DHS awards $18.6M for Veritas software/hardware maintenance to Panamerica Computers, Inc

Contract Overview

Contract Amount: $18,592,134 ($18.6M)

Contractor: Panamerica Computers, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2021-01-07

End Date: 2026-01-06

Contract Duration: 1,825 days

Daily Burn Rate: $10.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VERITAS SOFTWARE AND HARDWARE MAINTENANCE

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22153

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $18.6 million to PANAMERICA COMPUTERS, INC. for work described as: VERITAS SOFTWARE AND HARDWARE MAINTENANCE Key points: 1. Contract value of $18.6M over 5 years suggests a significant investment in maintaining critical IT infrastructure. 2. The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process. 3. A high number of bids (10187) suggests strong market interest and potentially competitive pricing. 4. The firm-fixed-price contract type shifts risk to the contractor, which can be beneficial for the government. 5. The service category 'Other Computer Related Services' is broad and requires clear performance metrics to ensure value. 6. The duration of 1825 days (5 years) allows for long-term planning but also necessitates ongoing performance monitoring.

Value Assessment

Rating: good

The contract value of $18.6 million over five years for software and hardware maintenance appears reasonable given the scope of IT support. Benchmarking against similar large-scale IT maintenance contracts for federal agencies would provide a more precise value assessment. The firm-fixed-price structure is generally favorable for cost control, assuming the contractor can efficiently deliver services without significant cost overruns. The number of bids received (10187) suggests a competitive environment, which typically drives better pricing.

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.' While the 'full and open' aspect indicates a broad solicitation, the 'exclusion of sources' clause suggests specific criteria were used to narrow the field before the final competition. The exceptionally high number of bids (10187) strongly implies robust competition, which is generally positive for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The high level of competition is beneficial for taxpayers as it likely drove down prices and ensured that the government secured services from a qualified provider at a favorable rate.

Public Impact

U.S. Customs and Border Protection (CBP) personnel will benefit from uninterrupted access to critical Veritas software and hardware. This contract ensures the continued operation and maintenance of essential IT systems supporting border security and trade facilitation. The services delivered are crucial for maintaining the functionality of systems used by thousands of CBP officers nationwide. Geographic impact is nationwide, supporting CBP operations across all U.S. ports of entry and internal facilities. Workforce implications include ensuring IT support staff have the necessary tools and maintenance agreements to perform their duties effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if maintenance is highly specialized and difficult to transition.
Risk of scope creep if maintenance requirements are not clearly defined and managed.
Dependence on a single contractor for critical IT infrastructure maintenance could pose a risk if performance degrades.

Positive Signals

Firm-fixed-price contract shifts cost overrun risk to the contractor.
High number of bids suggests a competitive market and potential for good value.
Long-term contract allows for stable planning and consistent support for critical systems.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on software and hardware maintenance. The market for IT maintenance services is substantial, with federal agencies being significant consumers. Comparable spending benchmarks would involve looking at other large federal contracts for enterprise software and hardware support, particularly for mission-critical systems. The size of this contract ($18.6M) positions it as a mid-to-large size award within this category.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the nature of enterprise-level IT maintenance for a large agency like DHS, it is common for such contracts to be awarded to larger firms with the capacity and expertise to handle complex systems. There is no explicit information on subcontracting plans, but large prime contractors are often required to meet small business subcontracting goals, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Customs and Border Protection (CBP) contracting officers and program managers. Performance metrics and deliverables outlined in the contract will be key to monitoring contractor performance. Transparency is facilitated by public contract databases, though detailed performance reports are typically internal. The Department of Homeland Security's Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

IT Software Maintenance Contracts
Hardware Maintenance Services
Department of Homeland Security IT Procurement
Customs and Border Protection Technology Modernization
Veritas Software Support Agreements
Federal IT Services Market

Risk Flags

Potential for performance issues impacting critical systems.
Risk of cost overruns if scope is not well-defined.
Dependence on a single vendor for essential IT maintenance.
Need for robust oversight to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18.6 million to PANAMERICA COMPUTERS, INC.. VERITAS SOFTWARE AND HARDWARE MAINTENANCE

Who is the contractor on this award?

