DHS awarded $37.8M for engineering services, with a significant portion for FEMA's operational support

Contract Overview

Contract Amount: $37,788,446 ($37.8M)

Contractor: Starr II, a Joint Venture

Awarding Agency: Department of Homeland Security

Start Date: 2017-03-13

End Date: 2019-11-23

Contract Duration: 985 days

Daily Burn Rate: $38.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: IGF::CT::IGF PRODUCTION AND TECHNICAL SERVICE (PTS) FOR STANDARD OPERATIONS PERIOD OF PERFORMANCE FOR THIS CONTRACT IS 03/16/2017 TO 03/15/2018 AND IS BEING INCREMENTALLY FUNDED.

Place of Performance

Location: MOUNT WEATHER, CLARKE County, VIRGINIA, 20135

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $37.8 million to STARR II, A JOINT VENTURE for work described as: IGF::CT::IGF PRODUCTION AND TECHNICAL SERVICE (PTS) FOR STANDARD OPERATIONS PERIOD OF PERFORMANCE FOR THIS CONTRACT IS 03/16/2017 TO 03/15/2018 AND IS BEING INCREMENTALLY FUNDED. Key points: 1. Contract focused on essential engineering and technical services, crucial for agency operations. 2. Competition was robust, indicating potential for competitive pricing and value. 3. Performance-based contract structure incentivizes contractor efficiency and quality. 4. The contract duration and incremental funding suggest ongoing, evolving needs. 5. Services provided are critical for maintaining agency infrastructure and response capabilities. 6. Contract value aligns with typical engineering service procurements for large federal agencies.

Value Assessment

Rating: good

The contract value of $37.8 million over its period of performance appears reasonable for comprehensive engineering and technical support services. Benchmarking against similar large-scale engineering contracts within DHS and FEMA suggests this is within the expected range for the scope of work. The Cost Plus Award Fee (CPAF) structure allows for flexibility while incentivizing performance, which can lead to better value if managed effectively. However, detailed cost breakdowns and comparisons to industry standards for specific services would be needed for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of four bidders suggests a healthy level of competition for this significant engineering services requirement. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive offers. The award to a joint venture (STARR II) also highlights the capacity of various entities to collaborate and compete for large federal contracts.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment where contractors strive to offer the most cost-effective solutions.

Public Impact

Federal Emergency Management Agency (FEMA) benefits through enhanced operational and technical support. Services delivered include engineering and technical expertise vital for disaster response and preparedness. Geographic impact is national, supporting FEMA's nationwide mission. Workforce implications include support for specialized engineering and technical roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Award Fee contracts if performance metrics are not tightly managed.
Reliance on a joint venture may introduce complexities in management and accountability.
Scope creep could increase the total contract value beyond initial projections if not carefully controlled.

Positive Signals

Full and open competition suggests a strong market response and potential for competitive pricing.
Performance-based award fee structure incentivizes high-quality service delivery.
The contract supports critical agency functions, indicating alignment with strategic government needs.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional services market supporting federal agencies. The market for such services is substantial, driven by the ongoing need for technical expertise in infrastructure, operations, and program management. Comparable spending benchmarks for large federal engineering support contracts often range in the tens to hundreds of millions of dollars, depending on the scope and duration. This contract's value is consistent with significant, multi-year support requirements for a major agency like FEMA.

Small Business Impact

The contract was awarded to a joint venture, STARR II. While the data does not explicitly state small business participation or set-aside status, joint ventures can sometimes include small business partners. Further analysis would be needed to determine if small business subcontracting goals were established or met, and the extent to which small businesses benefited from this award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Homeland Security (DHS) and the Federal Emergency Management Agency (FEMA). The Cost Plus Award Fee (CPAF) structure necessitates robust performance monitoring and evaluation to ensure the award fee is justified. Transparency is generally maintained through contract reporting mechanisms, though specific oversight details like Inspector General involvement or public dashboards are not provided in the summary data.

