DHS awards $44.1M for ACE Account Service Desk support to Patriot LLC, with a 2085-day duration

Contract Overview

Contract Amount: $44,107,697 ($44.1M)

Contractor: Patriot LLC

Awarding Agency: Department of Homeland Security

Start Date: 2020-09-29

End Date: 2026-06-15

Contract Duration: 2,085 days

Daily Burn Rate: $21.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PROCUREMENT OF PROGRAM MANAGEMENT, CUSTOMER-FOCUSED TECHNOLOGY SERVICE DESK SUPPORT FOR TIER 1 INTERNAL AND EXTERNAL OPERATIONS, AUTOMATED COMMERCIAL ENVIRONMENT (ACE) ACCOUNT SERVICE DESK (ASD), AND ADVANCED SUPPORT OPERATIONS

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22302

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $44.1 million to PATRIOT LLC for work described as: PROCUREMENT OF PROGRAM MANAGEMENT, CUSTOMER-FOCUSED TECHNOLOGY SERVICE DESK SUPPORT FOR TIER 1 INTERNAL AND EXTERNAL OPERATIONS, AUTOMATED COMMERCIAL ENVIRONMENT (ACE) ACCOUNT SERVICE DESK (ASD), AND ADVANCED SUPPORT OPERATIONS Key points: 1. Contract value of $44.1 million over approximately 5.7 years suggests a moderate annual spend for IT support services. 2. The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process. 3. The firm-fixed-price contract type shifts cost risk to the contractor, potentially leading to more predictable spending. 4. Patriot LLC is the sole awardee, highlighting their specific capability or the nature of the service requirement. 5. The service desk support is critical for the Automated Commercial Environment (ACE), impacting trade and customs operations. 6. The duration of the contract (2085 days) allows for sustained service delivery and potential for performance improvements over time.

Value Assessment

Rating: good

The total contract value of $44.1 million over nearly six years averages to approximately $7.7 million annually. This figure appears reasonable for comprehensive IT service desk support, especially for a critical system like ACE. Benchmarking against similar large-scale IT service desk contracts within federal agencies would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government in managing costs for defined services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources.' This suggests that while the competition was intended to be broad, specific circumstances or prior exclusions led to a narrowed field or a specific approach to competition. The number of bidders is not explicitly stated, but the 'full and open' designation implies that multiple capable vendors were likely considered or had the opportunity to bid.

Taxpayer Impact: A competitive award process, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and technical solutions, leading to a more cost-effective outcome.

Public Impact

Businesses and individuals involved in international trade benefit from reliable support for the Automated Commercial Environment (ACE). The contract ensures the continued operation and user support for critical customs and border protection technology systems. Geographic impact is nationwide, as ACE is a federal system used across all ports of entry and by remote users. The contract supports IT professionals and customer service personnel employed by Patriot LLC, contributing to the federal IT services workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if transition to a new provider is complex or costly.
Reliance on a single contractor for critical IT support could pose risks if performance degrades significantly.

Positive Signals

Firm-fixed-price contract type aligns incentives for cost control.
Long contract duration allows for stability and potential for performance optimization.
Awarded through a competitive process, suggesting a baseline of value.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the IT services market supporting federal agencies. The market for such services is large and competitive, with numerous firms capable of providing help desk and technical support. This specific contract supports a mission-critical system for U.S. Customs and Border Protection, indicating a need for specialized knowledge and reliable service delivery within the broader federal IT landscape.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Patriot LLC chooses to engage them. Without specific subcontracting plans detailed in the award, it's difficult to assess the direct impact on the small business ecosystem, though larger prime contracts often involve some level of subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Customs and Border Protection contracting officer and program managers. Accountability is established through the firm-fixed-price contract terms, performance metrics, and reporting requirements. Transparency is facilitated by contract award databases, though detailed performance reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Automated Commercial Environment (ACE) Program
Department of Homeland Security IT Services
Federal Customer Support Contracts
Computer Systems Design Services

Risk Flags

Sole awardee for a critical system support function.
Long contract duration requires sustained performance monitoring.
Competition level ('full and open after exclusion of sources') warrants understanding the specific rationale.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $44.1 million to PATRIOT LLC. PROCUREMENT OF PROGRAM MANAGEMENT, CUSTOMER-FOCUSED TECHNOLOGY SERVICE DESK SUPPORT FOR TIER 1 INTERNAL AND EXTERNAL OPERATIONS, AUTOMATED COMMERCIAL ENVIRONMENT (ACE) ACCOUNT SERVICE DESK (ASD), AND ADVANCED SUPPORT OPERATIONS

Who is the contractor on this award?

