The Centech Group Inc. secured a $13.86M IT support contract from DHS Coast Guard, awarded via competitive delivery order
Contract Overview
Contract Amount: $13,861,520 ($13.9M)
Contractor: THE Centech Group Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2008-03-24
End Date: 2013-05-31
Contract Duration: 1,894 days
Daily Burn Rate: $7.3K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IT SUPPORT
Place of Performance
Location: NEW LONDON, NEW LONDON County, CONNECTICUT, 06320
Plain-Language Summary
Department of Homeland Security obligated $13.9 million to THE CENTECH GROUP INC. for work described as: IT SUPPORT Key points: 1. Value for money appears reasonable given the competitive award, though detailed cost breakdowns are not provided. 2. Competition dynamics indicate a healthy bidding environment, with multiple offers received. 3. Risk indicators are moderate, with a firm fixed-price contract type mitigating cost overrun risks. 4. Performance context is within IT support services, a common requirement for federal agencies. 5. Sector positioning is within IT services, a significant area of federal spending. 6. The contract duration of over 5 years suggests a stable, long-term need for these services.
Value Assessment
Rating: good
The contract was awarded at a firm fixed price, which generally provides good value by capping costs for the government. Benchmarking against similar IT support contracts is challenging without specific service details and performance metrics. However, the competitive nature of the award suggests that pricing was likely market-driven and favorable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded as a competitive delivery order, indicating that it was competed under full and open competition. The presence of multiple bidders (2 noted) suggests a robust competition that likely drove down prices and ensured a fair market assessment.
Taxpayer Impact: The competitive award process is beneficial for taxpayers as it fosters price discovery and ensures the government receives services at a price reflecting market conditions, rather than a premium associated with sole-source procurements.
Public Impact
The U.S. Coast Guard benefits from reliable IT support services, crucial for its operational effectiveness. Essential IT infrastructure maintenance and support are delivered, ensuring continuity of operations. The geographic impact is primarily within the operational areas of the U.S. Coast Guard. The contract supports a workforce skilled in IT support and telecommunications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if not managed tightly, given the long duration.
- Dependence on a single contractor for critical IT support could pose a risk if performance falters.
Positive Signals
- Firm fixed-price contract type limits financial risk for the government.
- Competitive award process suggests a fair market price was achieved.
- Long-term contract indicates a consistent and recognized need for the services.
Sector Analysis
The IT support sector is a vast and critical component of federal spending, encompassing a wide range of services from network management to cybersecurity. This contract falls within the broader IT services market, which is characterized by numerous providers ranging from large corporations to specialized small businesses. Federal spending in this area is consistently high due to the increasing reliance on technology across all government functions.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. While the prime contractor is not a small business, there may be subcontracting opportunities for small businesses within the scope of the IT support services provided. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight for this contract would typically be managed by the U.S. Coast Guard contracting officers and program managers. The firm fixed-price nature of the contract provides a degree of accountability by limiting financial exposure. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible.
Related Government Programs
- IT Services
- Telecommunications Support
- Department of Homeland Security IT Contracts
- U.S. Coast Guard Technology Procurement
Risk Flags
- Long contract duration may increase risk of vendor lock-in.
- Potential for performance degradation over time if not actively managed.
Tags
it-services, department-of-homeland-security, u.s.-coast-guard, competitive-delivery-order, firm-fixed-price, wired-telecommunications-carriers, connecticut, it-support, mid-size-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $13.9 million to THE CENTECH GROUP INC.. IT SUPPORT
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 $13.9 million.
What is the period of performance?
Start: 2008-03-24. End: 2013-05-31.
What specific IT support services were included in this contract?
The provided data indicates the contract falls under NAICS code 517110 (Wired Telecommunications Carriers) and is categorized as 'IT SUPPORT'. However, the specific details of the services rendered are not elaborated in the abbreviated data. Typically, IT support contracts of this nature would encompass a range of services such as network administration, hardware and software maintenance, help desk support, system upgrades, and potentially cybersecurity measures. The 'Wired Telecommunications Carriers' classification suggests a focus on the infrastructure supporting these services, possibly including the maintenance and operation of communication networks essential for IT operations.
How does the total contract value compare to similar IT support contracts awarded by the Department of Homeland Security?
The total contract value of approximately $13.86 million over a period of roughly 5 years (1894 days) places it in the mid-range for federal IT support contracts. While direct comparisons are difficult without knowing the exact scope and service level agreements, DHS frequently awards larger IT contracts, often in the tens or hundreds of millions, for enterprise-wide solutions or major system overhauls. This particular contract appears to be for a more focused IT support function, possibly for a specific division or set of systems within the U.S. Coast Guard, making its value proportionate to its likely scope.
What are the key performance indicators (KPIs) used to evaluate the contractor's performance?
The provided data does not specify the Key Performance Indicators (KPIs) for this contract. In a typical IT support contract, KPIs often include metrics such as response time for help desk tickets, resolution rates, system uptime percentages, user satisfaction scores, and adherence to security protocols. The effectiveness of the contractor is usually assessed against these predefined benchmarks, which are crucial for ensuring the quality and reliability of the IT services delivered to the U.S. Coast Guard.
What is the track record of The Centech Group Inc. with federal IT contracts?
The Centech Group Inc. has a history of securing federal contracts, including those related to IT services. While this specific contract with the Department of Homeland Security is a notable award, a comprehensive assessment of their track record would involve reviewing their performance on other federal engagements, including contract values, agencies served, and any past performance evaluations or disputes. Their ability to win competitive bids suggests a level of established capability and market presence within the federal contracting space.
Were there any significant challenges or issues reported during the performance of this contract?
The provided data does not contain information regarding specific challenges or issues encountered during the performance of this contract. Federal contract performance data, including any reported issues, disputes, or contract modifications, is often detailed in contract management systems and performance reports. Without access to these more granular records, it is not possible to ascertain if any significant challenges arose during the execution of this IT support agreement.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HSCG23-08-R-QZH001
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4600 N FAIRFAX DR STE 400, ARLINGTON, VA, 22203
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: $31,892,902
Exercised Options: $19,702,079
Current Obligation: $13,861,520
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSHQDC06D00069
IDV Type: IDC
Timeline
Start Date: 2008-03-24
Current End Date: 2013-05-31
Potential End Date: 2013-05-31 00:00:00
Last Modified: 2025-06-27
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