DHS Coast Guard awards $19.1M for IT services, with 3 bidders competing for firm-fixed-price contract

Contract Overview

Contract Amount: $19,147,729 ($19.1M)

Contractor: Usmax Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2013-03-20

End Date: 2016-08-02

Contract Duration: 1,231 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF RE-COMPETE OF CURRENT INFORMATION ASSURANCE (IA) AND CONFIGURATION MANAGEMENT (CM) SERVICES 13-WY-008 13-WY-009 13-WY-047

Place of Performance

Location: KEARNEYSVILLE, BERKELEY County, WEST VIRGINIA, 25430

State: West Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $19.1 million to USMAX CORPORATION for work described as: IGF::OT::IGF RE-COMPETE OF CURRENT INFORMATION ASSURANCE (IA) AND CONFIGURATION MANAGEMENT (CM) SERVICES 13-WY-008 13-WY-009 13-WY-047 Key points: 1. Contract awarded for information assurance and configuration management services. 2. The contract was competed on a full and open basis. 3. The firm-fixed-price contract type suggests predictable costs for the government. 4. The duration of the contract is over three years. 5. The services are being delivered in West Virginia. 6. The contractor, USMAX CORPORATION, has secured this re-compete of existing services.

Value Assessment

Rating: fair

The contract value of $19.1 million over approximately three years for IT services appears within a reasonable range for specialized information assurance and configuration management. Benchmarking against similar contracts is challenging without more specific service details, but the firm-fixed-price structure provides cost certainty. The number of bidders (3) suggests some level of competition, which typically helps in achieving fair pricing. However, without a detailed breakdown of services and labor categories, a precise value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while sources were initially excluded, the procurement was ultimately open to all responsible sources. Three bidders participated in this competition. The presence of multiple bidders generally supports price discovery and can lead to more competitive pricing for the government. The specific nature of the exclusion of sources prior to the full and open competition warrants further investigation to understand its impact on the competitive landscape.

Taxpayer Impact: With three bidders, taxpayers benefit from a degree of competition that likely prevented excessive pricing. The firm-fixed-price nature further protects taxpayer funds by establishing a ceiling on costs.

Public Impact

The U.S. Coast Guard benefits from enhanced information assurance and configuration management. Critical IT systems supporting Coast Guard operations are maintained. The services are delivered within West Virginia, potentially supporting local IT jobs. Ensures the security and integrity of sensitive Coast Guard data.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause in the competition type requires scrutiny to ensure it did not unduly limit competition.
Lack of detailed service descriptions makes it hard to assess if the price reflects true market value for the specific tasks.
The re-compete nature might indicate a reliance on incumbent knowledge, potentially limiting innovation from new entrants.

Positive Signals

Firm-fixed-price contract provides cost predictability for the government.
Three bidders indicate a competitive process, suggesting a reasonable price was likely achieved.
The contract addresses critical cybersecurity and IT infrastructure needs for the Coast Guard.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on cybersecurity and IT infrastructure management. The market for information assurance and configuration management is robust, driven by increasing cyber threats and the need for secure, well-managed IT systems across all federal agencies. Comparable spending in this sub-sector can vary widely based on the scope and complexity of services, but contracts in the multi-million dollar range are common for agencies like the Department of Homeland Security.

Small Business Impact

The data does not indicate if this contract included specific small business set-asides or subcontracting goals. As a re-compete for established services, it's possible that larger, established firms were the primary participants. Further analysis would be needed to determine if small businesses had opportunities to participate either as prime contractors or subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. The Inspector General's office may conduct audits or investigations into contract performance and spending. Transparency is facilitated through contract databases like FPDS, though detailed performance metrics are not always publicly available. The firm-fixed-price nature simplifies some aspects of financial oversight.

Related Government Programs

Information Assurance Services
Configuration Management Services
IT Support Services
Cybersecurity Contracts
Department of Homeland Security IT Spending

Risk Flags

Competition Limitation Concern
Potential for Vendor Lock-in
Lack of Detailed Service Scope

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $19.1 million to USMAX CORPORATION. IGF::OT::IGF RE-COMPETE OF CURRENT INFORMATION ASSURANCE (IA) AND CONFIGURATION MANAGEMENT (CM) SERVICES 13-WY-008 13-WY-009 13-WY-047

Who is the contractor on this award?

