DHS awarded $41.5M for IT services to PRAGMATICS, LLC, over 4 years

Contract Overview

Contract Amount: $41,511,809 ($41.5M)

Contractor: Pragmatics, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2008-05-29

End Date: 2012-03-19

Contract Duration: 1,390 days

Daily Burn Rate: $29.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: RFQ AMENDMENT NO. 1 TO HSHQDC-08-A-00059A

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $41.5 million to PRAGMATICS, LLC for work described as: RFQ AMENDMENT NO. 1 TO HSHQDC-08-A-00059A Key points: 1. The contract value of $41.5 million over nearly four years suggests a significant investment in IT services. 2. The 'FULL AND OPEN COMPETITION' indicates a broad market solicitation, potentially leading to competitive pricing. 3. The contract's duration and Time and Materials pricing model present potential risks for cost overruns if not closely managed. 4. This contract falls within the Computer Systems Design Services NAICS code, a common area for federal IT procurement. 5. The award to a single contractor, PRAGMATICS, LLC, warrants scrutiny of performance and pricing throughout the contract lifecycle. 6. The contract was awarded by the Department of Homeland Security (DHS) to its U.S. Citizenship and Immigration Services (USCIS) component.

Value Assessment

Rating: fair

The total award of $41.5 million over approximately 1390 days averages to roughly $29,865 per day. Benchmarking this against similar IT services contracts within DHS or USCIS would be necessary for a precise value-for-money assessment. The Time and Materials (T&M) pricing structure, while flexible, can sometimes lead to higher costs compared to fixed-price contracts if not managed with strict oversight on labor hours and rates. Without specific performance metrics or comparison data, it's difficult to definitively assess if this represents excellent value, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' suggesting that all responsible sources were permitted to submit bids. The presence of 4 bids indicates a moderate level of competition for this requirement. A higher number of bidders typically correlates with better price discovery and potentially lower prices for the government. However, the specific details of the solicitation and the evaluation process would provide a clearer picture of how effectively competition was leveraged.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and technical solutions, leading to a more cost-effective outcome.

Public Impact

Citizenship and immigration services are directly supported by the IT systems and design services procured under this contract. The primary beneficiaries are the U.S. Citizenship and Immigration Services (USCIS) and, by extension, individuals interacting with the agency. The geographic impact is primarily within the District of Columbia, where the contract is managed and likely where services are performed. The contract supports the operational efficiency of USCIS, impacting its ability to process applications and manage immigration services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not meticulously monitored.
The duration of the contract (nearly 4 years) increases the risk of scope creep or evolving technological needs not being met.
Limited information on the number of bidders (4) makes it difficult to fully assess the strength of the competition.
Lack of specific performance metrics in the provided data makes it hard to gauge the quality of services delivered.

Positive Signals

Awarded through Full and Open Competition, indicating a broad solicitation and potential for competitive pricing.
The contract is with a known entity, the Department of Homeland Security, suggesting established procurement processes.
The contract has a defined end date, providing a clear timeframe for service delivery and evaluation.

Sector Analysis

This contract falls under the Computer Systems Design Services sector (NAICS 541512), a critical component of the federal IT landscape. This sector encompasses a wide range of services, including IT consulting, systems integration, and custom software development. Federal spending in this area is substantial, driven by the need to modernize legacy systems, enhance cybersecurity, and improve the efficiency of government operations. Comparable spending benchmarks would typically be found within IT services categories across various agencies, with significant outlays often seen in defense, homeland security, and civilian agency IT modernization efforts.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary impact on the small business ecosystem would be indirect, through the potential for larger prime contractors to engage small businesses as subcontractors if their own capabilities do not cover all aspects of the work, or if specific small business subcontracting goals were imposed outside of a formal set-aside.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Homeland Security (DHS) and specifically the U.S. Citizenship and Immigration Services (USCIS) contracting officers and program managers. The Time and Materials pricing structure necessitates robust oversight of labor hours, rates, and deliverables to ensure cost control and prevent overruns. Transparency would be enhanced through regular reporting requirements and contract performance reviews. While not explicitly stated, Inspector General (IG) jurisdiction typically extends to DHS contracts, allowing for audits and investigations into potential fraud, waste, or abuse.

