DHS Coast Guard awards $29.8M contract for electronics maintenance, highlighting long-term support needs

Contract Overview

Contract Amount: $29,790,468 ($29.8M)

Contractor: Allied Technology Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2005-07-28

End Date: 2005-08-31

Contract Duration: 34 days

Daily Burn Rate: $876.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ELECTRICAL/ELECTRONICS MAINTENANCE

Place of Performance

Location: PORT ANGELES, CLALLAM County, WASHINGTON, 98362

State: Washington Government Spending

Plain-Language Summary

Department of Homeland Security obligated $29.8 million to ALLIED TECHNOLOGY GROUP, INC. for work described as: ELECTRICAL/ELECTRONICS MAINTENANCE Key points: 1. Contract value of $29.8 million indicates significant investment in maintaining critical electronic systems. 2. Awarded to Allied Technology Group, Inc., suggesting established relationships or strong competitive performance. 3. The purchase order structure implies a need for specific, potentially urgent, maintenance services. 4. A short duration of 34 days points to a focused scope of work, possibly for a specific project or event. 5. The NAICS code 811211 (Consumer Electronics Repair and Maintenance) suggests a broad range of equipment supported. 6. The contract's timing in 2005 may reflect a specific modernization or sustainment phase for Coast Guard assets.

Value Assessment

Rating: fair

The contract value of $29.8 million for a 34-day period appears high for standard maintenance, suggesting specialized or extensive work. Benchmarking against similar electronics maintenance contracts for federal agencies is difficult without more specific scope details. However, the award amount relative to the short duration warrants scrutiny to ensure efficient use of funds. The fixed-price nature of the contract provides cost certainty but relies on accurate initial scope estimation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally expected to yield fair market prices. The fact that only one bid was received, however, raises questions about the attractiveness of the solicitation or the market landscape for this specific service at the time. Further investigation into the bidding process and market conditions would be beneficial.

Taxpayer Impact: Full and open competition is ideal for taxpayers, but a single bid suggests potential inefficiencies or a lack of robust market engagement, which could lead to suboptimal pricing.

Public Impact

The U.S. Coast Guard benefits from the maintenance of its electronic systems, ensuring operational readiness. Services delivered likely include repair, calibration, and upkeep of various electronic equipment essential for maritime safety and security. The geographic impact is national, supporting Coast Guard operations across all operational areas. Workforce implications may include specialized technicians employed by Allied Technology Group, Inc., contributing to the skilled labor market in electronics maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Single bid received under full and open competition raises concerns about market competitiveness and potential price inflation.
Short contract duration for a significant dollar amount may indicate scope creep or inefficient task management.
Lack of specific details on the 'electrical/electronics maintenance' scope makes it difficult to assess true value for money.

Positive Signals

Awarded through full and open competition, adhering to principles of fair market access.
Contractor Allied Technology Group, Inc. has experience in this domain, suggesting capability.
Fixed-price contract structure provides cost predictability for the government.

Sector Analysis

The contract falls within the broader Information Technology and Professional Services sectors, specifically focusing on maintenance and repair of specialized electronic equipment. The market for such services is competitive, with numerous firms offering technical expertise. The $29.8 million award is substantial for a short-term maintenance task, suggesting it supports critical or extensive systems within the Coast Guard's operational fleet or shore facilities. Comparable spending benchmarks would depend heavily on the specific types of electronics and the scope of work.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem. Given the prime contractor is Allied Technology Group, Inc., further analysis would be needed to determine if they have a robust small business subcontracting program.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's procurement and program management offices. As a purchase order, it might have less formal oversight than a large-scale contract, but adherence to terms and conditions would be monitored. Transparency is moderate, with basic award data available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Coast Guard Fleet Maintenance Programs
Department of Homeland Security IT and Communications Maintenance
Federal Electronics Repair Services
Defense Logistics Agency (DLA) Maintenance Contracts

Risk Flags

Single Bidder
High Value for Short Duration
Unusual Award Type (Purchase Order for large sum)

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $29.8 million to ALLIED TECHNOLOGY GROUP, INC.. ELECTRICAL/ELECTRONICS MAINTENANCE

Who is the contractor on this award?

The obligated recipient is ALLIED TECHNOLOGY 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 $29.8 million.

What is the period of performance?

Start: 2005-07-28. End: 2005-08-31.

What specific types of electrical and electronic equipment were covered under this maintenance contract?

The provided data indicates the contract falls under NAICS code 811211 (Consumer Electronics Repair and Maintenance) and is for 'ELECTRICAL/ELECTRONICS MAINTENANCE'. However, it does not specify the exact types of equipment. Given the client is the U.S. Coast Guard, this could range from navigation and communication systems (radar, sonar, radios, GPS), to operational equipment (sensors, control systems), and potentially even some administrative or facility-related electronics. The broad category suggests a wide array of devices requiring upkeep to ensure the Coast Guard's operational readiness and mission effectiveness.

How does the $29.8 million award compare to typical annual spending on electronics maintenance for the U.S. Coast Guard?

Without historical spending data specific to the U.S. Coast Guard's electronics maintenance for the period around 2005, a direct comparison is challenging. However, $29.8 million for a 34-day contract duration is exceptionally high, suggesting either a very specialized, large-scale maintenance event, or potentially an overestimation of costs for the defined scope. Typical annual spending on maintenance for a large fleet and shore infrastructure would likely be in the tens or hundreds of millions, but this specific award's intensity relative to its duration warrants further investigation into its necessity and efficiency.

What are the potential risks associated with a full and open competition resulting in only one bid?

A single bid in a full and open competition can indicate several risks. Firstly, it may suggest that the government did not adequately market the opportunity, leading to a lack of awareness among potential bidders. Secondly, the solicitation requirements might have been overly restrictive or complex, deterring competition. Thirdly, the market for this specific service might be limited, with few qualified vendors. This situation poses a risk of paying a non-competitive price, as there is no benchmark from competing offers. It also raises concerns about the contractor's ability to deliver if they are the sole provider, potentially leading to performance issues without immediate alternatives.

What is the significance of the 'PURCHASE ORDER' award type for this contract?

A Purchase Order (PO) is typically used for simpler, smaller-dollar acquisitions or for specific, well-defined needs. Awarding a $29.8 million contract as a PO, especially for a service like electronics maintenance, is unusual and suggests a potentially streamlined procurement process. This could imply that the scope was very specific and perhaps urgent, or that it was part of a larger existing framework agreement. However, the large dollar amount associated with a PO might indicate a deviation from standard procurement practices for such significant expenditures, potentially impacting oversight and detailed contractual management compared to a formal contract.

How does the fixed-price contract type (FIRM FIXED PRICE) impact value for money in this context?

A Firm Fixed Price (FFP) contract type is generally advantageous for the government as it shifts the risk of cost overruns to the contractor. This provides budget certainty. For electronics maintenance, an FFP contract incentivizes the contractor, Allied Technology Group, Inc., to perform the work efficiently and within the agreed-upon price. However, the value for money hinges on the accuracy of the initial scope definition and cost estimation. If the scope was underestimated, the contractor might cut corners on quality. Conversely, if the scope was overestimated, the government might overpay. Given the high value for a short duration, ensuring the scope was precisely defined and competitively priced is crucial for realizing true value.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Consumer Electronics Repair and Maintenance

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11491 WOODSIDE AVE, SANTEE, CA, 92071

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business

Financial Breakdown

Contract Ceiling: $29,790,468

Exercised Options: $29,790,468

Current Obligation: $29,790,468

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline