DHS Coast Guard awards $17.2M for IT services, with 3 bidders competing

Contract Overview

Contract Amount: $17,200,466 ($17.2M)

Contractor: Eagle Enterprise JV LLC

Awarding Agency: Department of Homeland Security

Start Date: 2009-03-18

End Date: 2013-03-31

Contract Duration: 1,474 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: PROVIDE SERVICES FOR IA,CM,QA.

Place of Performance

Location: KEARNEYSVILLE, BERKELEY County, WEST VIRGINIA, 25430

State: West Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $17.2 million to EAGLE ENTERPRISE JV LLC for work described as: PROVIDE SERVICES FOR IA,CM,QA. Key points: 1. Value for money appears reasonable given the scope of IT, CM, and QA services. 2. Full and open competition suggests a healthy market for these services. 3. Contract duration of nearly 5 years indicates a significant, ongoing need. 4. The services provided are critical for maintaining operational readiness. 5. This contract falls within the broader IT services sector for federal agencies.

Value Assessment

Rating: good

The contract value of $17.2 million over approximately 4 years for comprehensive IT, CM, and QA services appears to be within a reasonable range for federal IT support. Benchmarking against similar contracts for Computer Systems Design Services (NAICS 541512) would provide a more precise value assessment. The Cost Plus Fixed Fee (CPFF) pricing structure, while offering flexibility, requires careful monitoring to ensure cost control and prevent overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initial sources might have been considered, the opportunity was ultimately opened to all qualified bidders. With 3 bidders, the competition level suggests a moderate but sufficient level of market engagement, which generally aids in price discovery and achieving fair market value.

Taxpayer Impact: A competitive award process with multiple bidders helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovative solutions.

Public Impact

The U.S. Coast Guard benefits from enhanced IT, Configuration Management (CM), and Quality Assurance (QA) services, supporting its operational missions. Services delivered include critical IT infrastructure support, system maintenance, and quality control processes. The contract's performance is located in West Virginia (WV), potentially impacting the local IT workforce and economy. Workforce implications include the potential for skilled IT professionals to be engaged through the prime contractor or subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely managed.
Dependence on a single contractor for critical IT functions could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a robust market and potential for competitive pricing.
The contract duration suggests a stable and ongoing need for these essential IT services.
The inclusion of CM and QA alongside IT services points to a comprehensive approach to system reliability.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically Computer Systems Design Services. The federal IT services market is substantial, with agencies across all departments relying on contractors for system design, integration, maintenance, and support. Comparable spending benchmarks for similar IT support contracts within agencies like Homeland Security can provide context for the $17.2 million award.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While there is no direct information on subcontracting plans, larger IT contracts often include provisions for small business participation to meet federal goals. The absence of a small business set-aside means opportunities for small businesses would likely be through subcontracting if pursued by the prime contractor, EAGLE ENTERPRISE JV LLC.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Coast Guard contracting officers and program managers. Accountability measures are embedded within the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is generally maintained through contract databases and reporting requirements, though specific internal oversight mechanisms are not detailed in the provided data. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Homeland Security IT Modernization Programs
U.S. Coast Guard IT Infrastructure Support
Federal Computer Systems Design Services
Configuration Management Services Contracts
Quality Assurance Services for Federal IT

Risk Flags

Cost Overrun Risk (CPFF)
Contractor Performance Dependency
Potential for Limited Small Business Subcontracting

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $17.2 million to EAGLE ENTERPRISE JV LLC. PROVIDE SERVICES FOR IA,CM,QA.

Who is the contractor on this award?

The obligated recipient is EAGLE ENTERPRISE JV 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 $17.2 million.

What is the period of performance?

Start: 2009-03-18. End: 2013-03-31.

What is the track record of EAGLE ENTERPRISE JV LLC in delivering similar IT, CM, and QA services to the federal government?