The obligated recipient is USMAX CORPORATION.

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 $19.1 million.

What is the period of performance?

Start: 2013-03-20. End: 2016-08-02.

What is the specific nature of the 'information assurance' and 'configuration management' services provided under this contract?

The provided data abbreviates the contract description as 'RE-COMPETE OF CURRENT INFORMATION ASSURANCE (IA) AND CONFIGURATION MANAGEMENT (CM) SERVICES'. Information Assurance (IA) typically encompasses measures that protect information and information systems from unauthorized access, use, disclosure, disruption, modification, or destruction. This can include activities like security monitoring, vulnerability management, incident response, and security policy enforcement. Configuration Management (CM) involves establishing and maintaining consistency of a product's performance, functional, and physical attributes with its requirements, design, and operational information throughout its life. For IT systems, this means tracking and controlling changes to hardware, software, and firmware to ensure system integrity and stability. The specific services under this contract would detail the exact tasks performed within these broad categories for the U.S. Coast Guard's IT infrastructure.

How does the $19.1 million contract value compare to similar IT services contracts awarded by the U.S. Coast Guard or DHS?

Comparing the $19.1 million contract value requires context regarding the duration and scope of services. This contract spans from March 20, 2013, to August 2, 2016, approximately 3.1 years. This averages to roughly $6.16 million per year. The U.S. Coast Guard and the broader Department of Homeland Security procure a wide range of IT services, from large-scale system development to specialized support. Contracts for cybersecurity, network management, and IT infrastructure support often fall within this spending range. Without knowing the precise deliverables and labor mix, it's difficult to make a direct comparison. However, for specialized IA and CM services over three years, this value appears to be within a plausible range for a federal agency of the Coast Guard's size and mission complexity.

What are the potential risks associated with a 're-compete' contract for IT services?

Re-compete contracts, while often efficient, carry specific risks. One primary risk is 'vendor lock-in,' where the incumbent contractor's deep knowledge of the system and processes can make it difficult for new bidders to compete effectively, potentially leading to reduced competition and higher prices over time. There's also a risk of complacency; the incumbent might not feel the same pressure to innovate or optimize as they would in a completely new procurement. Furthermore, if the original contract had performance issues that were overlooked or not fully addressed, these could be perpetuated. The 'after exclusion of sources' element in this specific contract's competition type adds another layer of potential risk, suggesting that initial market research or pre-solicitation activities may have narrowed the field, requiring careful review to ensure fairness and broad opportunity.

What does the 'firm fixed price' (FFP) contract type imply about cost control and risk for this contract?

A Firm Fixed Price (FFP) contract type is generally considered favorable for the government in terms of cost control and risk management. Under an FFP contract, the contractor agrees to a total price for a well-defined product or service. This means the contractor bears the primary responsibility for any cost overruns. For the government, this provides budget certainty, as the final cost is known upfront, barring any contract modifications. The risk shifts to the contractor; if their costs exceed the agreed-upon price, their profit margin decreases. This contract structure incentivizes the contractor to manage their costs efficiently and perform the work within the agreed budget to maximize their profit. It is best suited for requirements that are clearly defined and unlikely to change significantly during the contract period.

How many bidders typically participate in full and open IT services competitions of this size and nature?

The number of bidders in a full and open IT services competition can vary significantly based on the specific services required, the complexity of the requirement, the agency, and the overall market conditions. For a contract valued at $19.1 million over three years, like this one for Information Assurance and Configuration Management, three bidders is a moderate level of competition. Some highly specialized or niche requirements might attract fewer bidders, while more common IT support services could potentially draw a larger pool. Agencies often aim for at least three responsive, responsible bidders to ensure robust price competition and a reasonable selection of qualified offerors. The fact that this was a re-compete might also influence the number of bidders, as incumbent contractors often have an advantage.

Industry Classification

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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 382 GAMBRILLS RD, GAMBRILLS, MD, 21054

Business Categories: Asian Pacific American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,147,729

Exercised Options: $19,147,729

Current Obligation: $19,147,729

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCG7911DPTE093

IDV Type: IDC

Timeline