DHS FEMA awards $27.2M for Custom Computer Programming Services to Karsun Solutions LLC under BPA Call

Contract Overview

Contract Amount: $27,230,758 ($27.2M)

Contractor: Karsun Solutions LLC

Awarding Agency: Department of Homeland Security

Start Date: 2019-03-06

End Date: 2020-11-20

Contract Duration: 625 days

Daily Burn Rate: $43.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SPARC CALL ORDER 2

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20472

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $27.2 million to KARSUN SOLUTIONS LLC for work described as: SPARC CALL ORDER 2 Key points: 1. Contract value of $27.2M for programming services. 2. Awarded to Karsun Solutions LLC. 3. Contract falls under the IT sector, specifically custom computer programming. 4. Utilizes a Time and Materials pricing structure.

Value Assessment

Rating: fair

The contract value of $27.2M for custom computer programming services is substantial. Benchmarking against similar contracts for this NAICS code is necessary to assess if the pricing is competitive, especially given the Time and Materials structure which can lead to cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. However, the use of a BPA Call and Time and Materials pricing may limit price discovery and potentially increase costs compared to fixed-price contracts.

Taxpayer Impact: Taxpayer funds are being used for IT services. The effectiveness of the competition and pricing structure will determine the overall value for taxpayers.

Public Impact

Citizens rely on FEMA for disaster response, and IT services are crucial for their operations. The contract supports a private company, Karsun Solutions LLC, contributing to the tech sector workforce. Transparency in IT spending ensures public trust in government efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost uncertainty.
BPA Call mechanism might not always yield the best price.
Lack of specific performance metrics makes value assessment difficult.

Positive Signals

Awarded under full and open competition.
Supports critical FEMA operations.
Contract duration is clearly defined.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services (NAICS 541511). Spending in this area is significant across federal agencies, supporting a wide range of digital infrastructure and operational needs.

Small Business Impact

The awardee, Karsun Solutions LLC, is not identified as a small business. This contract does not appear to have specific set-asides or provisions for small business participation.

Oversight & Accountability

Oversight would involve monitoring the contractor's performance against contract requirements and ensuring adherence to the Time and Materials pricing structure. Regular reporting and audits are key to accountability.

Related Government Programs

Custom Computer Programming Services
Department of Homeland Security Contracting
Federal Emergency Management Agency Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited price discovery inherent in T&M contracts.
BPA Call mechanism may not always represent the most competitive pricing.
Lack of explicit small business participation goals.
Need for detailed performance metrics to fully assess value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $27.2 million to KARSUN SOLUTIONS LLC. SPARC CALL ORDER 2

Who is the contractor on this award?

The obligated recipient is KARSUN SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $27.2 million.

What is the period of performance?

Start: 2019-03-06. End: 2020-11-20.

What specific programming services were rendered, and how did they directly contribute to FEMA's mission effectiveness?

The contract specifies 'Custom Computer Programming Services' under NAICS 541511. To assess value, detailed deliverables and their impact on FEMA's operational capabilities, such as enhancing disaster response coordination, improving data management for relief efforts, or developing new citizen-facing portals, would need to be analyzed. Without this, it's difficult to quantify the direct mission contribution beyond the general support of IT infrastructure.

How was the Time and Materials pricing structure managed to mitigate risks of cost overruns and ensure fair market value?

Managing Time and Materials (T&M) contracts requires robust oversight to prevent cost escalation. This includes establishing clear labor categories with pre-defined rates, setting ceilings on total contract value, and implementing strict monitoring of hours worked and materials used. FEMA would need to demonstrate that they actively managed these aspects, potentially through independent government cost estimates and regular audits, to ensure the $27.2M award represented fair value and not inflated costs due to inefficient execution.

Given the full and open competition, what was the competitive landscape, and were there opportunities missed to secure better pricing through fixed-price or performance-based contracts?

While 'full and open competition' suggests multiple bidders participated, the choice of a BPA Call and T&M structure warrants scrutiny. Agencies often opt for T&M for evolving requirements where scope is uncertain. However, this can limit price discovery compared to fixed-price contracts. Analyzing the number of bids received and the pricing proposals submitted would reveal if the competitive process effectively drove down costs, or if alternative contract types could have yielded greater cost savings for the taxpayer.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: 70FA3019Q00000022

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 12825 WORLDGATE DR, HERNDON, VA, 20170

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,230,758

Exercised Options: $27,230,758

Current Obligation: $27,230,758

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 70FA3018A00000006

IDV Type: BPA

Timeline