Related Government Programs

FEMA Operational Support Contracts
DHS Engineering and Technical Services
Federal Emergency Management Agency IT and Support Services
Professional Services Contracts

Risk Flags

Incremental Funding
Cost Plus Award Fee Structure

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $37.8 million to STARR II, A JOINT VENTURE. IGF::CT::IGF PRODUCTION AND TECHNICAL SERVICE (PTS) FOR STANDARD OPERATIONS PERIOD OF PERFORMANCE FOR THIS CONTRACT IS 03/16/2017 TO 03/15/2018 AND IS BEING INCREMENTALLY FUNDED.

Who is the contractor on this award?

The obligated recipient is STARR II, A JOINT VENTURE.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $37.8 million.

What is the period of performance?

Start: 2017-03-13. End: 2019-11-23.

What is the track record of STARR II, the joint venture awarded this contract, on similar federal contracts?

Information regarding the specific track record of the joint venture STARR II on similar federal contracts is not detailed in the provided data. As a joint venture, its performance would be a composite of its member companies' capabilities and past performance. To assess their track record, one would typically review past performance evaluations (e.g., CPARS reports) for STARR II or its constituent companies on contracts of similar size, scope, and complexity, particularly those involving engineering and technical support for federal agencies like DHS or FEMA. A review of their history would reveal their ability to meet cost, schedule, and performance requirements, as well as any significant issues encountered.

How does the awarded amount of $37.8 million compare to the initial estimated value or budget for this requirement?

The provided data indicates an awarded amount of $37,788,446.45. However, it does not include information on the initial estimated value or the specific budget allocated for this requirement. Without this baseline, it is difficult to definitively assess whether the awarded amount represents an increase or decrease relative to expectations. Typically, a comparison would involve analyzing the solicitation documents, pre-negotiation objectives, and final negotiated settlement to understand the variance, if any. The fact that it is incrementally funded suggests the total obligation may evolve, but the initial award amount is the primary figure for comparison against initial estimates.

What are the key performance indicators (KPIs) used to determine the award fee for STARR II under this Cost Plus Award Fee (CPAF) contract?

The specific Key Performance Indicators (KPIs) used to determine the award fee for STARR II under this Cost Plus Award Fee (CPAF) contract are not detailed in the provided summary. In a CPAF contract, the government establishes performance standards and metrics across various areas such as technical execution, cost control, schedule adherence, and management. The contractor's performance against these metrics is evaluated, and an award fee (ranging from a minimum to a maximum amount) is granted based on the level of performance achieved. Typical KPIs might include response times for technical support, quality of engineering deliverables, project completion rates, and adherence to budget targets. A thorough review of the contract's Performance Work Statement (PWS) and the award fee plan would be necessary to identify the precise KPIs.

What is the historical spending trend for similar engineering and technical support services at FEMA over the last five years?

The provided data focuses on a single contract award and does not offer historical spending trends for FEMA's engineering and technical support services. To analyze historical spending, one would need to access federal procurement databases (like USASpending.gov or FPDS) and filter for contracts awarded by FEMA within the relevant North American Industry Classification System (NAICS) codes (e.g., 541330 for Engineering Services) over the past five fiscal years. This would allow for aggregation of spending data, identification of major contractors, and observation of any significant increases or decreases in investment in these types of services, potentially revealing patterns related to disaster cycles or agency priorities.

What are the potential risks associated with the incremental funding approach used for this contract?

Incremental funding, as used in this contract, involves obligating funds in increments rather than the full contract amount upfront. The primary risk associated with this approach is the potential for the contract to be terminated early if subsequent funding increments are not appropriated by Congress. This can lead to disruptions in service delivery and potentially increase overall costs if the contractor incurs startup or closeout expenses multiple times. Additionally, it can create uncertainty for the contractor regarding the full duration and value of the work, potentially impacting resource allocation and long-term planning. For the government, it requires careful management to ensure continuity of essential services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 3901 CALVERTON BLVD STE 400, CALVERTON, MD, 20705

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,152,780

Exercised Options: $37,801,611

Current Obligation: $37,788,446

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSFE6015D0005

IDV Type: IDC

Timeline