DHS Coast Guard awards $10.95M for initial funding of Integrated Coast Guard Systems LLC's award term

Contract Overview

Contract Amount: $49,912,921 ($49.9M)

Contractor: Integrated Coast Guard Systems LLC

Awarding Agency: Department of Homeland Security

Start Date: 2007-06-25

End Date: 2009-06-13

Contract Duration: 719 days

Daily Burn Rate: $69.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY)

Sector: Defense

Official Description: PR FOR INITIAL FUNDING FOR AWARD TERM CLINS 0101AA/0101AB/0101AC. THE TOTAL AMOUNT OF FUNDING ON THIS PR IS $10,950,600 DISTRIBUTED AMONG THE CLINS AS FOLLOWS: 0101AA $2,973,500 0101AB $3,500,000 0101AC $4,477,500. THESE CLINS WILL BE INCREMENTALLY FUNDED. THIS FIRST INCREMENT WILL USE FY07 FUNDING.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $49.9 million to INTEGRATED COAST GUARD SYSTEMS LLC for work described as: PR FOR INITIAL FUNDING FOR AWARD TERM CLINS 0101AA/0101AB/0101AC. THE TOTAL AMOUNT OF FUNDING ON THIS PR IS $10,950,600 DISTRIBUTED AMONG THE CLINS AS FOLLOWS: 0101AA $2,973,500 0101AB $3,500,000 0101AC $4,477,500. THESE CLINS WILL BE INCREMENTALLY FUNDED. THIS FIRST INCREME… Key points: 1. Contract focuses on initial funding for award term CLINs, indicating a continuation or extension of existing services. 2. The funding is incrementally applied across three CLINs, suggesting phased execution and potential for future adjustments. 3. The award is for Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing. 4. This contract represents a significant investment in systems crucial for maritime safety and operational effectiveness. 5. The duration of the contract is approximately 719 days, suggesting a medium-term engagement. 6. The contractor, Integrated Coast Guard Systems LLC, is a key player in providing these specialized systems.

Value Assessment

Rating: good

The total award amount of $10,950,600 for initial funding appears reasonable for the scope of services related to navigation and guidance systems. Benchmarking against similar contracts for system upgrades or maintenance in the maritime sector would provide a more precise value assessment. The incremental funding approach allows for flexibility and risk mitigation, ensuring funds are utilized effectively as milestones are met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is expected to drive better pricing and service quality. The presence of two bidders (as indicated by 'no': 2) suggests a moderate level of competition for this specific award.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and prevent price gouging.

Public Impact

The U.S. Coast Guard is the primary beneficiary, receiving enhanced capabilities for search, detection, and navigation. Services delivered likely include system maintenance, upgrades, or integration for critical maritime operations. The geographic impact is national, supporting Coast Guard operations across U.S. waters and potentially international missions. Workforce implications may involve specialized technical personnel for system support and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial funding does not fully encompass the award term requirements.
Dependence on a single contractor for critical navigation and guidance systems could pose a long-term risk.
Ensuring continued technological relevance of the systems throughout the award term.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Incremental funding allows for performance-based payments and better financial control.
The contractor, Integrated Coast Guard Systems LLC, likely possesses specialized expertise in this domain.

Sector Analysis

This contract falls within the broader defense and security sector, specifically focusing on specialized maritime systems. The market for such systems is characterized by high technical barriers to entry and a limited number of qualified providers. Comparable spending benchmarks would involve other government procurements for similar navigation, detection, and guidance technologies for naval or coast guard applications.

Small Business Impact

The data does not indicate any specific small business set-aside provisions for this contract. However, the prime contractor, Integrated Coast Guard Systems LLC, may engage small businesses as subcontractors for specialized components or services, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight is likely managed by the U.S. Coast Guard contracting and program management offices. Accountability measures would be tied to the performance metrics outlined in the contract's CLINs and delivery schedules. Transparency is facilitated through contract award databases, though detailed performance reports may be internal.

Related Government Programs

Coast Guard Command and Control Systems
Maritime Domain Awareness Systems
Navigation and Avionics Systems Procurement
Homeland Security Technology Modernization

Risk Flags

Incremental Funding
Potential for Funding Instability
Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $49.9 million to INTEGRATED COAST GUARD SYSTEMS LLC. PR FOR INITIAL FUNDING FOR AWARD TERM CLINS 0101AA/0101AB/0101AC. THE TOTAL AMOUNT OF FUNDING ON THIS PR IS $10,950,600 DISTRIBUTED AMONG THE CLINS AS FOLLOWS: 0101AA $2,973,500 0101AB $3,500,000 0101AC $4,477,500. THESE CLINS WILL BE INCREMENTALLY FUNDED. THIS FIRST INCREMENT WILL USE FY07 FUNDING.

