DHS awards $68.7M for Navigation Systems to Integrated Coast Guard Systems LLC

Contract Overview

Contract Amount: $68,702,508 ($68.7M)

Contractor: Integrated Coast Guard Systems LLC

Awarding Agency: Department of Homeland Security

Start Date: 2009-02-18

End Date: 2011-08-31

Contract Duration: 924 days

Daily Burn Rate: $74.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: IT

Official Description: INCREMENT 2

Place of Performance

Location: MOORESTOWN, BURLINGTON County, NEW JERSEY, 08057

State: New Jersey Government Spending

Plain-Language Summary

Department of Homeland Security obligated $68.7 million to INTEGRATED COAST GUARD SYSTEMS LLC for work described as: INCREMENT 2 Key points: 1. Contract awarded for Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing. 2. Integrated Coast Guard Systems LLC is the sole awardee. 3. The contract spans over two years, from February 2009 to August 2011. 4. The contract type is Cost Plus Incentive Fee, indicating potential for shared savings. 5. The award value is $68,702,508.05.

Value Assessment

Rating: fair

The Cost Plus Incentive Fee structure suggests an attempt to control costs, but without specific benchmarks or comparison data, it's difficult to definitively assess pricing fairness. The award value of $68.7 million for a two-year period requires further analysis against similar system procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific details of the bidding process and the number of bidders are not provided, limiting a full assessment of price discovery.

Taxpayer Impact: The use of full and open competition is positive for taxpayer value. The Cost Plus Incentive Fee structure, if managed effectively, could lead to cost savings passed on to taxpayers.

Public Impact

Enhances U.S. Coast Guard's operational capabilities through advanced navigation systems. Supports national security by improving search and rescue and maritime domain awareness. The contract's duration and value indicate a significant investment in critical infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown for incentive fee structure.
Limited information on specific performance metrics and achieved incentives.
No data on competitor pricing or post-award cost analysis.

Positive Signals

Awarded under full and open competition.
Cost Plus Incentive Fee structure can incentivize efficiency.
Long-term contract supports sustained operational capability.

Sector Analysis

This contract falls within the IT and Defense sectors, specifically focusing on specialized navigation systems. Spending in this area is critical for national security and maritime operations, with benchmarks varying widely based on system complexity and technological advancement.

Small Business Impact

The provided data does not indicate any specific set-asides for small businesses. Further investigation would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The contract's oversight would involve monitoring the Cost Plus Incentive Fee structure to ensure the government receives the best value and that costs are managed effectively. Accountability rests with the Department of Homeland Security to ensure performance metrics are met.

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

Lack of detailed cost breakdown.
Limited transparency on incentive fee performance.
No data on competitor bids.
Potential for cost overruns if not managed tightly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $68.7 million to INTEGRATED COAST GUARD SYSTEMS LLC. INCREMENT 2

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 $68.7 million.

What is the period of performance?

Start: 2009-02-18. End: 2011-08-31.

What specific technological advancements does this navigation system offer compared to previous systems, and how does this justify the $68.7 million investment?

The data does not specify the technological advancements. A thorough review of the system's specifications, performance improvements (e.g., accuracy, range, reliability), and integration capabilities with existing Coast Guard platforms would be necessary to justify the investment. Benchmarking against similar advanced navigation system procurements would also provide context for the cost.

How effectively was the Cost Plus Incentive Fee structure implemented to ensure cost savings were realized and passed on to the taxpayer?

The effectiveness of the Cost Plus Incentive Fee (CPIF) structure hinges on the clarity and attainability of the incentive targets, as well as robust government oversight. Without access to the specific incentive clauses, performance against targets, and the resulting fee adjustments, it's impossible to determine the degree of cost savings realized or the extent to which they benefited taxpayers.

Given the full and open competition, what was the range of bids received, and how did the winning bid compare to the government's independent cost estimate?

The provided data states 'FULL AND OPEN COMPETITION' but does not include details on the number of bids received or their values. To assess the effectiveness of the competition and the fairness of the price, information on the bid range and a comparison to the government's estimate would be crucial. This would reveal if competitive pressures effectively drove down costs.

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: COST PLUS INCENTIVE FEE (V)

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: $204,410,163

Exercised Options: $68,702,508

Current Obligation: $68,702,508

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTCG2302C2DW001

IDV Type: IDC

Timeline