DHS awards $3.7M contract for grant management system data migration to NC Technologies LLC

Contract Overview

Contract Amount: $3,726,462 ($3.7M)

Contractor: NC Technologies LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-08-14

End Date: 2025-05-13

Contract Duration: 638 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DELIVERED DATA MIGRATION PLAN (DMP) THAT SHALL PROVIDE A STANDARD BASELINE FOR ALL LEGACY GRANT MANAGEMENT SYSTEMS

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 $3.7 million to NC TECHNOLOGIES LLC for work described as: DELIVERED DATA MIGRATION PLAN (DMP) THAT SHALL PROVIDE A STANDARD BASELINE FOR ALL LEGACY GRANT MANAGEMENT SYSTEMS Key points: 1. Contract aims to standardize legacy grant management systems, improving data consistency. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 638 days indicates a significant project timeline. 4. Fixed-price contract type helps manage cost certainty for the government. 5. The award is for Computer Systems Design Services, a key IT function. 6. Geographic focus on Washington D.C. for the agency's operations.

Value Assessment

Rating: good

The contract value of $3.7 million for a data migration plan over approximately two years appears reasonable for a federal IT project of this scope. Benchmarking against similar data migration or system integration contracts within federal agencies would provide a more precise value-for-money assessment. The fixed-price nature of the contract offers cost predictability, which is a positive indicator for efficient spending. However, without specific details on the complexity of the legacy systems or the scope of data to be migrated, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised and multiple bids were likely considered. This competitive approach is generally expected to yield better pricing and service options for the government. The specific number of bidders is not provided, but the chosen procurement method suggests a healthy level of competition was sought.

Taxpayer Impact: A full and open competition process typically benefits taxpayers by driving down costs through market forces and encouraging a wider range of innovative solutions.

Public Impact

Federal grant management processes will benefit from a standardized data baseline. The Department of Homeland Security, specifically FEMA, will receive the delivered data migration plan. The primary service delivered is the creation of a data migration plan, crucial for system modernization. The geographic impact is centered in Washington D.C., where FEMA's headquarters are located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the complexity of legacy systems is underestimated.
Dependence on contractor expertise for successful data migration strategy development.
Risk of delays if data quality from legacy systems is poor.

Positive Signals

Clear objective to standardize data, which can lead to long-term efficiency gains.
Fixed-price contract provides cost control.
Utilizing full and open competition can lead to better solutions and pricing.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. Agencies increasingly rely on specialized IT services for system modernization, data management, and cybersecurity. The market for such services is competitive, with numerous firms offering expertise in cloud migration, data integration, and legacy system support. The value of this contract is modest within the broader federal IT spending landscape, but critical for the operational efficiency of grant management functions within FEMA.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions or subcontracting requirements. As it was awarded under full and open competition, it is possible that small businesses participated in the bidding process. However, without explicit set-aside goals, the direct impact on the small business ecosystem is not guaranteed, and larger, established IT service providers may have been the primary bidders.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Emergency Management Agency (FEMA) contracting officers and program managers. The fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the specified plan within budget. Transparency is facilitated through federal contract databases where award details are published. Further oversight may be provided by the DHS Office of Inspector General if performance issues or potential fraud arise.

Related Government Programs

Federal Grant Management Systems
IT Modernization Programs
Data Migration Services
Legacy System Support
Computer Systems Design Services

Risk Flags

Potential for scope creep
Data quality issues in legacy systems
Contractor performance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3.7 million to NC TECHNOLOGIES LLC. DELIVERED DATA MIGRATION PLAN (DMP) THAT SHALL PROVIDE A STANDARD BASELINE FOR ALL LEGACY GRANT MANAGEMENT SYSTEMS

Who is the contractor on this award?

The obligated recipient is NC TECHNOLOGIES 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 $3.7 million.

What is the period of performance?

Start: 2023-08-14. End: 2025-05-13.

What is the track record of NC Technologies LLC in delivering similar data migration or system design services to federal agencies?

Information regarding NC Technologies LLC's specific track record for data migration or similar system design services within the federal government is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and client testimonials. Federal procurement systems often contain past performance information that can shed light on a contractor's ability to successfully execute similar projects. Without this data, it's difficult to definitively assess their experience level for this specific task, although their selection implies they met the agency's minimum requirements during the competitive bidding process.

How does the $3.7 million contract value compare to similar federal data migration projects?

The $3.7 million contract value for a data migration plan over 638 days (approximately 21 months) is within a typical range for federal IT projects focused on planning and design. However, 'data migration' can encompass a wide spectrum of complexity. If this contract is solely for the development of a plan, it might be on the higher end, suggesting a complex environment or extensive analysis required. If it includes elements of initial data cleansing or pilot migration, the cost could be considered more standard. Benchmarking against contracts for similar scope (e.g., developing migration strategies for large, complex databases or multiple legacy systems) would provide a more accurate comparison.

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

Key risks include the potential for underestimation of the complexity of legacy grant management systems, leading to scope creep or delays. Poor data quality in the existing systems could also impede the development of a viable migration plan. Mitigation strategies likely include the fixed-price contract structure, which incentivizes the contractor to manage scope effectively, and the requirement for a detailed plan, which should identify potential data issues early. The agency's oversight and phased approach (implied by the planning nature of the deliverable) also serve as risk mitigation.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring value for this specific contract?

This procurement method is generally considered effective for ensuring value as it maximizes the pool of potential bidders, fostering competition that can lead to better pricing and innovative solutions. By excluding sources, the agency likely targeted specific capabilities needed, ensuring a more relevant and potentially higher-quality pool of competitors than a completely unrestricted solicitation. The effectiveness hinges on the clarity of the solicitation requirements and the rigor of the evaluation process. If multiple capable vendors submitted proposals, it strongly suggests competitive pressure was applied, benefiting the taxpayer.

What are the historical spending patterns for data migration or grant management system modernization within FEMA or DHS?

Historical spending data for FEMA or DHS on data migration and grant management system modernization is not provided. However, federal agencies, including DHS, have consistently invested in IT modernization and data management initiatives. Spending in these areas often fluctuates based on budget allocations, strategic priorities, and the lifecycle of existing systems. Large-scale data migrations or system overhauls can represent significant investments, often spanning multiple fiscal years and involving substantial dollar amounts. Understanding FEMA's specific history in this area would require analyzing their IT budget and contract awards over several years.

What are the potential long-term benefits of standardizing grant management data as outlined in this contract?

The primary long-term benefit of standardizing grant management data is enhanced operational efficiency and improved decision-making. A standardized baseline allows for more accurate reporting, easier data analysis, and better integration with other agency systems. This can lead to reduced administrative burden, faster processing times for grants, improved compliance monitoring, and a clearer overall picture of grant program performance. Ultimately, it supports the agency's mission by ensuring resources are managed effectively and allocated appropriately.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 521 C ST, QUANTICO, VA, 22134

Business Categories: Category Business, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,737,026

Exercised Options: $3,726,462

Current Obligation: $3,726,462

Actual Outlays: $3,480,729

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB21D0371

IDV Type: GWAC

Timeline