Coast Guard's C4ISR Increment 1 contract awarded to Integrated Coast Guard Systems LLC for $67.5M

Contract Overview

Contract Amount: $67,474,631 ($67.5M)

Contractor: Integrated Coast Guard Systems LLC

Awarding Agency: Department of Homeland Security

Start Date: 2004-06-14

End Date: 2006-02-28

Contract Duration: 624 days

Daily Burn Rate: $108.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: C4ISR INCREMENT 1

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 $67.5 million to INTEGRATED COAST GUARD SYSTEMS LLC for work described as: C4ISR INCREMENT 1 Key points: 1. The contract was awarded as a sole-source, non-competed action, raising questions about potential cost efficiencies. 2. The duration of the contract (624 days) suggests a focused, short-term project rather than a long-term strategic investment. 3. The firm-fixed-price contract type offers cost certainty for the government, but may limit flexibility if requirements evolve. 4. The specific product service code (PSC) is not detailed, making direct comparisons to similar procurements challenging. 5. The award was made to a single entity, Integrated Coast Guard Systems LLC, indicating a lack of competitive pressure on pricing. 6. The contract's value of $67.5 million falls within a moderate spending range for specialized C4ISR systems.

Value Assessment

Rating: fair

Benchmarking the value for this specific C4ISR Increment 1 contract is difficult without more detailed technical specifications and comparable contract data. The firm-fixed-price structure provides a degree of cost certainty. However, the lack of competition means there's no direct market comparison to assess if the price represents optimal value for money. The contract's relatively short duration might suggest a contained scope, but without further context, it's hard to definitively assess its overall value proposition against potential alternatives or broader system upgrades.

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 among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, proprietary technology, or when urgency dictates a rapid award. The absence of competition limits the government's ability to leverage market forces to drive down prices and ensure the most cost-effective solution is selected. It also means that potential cost savings that could arise from competitive bidding were not realized.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive bidding. Without competition, there is less pressure on the contractor to offer the lowest possible price, potentially leading to higher overall expenditure for the government.

Public Impact

The primary beneficiaries are the U.S. Coast Guard personnel who will utilize the enhanced C4ISR capabilities. The contract delivers improvements to search, detection, navigation, guidance, and related systems, enhancing operational effectiveness. The geographic impact is likely nationwide, supporting Coast Guard operations across all operational areas. Workforce implications may include specialized technical support and integration personnel required for the C4ISR systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award limits opportunities for new market entrants and innovation.
Limited contract duration might indicate a piecemeal approach to C4ISR modernization, potentially leading to integration challenges later.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Award to a specific entity suggests specialized expertise relevant to the Coast Guard's needs.
Focus on C4ISR systems directly supports critical maritime security and safety missions.

Sector Analysis

The Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) sector is a critical component of national defense and homeland security. This contract falls within the specialized manufacturing and integration of navigation and guidance systems. The market for C4ISR solutions is characterized by high technological barriers to entry, significant R&D investment, and a concentration of specialized defense contractors. Spending in this area is driven by evolving threats and the need for advanced situational awareness and operational capabilities.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, there is no explicit mention of subcontracting plans for small businesses. This suggests that the primary awardee is likely a large business, and opportunities for small businesses to participate in this specific contract may be limited unless they are direct suppliers or partners to the prime contractor.

Oversight & Accountability

Oversight for this contract would fall under the Department of Homeland Security's procurement and contract management regulations. As a firm-fixed-price contract, the primary oversight would focus on delivery and performance against the specified requirements. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply for any investigations into fraud, waste, or abuse related to the contract.

Related Government Programs

Coast Guard C4ISR Modernization Programs
Department of Homeland Security Information Technology Procurement
Maritime Domain Awareness Systems
Naval Navigation and Guidance Systems Contracts

Risk Flags

Sole-source award
Lack of detailed technical specifications
Limited public information on contractor performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $67.5 million to INTEGRATED COAST GUARD SYSTEMS LLC. C4ISR INCREMENT 1

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 $67.5 million.

