DHS awards $5M contract for Real Property Management System to Workstate Consulting, LLC

Contract Overview

Contract Amount: $5,012,966 ($5.0M)

Contractor: Workstate Consulting, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-09-22

End Date: 2026-09-21

Contract Duration: 1,095 days

Daily Burn Rate: $4.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SINGLE AWARD TASK ORDER FOR REAL PROPERTY MANAGEMENT SYSTEM (RPMS) IN SUPPORT OF THE DEPARTMENT OF HOMELAND SECURITY (DHS), MANAGEMENT DIRECTORATE (MGMT), FACILITIES AND OPERATIONAL SUPPORT (FOS), OFFICE OF THE CHIEF READINESS SUPPORT OFFICER (OCRSO)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $5.0 million to WORKSTATE CONSULTING, LLC for work described as: SINGLE AWARD TASK ORDER FOR REAL PROPERTY MANAGEMENT SYSTEM (RPMS) IN SUPPORT OF THE DEPARTMENT OF HOMELAND SECURITY (DHS), MANAGEMENT DIRECTORATE (MGMT), FACILITIES AND OPERATIONAL SUPPORT (FOS), OFFICE OF THE CHIEF READINESS SUPPORT OFFICER (OCRSO) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1095 days (3 years) indicates a medium-term need for the system. 3. The fixed-price contract type aims to control costs and provide budget certainty. 4. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services. 5. The award is for a Real Property Management System, crucial for facilities and operational support. 6. The contract value of approximately $5 million over three years suggests a significant investment in IT infrastructure.

Value Assessment

Rating: good

The contract value of $5,012,965.70 over three years for a Real Property Management System appears reasonable given the scope of custom computer programming services. Benchmarking against similar custom software development contracts for government agencies of this size and complexity would provide further insight. The firm fixed-price structure suggests an effort to manage costs effectively, but the ultimate value for money will depend on the system's performance and the contractor's ability to deliver within budget.

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 a bid. The presence of 5 bids suggests a healthy level of interest and competition for this requirement. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process, which is expected to drive down costs and ensure the government receives the best possible value for its investment in the Real Property Management System.

Public Impact

The Department of Homeland Security (DHS) will benefit from an improved Real Property Management System. The system is intended to support facilities and operational support functions within the Management Directorate. This contract will likely impact IT professionals and developers involved in the creation and maintenance of the system. The geographic impact is primarily within the District of Columbia, where DHS facilities are managed.

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 a critical system could pose a risk if performance issues arise.
Ensuring the system meets all DHS operational needs requires robust oversight and testing.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm fixed-price contract provides cost certainty for the government.
The system addresses a clear need for real property management within DHS.

Sector Analysis

The IT services sector, particularly custom computer programming, is a significant area of federal spending. Contracts for specialized systems like Real Property Management Systems are common across various agencies to manage assets and operations efficiently. The market for such services is competitive, with numerous firms capable of developing and implementing complex software solutions. Federal spending in this area often benchmarks against commercial IT development costs, adjusted for government-specific requirements and security protocols.

Small Business Impact

This contract was not set aside for small businesses and was awarded under full and open competition. There is no explicit mention of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The firm fixed-price nature of the contract provides a degree of financial oversight. The Department of Homeland Security's Office of Procurement Operations managed the award. Further oversight would typically involve program management reviews, performance monitoring, and potentially audits by the DHS Office of Inspector General, especially concerning the system's functionality and adherence to requirements.

Related Government Programs

Federal Real Estate Management Systems
Government Facilities Management IT Solutions
Department of Homeland Security IT Contracts
Custom Software Development for Government

Risk Flags

Potential for cost overruns if scope is not managed.
Risk of system not meeting all functional requirements.
Contractor performance issues could impact delivery timeline.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $5.0 million to WORKSTATE CONSULTING, LLC. SINGLE AWARD TASK ORDER FOR REAL PROPERTY MANAGEMENT SYSTEM (RPMS) IN SUPPORT OF THE DEPARTMENT OF HOMELAND SECURITY (DHS), MANAGEMENT DIRECTORATE (MGMT), FACILITIES AND OPERATIONAL SUPPORT (FOS), OFFICE OF THE CHIEF READINESS SUPPORT OFFICER (OCRSO)

Who is the contractor on this award?

The obligated recipient is WORKSTATE CONSULTING, 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 $5.0 million.

What is the period of performance?

Start: 2023-09-22. End: 2026-09-21.

What is the track record of Workstate Consulting, LLC with federal contracts, particularly for similar IT systems?

A review of federal procurement data would be necessary to fully assess Workstate Consulting, LLC's track record. Specifically, one would look for past performance on contracts of similar size, scope, and complexity, especially those involving custom software development for government agencies. Examining past performance evaluations, any contract disputes, or awards for exceptional performance would provide crucial context. Without this specific data, it's difficult to definitively assess their suitability beyond the fact that they were selected in a competitive process for this particular award.

How does the awarded price of approximately $5 million compare to similar Real Property Management System contracts within the federal government?

To benchmark the $5 million award, one would need to compare it against similar contracts for Real Property Management Systems (RPMS) or comparable custom IT solutions awarded by other federal agencies. Key comparison points would include contract duration, scope of services (e.g., modules included, customization level), number of users supported, and the specific functionalities required. Factors like the complexity of the agency's real property portfolio and the level of integration with existing systems also influence cost. A preliminary assessment suggests the price is within a typical range for a multi-year, custom-developed government IT system, but a detailed comparative analysis is needed for a definitive conclusion.

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

Primary risks include potential cost overruns if the fixed-price contract doesn't adequately account for unforeseen technical challenges or scope creep, and performance risks if the system doesn't meet DHS's operational requirements. Schedule delays are also a concern in custom software development. Mitigation strategies likely involve robust project management by DHS, clear definition and control of scope, regular performance reviews, and potentially phased delivery with acceptance testing at each stage. The contractor's own risk management practices and adherence to the contract terms are also critical.

How effective is the chosen competition level (full and open) in ensuring value for money for this specific type of IT system?

A full and open competition is generally considered the most effective method for ensuring value for money, especially for complex IT systems where multiple vendors may possess the necessary capabilities. It maximizes the pool of potential bidders, fostering a competitive environment that can drive down prices and encourage innovation. The fact that 5 bids were received suggests that the market was sufficiently robust for this approach. The effectiveness will ultimately be measured by the quality of the delivered system and its cost-efficiency over its lifecycle, as assessed through ongoing performance monitoring.

What are the historical spending patterns for Real Property Management Systems or similar IT infrastructure projects within DHS?

Analyzing historical spending patterns for similar IT projects within DHS would provide context for the $5 million award. This would involve examining past contracts for facilities management software, asset tracking systems, or other custom IT solutions procured by DHS or its component agencies. Understanding the typical contract values, durations, and the types of services procured can help determine if this award is consistent with past investments or represents a significant shift in spending priorities or technological approach. It also helps in identifying trends in IT procurement within the department.

What are the implications of the firm fixed-price contract type on potential cost savings or overruns?

A firm fixed-price (FFP) contract is designed to provide the government with cost certainty, as the contractor assumes most of the risk for cost overruns. This means the $5 million is the target price, and the contractor is obligated to complete the work within that budget. If costs exceed expectations for the contractor, their profit margin shrinks or they incur a loss. Conversely, if they can complete the work for less than anticipated, their profit increases. This structure incentivizes the contractor to be efficient and manage costs tightly, potentially leading to savings for the government if managed well. However, it can also lead to the contractor cutting corners on quality if not properly overseen.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70RDAD23Q00000215

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 30 SPRUCE ST, COLUMBUS, OH, 43215

Business Categories: Category Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,012,966

Exercised Options: $5,012,966

Current Obligation: $5,012,966

Actual Outlays: $3,651,945

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA22D003F

IDV Type: FSS

Timeline