DHS Coast Guard Awards $42.7M Sole Source Task Order to Digital Management LLC for Computer Systems Design
Contract Overview
Contract Amount: $42,735,760 ($42.7M)
Contractor: Digital Management LLC
Awarding Agency: Department of Homeland Security
Start Date: 2016-01-01
End Date: 2016-12-31
Contract Duration: 365 days
Daily Burn Rate: $117.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: IGF::OT::IGF APLES SOLE SOURCE TASK ORDER CONTRACT BASE PERIOD
Place of Performance
Location: KEARNEYSVILLE, BERKELEY County, WEST VIRGINIA, 25430
Plain-Language Summary
Department of Homeland Security obligated $42.7 million to DIGITAL MANAGEMENT LLC for work described as: IGF::OT::IGF APLES SOLE SOURCE TASK ORDER CONTRACT BASE PERIOD Key points: 1. The contract, valued at $42.7 million, was awarded on a sole-source basis. 2. Digital Management LLC is the sole contractor for this task order. 3. The contract falls under Computer Systems Design Services. 4. The award was made by the Department of Homeland Security, U.S. Coast Guard. 5. The period of performance is for one year, from January 1, 2016, to December 31, 2016.
Value Assessment
Rating: questionable
The contract is a sole-source award, making direct price comparison difficult. The provided benchmark of $117,084 for a 365-day duration suggests a daily rate of approximately $320.80, which needs further analysis against market rates for similar services.
Cost Per Unit: $320.80 (estimated daily rate)
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, indicating a lack of competition. This method limits price discovery and may not ensure the government receives the best possible value.
Taxpayer Impact: The sole-source nature of this award raises concerns about potential overspending and the efficient use of taxpayer funds.
Public Impact
Taxpayers may not have received the most competitive pricing due to the sole-source award. The lack of competition could limit innovation and service improvements. The U.S. Coast Guard relies on these computer systems design services for its operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Time and Materials pricing
Positive Signals
- Award to a single contractor
- Specific service requirement met
Sector Analysis
Computer Systems Design Services are crucial for government IT infrastructure. Benchmarks for this sector vary widely based on complexity and duration, but competitive bidding typically drives costs down.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, suggesting a missed opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the pricing is fair and reasonable and that the services provided meet the government's needs effectively.
Related Government Programs
- Computer Systems Design Services
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Sole-source award limits competition.
- Potential for uncompetitive pricing.
- Time and Materials contract type can lead to cost overruns.
- Lack of small business participation.
- Limited transparency in pricing.
Tags
computer-systems-design-services, department-of-homeland-security, wv, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $42.7 million to DIGITAL MANAGEMENT LLC. IGF::OT::IGF APLES SOLE SOURCE TASK ORDER CONTRACT BASE PERIOD
Who is the contractor on this award?
The obligated recipient is DIGITAL MANAGEMENT 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 $42.7 million.
What is the period of performance?
Start: 2016-01-01. End: 2016-12-31.
What justification was provided for awarding this contract sole-source instead of through full and open competition?
Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. This often occurs due to unique capabilities, urgent needs, or specific program requirements. A thorough review of the justification documentation is necessary to assess its validity and ensure it aligns with federal acquisition regulations.
How does the Time and Materials pricing structure impact cost control and risk for the government?
Time and Materials (T&M) contracts can be risky for the government as they lack a ceiling on total costs, potentially leading to cost overruns if not managed diligently. Effective oversight, detailed tracking of labor hours and material costs, and clear task definitions are crucial to control spending and mitigate risks associated with T&M contracts.
What is the long-term strategy for acquiring these computer systems design services, and will future procurements involve competition?
The long-term strategy is unclear from this single task order. Future procurements should ideally transition to competitive bidding to ensure best value and fair pricing. Agencies should regularly assess if sole-source justifications remain valid or if market conditions allow for competitive sourcing.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 6550 ROCK SPRING DR FLR 7, BETHESDA, MD, 20817
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $42,735,760
Exercised Options: $42,735,760
Current Obligation: $42,735,760
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS00Q09BGD0061
IDV Type: GWAC
Timeline
Start Date: 2016-01-01
Current End Date: 2016-12-31
Potential End Date: 2016-12-31 00:00:00
Last Modified: 2021-09-13
More Contracts from Digital Management LLC
- "vanguard 2.1" IT Help Desk and Desktop Support Services — $257.4M (Department of State)
- Aples Base Task Order - Base Period. POP: 1/1/13-12/31/13 Itar: AAP: Spend Plan: SEE Spend Plan Numbers Individual Items Listed Below. Igf::cl,Ct::igf — $115.4M (Department of Homeland Security)
- Aples Idiq Task Order 0001 — $100.3M (Department of Homeland Security)
- Interactive Personnel Electronic Records Management System Support Services Igf::ot::igf — $69.4M (Department of Defense)
- Cost Plus Fixed FEE Labor — $52.8M (Department of Defense)
Other Department of Homeland Security Contracts
- THE United States Coast Guard HAS a Requirement to Procure UP to Twenty-Six (26) Fast Response Cutters (frcs) on a Firm Fixed Price (FFP) Basis With an Economic Price Adjustment (EPA). Phase II of the FRC Program Will Complete the Fleet for a Total of 58 Cutters — $2.1B (Bollinger Shipyards Lockport, L.L.C.)
- Design and Construct NEW Vertical Barrier and Power Distribution, Lighting, Cameras, Equipment Shelters and Linear Ground Detection System (lgds) in Hildago County, NM — $1.8B (Fisher Sand & Gravel CO)
- Production&delivery of National Security Cutter (NSC) 6 — $1.7B (Huntington Ingalls Incorporated)
- YUM-2 Vertical Border and Waterborne Barrier Construction — $1.7B (Fisher Sand & Gravel CO)
- Construct Vertical Border Barrier — $1.6B (Fisher Sand & Gravel CO)