DHS Coast Guard Awards $14.7M for Navigation Systems to Integrated Coast Guard Systems LLC
Contract Overview
Contract Amount: $11,223,646 ($11.2M)
Contractor: Integrated Coast Guard Systems LLC
Awarding Agency: Department of Homeland Security
Start Date: 2004-06-29
End Date: 2006-07-31
Contract Duration: 762 days
Daily Burn Rate: $14.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: EPA ADJUSTMENT INDICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20003
Plain-Language Summary
Department of Homeland Security obligated $11.2 million to INTEGRATED COAST GUARD SYSTEMS LLC for work described as: EPA ADJUSTMENT INDICES Key points: 1. The contract awarded to Integrated Coast Guard Systems LLC for navigation systems is a significant investment. 2. The lack of competition raises concerns about potential overpricing and limited innovation. 3. The sector for Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing is critical for national security. 4. The fixed-price contract type aims to control costs, but the absence of competition may undermine this.
Value Assessment
Rating: questionable
The award amount of $14.7 million for a 762-day duration needs further benchmarking against similar navigation system contracts. Without competitive bids, it's difficult to ascertain if the pricing is optimal.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This significantly limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible value for this significant expenditure.
Public Impact
Essential navigation systems for the U.S. Coast Guard are being procured. Taxpayer funds are being allocated for critical maritime safety and operational capabilities. The procurement process lacked transparency due to the absence of competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Limited transparency in award process
Positive Signals
- Fixed-price contract type
- Awarded to a specialized company
Sector Analysis
This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is crucial for national security and maritime operations, often involving specialized technology.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award, as it was not competed. Future procurements should consider opportunities for small business participation.
Oversight & Accountability
The non-competitive nature of this award warrants closer oversight to ensure the government received fair value and that the selection process was justified.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Sole-source award
- Potential for inflated pricing
- Lack of transparency
- Limited market research evident
Tags
search-detection-navigation-guidance-aer, department-of-homeland-security, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $11.2 million to INTEGRATED COAST GUARD SYSTEMS LLC. EPA ADJUSTMENT INDICES
Who is the contractor on this award?
The obligated recipient is INTEGRATED COAST GUARD SYSTEMS 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 $11.2 million.
What is the period of performance?
Start: 2004-06-29. End: 2006-07-31.
What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The provided data indicates the contract was 'NOT COMPETED'. A thorough review would be needed to understand the specific justification, such as unique capabilities or urgent needs. Without this information, it's impossible to assess if alternative competitive strategies were explored or if this was the only viable path.
How does the unit cost of these navigation systems compare to industry benchmarks, given the lack of competitive pricing?
Benchmarking the unit cost is challenging without competitive data. The absence of bids means there's no market-driven price comparison. An independent cost analysis would be required, comparing the contractor's proposed costs against similar systems procured competitively by other agencies or in the private sector to identify potential discrepancies.
What is the long-term strategy for ensuring competitive sourcing for future navigation system needs to maximize value?
The agency should develop a strategy to foster competition for future navigation system procurements. This could involve market research to identify potential vendors, breaking down requirements into smaller, more accessible contracts, or exploring different contract types that encourage innovation and cost-effectiveness. Proactive planning is key to avoiding sole-source awards.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 300 M ST SE STE 685, WASHINGTON, DC, 20003
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $11,223,646
Exercised Options: $11,223,646
Current Obligation: $11,223,646
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DTCG2302C2DW001
IDV Type: IDC
Timeline
Start Date: 2004-06-29
Current End Date: 2006-07-31
Potential End Date: 2006-07-31 00:00:00
Last Modified: 2025-05-28
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