The obligated recipient is PATRIOT 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 $44.1 million.

What is the period of performance?

Start: 2020-09-29. End: 2026-06-15.

What is the historical spending pattern for IT service desk support by U.S. Customs and Border Protection?

Analyzing historical spending for IT service desk support by U.S. Customs and Border Protection (CBP) requires examining past contracts for similar services. Prior to this $44.1 million award to Patriot LLC, CBP likely had existing contracts for ACE support and general IT help desk functions. Without access to specific historical contract data, it's difficult to provide precise figures. However, federal agencies typically award multi-year contracts for such essential services. The trend in federal IT spending has generally been increasing, with a focus on modernizing systems and improving user support. This contract's duration and value suggest a continuation or expansion of previous support efforts, reflecting the ongoing need for robust IT assistance for critical trade facilitation systems like ACE.

How does the annual cost of this contract compare to industry benchmarks for similar IT service desk operations?

The annual cost for this contract averages approximately $7.7 million ($44.1M / ~5.7 years). Benchmarking this against industry standards for IT service desk operations requires considering factors like the number of users supported, complexity of the systems, service level agreements (SLAs), and geographic scope. For large-scale federal IT support, this annual figure appears within a reasonable range, especially given the critical nature of the Automated Commercial Environment (ACE). Private sector benchmarks for enterprise-level IT support can vary widely, but costs often range from hundreds to thousands of dollars per user annually. Given ACE's importance and user base, $7.7 million annually suggests a comprehensive support structure that aligns with significant IT investments.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

While the specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) are not detailed in the provided data, contracts of this nature for critical federal systems invariably include stringent performance requirements. Typically, these would focus on metrics such as ticket resolution times (e.g., first call resolution rate, average time to resolve), system uptime and availability, user satisfaction ratings, and adherence to security protocols. For the Automated Commercial Environment (ACE) Account Service Desk, response times for critical issues and the availability of support personnel would be paramount. Failure to meet these SLAs often results in financial penalties or other contractual remedies for the contractor, Patriot LLC, ensuring accountability for service delivery.

What is Patriot LLC's track record in providing similar IT support services to the federal government?

Assessing Patriot LLC's track record requires reviewing their past performance on federal contracts, particularly those involving IT service desk support, customer-focused technology services, and support for complex systems. Information on their past performance, including client feedback, contract awards, and any past performance issues or commendations, would be available through federal procurement databases like SAM.gov or through past performance evaluations. As they were awarded this significant contract by the Department of Homeland Security (DHS) for the Automated Commercial Environment (ACE), it suggests they have demonstrated capabilities and reliability deemed sufficient by CBP to handle this mission-critical function. Further investigation into their contract history would reveal the extent and nature of their experience.

What are the potential risks associated with relying on a single contractor for this critical IT support function?

The primary risks associated with relying on a single contractor, Patriot LLC, for the ACE Account Service Desk support include potential service disruptions if the contractor faces financial instability, staffing shortages, or operational failures. There's also a risk of complacency or reduced innovation over the contract's long duration if performance management is not rigorous. Furthermore, if the contractor's performance declines, the process of transitioning to a new provider can be complex, costly, and time-consuming, potentially impacting the continuity of essential trade operations. Robust oversight, clear performance metrics, and contingency planning are crucial to mitigate these risks.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9520 BERGER RD STE 212, COLUMBIA, MD, 21046

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $45,544,280

Exercised Options: $45,512,819

Current Obligation: $44,107,697

Actual Outlays: $25,890,433

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200065W

IDV Type: GWAC

Timeline