmarks, it's difficult to definitively gauge the system's overall effectiveness and value for money.
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: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
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: $44,586,985
Exercised Options: $44,586,985
Current Obligation: $44,586,985
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DTCG2302C2DW001
IDV Type: IDC
Timeline
Start Date: 2006-06-25
Current End Date: 2007-06-26
Potential End Date: 2007-06-26 00:00:00
Last Modified: 2026-01-30
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