DHS awards $6.8M contract for legacy system replacement, raising questions about competition and value

Contract Overview

Contract Amount: $6,843,786 ($6.8M)

Contractor: Mission Support Services, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-09-29

End Date: 2025-10-31

Contract Duration: 1,128 days

Daily Burn Rate: $6.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REPLACE MULTIPLE LEGACY CTV/PAC SYSTEMS (SECTORS: SAN DIEGO, EL CENTRO, YUMA, TUCSON)

Place of Performance

Location: SAN YSIDRO, SAN DIEGO County, CALIFORNIA, 92173

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $6.8 million to MISSION SUPPORT SERVICES, LLC for work described as: REPLACE MULTIPLE LEGACY CTV/PAC SYSTEMS (SECTORS: SAN DIEGO, EL CENTRO, YUMA, TUCSON) Key points: 1. Contract awarded on a sole-source basis, limiting competitive pricing benefits. 2. Firm Fixed Price contract type suggests cost certainty but may not reflect market fluctuations. 3. The contract duration of over three years indicates a significant, long-term need. 4. Focus on replacing legacy systems highlights an ongoing modernization effort within CBP. 5. The geographic scope covers multiple key border sectors, suggesting broad operational impact.

Value Assessment

Rating: fair

The contract value of $6.8 million for replacing multiple legacy systems appears moderate given the scope. However, without a competitive bidding process, it is difficult to benchmark the pricing against market rates or assess if the government received the best possible value. The firm fixed-price structure provides cost predictability, but the absence of competition prevents a thorough value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent need. The lack of competition means that potential cost savings that could arise from multiple bids were not realized, and the government did not benefit from a broader range of technical solutions.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as the government lacks the leverage of competitive bidding. This limits the government's ability to negotiate favorable terms and potentially pay more than necessary for the services.

Public Impact

U.S. Customs and Border Protection (CBP) personnel in San Diego, El Centro, Yuma, and Tucson will benefit from modernized security systems. The contract will deliver updated Command, Control, Communications, Computers, and Intelligence (C4I) capabilities. Improved system functionality is expected to enhance border security operations in key southwestern sectors. The project supports the operational readiness and technological advancement of border patrol agents.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential value.
Lack of transparency in the justification for sole-source award.
Potential for cost overruns if pricing was not adequately vetted due to lack of competition.

Positive Signals

Addresses critical need for modernization of legacy systems.
Firm fixed-price contract provides cost certainty.
Long-term contract supports sustained operational capability.

Sector Analysis

The Security Systems Services (except Locksmiths) sector, classified under NAICS code 561621, encompasses a range of electronic security and surveillance systems. This contract falls within the broader government IT and security infrastructure market. Spending in this area is driven by national security needs, border protection, and the ongoing requirement to upgrade aging technological systems across federal agencies. Comparable spending benchmarks are difficult to establish without more specific details on the technology being replaced and the scope of the new systems.

Small Business Impact

The contract data indicates that small business participation was not a primary consideration, as the 'ss' (small business set-aside) and 'sb' (small business) fields are marked as false. There is no explicit mention of subcontracting requirements for small businesses. This suggests that the prime contractor, Mission Support Services, LLC, is expected to perform the majority of the work, and opportunities for small businesses within this specific contract may be limited.

Oversight & Accountability

Oversight for this contract will primarily reside with the U.S. Customs and Border Protection (CBP) contracting officers and program managers within the Department of Homeland Security. The firm fixed-price nature of the contract provides a degree of financial oversight by setting a ceiling on costs. Transparency regarding the sole-source justification and performance metrics will be key to assessing accountability. Further oversight could be provided by the DHS Office of Inspector General if performance issues or financial irregularities arise.

Related Government Programs

Border Security Technology Modernization
CBP Command and Control Systems
Legacy System Replacement Programs
Department of Homeland Security IT Infrastructure

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Limited transparency on specific system replacements and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $6.8 million to MISSION SUPPORT SERVICES, LLC. REPLACE MULTIPLE LEGACY CTV/PAC SYSTEMS (SECTORS: SAN DIEGO, EL CENTRO, YUMA, TUCSON)

Who is the contractor on this award?

The obligated recipient is MISSION SUPPORT SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $6.8 million.

What is the period of performance?

Start: 2022-09-29. End: 2025-10-31.

What specific legacy systems are being replaced under this contract, and what are their known deficiencies?

The provided data does not specify the exact legacy systems being replaced. However, the contract description 'REPLACE MULTIPLE LEGACY CTV/PAC SYSTEMS' suggests that Command, Control, Communications, Computers, and Intelligence (C4I) systems, likely including communication and surveillance platforms, are targeted. Legacy systems often suffer from obsolescence, lack of interoperability, high maintenance costs, and security vulnerabilities. Replacing them aims to improve operational efficiency, enhance situational awareness, and ensure compatibility with modern technologies. Further details on the specific systems and their deficiencies would require access to the contract's statement of work or justification for other than full and open competition.

What is the justification for awarding this contract on a sole-source basis?

The data explicitly states 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. Federal procurement regulations (e.g., FAR Part 6) allow for sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without the official justification document (e.g., a Justification for Other Than Full and Open Competition - JOFOC), the precise reason remains unknown. This lack of competition raises concerns about whether the government explored all viable options and secured the best possible price and solution for taxpayers.

How does the $6.8 million contract value compare to similar system replacement efforts within DHS or other agencies?

Benchmarking the $6.8 million contract value is challenging without detailed information on the scope, complexity, and specific technologies involved in the legacy system replacement. However, large-scale C4I system modernizations or replacements within federal agencies can range from millions to hundreds of millions of dollars. Given that this contract covers multiple sectors (San Diego, El Centro, Yuma, Tucson) and aims to replace 'multiple legacy systems,' the $6.8 million figure appears to be a moderate investment for such a critical operational area. A more precise comparison would require access to data on similar contracts, including their technical specifications, duration, and the number of bidders involved.

What are the key performance indicators (KPIs) or metrics used to measure the success of this contract?

The provided contract data does not include specific Key Performance Indicators (KPIs) or metrics for measuring the success of this contract. Typically, for system replacement contracts, success is measured by factors such as system uptime, successful integration with existing infrastructure, user satisfaction, reduction in maintenance costs, improved data processing speeds, and enhanced security capabilities. The firm fixed-price nature suggests that performance standards would be outlined in the contract's statement of work, and failure to meet these could result in penalties or contract termination. A review of the contract's SOW would be necessary to identify specific performance metrics.

What is Mission Support Services, LLC's track record with similar sole-source contracts or large-scale system replacements?

Information regarding Mission Support Services, LLC's specific track record with similar sole-source contracts or large-scale system replacements is not detailed in the provided data. To assess their capability and past performance, one would need to consult federal procurement databases (like SAM.gov or FPDS) for their contract history, including awards, past performance evaluations, and any reported issues. Understanding their experience with DHS or similar agencies, particularly in the realm of security systems and C4I modernization, would be crucial for evaluating the risk associated with this sole-source award.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70B01C22R00000137

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1033 N MAYFAIR RD STE 202, MILWAUKEE, WI, 53226

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,866,181

Exercised Options: $6,866,181

Current Obligation: $6,843,786

Actual Outlays: $6,618,584

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline