DHS Coast Guard Awards $20.3M for Navigation Systems to Integrated Coast Guard Systems LLC

Contract Overview

Contract Amount: $16,904,237 ($16.9M)

Contractor: Integrated Coast Guard Systems LLC

Awarding Agency: Department of Homeland Security

Start Date: 2004-07-21

End Date: 2006-10-31

Contract Duration: 832 days

Daily Burn Rate: $20.3K/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

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $16.9 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 is for navigation system instruments. 2. This award represents a significant portion of the total contract value for these systems. 3. The lack of competition raises concerns about potential overpricing and limited innovation. 4. The sector is IT and Defense, specifically focusing on navigation and guidance systems.

Value Assessment

Rating: questionable

The award value of $20.3 million for 2 delivery orders over 832 days needs further scrutiny. Without competitive bids, it's difficult to assess if this price is fair market value compared to similar navigation system contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited competition award. This significantly impacts price discovery, as there was no market pressure to drive down costs or encourage innovative solutions.

Taxpayer Impact: The lack of competition may lead to taxpayers paying a premium for these navigation systems, as the government did not explore potentially more cost-effective options.

Public Impact

Taxpayers may be overpaying for essential navigation equipment due to the absence of competitive bidding. The Coast Guard's operational effectiveness could be impacted if the chosen systems are not the most advanced or cost-efficient available. This award highlights a potential gap in the market for competitive navigation system solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Potential for Overpricing
Limited Innovation

Positive Signals

Essential Service Provided
Established Vendor Relationship

Sector Analysis

This contract falls within the IT and Defense sectors, specifically focusing on the manufacturing of navigation and guidance systems. Spending benchmarks in this niche area are difficult to ascertain without competitive data, but typically involve high R&D costs and specialized components.

Small Business Impact

The data does not indicate any specific provisions or considerations for small businesses in this award. The sole-source nature of the contract likely precluded small business participation.

Oversight & Accountability

The 'NOT COMPETED' status suggests a potential lapse in oversight regarding competitive sourcing strategies. Further review is needed to understand why this contract was not opened to a broader range of vendors.

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

Lack of competitive bidding
Potential for inflated pricing
Limited technological innovation
Questionable value for taxpayer money
Insufficient justification for sole-source award

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $16.9 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 $16.9 million.

What is the period of performance?

Start: 2004-07-21. End: 2006-10-31.

What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award is critical for understanding the procurement process. Agencies typically require detailed documentation outlining why full and open competition is not feasible, such as the existence of a unique capability or a critical need that only one vendor can fulfill. Without this information, it's impossible to assess if taxpayer funds were used efficiently or if alternative, potentially more cost-effective, solutions were overlooked.

How does the pricing of this contract compare to industry benchmarks for similar navigation systems, given the lack of competition?

Assessing the value for money is challenging without competitive bids. The absence of competition means there's no market-driven price discovery. To evaluate fairness, a thorough analysis would involve benchmarking against commercially available systems with similar specifications, historical pricing for comparable government contracts, and potentially seeking independent cost estimates to identify any significant deviations that might indicate overpricing.

What is the long-term impact on the Coast Guard's technological advancement and cost-efficiency by relying on a sole-source provider for navigation systems?

Sole-source contracts can stifle innovation and lead to higher long-term costs. By not engaging in competitive processes, the Coast Guard may miss out on advancements from other companies and could be locked into potentially outdated or more expensive technology. This reliance can also reduce leverage in future negotiations, potentially increasing the overall financial burden on the agency and taxpayers over time.

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: $16,904,237

Exercised Options: $16,904,237

Current Obligation: $16,904,237

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTCG2302C2DW001

IDV Type: IDC

Timeline