Related Government Programs

DHS IT Modernization Programs
USCIS Case Management Systems
Federal Civilian IT Services
Computer Systems Design Services Contracts
Department of Homeland Security IT Procurement

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Need for robust oversight to manage T&M contract effectively.
Moderate competition level (4 bids) may limit optimal price discovery.
Lack of detailed performance metrics in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $41.5 million to PRAGMATICS, LLC. RFQ AMENDMENT NO. 1 TO HSHQDC-08-A-00059A

Who is the contractor on this award?

The obligated recipient is PRAGMATICS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $41.5 million.

What is the period of performance?

Start: 2008-05-29. End: 2012-03-19.

What was the specific nature of the Computer Systems Design Services provided under this contract?

The provided data identifies the NAICS code as 541512 (Computer Systems Design Services), but does not detail the specific services rendered. Typically, this category includes services such as designing and developing custom software, integrating hardware and software systems, IT consulting, and IT infrastructure management. For this specific contract with USCIS, it's highly probable that the services related to the design, development, or maintenance of systems supporting immigration and citizenship processes, such as case management, data processing, or application portals. Further details would likely be found in the contract's Statement of Work (SOW) or Performance Work Statement (PWS).

How does the $41.5 million award compare to similar IT services contracts awarded by DHS or USCIS during the same period?

Comparing the $41.5 million award requires access to historical contract databases and filtering for similar IT services (NAICS 541512) awarded by DHS/USCIS between 2008 and 2012. Without direct access to such comparative data, a precise benchmark is difficult. However, $41.5 million over nearly four years represents a substantial contract, averaging over $10 million annually. This figure is within the range of significant IT service contracts for large federal agencies. Factors like the specific scope of work, duration, and number of bidders would influence whether this amount is considered high, low, or average relative to comparable procurements.

What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract?

The primary risk of a Time and Materials (T&M) contract is the potential for cost overruns, as the government pays for the actual labor hours and materials used, plus a fixed fee or percentage. Unlike fixed-price contracts, there is less incentive for the contractor to control costs efficiently. For this $41.5 million contract, risks include inflated labor hours, excessive use of higher-paid personnel, or unnecessary material purchases. Effective mitigation requires stringent oversight, detailed timesheet verification, clear definition of labor categories and rates, and robust performance monitoring to ensure the work is necessary and efficiently performed.

What does the '4' bids received indicate about the competition level and its impact on pricing?

Receiving 4 bids for a 'Full and Open Competition' suggests a moderate level of market interest and competition. While more than a sole-source or limited competition, it may not represent the most robust competition possible. A higher number of bids (e.g., 8-10+) often drives prices down more aggressively as contractors vie for the award. With 4 bidders, there's a reasonable chance that competitive pressures influenced pricing, but it's also possible that the market for this specific type of specialized IT service was smaller, or that other factors limited the number of interested parties. The final price achieved would be the best indicator of whether this level of competition yielded optimal value.

What is the track record of PRAGMATICS, LLC, in performing federal IT contracts, particularly with DHS?

The provided data only indicates that PRAGMATICS, LLC was awarded this specific $41.5 million contract. Information regarding their broader track record, past performance on similar federal contracts, or specific history with DHS/USCIS is not included. A comprehensive assessment would require reviewing their contract history in federal procurement databases (like FPDS or SAM.gov), looking at past performance evaluations, and examining any reported issues or successes on previous awards. Without this external data, it's impossible to comment on their specific track record beyond this single award.

How has federal spending on Computer Systems Design Services (NAICS 541512) evolved since this contract was awarded in 2008?

Federal spending on Computer Systems Design Services (NAICS 541512) has generally trended upwards since 2008, reflecting the increasing reliance of government agencies on technology. The period following 2008 saw significant investments in IT modernization, cybersecurity, cloud computing adoption, and data analytics across various federal departments. While specific figures fluctuate year-to-year based on agency budgets and priorities, the overall demand for these services has remained strong, driven by the need to maintain and upgrade complex IT infrastructures, develop new digital services, and address evolving threats. This contract's award in 2008 falls within a period of sustained federal IT investment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HSHQDC-08-Q-00059A

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 7926 JONES BRANCH DR STE 711, MC LEAN, VA, 90

Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $41,511,809

Exercised Options: $41,511,809

Current Obligation: $41,511,809

Parent Contract

Parent Award PIID: HSHQDC06D00035

IDV Type: IDC

Timeline