DHS awards $528K for online vehicle assessment tool to Hearst Business Media Corp

Contract Overview

Contract Amount: $52,800 ($52.8K)

Contractor: Hearst Business Media Corp

Awarding Agency: Department of Homeland Security

Start Date: 2025-04-01

End Date: 2027-03-31

Contract Duration: 729 days

Daily Burn Rate: $72/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVISION OF AN ONLINE VEHICLE ASSESSMENT TOOL FOR THE US OF THE US BORDER PATROL, ASSET FORFEITURE OFFICE.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20009

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $52,800 to HEARST BUSINESS MEDIA CORP for work described as: PROVISION OF AN ONLINE VEHICLE ASSESSMENT TOOL FOR THE US OF THE US BORDER PATROL, ASSET FORFEITURE OFFICE. Key points: 1. The contract value represents a modest investment for a specialized regulatory tool. 2. Competition dynamics appear favorable, with the contract being competed under SAP. 3. Performance risk seems low given the nature of the service and the contractor's likely experience. 4. The tool supports asset forfeiture operations, a critical function for law enforcement. 5. This contract falls within the broader category of transportation program regulation and administration.

Value Assessment

Rating: good

The contract value of $528,000 for an online vehicle assessment tool appears reasonable for a niche government service. Benchmarking against similar IT service contracts for regulatory or administrative functions suggests this price point is within expected ranges. The firm-fixed-price structure provides cost certainty for the government, indicating good value if the tool effectively meets the Border Patrol's needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), suggesting a limited competition environment. While the specific number of bidders is not detailed, SAP is typically used for procurements valued between the micro-purchase threshold and the simplified acquisition threshold ($250,000 in this case, though the award is higher, implying it was likely competed under a specific exception or higher SAP threshold for certain services). This level of competition may not yield the most aggressive pricing compared to full and open competition.

Taxpayer Impact: Limited competition under SAP means taxpayers may not benefit from the most competitive pricing achievable through broader outreach. However, the relatively small contract value may mitigate significant overspending.

Public Impact

The U.S. Border Patrol's Asset Forfeiture Office will benefit from an enhanced tool for assessing vehicles. The service delivered is an online platform for regulatory and administrative functions related to transportation. The geographic impact is national, supporting operations across the U.S. Border Patrol's jurisdiction. The contract supports government administrative functions, indirectly impacting law enforcement efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the tool becomes deeply integrated without clear exit strategies.
Reliance on a single vendor for a critical assessment tool could pose operational risks if service is interrupted.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Contract duration of two years allows for stable service provision.
The service supports a specific, well-defined government function.

Sector Analysis

This contract falls within the broader IT services sector, specifically supporting government administrative and regulatory functions. The market for specialized online assessment tools for law enforcement and regulatory agencies is niche. Comparable spending benchmarks are difficult to establish without more specific details on the tool's functionality, but the award value suggests a focused, perhaps single-purpose application rather than a large-scale enterprise system.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting requirements. The contractor, Hearst Business Media Corp, is a large business. Therefore, this contract is unlikely to have a direct positive impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically reside with the U.S. Customs and Border Protection contracting officer and program managers. Transparency is facilitated through contract databases like FPDS. Accountability is ensured through the firm-fixed-price contract terms, requiring delivery of the specified online tool. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Asset Forfeiture Management Systems
Transportation Regulatory Software
Law Enforcement IT Support Services

Risk Flags

Limited competition may impact price optimization.
Vendor performance risk requires monitoring.
Potential for scope creep if requirements are not clearly defined.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $52,800 to HEARST BUSINESS MEDIA CORP. PROVISION OF AN ONLINE VEHICLE ASSESSMENT TOOL FOR THE US OF THE US BORDER PATROL, ASSET FORFEITURE OFFICE.

Who is the contractor on this award?

The obligated recipient is HEARST BUSINESS MEDIA CORP.

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 $52,800.

What is the period of performance?

Start: 2025-04-01. End: 2027-03-31.

What is the specific functionality of the online vehicle assessment tool?

The provided data indicates the contract is for 'PROVISION OF AN ONLINE VEHICLE ASSESSMENT TOOL FOR THE US OF THE US BORDER PATROL, ASSET FORFEITURE OFFICE.' While the exact features are not detailed, it can be inferred that the tool assists the Border Patrol's Asset Forfeiture Office in evaluating vehicles, likely for purposes related to seizures, valuations, or administrative tracking. This could include functionalities for documenting vehicle condition, estimating market value, managing inventory, or supporting legal processes associated with asset forfeiture. The tool is intended to streamline and digitize processes that might otherwise be manual or less efficient.

How does the $528,000 contract value compare to similar government procurements for assessment tools?

The $528,000 contract value for an online vehicle assessment tool is relatively modest, especially considering a two-year performance period. Similar government procurements for specialized software or IT services can range from tens of thousands to millions of dollars, depending on complexity, user base, and integration requirements. For a niche tool supporting a specific office within an agency like CBP, this value suggests a focused solution. Without knowing the exact scope and features, a direct comparison is challenging, but it appears to be a cost-effective investment for a targeted operational need, rather than a large-scale enterprise system.

What are the potential risks associated with this contract for the U.S. Border Patrol?

Potential risks include vendor performance issues, where Hearst Business Media Corp might fail to deliver the tool as specified or maintain its functionality throughout the contract period. There's also a risk of the tool not meeting the evolving needs of the Asset Forfeiture Office, requiring costly modifications or a replacement. Given the limited competition under SAP, there's a risk that the pricing may not be as competitive as it could be under a broader solicitation. Furthermore, if the tool becomes critical to operations, reliance on a single vendor could pose an operational risk if service is interrupted or if the vendor's business circumstances change.

What is the track record of Hearst Business Media Corp in providing similar government IT services?

Detailed information on Hearst Business Media Corp's specific track record with providing online assessment tools to government agencies, particularly law enforcement or border security, is not readily available in the provided data. Hearst is a large, diversified media and business information company. While they possess significant IT capabilities, their experience in niche government IT contracting, especially for regulatory or asset forfeiture functions, would need further investigation through contract databases and performance reviews. Understanding their past performance on similar federal contracts is crucial for assessing reliability and capability.

How does the firm-fixed-price contract type impact value for taxpayers?

The firm-fixed-price (FFP) contract type is generally favorable for taxpayers as it shifts the risk of cost overruns to the contractor. This means the government knows the total cost upfront, providing budget certainty. For the U.S. Border Patrol's Asset Forfeiture Office, this FFP structure ensures that the $528,000 award amount is the total expenditure for the specified online vehicle assessment tool, regardless of the contractor's actual costs. This predictability helps in financial planning and prevents unexpected increases in spending, thus maximizing the value derived from the allocated funds.

Industry Classification

NAICS: Public Administration › Administration of Economic Programs › Regulation and Administration of Transportation Programs

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 70B03C25Q00000146

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1745 N BROWN RD, LAWRENCEVILLE, GA, 30043

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $138,326

Exercised Options: $52,800

Current Obligation: $52,800

Actual Outlays: $26,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline