DHS awards $2.8M for IT systems maintenance to Sentrillion Corp

Contract Overview

Contract Amount: $2,798,413 ($2.8M)

Contractor: Sentrillion Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-23

End Date: 2027-09-22

Contract Duration: 1,094 days

Daily Burn Rate: $2.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ESS SYSTEMS MAINTENANCE

Place of Performance

Location: BRUNSWICK, GLYNN County, GEORGIA, 31524

State: Georgia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.8 million to SENTRILLION CORPORATION for work described as: ESS SYSTEMS MAINTENANCE Key points: 1. Contract value appears reasonable for a multi-year IT maintenance agreement. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of nearly three years provides stability for service delivery. 5. The services fall under a standard IT systems design category.

Value Assessment

Rating: good

The contract value of approximately $2.8 million over three years for IT systems maintenance is within a reasonable range for federal contracts of this nature. Benchmarking against similar contracts for computer systems design services (NAICS 541512) suggests that this pricing is competitive, especially considering the fixed-price structure which shifts risk to the contractor. The specific value for money will depend on the scope and quality of services delivered, but the initial award appears to be a fair assessment for the expected duration and complexity.

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. The presence of two bidders suggests a moderate level of competition for this specific requirement. While more bidders could potentially drive prices lower, two offers generally provide a basis for price discovery and allow the agency to select the best value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, potentially leading to lower prices and better service offerings. This process ensures that the government is not limited to a single provider and can leverage market forces to secure favorable terms.

Public Impact

Federal Law Enforcement Training Center personnel will benefit from reliable IT systems. Ensures the continued operation and maintenance of critical computer systems. Services are geographically focused within Georgia. Supports IT maintenance jobs within the contractor's workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competed.
Dependence on a single contractor for critical IT systems maintenance.

Positive Signals

Fixed-price contract limits potential for cost overruns.
Full and open competition promotes a fair marketplace.
Contract duration provides service continuity.

Sector Analysis

This contract falls within the Information Technology sector, specifically under Computer Systems Design Services (NAICS 541512). This is a broad category encompassing the design, development, and integration of computer systems. Federal spending in this area is substantial, supporting a wide range of government operations. Comparable spending benchmarks for IT maintenance and support services vary widely based on system complexity and scope, but this contract's value appears aligned with typical federal IT service agreements.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. There is no explicit mention of subcontracting goals for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is likely limited unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Law Enforcement Training Center's contracting office within the Department of Homeland Security. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon cost. Transparency is generally maintained through federal contract databases, though specific performance metrics and oversight reports may not be publicly available.

Related Government Programs

IT Systems Maintenance
Computer Systems Design Services
Federal Law Enforcement IT Support
Department of Homeland Security IT Contracts

Risk Flags

Potential for performance issues if contractor fails to meet service levels.
Risk of vendor lock-in if future procurements are not competitive.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.8 million to SENTRILLION CORPORATION. ESS SYSTEMS MAINTENANCE

Who is the contractor on this award?

The obligated recipient is SENTRILLION CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Law Enforcement Training Center).

What is the total obligated amount?

The obligated amount is $2.8 million.

What is the period of performance?

Start: 2024-09-23. End: 2027-09-22.

What is Sentrillion Corporation's track record with federal IT contracts?

Sentrillion Corporation has a history of performing IT-related services for the federal government. While specific details on past performance quality are not provided in this data snippet, their award by the Department of Homeland Security suggests they have met the necessary qualifications and demonstrated capability for such contracts. A deeper dive into their contract history, including past performance reviews and any reported issues, would be necessary for a comprehensive assessment. Federal procurement databases often contain award histories and sometimes performance ratings that can offer further insight into their reliability and expertise in delivering IT solutions and maintenance.

How does the $2.8 million value compare to similar IT maintenance contracts?

The $2.8 million contract value for approximately three years of IT systems maintenance is considered moderate within the federal IT services landscape. Contracts for similar services (NAICS 541512) can range from tens of thousands to hundreds of millions of dollars, depending heavily on the complexity of the systems, the scope of maintenance required, and the duration. Given that this is a firm-fixed-price contract awarded through full and open competition with two bidders, the price appears to be a reasonable market-based assessment for the services described. Without specific details on the systems being maintained, a precise benchmark is difficult, but the value does not immediately suggest overpricing or underbidding.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential performance issues if Sentrillion Corporation fails to deliver adequate maintenance, leading to system downtime or degradation. Another risk is the potential for vendor lock-in if the agency becomes overly reliant on Sentrillion and subsequent contract renewals are not competitively bid. Given the firm-fixed-price nature, the risk of cost overruns is primarily on the contractor, but scope creep or unforeseen technical challenges could still impact the government if not managed carefully. Ensuring clear service level agreements and robust oversight are key to mitigating these risks.

How effective is full and open competition in ensuring value for this type of IT service?

Full and open competition is generally considered the most effective method for ensuring value in federal IT service contracts. It allows a wide range of qualified vendors to compete, fostering price competition and encouraging innovation. In this case, with two bidders, there was a degree of competition that likely helped in establishing a fair price. However, the effectiveness is maximized when there is robust competition, meaning multiple capable bidders actively vie for the contract. The agency's evaluation process also plays a crucial role in selecting the best value, not just the lowest price, ensuring that technical capabilities and past performance are adequately considered alongside cost.

What are the historical spending patterns for IT systems maintenance at the Federal Law Enforcement Training Center?

Historical spending data for IT systems maintenance at the Federal Law Enforcement Training Center (FLETC) is not provided in this dataset. To assess historical patterns, one would need to analyze FLETC's procurement history over several fiscal years, looking at the total amount spent on IT maintenance, the number and value of contracts awarded, and the types of services procured. Understanding these patterns would help determine if the current $2.8 million award is consistent with past investments, represents an increase or decrease in spending, and whether there has been a shift in contracting strategies or service providers over time.

What is the significance of the NAICS code 541512 for this contract?

The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' signifies that the primary purpose of this contract is to provide services related to the design, development, integration, and potentially maintenance of computer systems. This code covers a broad range of IT services, including consulting, systems integration, and custom software development, as well as the ongoing support and maintenance of these systems. For this specific contract, it indicates that Sentrillion Corporation is expected to ensure the proper functioning, updates, and potentially upgrades of the IT infrastructure at the Federal Law Enforcement Training Center, aligning with the operational needs of the agency.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70LGLY24QSSB00062

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 117 S 1ST ST STE 101, SIERRA VISTA, AZ, 85635

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

Financial Breakdown

Contract Ceiling: $2,951,945

Exercised Options: $2,798,413

Current Obligation: $2,798,413

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F5525R

IDV Type: FSS

Timeline