Coast Guard's Deepwater System Support Contract Awarded to Integrated Coast Guard Systems LLC for Over $39 Million

Contract Overview

Contract Amount: $39,008,181 ($39.0M)

Contractor: Integrated Coast Guard Systems LLC

Awarding Agency: Department of Homeland Security

Start Date: 2008-02-01

End Date: 2010-06-30

Contract Duration: 880 days

Daily Burn Rate: $44.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

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

Sector: Defense

Official Description: LIFE CYCLE SUPPORT OF INTEGRATED DEEPWATER SYSTEM(IDS)

Place of Performance

Location: MOORESTOWN, BURLINGTON County, NEW JERSEY, 08057

State: New Jersey Government Spending

Plain-Language Summary

Department of Homeland Security obligated $39.0 million to INTEGRATED COAST GUARD SYSTEMS LLC for work described as: LIFE CYCLE SUPPORT OF INTEGRATED DEEPWATER SYSTEM(IDS) Key points: 1. The contract focuses on life cycle support for the Integrated Deepwater System (IDS), a critical component of Coast Guard operations. 2. Analysis of value for money requires benchmarking against similar long-term system support contracts. 3. Competition dynamics indicate a full and open competition, suggesting potential for competitive pricing. 4. Risk indicators may include the complexity of the IDS and the contractor's performance history. 5. Performance context is tied to the operational readiness and effectiveness of the Coast Guard's maritime security capabilities. 6. Sector positioning places this contract within the defense and maritime technology sector, supporting national security.

Value Assessment

Rating: fair

The total award amount of approximately $39 million over a two-year period for life cycle support of a complex system like the IDS suggests a moderate level of investment. Benchmarking against similar long-term, high-value system support contracts for defense or maritime assets would be necessary to definitively assess value for money. Without detailed breakdowns of services provided and comparison to industry standards for maintenance, repair, and logistics for such systems, a precise value assessment is challenging. The contract's duration and scope imply significant ongoing costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and encourages competitive offers. A full and open competition is the government's preferred method for ensuring it receives the best value by leveraging the widest possible market.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it is designed to drive down costs through market forces, ensuring that the government is not overpaying for essential services.

Public Impact

The primary beneficiaries are the U.S. Coast Guard personnel who rely on the Integrated Deepwater System for their missions. Services delivered include life cycle support, encompassing maintenance, repair, logistics, and potentially upgrades for the IDS. The geographic impact is national, supporting Coast Guard operations across all maritime domains within U.S. jurisdiction. Workforce implications include the potential for specialized technical jobs related to maintaining and supporting advanced maritime systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if system complexity leads to unforeseen maintenance needs.
Dependence on a single contractor for critical system support could create vendor lock-in.
Ensuring adequate performance metrics are met to guarantee system availability and reliability.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing and market validation.
Focus on life cycle support indicates a commitment to long-term system sustainment and operational readiness.
Contracting for a critical national security asset demonstrates alignment with core government missions.

Sector Analysis

This contract falls within the defense and aerospace sector, specifically focusing on maritime systems and technology. The market for integrated systems support is characterized by specialized expertise and long-term relationships between government agencies and contractors. Comparable spending benchmarks would involve analyzing other large-scale sustainment contracts for naval vessels, aircraft, or complex electronic systems within the Department of Defense and Homeland Security.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this specific contract is not detailed in the provided data. However, large contracts like this often include provisions for small business participation, either through direct set-asides or by requiring prime contractors to meet subcontracting goals. The impact on the small business ecosystem would depend on the extent of these provisions and the ability of small businesses to compete for or be included in subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Coast Guard contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement, including defined deliverables, service level agreements, and payment schedules tied to performance. Transparency is generally facilitated through contract award databases and reporting requirements, though detailed operational oversight specifics are often internal.

