DHS's I-901 Fee Collection System Contract Awarded to U.S. Bancorp for $19.2M

Contract Overview

Contract Amount: $19,237,316 ($19.2M)

Contractor: U.S. Bancorp

Awarding Agency: Department of Homeland Security

Start Date: 2023-09-28

End Date: 2026-09-27

Contract Duration: 1,095 days

Daily Burn Rate: $17.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: I-901 FEE COLLECTION SYSTEM

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $19.2 million to U.S. BANCORP for work described as: I-901 FEE COLLECTION SYSTEM Key points: 1. The contract supports financial transactions processing for immigration fees. 2. U.S. Bancorp is the sole awardee for this definitive contract. 3. The contract duration is three years, ending in September 2026. 4. This system is crucial for managing immigration-related fee collections.

Value Assessment

Rating: good

The contract value of $19.2M over three years appears reasonable for a specialized financial transaction system. Benchmarking against similar government contracts for fee collection and processing systems would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is expected to yield fair pricing and identify the most capable vendor for the service.

Taxpayer Impact: The system's efficiency in collecting fees directly impacts revenue generation for immigration services, ultimately benefiting taxpayers by ensuring program funding.

Public Impact

Ensures efficient processing of fees for international travelers and students. Supports the financial infrastructure of U.S. immigration and customs enforcement. Streamlines the collection and management of critical immigration-related funds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for vendor lock-in if system is highly specialized.

Positive Signals

Awarded through full and open competition.
Utilizes a firm fixed-price contract type, providing cost certainty.
Supports a critical government function for national security and immigration.

Sector Analysis

This contract falls under financial transactions processing, a common area for government IT and financial services. Benchmarks for similar systems often vary widely based on complexity and user volume.

Small Business Impact

The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this contract.

Oversight & Accountability

The contract is managed by U.S. Immigration and Customs Enforcement (ICE) under the Department of Homeland Security. Standard government oversight procedures for contract performance and financial management are expected to be in place.

Related Government Programs

Financial Transactions Processing, Reserve, and Clearinghouse Activities
Department of Homeland Security Contracting
U.S. Immigration and Customs Enforcement Programs

Risk Flags

Sole awardee may limit future competition.
Dependence on a single vendor for critical financial processing.
Potential cybersecurity risks associated with financial transaction data.
Contract duration of three years requires monitoring for potential extensions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $19.2 million to U.S. BANCORP. I-901 FEE COLLECTION SYSTEM

Who is the contractor on this award?

The obligated recipient is U.S. BANCORP.

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 $19.2 million.

What is the period of performance?

Start: 2023-09-28. End: 2026-09-27.

What is the expected impact of this system on the efficiency of fee collection and processing times for applicants?

The I-901 Fee Collection System is designed to streamline the collection and processing of fees required for various immigration benefits and programs. Its successful implementation is expected to reduce manual processing, minimize errors, and expedite the overall workflow, leading to faster turnaround times for applicants and improved operational efficiency for U.S. Immigration and Customs Enforcement.

What are the primary risks associated with the reliance on U.S. Bancorp for this critical financial transaction system?

Key risks include potential service disruptions if the system experiences technical failures, data security breaches compromising sensitive financial and personal information, and vendor performance issues that could delay fee processing. Over-reliance on a single vendor also presents a risk of limited flexibility in adapting to future technological advancements or changing regulatory requirements.

How does the firm fixed-price contract structure ensure value for money and mitigate cost overruns for taxpayers?

A firm fixed-price contract establishes a set price for the work, shifting the risk of cost overruns to the contractor, U.S. Bancorp. This structure provides budget certainty for the government and taxpayers, as the final cost is predetermined. Value for money is achieved if the contractor delivers the required services within the agreed-upon scope and quality standards at the fixed price.

Industry Classification

NAICS: Finance and Insurance › Activities Related to Credit Intermediation › Financial Transactions Processing, Reserve, and Clearinghouse Activities

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: 70CMSD23R00000001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 800 NICOLLET MALL, MINNEAPOLIS, MN, 55402

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

Financial Breakdown

Contract Ceiling: $26,064,756

Exercised Options: $19,237,316

Current Obligation: $19,237,316

Actual Outlays: $10,620,899

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline