DHS awards $18.8M for Computing Infrastructure to Merlin International, Inc. under a non-competed BPA Call
Contract Overview
Contract Amount: $18,874,542 ($18.9M)
Contractor: Merlin International, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2004-07-20
End Date: 2009-07-19
Contract Duration: 1,825 days
Daily Burn Rate: $10.3K/day
Competition Type: NOT COMPETED
Sector: IT
Official Description: REQUISITION NUMBER CIS-04-RQ0486
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002
Plain-Language Summary
Department of Homeland Security obligated $18.9 million to MERLIN INTERNATIONAL, INC. for work described as: REQUISITION NUMBER CIS-04-RQ0486 Key points: 1. Spending on computing infrastructure services is substantial, with this contract representing a portion of that. 2. Merlin International, Inc. is the sole awardee, indicating a lack of broader market competition. 3. The contract duration of 5 years suggests a long-term need for these services. 4. The absence of small business participation is noted.
Value Assessment
Rating: questionable
The total award amount is $18.8M over 5 years. Without specific performance metrics or unit costs, it's difficult to assess value. The lack of competition raises concerns about whether this price reflects market rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was awarded via a BPA Call, which is a type of task order against a Blanket Purchase Agreement. The data indicates it was 'NOT COMPETED', suggesting it was likely awarded to a single vendor under the BPA without further competition for this specific call. This limits price discovery.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these computing infrastructure services.
Public Impact
Citizens rely on the Department of Homeland Security for critical services, which are supported by computing infrastructure. The efficiency and cost-effectiveness of this contract directly impact the agency's ability to fulfill its mission. Transparency in government contracting is essential for public trust and accountability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- No small business participation
- Long contract duration without clear performance benchmarks
Positive Signals
- Established vendor relationship (implied by BPA)
- Potential for streamlined ordering process via BPA
Sector Analysis
The Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services sector is crucial for government operations. Spending benchmarks vary widely based on service scope and agency needs, but $18.8M over five years for infrastructure suggests a significant, ongoing requirement.
Small Business Impact
The contract data indicates that small business participation was not a factor in this award (ss=false, sb=false). This suggests that the prime contractor is not a small business, and there's no indication of subcontracting to small businesses for this specific award.
Oversight & Accountability
The award was made by the Office of Procurement Operations within the Department of Homeland Security. Oversight would typically involve contract management reviews, performance monitoring, and potentially audits to ensure the services meet requirements and are priced appropriately, though the lack of competition complicates this.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- Lack of competition raises concerns about fair pricing.
- No clear justification for sole-source award.
- Potential for overpayment due to limited price discovery.
- Absence of small business participation.
- Long contract duration without explicit performance metrics.
Tags
computing-infrastructure-providers-data-, department-of-homeland-security, dc, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $18.9 million to MERLIN INTERNATIONAL, INC.. REQUISITION NUMBER CIS-04-RQ0486
Who is the contractor on this award?
The obligated recipient is MERLIN INTERNATIONAL, INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Office of Procurement Operations).
What is the total obligated amount?
The obligated amount is $18.9 million.
What is the period of performance?
Start: 2004-07-20. End: 2009-07-19.
What was the justification for not competing this BPA Call, and were alternative vendors or solutions considered?
The justification for not competing this BPA Call is critical for assessing value. If Merlin International, Inc. was the only vendor capable of fulfilling the specific requirements under the existing BPA, or if there were other compelling reasons like urgency or proprietary technology, it might explain the lack of competition. However, without this information, it's impossible to determine if the government received the best possible price and service.
How does the per-unit cost or service rate compare to industry benchmarks for similar computing infrastructure services?
Without specific details on the services rendered and their associated costs (e.g., cost per server, per gigabyte of storage, per hour of support), a direct comparison to industry benchmarks is not feasible. The total award amount of $18.8M over five years is a significant sum, and the lack of competition makes it difficult to ascertain if this represents a fair market price for the services provided by Merlin International, Inc.
What performance metrics or service level agreements (SLAs) were established to ensure the effectiveness and quality of the services provided?
The provided data does not include information on performance metrics or Service Level Agreements (SLAs). For a contract of this duration and value, robust SLAs are essential to ensure the effectiveness and quality of computing infrastructure services. Their absence makes it challenging to objectively measure the contractor's performance and hold them accountable for meeting the agency's needs.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Evaluated Preference: NONE
Contractor Details
Address: 7730 E BELLEVIEW AVE, ENGLEWOOD, CO, 80111
Business Categories: 8(a) Program Participant, Category Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $20,045,054
Exercised Options: $18,874,542
Current Obligation: $18,874,542
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HSSCHQ04A00850
IDV Type: BPA
Timeline
Start Date: 2004-07-20
Current End Date: 2009-07-19
Potential End Date: 2009-07-19 00:00:00
Last Modified: 2022-09-21
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