DHS awards $42.8M for IT support, with Procentrix LLC securing a significant portion

Contract Overview

Contract Amount: $42,862,801 ($42.9M)

Contractor: Procentrix, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2019-12-31

End Date: 2023-05-31

Contract Duration: 1,247 days

Daily Burn Rate: $34.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AUTOMATED MANAGEMENT SYSTEMS SUPPORT (AMSS) SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20536

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $42.9 million to PROCENTRIX, LLC for work described as: AUTOMATED MANAGEMENT SYSTEMS SUPPORT (AMSS) SERVICES Key points: 1. Value for money appears fair given the duration and scope of IT support services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. Risk indicators are moderate, with a long contract duration and fixed-price structure. 4. Performance context is for essential IT management and support for immigration enforcement. 5. Sector positioning is within IT services, a critical area for federal agencies. 6. The contract's value is substantial but within the expected range for large-scale IT support.

Value Assessment

Rating: fair

The contract value of approximately $42.8 million over nearly 3.5 years for IT support services is substantial. Benchmarking against similar large-scale IT support contracts for federal agencies suggests this pricing is within a reasonable range, especially considering the scope of services for U.S. Immigration and Customs Enforcement (ICE). The firm-fixed-price structure aims to control costs, but the overall value depends heavily on the efficiency and effectiveness of the services delivered by Procentrix, LLC.

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. While the specific number of bidders is not provided, this method generally fosters a competitive environment, which can lead to more favorable pricing and better service offerings for the government. The agency's choice of full and open competition suggests confidence in the market's ability to provide qualified vendors for these IT support services.

Taxpayer Impact: Taxpayers benefit from a process designed to ensure the government receives competitive pricing and high-quality services by allowing all eligible companies to compete for the contract.

Public Impact

Benefits U.S. Immigration and Customs Enforcement (ICE) by ensuring the continuity and effectiveness of critical IT systems. Delivers essential IT management, automation, and support services necessary for agency operations. Geographic impact is primarily within the District of Columbia, where ICE headquarters is located, but supports national operations. Workforce implications include potential support roles for IT professionals and contractors involved in system maintenance and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 3 years) can sometimes lead to scope creep or increased costs if not managed tightly.
Reliance on a single awardee for critical IT support necessitates robust performance monitoring.
The specific nature of 'Other Computer Related Services' can be broad, requiring clear performance metrics.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield fair pricing.
Firm-fixed-price contract type helps to control costs and provides budget certainty.
The contract supports a critical federal agency (DHS/ICE), indicating its importance and likely adherence to high standards.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on computer-related services. The federal IT services market is vast, with agencies consistently investing in maintaining and upgrading their technological infrastructure. Comparable spending benchmarks for IT support services across federal agencies often run into tens or hundreds of millions of dollars annually, depending on the agency's size and mission complexity. This contract represents a significant, but not outlier, investment in essential IT operational support.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses like Procentrix, LLC were eligible to bid and win. There is no explicit information on subcontracting plans for small businesses within this award. The absence of a small business set-aside means that opportunities for small business participation may be limited unless proactively included in subcontracting goals by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Immigration and Customs Enforcement (ICE) contracting officer and program managers. Performance reviews, regular reporting, and adherence to the firm-fixed-price terms are key accountability measures. Transparency is generally maintained through contract databases like FPDS, which record award details. 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 Management Support Services
Computer Systems Design Services
Federal IT Procurement
Department of Homeland Security IT Contracts
Immigration and Customs Enforcement IT Services

Risk Flags

Long contract duration
Potential for scope creep
Reliance on single vendor for critical services

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $42.9 million to PROCENTRIX, LLC. AUTOMATED MANAGEMENT SYSTEMS SUPPORT (AMSS) SERVICES

Who is the contractor on this award?

The obligated recipient is PROCENTRIX, LLC.

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 $42.9 million.

What is the period of performance?

Start: 2019-12-31. End: 2023-05-31.

What is the track record of Procentrix, LLC in delivering similar IT support services to federal agencies?

Procentrix, LLC has a history of providing IT and management consulting services to various federal agencies. Their contract portfolio often includes support for system modernization, cybersecurity, and operational efficiency. While specific performance metrics for this particular contract are not detailed here, their general experience suggests a capability to handle complex IT requirements. A deeper dive into past performance reviews and any documented issues or successes on prior ICE or DHS contracts would provide a more comprehensive understanding of their track record for this specific type of service.

How does the awarded amount compare to similar IT support contracts for agencies of ICE's size and mission?

The $42.8 million award over approximately 1247 days (roughly 3.4 years) for IT support services is substantial. Federal agencies, particularly those with large operational footprints like ICE, often award multi-million dollar contracts for IT management and support. Benchmarking against similar contracts for agencies like Customs and Border Protection (CBP) or other large components within DHS reveals that this value is within the expected range for comprehensive IT support. Factors such as the specific services required (e.g., help desk, network management, application support, cybersecurity) and the number of end-users significantly influence contract value.

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

Key risks include potential cost overruns if the fixed-price model is not managed effectively, vendor lock-in due to the long duration, and performance issues if the contractor fails to meet service level agreements. Mitigation strategies likely involve robust contract oversight by ICE program managers, clear performance metrics and reporting requirements, and regular reviews of the contractor's performance. The firm-fixed-price structure itself is a risk mitigation tool for cost control. However, the long duration necessitates diligent monitoring to ensure continued value and alignment with evolving agency needs.

How effective has full and open competition been in ensuring competitive pricing for this type of IT support?

Full and open competition is generally considered the most effective method for ensuring competitive pricing, as it allows the widest possible pool of qualified vendors to bid. This increases the likelihood of receiving multiple proposals and driving down costs through market forces. While the specific number of bidders for this contract isn't provided, the process itself creates a strong incentive for Procentrix, LLC to offer competitive pricing to win the award. The long-term effectiveness would be reflected in the quality of service received relative to the price paid over the contract's life.

What is the historical spending trend for similar IT support services at ICE or DHS?

Historical spending data for IT support services at ICE and DHS typically shows consistent, significant investment. Agencies of this scale require ongoing support for complex IT infrastructures. Spending often fluctuates based on modernization initiatives, cybersecurity upgrades, and operational demands. Analyzing past contracts for similar services would reveal trends in contract values, durations, and the types of vendors awarded. This contract's value appears consistent with the ongoing need for robust IT support within a large federal law enforcement and security agency.

Are there any specific performance metrics or service level agreements (SLAs) tied to this contract that indicate its expected effectiveness?

While the provided data does not detail specific performance metrics or SLAs, firm-fixed-price contracts for IT support services almost invariably include them. These are crucial for measuring the contractor's effectiveness and ensuring the government receives the agreed-upon value. Typical SLAs might cover system uptime, response times for help desk tickets, resolution times for technical issues, and adherence to security protocols. ICE program managers would be responsible for monitoring these metrics and holding Procentrix, LLC accountable for meeting them throughout the contract period.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70CTD019R00000007

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2551 DULLES VIEW DR STE 600, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $45,381,224

Exercised Options: $43,015,556

Current Obligation: $42,862,801

Actual Outlays: $13,430,796

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0294T

IDV Type: FSS

Timeline