Assessing the track record of EAGLE ENTERPRISE JV LLC requires a review of their past performance on federal contracts, particularly those involving IT, Configuration Management (CM), and Quality Assurance (QA). Information on contract performance ratings, past issues, and successful project completions would be crucial. Databases like the Federal Procurement Data System (FPDS) and the Contractor Performance Assessment Reporting System (CPARS) are primary sources for this data. A history of successful, on-time, and within-budget delivery of similar services would indicate a lower performance risk for this current contract. Conversely, a pattern of negative performance reviews or unresolved issues would raise concerns about the contractor's ability to meet the Coast Guard's requirements effectively.

How does the $17.2 million contract value compare to other federal IT service contracts of similar scope and duration?

The $17.2 million award for approximately 4 years of IT, CM, and QA services can be benchmarked against similar federal contracts. For instance, contracts for Computer Systems Design Services (NAICS 541512) awarded by agencies like DHS or other large federal entities over similar periods would serve as comparators. The average annual value of this contract is approximately $4.3 million. If comparable contracts for similar services are consistently awarded at significantly lower or higher values, it could indicate whether this contract represents a particularly good or poor value. Factors such as geographic location, specific technical requirements, and the level of competition also influence pricing, so a direct comparison requires careful consideration of these variables.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for these services?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract structure is the potential for cost overruns. While the fixed fee provides the contractor with a defined profit margin, the 'cost' portion is reimbursable, meaning the government pays for the actual allowable costs incurred by the contractor. If the contractor is inefficient or if unforeseen circumstances drive up costs, the government bears that financial burden, potentially exceeding initial budget expectations. Effective oversight, detailed cost tracking, and robust performance management are critical to mitigate this risk. The government must ensure that all costs claimed are reasonable, allocable, and allowable according to the contract terms and federal acquisition regulations.

What is the significance of 'Full and Open Competition After Exclusion of Sources' for this contract?

The 'Full and Open Competition After Exclusion of Sources' designation means that while certain sources might have been initially considered or excluded for specific reasons (e.g., prior performance, specific capabilities), the contract was ultimately awarded through a process open to all responsible sources capable of meeting the requirements. This approach aims to balance the benefits of broad competition with potential efficiencies or specific needs that might limit the initial pool of offerors. The fact that 3 bidders participated indicates that despite any initial exclusions, a sufficient number of capable contractors were available and interested, suggesting a competitive environment that should lead to fair pricing and good value for the government.

How does the geographic location (West Virginia) impact the delivery and cost of these IT services?

The performance location in West Virginia (WV) can influence the delivery and cost of IT services. Labor costs for IT professionals may differ compared to major metropolitan hubs, potentially offering cost savings if local talent is utilized. However, if specialized skills are required that are not readily available in WV, the contractor might incur additional costs for travel, relocation, or remote support, which could offset potential savings. The availability of robust internet infrastructure and the logistical challenges of supporting remote or dispersed Coast Guard assets from a WV base would also be factors. Understanding the local IT labor market and infrastructure is key to assessing the cost-effectiveness of this location.

What are the potential implications of this contract for the small business ecosystem, given it was not a small business set-aside?

Since this contract was not a small business set-aside, its direct impact on the small business ecosystem is limited unless the prime contractor actively engages small businesses as subcontractors. Federal policy encourages prime contractors to utilize small businesses for subcontracting opportunities to meet overall small business utilization goals. The absence of a set-aside means small businesses did not have a direct pathway to compete for the prime contract. Their involvement would depend on the prime contractor's subcontracting strategy and the specific requirements of the contract that could be fulfilled by smaller, specialized firms. Monitoring subcontracting reports would reveal the extent of small business participation.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HSCGG3-09-R-TWV076

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1945 OLD GALLOWS RD STE 500, VIENNA, VA, 22182

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $55,360,467

Exercised Options: $21,745,394

Current Obligation: $17,200,466

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSHQDC06D00058

IDV Type: IDC

Timeline