The obligated recipient is PANAMERICA COMPUTERS, INC..

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 $18.6 million.

What is the period of performance?

Start: 2021-01-07. End: 2026-01-06.

What is the track record of Panamerica Computers, Inc. in performing similar federal IT maintenance contracts?

Assessing Panamerica Computers, Inc.'s track record requires a review of their past performance on federal contracts, particularly those involving Veritas software and hardware maintenance for agencies of similar size and complexity to DHS. Information on contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past disputes or challenges would be crucial. A history of successful, on-time, and within-budget delivery of comparable services would indicate a lower performance risk. Conversely, a pattern of issues, cost overruns, or negative performance reviews would raise concerns about their ability to meet the requirements of this $18.6 million contract over its five-year term.

How does the awarded price compare to market rates for Veritas software and hardware maintenance?

To benchmark the value, the awarded price of $18.6 million over five years needs to be compared against prevailing market rates for similar Veritas maintenance services. This involves researching industry pricing for support contracts of comparable scope, duration, and service levels. Factors such as the specific Veritas products covered, the required response times, and the level of technical support influence market rates. If Panamerica Computers, Inc.'s pricing is significantly lower than market averages, it could indicate exceptional value or potentially aggressive bidding that might strain resources. Conversely, if it's higher, it warrants scrutiny to ensure the premium is justified by superior service or unique capabilities.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential performance failures by the contractor, leading to disruptions in critical CBP IT systems. Scope creep, where requirements expand beyond the initial agreement, is another risk that could lead to cost increases or delays. Vendor lock-in is also a concern, as transitioning away from a specialized maintenance provider can be complex and costly. Mitigation strategies likely include robust performance monitoring by CBP, clearly defined service level agreements (SLAs), and a firm-fixed-price contract structure that incentivizes the contractor to manage costs. The competitive nature of the award also provides leverage for CBP to enforce contract terms and address any performance deficiencies.

How effective is the firm-fixed-price contract type in ensuring value for money in this IT maintenance context?

The firm-fixed-price (FFP) contract type is generally effective in ensuring value for money for IT maintenance services because it shifts the primary financial risk to the contractor. Under an FFP agreement, the contractor is obligated to perform the specified work for a predetermined price, regardless of their actual costs. This incentivizes the contractor to be efficient and manage their resources effectively to maximize profit. For the government, it provides cost certainty, as the total expenditure is known upfront, assuming no contract modifications. However, the effectiveness relies on a well-defined scope of work; if the scope is unclear or changes frequently, an FFP contract can lead to disputes or costly change orders.

What is the historical spending pattern for Veritas software and hardware maintenance within DHS or CBP?

Analyzing historical spending patterns for Veritas maintenance within DHS or CBP is crucial for context. This involves examining previous contract awards for similar services, their values, durations, and the contractors involved. Understanding whether spending has been consistent, increasing, or decreasing provides insight into the agency's ongoing needs and budget allocation for this type of support. Significant year-over-year increases might signal rising costs or expanding requirements, while consistent spending could indicate stable needs. Comparing this $18.6 million award to past expenditures will help determine if it represents a typical investment or a notable shift in procurement strategy or cost.

What are the implications of 'exclusion of sources' in the competition process for this contract?

The 'exclusion of sources' clause in a 'full and open competition' award means that while the solicitation was broadly advertised, only those sources meeting specific pre-qualification criteria were allowed to submit bids. This is often used when a certain level of technical expertise, security clearance, or past performance is mandatory for a complex or sensitive requirement. While it narrows the field from truly 'open' competition, it still allows multiple qualified bidders to compete. The extremely high number of bids (10187) suggests that many sources met these exclusion criteria, indicating a healthy pool of qualified vendors and likely still fostering competitive pricing.

Industry Classification

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

Product/Service Code: IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1386 BIG OAK RD, LURAY, VA, 22835

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $18,674,358

Exercised Options: $18,592,134

Current Obligation: $18,592,134

Actual Outlays: $10,507,476

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD02B

IDV Type: GWAC

Timeline