DHS awards $6.3M IT contract to Lucayan Technology Solutions for computer systems design

Contract Overview

Contract Amount: $6,324,000 ($6.3M)

Contractor: Lucayan Technology Solutions LLC

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-27

End Date: 2025-06-27

Contract Duration: 273 days

Daily Burn Rate: $23.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PRIORITY SERICES INTEGRATION CONTRACTOR

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $6.3 million to LUCAYAN TECHNOLOGY SOLUTIONS LLC for work described as: PRIORITY SERICES INTEGRATION CONTRACTOR Key points: 1. Contract value appears reasonable for the scope of computer systems design services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 273 days is standard for this type of service. 4. Performance is expected to be within the IT sector, a critical area for DHS. 5. The award is a delivery order under a larger contract vehicle. 6. No small business set-aside was applied to this specific award.

Value Assessment

Rating: good

The contract value of $6.32 million for computer systems design services seems aligned with market rates for similar engagements. Benchmarking against other federal contracts for IT systems integration and design services indicates a competitive pricing structure. The firm-fixed-price nature of the contract further suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were likely solicited and allowed to bid. The presence of 3 bids suggests a moderate level of competition for this specific delivery order. While not the highest number of bidders, it still provides a basis for price discovery and ensures a selection from a pool of qualified offerors.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it promotes a competitive environment, driving down prices and ensuring the government receives the best value for its investment.

Public Impact

The Department of Homeland Security (DHS) will benefit from enhanced computer systems design and integration. Services delivered are critical for the operational efficiency and security of DHS IT infrastructure. The geographic impact is primarily within DHS operations, likely supporting national security functions. Workforce implications may include specialized IT professionals employed by Lucayan Technology Solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical IT systems design could pose a risk if performance issues arise.

Positive Signals

Awarded under full and open competition, indicating a robust selection process.
Firm-fixed-price contract type shifts cost risk to the contractor.
Lucayan Technology Solutions is a known entity in the IT services space.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design. The federal IT services market is substantial, with agencies like DHS being major consumers. This contract represents a portion of DHS's ongoing investment in modernizing and maintaining its complex technological infrastructure to support its diverse mission requirements.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means the primary award went to Lucayan Technology Solutions without a specific mandate to involve small businesses in this particular transaction. The impact on the small business ecosystem is neutral for this award, as it was competed broadly.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer's representative (COR) within the relevant DHS office. The firm-fixed-price nature provides a degree of accountability by tying payment to deliverables. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

DHS IT Modernization Programs
Federal Civilian IT Services
Computer Systems Design and Integration Contracts

Risk Flags

Potential for performance issues
Integration complexity with existing systems
Reliance on contractor expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $6.3 million to LUCAYAN TECHNOLOGY SOLUTIONS LLC. PRIORITY SERICES INTEGRATION CONTRACTOR

Who is the contractor on this award?

The obligated recipient is LUCAYAN TECHNOLOGY SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $6.3 million.

What is the period of performance?

Start: 2024-09-27. End: 2025-06-27.

What is the track record of Lucayan Technology Solutions with the Department of Homeland Security?

Lucayan Technology Solutions LLC has a history of performing IT services for various government agencies, including potentially DHS. To assess their track record specifically with DHS, a review of past contracts, performance evaluations (like past performance questionnaires or CPARS reports), and any documented issues or commendations would be necessary. Without access to these specific performance records, it's difficult to provide a detailed assessment. However, their ability to win this contract suggests they have met the minimum qualifications and demonstrated capability to the agency during the procurement process.

How does the value of this contract compare to similar IT systems design contracts awarded by DHS?

The $6.32 million value for this 273-day contract for computer systems design services needs to be benchmarked against similar awards. Factors such as the complexity of the systems, the specific services required (e.g., architecture, development, integration), and the duration of the contract are crucial for comparison. If similar contracts for comparable scope and duration have been awarded in the range of $5-8 million, then this award appears to be within a reasonable market range. A deeper analysis would involve comparing the specific tasks and deliverables outlined in the contract statement of work.

What are the primary risks associated with this contract for DHS?

Key risks for DHS include potential performance issues if Lucayan Technology Solutions fails to deliver the required computer systems design services effectively and on time. There's also a risk of cost overruns if the firm-fixed-price contract is poorly managed or if unforeseen technical challenges arise, although the FFP structure places this risk primarily on the contractor. Another risk could be the integration of the designed systems with existing DHS infrastructure, which can be complex. Finally, vendor lock-in or over-reliance on a single vendor for critical IT functions could be a long-term concern.

How effective is the 'full and open competition after exclusion of sources' method for this type of IT service?

The 'full and open competition after exclusion of sources' method is a variation of full and open competition designed to ensure broad participation while potentially excluding specific sources for defined reasons (e.g., national security, prior performance issues). For IT services like computer systems design, this method aims to maximize competition among qualified vendors, leading to better pricing and innovative solutions. The fact that 3 bids were received suggests it was reasonably effective in attracting multiple capable offerors, though the optimal level of competition can vary based on the specific niche and market dynamics.

What is the historical spending trend for computer systems design services at DHS?

Analyzing historical spending trends for computer systems design services at DHS would require access to historical contract data. Generally, federal agencies like DHS have consistently invested significant amounts in IT services, including systems design, to maintain and upgrade their complex operational and administrative systems. Spending in this area often fluctuates based on agency priorities, budget allocations, and the lifecycle of existing systems. A trend analysis would reveal if spending on such services has been increasing, decreasing, or remaining stable over the past several fiscal years.

What are the implications of this contract being a 'Delivery Order'?

This contract being a 'Delivery Order' signifies that it is a task order issued under a pre-existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar type of contract vehicle. This means the underlying contract was already competed and awarded, and this delivery order represents a specific task with defined scope, price, and delivery schedule. The implications are that the competition for the overall contract vehicle likely occurred previously, and this order is a specific exercise of that contract. It allows for flexibility and streamlined procurement for defined needs.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70RCSJ24R00000013

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1600 E 8TH AVE, TAMPA, FL, 33605

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $6,324,000

Exercised Options: $6,324,000

Current Obligation: $6,324,000

Actual Outlays: $6,275,839

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB22D0276

IDV Type: GWAC

Timeline