Related Government Programs

Integrated Deepwater System (IDS)
Coast Guard Acquisition Programs
Maritime Security Systems
Defense Logistics Support Contracts

Risk Flags

Potential for cost overruns due to system complexity.
Dependence on contractor for critical system sustainment.
Ensuring long-term system availability and reliability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $39.0 million to INTEGRATED COAST GUARD SYSTEMS LLC. LIFE CYCLE SUPPORT OF INTEGRATED DEEPWATER SYSTEM(IDS)

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 $39.0 million.

What is the period of performance?

Start: 2008-02-01. End: 2010-06-30.

What is the historical spending pattern for the Integrated Deepwater System (IDS) life cycle support?

The provided data reflects a single award of $39,008,180.72 for the life cycle support of the IDS, with a performance period from February 1, 2008, to June 30, 2010. This represents a specific delivery order within a larger potential contract vehicle. To understand the historical spending pattern, one would need to examine the overall contract ceiling, any previous or subsequent delivery orders, and the total obligated amounts over the entire life cycle of the IDS program. Without access to the broader contract details or historical obligation data, it's impossible to establish a comprehensive spending trend beyond this single award.

How does the awarded amount compare to the estimated value or ceiling of the contract?

The provided data shows an award amount of $39,008,180.72. However, the data does not explicitly state the contract's estimated value or ceiling. The 'br' field shows '44327', which might represent a base value or a previous obligation, but its context is unclear without further definition. To compare the awarded amount to the contract's ceiling, access to the original contract solicitation, award document, or contract modification history would be necessary. Typically, delivery orders are issued against a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a contract with a defined ceiling, and this award represents funds obligated under that framework.

What specific services are included under 'life cycle support' for the IDS?

Life cycle support for the Integrated Deepwater System (IDS) generally encompasses a broad range of services necessary to maintain the system's operational readiness throughout its lifespan. This typically includes scheduled and unscheduled maintenance, repair and overhaul of components, logistics and supply chain management for spare parts, technical support, engineering services for system upgrades or modifications, training for operators and maintainers, and documentation management. The specific scope would be detailed in the Performance Work Statement (PWS) of the contract, outlining the exact requirements, service levels, and deliverables expected from the contractor.

What is the track record of Integrated Coast Guard Systems LLC in supporting similar complex maritime systems?

Integrated Coast Guard Systems LLC (ICGS) was a joint venture specifically formed to address the U.S. Coast Guard's Integrated Deepwater System program. Its formation involved major defense contractors like Lockheed Martin and Northrop Grumman, suggesting a strong backing by experienced entities. Therefore, the track record is intrinsically linked to the capabilities and past performance of its parent companies in delivering complex defense and aerospace systems. Assessing ICGS's specific performance would involve reviewing program execution reports, contract performance evaluations, and any historical data related to the IDS program's operational success and contractor responsiveness during the contract period.

Are there any performance risks associated with this contract, and how are they mitigated?

Performance risks for a contract supporting a complex system like the IDS can include technical challenges in maintaining aging or sophisticated equipment, potential delays in parts or service delivery, and ensuring consistent operational availability. Mitigation strategies typically involve robust contract oversight by the government, clearly defined performance metrics and service level agreements (SLAs) in the contract, incentives for meeting or exceeding performance targets, and penalties for failing to meet requirements. The contractor's own internal quality control processes and risk management plans also play a crucial role in mitigating these performance risks.

What is the significance of the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' (NAICS code 334511) classification for this contract?

The NAICS code 334511, 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing,' signifies that the primary business activity related to this contract involves the manufacturing and potentially the support of systems and instruments used for these critical functions. For the IDS, this implies the contract covers aspects related to the radar, sonar, navigation systems, communication equipment, and other sensors and instruments essential for the Coast Guard's maritime domain awareness, search and rescue, and law enforcement missions. This classification helps categorize the contract within the broader industrial landscape and informs potential market research and competition analysis.

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: 1

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: $39,008,181

Exercised Options: $39,008,181

Current Obligation: $39,008,181

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTCG2302C2DW001

IDV Type: IDC

Timeline