DHS awards $3.4M for electronic records management, with ICE seeking ongoing support

Contract Overview

Contract Amount: $3,429,177 ($3.4M)

Contractor: Neostek, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2021-07-07

End Date: 2026-07-09

Contract Duration: 1,828 days

Daily Burn Rate: $1.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ELECTRONIC RECORDS AND INFORMATION MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $3.4 million to NEOSTEK, INC. for work described as: ELECTRONIC RECORDS AND INFORMATION MANAGEMENT SUPPORT SERVICES Key points: 1. Contract value of $3.4M over approximately 5 years indicates a moderate investment in data management. 2. Full and open competition suggests a potentially competitive environment for this service. 3. The fixed-price contract type aims to control costs for the government. 4. This contract supports critical information management needs for U.S. Immigration and Customs Enforcement. 5. The duration of the contract (over 1800 days) suggests a need for sustained support. 6. The North American Industry Classification System (NAICS) code 518210 points to a market focused on data processing and hosting.

Value Assessment

Rating: good

The contract value of $3.4M over nearly five years for electronic records and information management support services appears reasonable for a federal agency like ICE. Without specific benchmarks for similar, directly comparable contracts, a precise value-for-money assessment is challenging. However, the firm fixed-price structure suggests an effort to manage costs effectively. The pricing is likely benchmarked against market rates for IT support services within the federal sector.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency likely sought to leverage the broadest possible market to ensure it received the best value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining competitive pricing and encourages a wider range of innovative solutions, potentially leading to cost savings and improved service delivery.

Public Impact

U.S. Immigration and Customs Enforcement (ICE) benefits from enhanced capabilities in managing electronic records and information. Services delivered include support for electronic records and information management, crucial for agency operations and compliance. The geographic impact is primarily within the operational areas of ICE, likely supporting its national mission. Workforce implications may include the need for specialized IT personnel to manage and maintain these systems, both within the government and potentially through contractor support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system becomes highly specialized.
Ensuring data security and privacy compliance is paramount given the sensitive nature of ICE data.
Scalability of the solution to meet future data growth and evolving requirements.

Positive Signals

Firm fixed-price contract helps control costs.
Full and open competition suggests a robust market offering.
Long-term contract duration provides stability for service delivery.

Sector Analysis

The contract falls within the IT services sector, specifically focusing on data processing, web hosting, and related services (NAICS 518210). This sector is characterized by rapid technological advancements and a high demand for secure and efficient data management solutions. Federal spending in this area is substantial, supporting agencies' digital transformation efforts and compliance with data retention policies. Comparable spending benchmarks would typically involve analyzing other federal contracts for similar IT support services, considering factors like scope, duration, and complexity.

Small Business Impact

The data provided does not indicate if this contract included small business set-asides or subcontracting requirements. As it was awarded under full and open competition, the primary focus was likely on obtaining the best overall value from the entire market. Further analysis would be needed to determine if small businesses participated as prime contractors or subcontractors in this procurement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within U.S. Immigration and Customs Enforcement. Performance monitoring, adherence to contract terms, and quality assurance are key oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Federal Records Management
Information Technology Support Services
Data Processing and Hosting Services
Department of Homeland Security IT Contracts
Immigration and Customs Enforcement Operations Support

Risk Flags

Data Security and Privacy Compliance
Vendor Performance and Reliability
Scalability of Information Management Systems
Contract Scope Definition and Management

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3.4 million to NEOSTEK, INC.. ELECTRONIC RECORDS AND INFORMATION MANAGEMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is NEOSTEK, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $3.4 million.

What is the period of performance?

Start: 2021-07-07. End: 2026-07-09.

What is the track record of NEOSTEK, INC. in performing similar federal contracts?

A review of federal procurement data indicates that NEOSTEK, INC. has been awarded multiple federal contracts, primarily within the IT services domain. While specific details on past performance for electronic records and information management support services are not immediately available from this summary, their presence in the federal contracting space suggests experience. Further investigation into contract databases like SAM.gov or FPDS would be necessary to assess their performance history, including past performance evaluations, any contract disputes, and the types of agencies they have served. Understanding their prior success with similar requirements is crucial for evaluating their capability to fulfill this current contract effectively.

How does the $3.4M contract value compare to similar federal contracts for electronic records management?

The $3.4 million contract value over approximately five years for electronic records and information management support services represents a moderate investment. To benchmark this value, one would need to compare it against similar contracts awarded by agencies like DHS, or other federal entities with comparable data management needs. Factors such as the scope of services (e.g., digitization, storage, retrieval, disposition), the volume of records managed, security requirements, and the specific technologies employed would influence pricing. Without access to a detailed database of comparable contracts, it's difficult to definitively state if this represents excellent or fair value. However, the firm fixed-price nature suggests an effort to establish a predictable cost for the government.

What are the primary risks associated with this contract for U.S. Immigration and Customs Enforcement?

Key risks for ICE in this contract include potential vendor performance issues, where NEOSTEK, INC. might not meet the required service levels or deadlines, impacting critical information management operations. Data security and privacy are significant risks, given the sensitive nature of immigration and customs data; a breach could have severe legal and operational consequences. There's also a risk of cost overruns if the fixed-price contract doesn't adequately account for unforeseen technical challenges or scope creep, although the fixed-price structure is intended to mitigate this. Furthermore, reliance on a single vendor for critical systems can create operational dependencies and potential challenges during contract transitions.

How effective is the firm fixed-price contract type in managing costs for this type of service?

The firm fixed-price (FFP) contract type is generally effective in managing costs for services where the scope of work is well-defined and unlikely to change significantly. For electronic records and information management support, FFP provides cost certainty to the government, as the contractor assumes the risk of cost overruns. This incentivizes the contractor to perform efficiently. However, if unforeseen technical complexities arise or if the government's requirements evolve substantially, an FFP contract might lead to less flexibility or potential disputes if scope changes are necessary. In such cases, a cost-reimbursement or time-and-materials contract might offer more adaptability but less cost predictability.

What is the historical spending trend for electronic records management support at ICE or DHS?

Analyzing historical spending trends for electronic records management support at ICE or DHS would require access to detailed historical contract data. Generally, federal agencies have been increasing their spending in this area due to growing data volumes, evolving regulatory requirements (like the Federal Records Act), and the push for digital transformation. Agencies are moving away from paper-based systems towards more robust electronic records management systems (ERMS) to improve efficiency, accessibility, and compliance. It's plausible that ICE, as a large operational agency within DHS, has seen a consistent or increasing need for such support services over the past several years, driven by its mission-critical functions.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3101 WILSON BLVD STE 500, ARLINGTON, VA, 22201

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Other 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: $3,429,177

Exercised Options: $3,429,177

Current Obligation: $3,429,177

Actual Outlays: $2,092,379

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSMA19D08N8

IDV Type: FSS

Timeline