DHS Coast Guard's $42.8M system engineering contract awarded to Integrated Coast Guard Systems LLC

Contract Overview

Contract Amount: $42,758,157 ($42.8M)

Contractor: Integrated Coast Guard Systems LLC

Awarding Agency: Department of Homeland Security

Start Date: 2004-04-27

End Date: 2005-02-26

Contract Duration: 305 days

Daily Burn Rate: $140.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SYSTEM ENGINEERING AND INTEGRATION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20003

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $42.8 million to INTEGRATED COAST GUARD SYSTEMS LLC for work described as: SYSTEM ENGINEERING AND INTEGRATION Key points: 1. Contract awarded for system engineering and integration services. 2. Focus on search, detection, navigation, guidance, and related instrument manufacturing. 3. Contract duration was approximately 305 days. 4. The contract was a firm-fixed-price delivery order. 5. Awarded by the U.S. Coast Guard, part of DHS. 6. The contractor, Integrated Coast Guard Systems LLC, received the full award amount. 7. The contract was not competed, raising questions about price discovery.

Value Assessment

Rating: questionable

The contract value of $42.8 million for system engineering and integration over a 305-day period appears substantial. Without comparable contract data for similar system engineering and integration services within the Coast Guard or DHS, it is difficult to benchmark the value for money. The firm-fixed-price structure suggests a defined scope, but the lack of competition makes it challenging to assess if the pricing reflects competitive market rates or represents a fair and reasonable cost to the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach bypasses the standard procurement process where multiple vendors submit bids, which typically drives down prices and ensures the government receives the best value. The lack of competition here means there was no direct comparison of offers to determine the most cost-effective solution or to ensure the selected contractor's pricing was market-aligned.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to offer the lowest price. It also limits opportunities for other qualified businesses to secure government contracts.

Public Impact

The U.S. Coast Guard benefits from system engineering and integration services crucial for its operational capabilities. Services likely support the development, enhancement, or maintenance of critical systems for search, detection, and navigation. The geographic impact is primarily within the operational areas of the U.S. Coast Guard, which spans national and international waters. Workforce implications may include specialized engineering and technical roles within the contracting company.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer funds.
Sole-source awards can limit opportunities for small businesses and foster contractor dependency.
The absence of a competitive bidding process makes it difficult to assess the contractor's performance against market alternatives.

Positive Signals

The contract was awarded to a single entity, potentially allowing for focused expertise and streamlined project execution.
A firm-fixed-price contract provides cost certainty for the government, assuming the scope is well-defined.
The award supports critical functions for the U.S. Coast Guard, contributing to national security and maritime safety.

Sector Analysis

The contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector, which is a specialized area within the broader defense and government technology industry. This sector involves complex systems integration and the development of sophisticated equipment. Comparable spending benchmarks are difficult to establish without more specific details on the systems involved, but contracts in this domain often require significant investment due to the technical expertise and R&D involved.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting requirements. As a sole-source award, it is less likely to have been structured to specifically benefit small businesses. The absence of subcontracting opportunities could mean a missed chance to distribute a portion of the contract value within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Coast Guard's program management and contracting offices within the Department of Homeland Security. Transparency is limited due to the sole-source nature of the award. Accountability would be measured against the contract's performance requirements and delivery schedules, with potential oversight from the DHS Inspector General if specific concerns arise.

Related Government Programs

Department of Homeland Security IT Services
Coast Guard Systems Modernization
Navigation and Guidance System Development
Defense System Integration Contracts

Risk Flags

Sole-source award without clear justification
Lack of competitive bidding may lead to suboptimal pricing
Limited transparency on contractor performance and value assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $42.8 million to INTEGRATED COAST GUARD SYSTEMS LLC. SYSTEM ENGINEERING AND INTEGRATION

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 $42.8 million.

What is the period of performance?

Start: 2004-04-27. End: 2005-02-26.

What specific systems or technologies were covered under this $42.8 million contract for system engineering and integration?

The contract description indicates services related to 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing.' This suggests the work likely involved the engineering and integration of complex systems used by the Coast Guard for maritime surveillance, navigation, and operational command and control. Examples could include radar systems, sonar, GPS integration, communication platforms, or sensor fusion technologies. However, without further details, the precise scope remains broad, encompassing the design, development, testing, and integration phases for various hardware and software components critical to the Coast Guard's mission.

How does the $42.8 million contract value compare to similar system engineering and integration contracts within the Department of Homeland Security or the Coast Guard?

Benchmarking this $42.8 million contract value against similar system engineering and integration contracts within DHS or the Coast Guard is challenging without access to a comprehensive database of comparable awards. However, for a duration of approximately 10 months (305 days), this value suggests a significant undertaking, potentially involving a large team of specialized engineers and project managers. Contracts for complex system integration, especially those involving sensitive defense or security technologies, can range widely. A sole-source award of this magnitude warrants scrutiny to ensure it represents fair market value, as competitive processes typically yield more transparent pricing data for comparison.

What are the potential risks associated with awarding a $42.8 million contract on a sole-source basis?

The primary risk of a sole-source award is the lack of competition, which can lead to inflated prices and reduced value for taxpayer money. Without competing bids, the government cannot be certain it is receiving the most cost-effective solution. There's also a risk of contractor complacency, as the absence of competitive pressure might lessen the incentive to innovate or maintain optimal performance. Furthermore, sole-source awards can limit opportunities for other capable vendors, potentially hindering market innovation and creating a perception of favoritism. This can also lead to a dependency on a single contractor for critical services.

What was the track record of Integrated Coast Guard Systems LLC prior to or at the time of this award?

Information regarding the specific track record of Integrated Coast Guard Systems LLC prior to or at the time of this 2004 award is not readily available in the provided data. As this was a sole-source contract, the justification for selecting this specific contractor would typically include an assessment of their capabilities, past performance, and unique qualifications. Without access to that justification or broader contract performance databases, it's difficult to assess their historical performance, especially concerning system engineering and integration projects of this scale. Further investigation into federal procurement databases or contractor performance systems would be needed.

How effective was the system engineering and integration work performed under this contract in supporting the U.S. Coast Guard's mission?

The provided data does not include specific metrics or assessments of the effectiveness of the system engineering and integration work performed under this contract. Effectiveness would typically be evaluated based on whether the delivered systems met performance requirements, improved operational capabilities, and were completed within budget and schedule. Given the sole-source nature and the age of the contract (awarded in 2004), detailed post-award performance reviews might not be publicly accessible or easily correlated. Assessing effectiveness would require examining Coast Guard operational reports, system performance data, or program reviews related to the systems integrated.

What were the historical spending patterns for system engineering and integration services by the U.S. Coast Guard around 2004?

The provided data focuses on a single contract and does not offer insight into broader historical spending patterns for system engineering and integration services by the U.S. Coast Guard around 2004. To understand historical spending, one would need to analyze procurement data for the Coast Guard over several fiscal years, identifying contracts categorized under similar service descriptions (e.g., system engineering, integration, IT services, defense systems). This would allow for trend analysis, identification of major programs, and understanding of budget allocations for such services during that period. The $42.8 million award itself represents a significant expenditure for a single contract within that timeframe.

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: $128,509,884

Exercised Options: $127,855,409

Current Obligation: $42,758,157

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTCG2302C2DW001

IDV Type: IDC

Timeline