TSA's $15.5M Electronic Time & Attendance System contract awarded non-competitively to Immix Group for Kronos software

Contract Overview

Contract Amount: $15,466,409 ($15.5M)

Contractor: Immixtechnology Inc

Awarding Agency: Department of Homeland Security

Start Date: 2006-10-06

End Date: 2010-12-31

Contract Duration: 1,547 days

Daily Burn Rate: $10.0K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TO FUND THE SINGLE SOURCE CONTRACT WITH THE IMMIX GROUP, FOR THE PURPOSES OF CONTRACTING WITH KRONOS, INC., OF CHELMSFORD, MA, FOR PROFESSIONAL SERVICES AND PRODUCTS TO DEVELOP AND DEPLOY THE TSA%U2019S IMPLEMENTATION OF KRONOS WORKFORCE CENTRAL, COMMONLY KNOWN AS THE %U201CELECTRONIC TIME & ATTTENDANCE%U201D (ETA) SYSTEM. THE IMMIX GROUP PROVIDES TECHNOLOGY VENDORS (SUCH AS KRONOS) WITH CONTRACT VEHICLES AND CHANNEL MANAGEMENT SUPPORT TO FACILITATE GOVERNMENT SALES. THE IMMIX GROUP IS THE SCHEDULE HOLDER FOR KRONOS, INC, LINE OF GOODS AND SERVICES. BASED ON MARKET RESEARCH AND THE INFRASTRUCTURE PLANNED AT THE TIME IT WAS ESTABLISHED, TSA DIRECTED ITS INFORMATION TECHNOLOGY MANAGED SERVICE (ITMS) CONTRACTOR TO PROVIDE AN ETA SYSTEM THAT WOULD SUPPORT THE TSA WORKFORCE NATIONWIDE. THE ITMS CONTRACTOR RESEARCHED THE MARKET AND RECOMMENDED AN INTEGRATED ETA SYSTEM CONSISTING OF: AN ENTERPRISE LICENSE OF THE KRONOS SOFTWARE FOR 70,000 EMPLOYEES; HARDWARE; OTHER DIRECT COSTS TO INCLUDE THE LABOR TO INTEGRATE WITH THE TSA HOSTING CENTER; AND AN ELECTRONIC INTERFACE TO THE AGENCY%U2019S PAYROLL SYSTEM. IN JANUARY 2004 TSA INITIATED A PROOF OF CONCEPT DEMONSTRATION, WHICH INVOLVED INSTALLING THE ETA SYSTEM AND 25 BADGE READERS FOR TIME ENTRY, AT THE BALTIMORE WASHINGTON INTERNATIONAL (BWI) AIRPORT. DATA COLLECTED AT BWI DEMONSTRATED THE AUTOMATED SYSTEM REDUCED THE TIME REQUIRED TO ENTER EMPLOYEE T&A DATA FROM FIVE FULL TIME EMPLOYEES TO TWO FULL TIME EMPLOYEES. TSA INITIATED IMPLEMENTATION PLANNING FOR A NATIONWIDE DEPLOYMENT; HOWEVER, THE DEPLOYMENT WAS HALTED LATER THAT YEAR DUE TO THE LACK OF FUNDING TO IMPLEMENT HIGH SPEED CONNECTIVITY (HI-SOC) AT THE AIRPORTS. SENIOR MANAGEMENT HAS DETERMINED THAT, WITH THE DEPLOYMENT OF HI-SOC TO THE AIRPORTS THIS CALENDAR YEAR, THE CONTINUED DEPLOYMENT OF THE ETA SHOULD BEGIN. POC: RICHARD GATES ITD CRM 571-227-1027 (W) 202-253-4013 (C) RICHARD.GATES@DHS.GOV

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $15.5 million to IMMIXTECHNOLOGY INC for work described as: TO FUND THE SINGLE SOURCE CONTRACT WITH THE IMMIX GROUP, FOR THE PURPOSES OF CONTRACTING WITH KRONOS, INC., OF CHELMSFORD, MA, FOR PROFESSIONAL SERVICES AND PRODUCTS TO DEVELOP AND DEPLOY THE TSA%U2019S IMPLEMENTATION OF KRONOS WORKFORCE CENTRAL, COMMONLY KNOWN AS THE %U201CELECT… Key points: 1. Contract awarded via a non-competitive delivery order, raising questions about price discovery. 2. The contract leverages Immix Group's role as a channel manager for Kronos products. 3. System aims to support the TSA workforce nationwide with electronic time and attendance tracking. 4. The contract duration spans over four years, from October 2006 to December 2010. 5. Firm Fixed Price contract type suggests cost certainty but may limit flexibility. 6. The procurement falls under Computer Systems Design Services, a common IT category.

