DHS awards $27.5M for enterprise platform services, including OCMS and SEVPAMS, to Procentrix, LLC

Contract Overview

Contract Amount: $27,523,417 ($27.5M)

Contractor: Procentrix, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-04-01

End Date: 2027-03-31

Contract Duration: 1,460 days

Daily Burn Rate: $18.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: COLLABORATIVE SERVICES FOR THE ENTERPRISE PLATFORM SERVICES BRANCH (EPSB) PROJECTS TO INCLUDE OPLA CASE MANAGEMENT SYSTEM (OCMS), STUDENT AND EXCHANGE VISITOR PROGRAM AUTOMATED MANAGEMENT SYSTEM (SEVPAMS), ICE CORRESPONDENCE AND TASK TRACKING SYSTEM

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 $27.5 million to PROCENTRIX, LLC for work described as: COLLABORATIVE SERVICES FOR THE ENTERPRISE PLATFORM SERVICES BRANCH (EPSB) PROJECTS TO INCLUDE OPLA CASE MANAGEMENT SYSTEM (OCMS), STUDENT AND EXCHANGE VISITOR PROGRAM AUTOMATED MANAGEMENT SYSTEM (SEVPAMS), ICE CORRESPONDENCE AND TASK TRACKING SYSTEM Key points: 1. Contract value of $27.5M over four years suggests a significant investment in enterprise platform modernization. 2. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, indicating potential for future task orders. 3. The fixed-price contract type aims to control costs, but requires careful scope management to avoid change orders. 4. The award to Procentrix, LLC, a single entity, necessitates scrutiny of their past performance and pricing. 5. The services cover critical systems like OCMS and SEVPAMS, impacting immigration and student exchange programs. 6. The contract's duration of 1460 days aligns with typical modernization project lifecycles.

Value Assessment

Rating: fair

The total contract value of $27.5 million over approximately four years averages to about $6.88 million annually. Benchmarking this against similar IT services contracts for enterprise platform development and maintenance within federal agencies is challenging without more specific service details. However, the firm-fixed-price structure suggests an expectation of defined deliverables and costs. The number of bids received (2) is low for a contract of this size and scope, which could indicate either a highly specialized requirement or potentially less competitive pricing than might be achieved with broader competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, which is the preferred method for ensuring the widest possible access to qualified contractors. However, only two bids were received. This limited number of bidders, despite the open competition, raises questions about the accessibility of the solicitation, the complexity of the requirements, or the market's capacity to respond. A low number of bids can sometimes lead to less competitive pricing as the perceived risk for the government increases.

Taxpayer Impact: While full and open competition was utilized, the low number of bids (2) may have limited the government's ability to secure the most cost-effective solution for taxpayers. Further analysis into the solicitation process and outreach efforts would be beneficial.

Public Impact

Benefits immigration enforcement and student exchange program administration through modernized case management and tracking systems. Enhances operational efficiency for the U.S. Immigration and Customs Enforcement (ICE) by providing updated technology platforms. Supports the Student and Exchange Visitor Program (SEVP) by ensuring the automated management system (SEVPAMS) is maintained and improved. Impacts federal IT workforce by requiring skilled personnel for development, implementation, and maintenance of these enterprise systems. Geographic impact is primarily national, supporting ICE operations across the United States.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bids) may result in higher costs for taxpayers.
Firm-fixed-price contract requires strict scope management to prevent cost overruns.
Reliance on a single awardee for critical systems necessitates robust performance monitoring.

Positive Signals

Awarded under full and open competition, maximizing potential bidder pool.
Firm-fixed-price contract provides cost certainty if scope is well-defined.
Longer contract duration allows for sustained development and integration.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on custom computer programming services and IT system integration. The federal government is a major consumer of such services, with significant spending allocated to modernizing legacy systems and developing new enterprise platforms. The market for these services is competitive, featuring a mix of large system integrators and specialized software development firms. The value of this contract, approximately $27.5 million, is moderate within the context of large federal IT modernization efforts, but significant for the specific systems it supports.

Small Business Impact

The contract data indicates that small business participation is not a primary focus, as the awardee, Procentrix, LLC, is not explicitly identified as a small business, and the contract was not set aside for small businesses. There is no indication of subcontracting requirements for small businesses within the provided data. This means that the direct impact on the small business ecosystem for this specific contract is likely minimal, and opportunities for small businesses would primarily arise if Procentrix, LLC chooses to subcontract.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Immigration and Customs Enforcement (ICE) contracting officer and program managers. The firm-fixed-price nature of the contract implies that performance standards and deliverable acceptance will be key areas of oversight. Transparency is generally maintained through contract award databases like FPDS. Accountability measures are inherent in the contract terms, with potential remedies for non-performance. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

ICE Case Management Systems
Student and Exchange Visitor Information System (SEVIS)
Federal IT Modernization Programs
Enterprise Resource Planning (ERP) Systems
Custom Software Development Services

Risk Flags

Limited competition
Potential for cost overruns if scope is not managed
Contractor performance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $27.5 million to PROCENTRIX, LLC. COLLABORATIVE SERVICES FOR THE ENTERPRISE PLATFORM SERVICES BRANCH (EPSB) PROJECTS TO INCLUDE OPLA CASE MANAGEMENT SYSTEM (OCMS), STUDENT AND EXCHANGE VISITOR PROGRAM AUTOMATED MANAGEMENT SYSTEM (SEVPAMS), ICE CORRESPONDENCE AND TASK TRACKING SYSTEM

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 $27.5 million.