What is the period of performance?

Start: 2004-06-14. End: 2006-02-28.

What specific C4ISR capabilities does 'Increment 1' refer to, and how do they align with the Coast Guard's current operational needs?

The provided data does not specify the exact capabilities encompassed by 'C4ISR Increment 1'. However, based on the Product Service Code (PSC) '334511 - Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing', it can be inferred that this increment likely involves enhancements or new acquisitions related to systems that support maritime surveillance, target identification, vessel tracking, and navigational aids. These capabilities are crucial for the Coast Guard's missions, including search and rescue, law enforcement, drug interdiction, and port security. Without more detailed documentation, it's difficult to ascertain the precise alignment with current operational needs beyond these general functions.

What is the rationale behind awarding this contract as sole-source instead of through full and open competition?

The rationale for a sole-source award is not detailed in the provided data. Typically, sole-source contracts are justified when only one responsible source can provide the required supplies or services. This could be due to proprietary technology, unique capabilities, urgent and compelling needs where competition is not feasible, or if the contractor is the only source capable of meeting specific performance requirements. For this contract, it's possible that Integrated Coast Guard Systems LLC possessed unique intellectual property or was the sole provider of a critical component or system integration expertise deemed essential by the U.S. Coast Guard for 'C4ISR Increment 1'.

How does the $67.5 million contract value compare to other C4ISR system procurements by the Coast Guard or similar agencies?

The $67.5 million contract value for 'C4ISR Increment 1' is a moderate sum within the broader landscape of C4ISR procurements. Larger, more comprehensive C4ISR system overhauls or new platform integrations for agencies like the Coast Guard, Navy, or Air Force can easily run into hundreds of millions or even billions of dollars. However, for specific increments or upgrades to existing systems, $67.5 million represents a significant investment. Without knowing the scope and deliverables of this 'Increment 1', direct comparison is challenging. It suggests a substantial upgrade or acquisition of specialized equipment rather than a complete system replacement.

What are the potential risks associated with a sole-source award for a C4ISR system, particularly regarding cost and technological obsolescence?

Sole-source awards for C4ISR systems carry several risks. Primarily, the lack of competition can lead to inflated prices, as the government does not benefit from market-driven cost reductions. This can result in a lower value for taxpayer money. Technologically, relying on a single source might limit access to the latest innovations from the broader market, potentially leading to the acquisition of systems that become obsolete faster or are not as advanced as competing solutions. Furthermore, dependence on a single contractor can create leverage issues for the government in future negotiations or support contracts, and it may hinder interoperability if the chosen system is not designed with open standards.

What is the track record of Integrated Coast Guard Systems LLC in delivering C4ISR-related contracts to the U.S. Coast Guard or other federal agencies?

The provided data indicates that Integrated Coast Guard Systems LLC was awarded this specific contract. However, it does not offer details on their broader track record, past performance, or experience with similar C4ISR contracts. To assess their reliability and expertise, a review of their contract history, including past performance evaluations, on-time delivery rates, and adherence to budget on previous projects, would be necessary. Without this information, it's difficult to gauge their established performance in delivering complex C4ISR solutions.

Given the contract's end date of February 2006, what has been the subsequent spending or development related to C4ISR systems by the U.S. Coast Guard?

The contract for 'C4ISR Increment 1' concluded in February 2006. Since then, the U.S. Coast Guard, like all branches of the military and homeland security, has continued to invest in and modernize its C4ISR capabilities. Subsequent spending would likely reflect advancements in technology such as improved sensor fusion, satellite communications, data analytics, cybersecurity, and network-centric operations. The Coast Guard has ongoing programs for integrated command and control, situational awareness, and communication systems to meet evolving maritime security challenges. Specific follow-on contracts or program evolutions would require a review of more recent procurement data.

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: $231,397,345

Exercised Options: $226,891,982

Current Obligation: $67,474,631

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTCG2302C2DW001

IDV Type: IDC

Timeline