Value Assessment

Rating: questionable

The total contract value of approximately $15.5 million for a four-year period for an electronic time and attendance system appears high without direct comparable benchmarks. Given the single-source nature of the award, it is difficult to assess if the pricing represents good value for money. The reliance on a specific vendor's product (Kronos) through a channel partner (Immix Group) may have limited negotiation leverage for the TSA. Further analysis would require understanding the specific modules and services included in the Kronos Workforce Central deployment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a non-competitive delivery order to Immix Group, which acts as a channel manager for Kronos, Inc. This indicates that the TSA did not conduct a full and open competition for these specific services and products. The rationale for the sole-source award is not detailed in the provided data, but it suggests a pre-existing relationship or a specific need that was deemed only fulfillable by this vendor or through this specific contract vehicle. The lack of competition limits the TSA's ability to explore alternative solutions or secure potentially lower prices.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without competing the requirement, the TSA may not have achieved the best possible price for the electronic time and attendance system.

Public Impact

TSA employees nationwide will benefit from a standardized electronic time and attendance system. The system is intended to improve the accuracy and efficiency of timekeeping and payroll processes. This contract supports the operational infrastructure of the Transportation Security Administration. The deployment of the Kronos Workforce Central system impacts the daily administrative functions of TSA personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award limits price discovery and potentially increases costs for taxpayers.
Reliance on a single vendor's proprietary system may lead to vendor lock-in.
Lack of detailed justification for sole-source award raises transparency concerns.

Positive Signals

Addresses a critical operational need for workforce management within the TSA.
Firm Fixed Price contract provides budget certainty for the duration of the award.
The system is intended to streamline and modernize time and attendance tracking.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design and the implementation of enterprise resource planning (ERP) software for workforce management. The market for time and attendance systems is competitive, with numerous vendors offering solutions. However, the TSA's choice to procure Kronos software through Immix Group via a non-competitive delivery order suggests a specific strategic decision or a pre-existing relationship that bypassed broader market engagement. Comparable spending benchmarks for similar nationwide workforce management systems within large federal agencies would be necessary for a more precise value assessment.

Small Business Impact

The provided data does not indicate any small business set-aside provisions or subcontracting requirements for this contract. As a non-competitive award to Immix Group, which is a technology vendor facilitator, the direct impact on small businesses within the contracting ecosystem is unclear without further information on Immix Group's own subcontracting practices or if Kronos utilizes small businesses in its service delivery.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's (DHS) Inspector General, given the TSA is part of DHS. The contract's firm fixed-price nature provides some level of financial accountability. However, the non-competitive award mechanism inherently reduces transparency and the opportunity for robust price oversight compared to a fully competed contract. Accountability for system performance and delivery would rest with the TSA program office and the contractor, Immix Group.

Related Government Programs

Federal Human Capital Management Systems
Enterprise Resource Planning (ERP) Software Procurement
Department of Homeland Security IT Contracts
Transportation Security Administration Operations Support

Risk Flags

Non-competitive award
Potential for inflated pricing
Lack of detailed justification
Vendor lock-in risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $15.5 million to IMMIXTECHNOLOGY INC. TO FUND THE SINGLE SOURCE CONTRACT WITH THE IMMIX GROUP, FOR THE PURPOSES OF CONTRACTING WITH KRONOS, INC., OF CHELMSFORD, MA, FOR PROFESSIONAL SERVICES AND PRODUCTS TO DEVELOP AND DEPLOY THE TSA%U2019S IMPLEMENTATION OF KRONOS WORKFORCE CENTRAL, COMMONLY KNOWN AS THE %U201CELECTRONIC TIME & ATTTENDANCE%U201D (ETA) SYSTEM. THE IMMIX GROUP PROVIDES TECHNOLOGY VENDORS (SUCH AS KRONOS) WITH CONTRACT VEHICLES AND CHANNEL MANAGEMENT SUPPORT TO FACILITATE GOVERNMENT SALES. THE IMMIX GROUP IS THE SCH

Who is the contractor on this award?