What is the period of performance?

Start: 2023-04-01. End: 2027-03-31.

What is Procentrix, LLC's track record with the Department of Homeland Security and similar federal agencies?

A thorough review of Procentrix, LLC's past performance is crucial. Information available through federal procurement databases (like FPDS) would detail previous contracts awarded to Procentrix, including the agencies involved, contract values, and services rendered. Assessing their performance on similar IT development and integration projects, particularly those involving case management or large enterprise systems, is essential. Positive indicators would include successful completion of prior contracts, favorable past performance reviews, and a history of meeting deadlines and budget requirements. Conversely, any history of contract disputes, performance issues, or significant cost overruns on comparable projects would raise concerns about their capability to execute this current $27.5 million award effectively.

How does the $27.5 million contract value compare to similar enterprise platform services contracts within DHS or other federal agencies?

The $27.5 million contract value for enterprise platform services, spread over approximately four years, represents a moderate investment. To benchmark this value, one would typically compare it against contracts for similar IT modernization, case management system development, or enterprise resource planning (ERP) implementations within agencies of comparable size and complexity to DHS. For instance, contracts supporting large-scale system overhauls or the development of new, integrated platforms for agencies like the FBI, SSA, or DoD could serve as benchmarks. If similar projects have been awarded for significantly less or more, it warrants investigation into the scope, complexity, and duration differences. A value significantly higher than comparable contracts might suggest potential overpricing, while a much lower value could indicate aggressive bidding or a reduced scope.

What are the primary risks associated with this contract, given the limited number of bidders?

The primary risk associated with this contract stems from the limited competition, with only two bids received despite being awarded under full and open competition. This situation increases the risk of suboptimal pricing, as the government may not have benefited from the full spectrum of competitive pressures. There's a heightened risk that the chosen contractor, Procentrix, LLC, may have had less incentive to offer the most aggressive pricing or the most innovative solutions. Furthermore, a narrow bidder pool can indicate potential barriers to entry for other qualified firms, possibly due to overly restrictive requirements in the solicitation or a lack of market awareness. This could also imply a higher risk if Procentrix, LLC encounters unforeseen challenges, as alternative contractors may be less familiar with the specific systems and context.

How effective are the OCMS and SEVPAMS systems expected to be post-modernization under this contract?

The expected effectiveness of the OCMS (OPLA Case Management System) and SEVPAMS (Student and Exchange Visitor Program Automated Management System) hinges on the successful execution of the services provided under this contract. The goal of such modernization efforts is typically to improve system performance, enhance user experience, increase data accuracy and accessibility, and streamline workflows. For OCMS, this could mean more efficient processing of immigration-related cases. For SEVPAMS, it could lead to better tracking and management of international students and exchange visitors, improving compliance and national security. The effectiveness will be measured by the achievement of specific performance metrics outlined in the contract, such as reduced processing times, improved system uptime, enhanced security features, and user satisfaction.

What are the historical spending patterns for enterprise platform services within the Department of Homeland Security?

Historical spending patterns for enterprise platform services within DHS are substantial, reflecting the agency's vast and complex operational needs. DHS consistently invests heavily in IT infrastructure, including the development, maintenance, and modernization of enterprise-wide systems that support its diverse components like ICE, CBP, and TSA. Spending in this category typically includes contracts for software development, system integration, cloud services, cybersecurity enhancements, and data management solutions. Analyzing past DHS IT spending reveals a trend towards consolidating disparate systems into more integrated platforms to improve efficiency and data sharing. The $27.5 million awarded here is part of this ongoing, significant investment in maintaining and upgrading the technological backbone of the department.

What is the significance of the 'Other Computer Related Services' NAICS code (541519) for this contract?

The North American Industry Classification System (NAICS) code 541519, 'Other Computer Related Services,' is a broad category that encompasses a wide range of IT services not specifically classified under other codes like custom programming (541511) or computer systems design (541512). For this contract, it suggests that the services required might be diverse, potentially including IT consulting, IT project management, IT support services, and other specialized computer services that don't fit neatly into more specific categories. This broad classification can sometimes make it harder to precisely benchmark costs or compare performance against highly specialized contracts, but it allows flexibility for the government to procure a variety of related IT support functions under a single contract vehicle.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70CTD023Q00000009

Offers Received: 2

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, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $45,301,743

Exercised Options: $27,523,417

Current Obligation: $27,523,417

Actual Outlays: $22,071,378

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CTD022D00000011

IDV Type: IDC

Timeline