DHS Coast Guard Awards $42.7M Sole Source Contract to Digital Management LLC for Computer Systems Design
Contract Overview
Contract Amount: $42,672,781 ($42.7M)
Contractor: Digital Management LLC
Awarding Agency: Department of Homeland Security
Start Date: 2017-01-01
End Date: 2017-12-31
Contract Duration: 364 days
Daily Burn Rate: $117.2K/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 2ND SOLE SOURCE CONTRACT FULLY FUND - 4 MONTH BASE
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 2ND SOLE SOURCE CONTRACT FULLY FUND - 4 MONTH BASE Key points: 1. Contract awarded to Digital Management LLC for computer systems design services. 2. The contract is a sole source award, raising questions about competition. 3. The total value of the contract is $42.7 million. 4. The contract duration is approximately one year, from January 2017 to December 2017. 5. The contract falls under the Computer Systems Design Services NAICS code.
Value Assessment
Rating: questionable
The contract value of $42.7 million for a one-year duration for computer systems design services appears high without a competitive benchmark. The sole source nature limits price discovery.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a sole source, meaning only one vendor was considered. This significantly limits competition and may lead to higher prices than if multiple vendors had competed.
Taxpayer Impact: The sole source award potentially results in a higher cost to taxpayers due to the lack of competitive bidding and price negotiation.
Public Impact
Taxpayers may be paying more than necessary due to the sole source award. Limited transparency into the procurement process due to the sole source nature. Potential for reduced innovation or service quality without competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole Source Award
- Lack of Competition
- Potential for Overpricing
Positive Signals
- Specific service requirement met
- Contract awarded to a known entity
Sector Analysis
Computer Systems Design Services are crucial for government IT infrastructure. Benchmarks for similar contracts are difficult to establish without competitive data, but sole source awards often exceed market rates.
Small Business Impact
The data does not indicate whether small businesses were involved in subcontracting opportunities for this contract. The sole source nature may limit their participation.
Oversight & Accountability
The sole source justification and award process should be thoroughly reviewed to ensure it aligns with federal procurement regulations and best practices for accountability.
Related Government Programs
- Computer Systems Design Services
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Sole Source Justification
- Lack of Competitive Bidding
- Potential for Price Inflation
- Limited Transparency
- Absence of Small Business Participation Data
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 2ND SOLE SOURCE CONTRACT FULLY FUND - 4 MONTH BASE
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: 2017-01-01. End: 2017-12-31.
What was the justification for awarding this contract as sole source instead of pursuing full and open competition?
The justification for a sole source award typically involves a determination that only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs. Without specific documentation, it's impossible to confirm the exact reason, but it's a critical factor in assessing the value and fairness of the procurement.
What are the potential risks associated with a sole source contract of this magnitude?
The primary risks of a sole source contract of this magnitude include inflated pricing due to lack of competition, reduced incentive for the contractor to innovate or provide exceptional service, and potential for vendor lock-in. There's also a risk that the government may not be getting the best value or the most suitable solution available in the market.
How can the effectiveness of the computer systems design services provided under this contract be measured?
Effectiveness can be measured against pre-defined performance metrics and deliverables outlined in the contract. This includes assessing whether the system design meets the Coast Guard's operational requirements, its reliability, scalability, and security. Post-implementation reviews and user feedback are also crucial for evaluating the success of the design services.
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: $42,672,781
Exercised Options: $42,672,781
Current Obligation: $42,672,781
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS00Q09BGD0061
IDV Type: GWAC
Timeline
Start Date: 2017-01-01
Current End Date: 2017-12-31
Potential End Date: 2021-09-17 00:00:00
Last Modified: 2021-09-14
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