The obligated recipient is IMMIXTECHNOLOGY INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $15.5 million.

What is the period of performance?

Start: 2006-10-06. End: 2010-12-31.

What was the specific justification for awarding this contract non-competitively to Immix Group?

The provided data does not explicitly state the justification for the sole-source award. Typically, non-competitive awards are made under specific circumstances such as urgent and compelling needs, unique capabilities of a sole provider, or when only one source is capable of meeting the requirement. In this case, Immix Group acts as a channel manager for Kronos, suggesting the TSA may have determined that Kronos's Workforce Central was the only system that met their specific needs, or that procuring it through Immix was the most efficient method at the time. However, without a formal justification document (e.g., a Justification and Approval for Other Than Full and Open Competition), it is difficult to definitively ascertain the rationale. This lack of transparency is a common concern with sole-source procurements.

How does the cost of this Kronos implementation compare to similar federal agency workforce management systems?

Directly comparing the $15.5 million cost for this four-year contract to similar federal agency systems is challenging without more detailed information on the scope of services, specific Kronos modules deployed, and the number of users. Federal IT contracts, especially those involving enterprise software and nationwide deployment, can vary significantly in cost based on complexity, customization, and integration requirements. However, given the non-competitive nature of this award, there is a risk that the price may not reflect the best market value achievable through a competitive process. Benchmarking against other large-scale federal HR or workforce management system implementations, particularly those procured competitively, would be necessary for a more informed comparison.

What are the potential risks associated with using Immix Group as a channel manager for Kronos software?

Using a channel manager like Immix Group can introduce several risks. Firstly, it may increase the overall cost to the government, as Immix likely adds a margin on top of the Kronos product and service costs. Secondly, it can create a layer of separation between the TSA and the original software provider (Kronos), potentially complicating direct support, issue resolution, and future negotiations for upgrades or additional services. Vendor lock-in is also a risk; if the TSA becomes heavily reliant on the Kronos system procured through Immix, switching to a different vendor in the future could be costly and disruptive. Finally, the non-competitive nature of this specific award, facilitated by the channel manager, limits the government's ability to explore alternative solutions or negotiate more favorable terms.

What is the track record of Immix Group in providing similar services to federal agencies?

The provided data indicates that Immix Group acts as a technology vendor facilitator, providing contract vehicles and channel management support to enable government sales for vendors like Kronos. This suggests their role is primarily in the procurement and contracting process rather than direct development or implementation of the core software. Their track record would likely be assessed based on their ability to efficiently manage contract vehicles, ensure compliance, and facilitate successful sales for their technology partners to government entities. Without access to broader contract databases or performance reviews specific to Immix Group's channel management services, a detailed assessment of their track record is difficult. However, their role in securing this contract for Kronos implies a recognized capability in navigating federal procurement channels.

How has TSA's spending on time and attendance systems evolved since this contract ended in 2010?

The provided data only covers the period from October 2006 to December 2010 for this specific contract with Immix Group for the Kronos system. To understand TSA's spending evolution on time and attendance systems since 2010, one would need to analyze subsequent contracts awarded by the TSA for similar or replacement systems. This would involve searching federal procurement databases (like FPDS or USASpending) for contracts related to workforce management, timekeeping, or HR systems awarded to TSA after 2010. Analyzing these subsequent contracts would reveal trends in spending, whether the TSA continued with Kronos or transitioned to other vendors, and whether future procurements were competed more openly, potentially offering insights into value and cost-effectiveness over time.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: NON-COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Immixgroup, Inc (UEI: 159803972)

Address: 8444 WESTPARK DR STE 120, MC LEAN, VA, 90

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $16,046,987

Exercised Options: $16,046,987

Current Obligation: $15,466,409

Parent Contract

Parent Award PIID: GS35F0330J

IDV Type: FSS

Timeline