Coast Guard's $10.5M search and navigation system contract awarded to Integrated Coast Guard Systems LLC

Contract Overview

Contract Amount: $10,502,691 ($10.5M)

Contractor: Integrated Coast Guard Systems LLC

Awarding Agency: Department of Homeland Security

Start Date: 2004-06-10

End Date: 2006-05-30

Contract Duration: 719 days

Daily Burn Rate: $14.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: OPC LEAD SHIP

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 $10.5 million to INTEGRATED COAST GUARD SYSTEMS LLC for work described as: OPC LEAD SHIP Key points: 1. Contract awarded for search, detection, navigation, guidance, aeronautical, and nautical systems. 2. The contract was not competed, raising questions about potential price discovery. 3. A firm-fixed-price contract type suggests cost certainty for the government. 4. The contract duration was 719 days, indicating a medium-term project. 5. The award was made to Integrated Coast Guard Systems LLC. 6. The contract falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' NAICS code.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competitive bidding. Without comparison to other offers, it's difficult to ascertain if the $10.5 million price represents a fair market value. The firm-fixed-price structure, however, provides some predictability in costs. The contract's value is tied to the specific systems and instruments required by the U.S. Coast Guard for their search and navigation operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. The specific reasons for not competing are not detailed in the provided data. A lack of competition can limit the government's ability to secure the lowest possible prices and may suggest a reliance on a specific contractor's capabilities or existing relationship.

Taxpayer Impact: Taxpayers may not have received the full benefit of competitive pricing, potentially leading to higher costs than if multiple vendors had vied for the contract.

Public Impact

The U.S. Coast Guard benefits from the acquisition of essential search, detection, and navigation systems. These systems are critical for maritime safety, search and rescue operations, and national security. The contract supports the operational readiness of Coast Guard vessels and aircraft. The geographic impact is likely nationwide, supporting Coast Guard operations across various maritime domains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to suboptimal pricing.
Limited transparency into the justification for a sole-source award.
Potential for vendor lock-in if the systems are proprietary.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Award to a specialized company likely ensures technical expertise.
Contract supports critical national security and safety functions.

Sector Analysis

This contract falls within the broader aerospace and defense manufacturing sector, specifically focusing on navigation and guidance systems. The market for such specialized equipment is often characterized by high barriers to entry due to technological complexity and stringent quality requirements. Comparable spending benchmarks would typically involve other government procurements for similar advanced sensor and navigation technologies, often awarded through competitive processes.

Small Business Impact

The provided data indicates that small business participation was not a stated factor in this contract (sb: false). There is no information on subcontracting plans or set-asides for small businesses. This suggests that the primary awardee, Integrated Coast Guard Systems LLC, likely handled the majority of the work, with limited direct benefit or opportunity for the small business ecosystem in this specific procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's Inspector General, responsible for ensuring the integrity and efficiency of its procurements. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified goods or services at an agreed-upon price. Transparency is limited by the non-competed nature of the award, with further details on oversight mechanisms not provided.

Related Government Programs

Coast Guard Modernization Programs
Maritime Domain Awareness Systems
Naval Navigation Equipment Procurement
Homeland Security Technology Acquisition

Risk Flags

Non-competitive award
Lack of detailed justification for sole-source
Potential for inflated pricing due to lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $10.5 million to INTEGRATED COAST GUARD SYSTEMS LLC. OPC LEAD SHIP

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 $10.5 million.

What is the period of performance?

Start: 2004-06-10. End: 2006-05-30.

What is the specific nature of the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' procured under this contract?

The NAICS code 334511, 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing,' encompasses establishments primarily engaged in manufacturing electronic systems and instruments used for military, air, and marine navigation, as well as for search and detection. This could include radar systems, sonar, GPS receivers, inertial navigation systems, flight control systems, and related components. For the U.S. Coast Guard, these systems are crucial for missions such as search and rescue, law enforcement, maritime security, and environmental monitoring, ensuring vessels and aircraft can accurately determine position, detect objects, and navigate safely in various conditions.

Why was this contract awarded on a sole-source basis instead of being competed?

The provided data indicates the contract was 'NOT COMPETED,' which typically signifies a sole-source or limited competition award. Specific justifications for sole-sourcing are not detailed in the data. Common reasons for sole-sourcing include the existence of only one responsible source capable of providing the required supplies or services, urgent and compelling needs where delaying the award would cause significant harm, or when the procurement is for R&D purposes where a specific contractor's expertise is essential. Without further documentation, the exact rationale remains unclear, but it suggests a perceived lack of viable alternatives or a unique requirement.

How does the firm-fixed-price (FFP) contract type benefit the government in this scenario?

A firm-fixed-price contract type is generally advantageous for the government as it shifts the risk of cost overruns to the contractor. Under an FFP agreement, the price is set and not subject to adjustment unless there are changes to the contract's scope of work. This provides the U.S. Coast Guard with cost certainty for the $10.5 million award, allowing for more predictable budgeting. While it may not always yield the lowest price compared to incentive-based contracts, it simplifies financial management and reduces the administrative burden of monitoring contractor costs, especially when the scope of work is well-defined.

What is the significance of the contract duration (719 days) in relation to the total award amount?

A contract duration of 719 days (approximately 23.6 months) for a $10.5 million award suggests an average annual value of roughly $4.45 million. This duration indicates a medium-term project, likely involving the development, manufacturing, integration, and potentially initial deployment or testing of the specified navigation and detection systems. The length of time allows for complex technical work to be completed, but it also means the government is committed to this vendor for an extended period. The value per day is approximately $14,600, which provides a rough metric for the intensity of resources required.

What are the potential risks associated with awarding a contract of this nature without competition?

The primary risk of awarding a contract without competition is the potential for paying a higher price than would have been achieved through a competitive bidding process. Without multiple offers, the government loses the leverage that competition provides to drive down costs and encourage innovation. There's also a risk of reduced transparency and accountability, as the justification for selecting a single vendor may not be as rigorously scrutinized. Furthermore, a sole-source award can lead to vendor lock-in, making it difficult and costly to switch to a different provider in the future if performance issues arise or better technologies become available.

How does this contract align with the U.S. Coast Guard's broader mission objectives?

This contract directly supports the U.S. Coast Guard's core mission objectives related to maritime safety, security, and environmental protection. The procured search, detection, navigation, and guidance systems are essential tools for enabling effective search and rescue operations, interdicting illegal activities, monitoring vessel traffic, and responding to maritime emergencies. By ensuring the Coast Guard has state-of-the-art equipment in these critical areas, the contract enhances the agency's operational capabilities and its ability to safeguard U.S. waters and coastlines, thereby contributing to national security and economic stability.

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: $25,879,752

Exercised Options: $23,360,031

Current Obligation: $10,502,691

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTCG2302C2DW001

IDV Type: IDC

Timeline