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 $49.9 million.

What is the period of performance?

Start: 2007-06-25. End: 2009-06-13.

What is the specific nature of the 'award term' being funded, and how does it differ from the base contract?

The 'award term' typically refers to an option period or extension of an existing contract, often triggered by meeting specific performance criteria or achieving certain program milestones. In this context, the initial funding is for the commencement of this award term, suggesting that the base contract has been successfully executed or is nearing completion. The funding is distributed across three CLINs (Contract Line Item Numbers) - 0101AA, 0101AB, and 0101AC - which likely represent distinct phases, deliverables, or service components within this award term. The exact nature of the services or systems covered by these CLINs would be detailed in the contract's Statement of Work (SOW), but given the NAICS code (334511), it pertains to manufacturing of search, detection, navigation, guidance, aeronautical, and nautical systems and instruments.

How does the $10.95 million initial funding compare to the total potential value of the award term?

The provided data indicates that $10.95 million is the 'initial funding' for the award term, distributed across three CLINs. This suggests that the total value of the award term could be significantly higher, as this amount represents only the first increment of funding. The contract duration is listed as 719 days (approximately 2 years), which implies that the full value of the award term would be realized over this period. Without further information on the total ceiling price or subsequent funding increments, it's difficult to provide a precise comparison. However, this initial allocation is a crucial indicator of the commitment to extending the services or systems under this contract.

What are the key performance indicators (KPIs) or deliverables associated with these award term CLINs?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or specific deliverables for the award term CLINs (0101AA, 0101AB, 0101AC). However, given the contract's focus on 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' (NAICS 334511) and the contractor 'Integrated Coast Guard Systems LLC', the deliverables likely involve the manufacturing, integration, testing, or maintenance of these critical systems for the U.S. Coast Guard. Performance would likely be measured against factors such as system reliability, accuracy, operational availability, delivery timelines, and adherence to technical specifications. The incremental funding structure suggests that payments are tied to the successful completion of specific milestones or the delivery of defined outputs within each CLIN.

What is the track record of Integrated Coast Guard Systems LLC with the U.S. Coast Guard or similar agencies?

Integrated Coast Guard Systems LLC (ICGS) has a significant history of working with the U.S. Coast Guard, particularly on major modernization programs. ICGS was a key entity involved in the development and implementation of the Integrated Deepwater System Program, which aimed to recapitalize the Coast Guard's aging fleet of cutters and aircraft, and enhance its command, control, communications, computers, and information systems. This involved complex system integration and technology deployment. Their experience likely extends to providing sustainment, upgrades, and new capabilities for maritime surveillance, navigation, and operational systems. Past performance with the Coast Guard on large-scale projects suggests a deep understanding of the agency's requirements and operational environment.

How does the competition level (2 bidders) impact the value for money for taxpayers?

Having two bidders in a 'full and open competition' scenario indicates a moderate level of market interest and engagement. While more bidders generally lead to more intense price competition, two bidders can still provide sufficient pressure to achieve reasonable value for taxpayers. It suggests that the market is not overly concentrated, and at least two capable firms were willing and able to compete for this specific requirement. The final price achieved would be a key indicator of whether this level of competition was sufficient to secure optimal value. If the price was significantly higher than anticipated or benchmarked against similar procurements, it might suggest that further efforts to broaden competition could be beneficial in the future.

What are the potential risks associated with incrementally funded contracts of this nature?

Incrementally funded contracts, like this one, carry several potential risks. Firstly, there's the risk of 'funding instability,' where subsequent increments may not be fully funded due to budget fluctuations or shifting priorities, potentially leading to contract termination or delays. Secondly, 'scope creep' can occur if the initial funding doesn't adequately cover the full scope of work intended for the award term, leading to requests for additional funding or modifications. Thirdly, 'programmatic risk' exists if the contractor's performance is tied to the successful completion of earlier phases before full funding is secured, potentially impacting momentum. Finally, there's the risk that the government might become overly reliant on a specific contractor if the program continues through multiple increments without re-competition.

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: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY) (3)

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: $52,984,284

Exercised Options: $52,984,284

Current Obligation: $49,912,921

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTCG2302C2DW001

IDV Type: IDC

Timeline