DHS awards $6M R&D contract for Community Lifeline System platform to G & H International Services Inc

Contract Overview

Contract Amount: $5,996,383 ($6.0M)

Contractor: G & H International Services Inc

Awarding Agency: Department of Homeland Security

Start Date: 2023-09-22

End Date: 2025-09-21

Contract Duration: 730 days

Daily Burn Rate: $8.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: NEW CONTRACT COMMUNITY LIFELINE SYSTEM (CLS) PLATFORM

Place of Performance

Location: FALLS CHURCH, FALLS CHURCH CITY County, VIRGINIA, 22046

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $6.0 million to G & H INTERNATIONAL SERVICES INC for work described as: NEW CONTRACT COMMUNITY LIFELINE SYSTEM (CLS) PLATFORM Key points: 1. Contract focuses on research and development in physical, engineering, and life sciences. 2. Awarded under full and open competition, indicating a broad market search. 3. Contract type is Cost Plus Fixed Fee, which can incentivize cost overruns if not managed closely. 4. Performance period spans two years, suggesting a project of moderate duration. 5. The contract is a definitive contract, typically used for complex or uncertain scopes. 6. The North American Industry Classification System (NAICS) code 541715 points to specialized R&D services.

Value Assessment

Rating: fair

The contract value of $5,996,383.24 for a two-year R&D effort appears within a reasonable range for specialized technology development. Benchmarking against similar R&D contracts is challenging due to the unique nature of the 'Community Lifeline System (CLS) Platform.' However, the Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring to ensure costs remain controlled and that the fixed fee adequately compensates the contractor for the effort without excessive profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that the Department of Homeland Security sought proposals from all responsible sources. The presence of only one bid (no: 1) is a notable point, as it limits the direct comparison of pricing and technical approaches. While competition was open, the low number of bids could indicate a niche market, high barriers to entry, or potentially a lack of market awareness.

Taxpayer Impact: A single bid under full and open competition raises questions about whether the government received the best possible price. While the process was open, taxpayers may not have benefited from the full spectrum of competitive pressure that could have driven down costs.

Public Impact

The CLS platform is intended to enhance community resilience and emergency response capabilities. Benefits likely extend to federal, state, and local emergency management agencies. The R&D effort could lead to improved communication and coordination during crises. Workforce implications may include specialized R&D personnel and potential future operational roles. Geographic impact is broad, aiming to support communities nationwide.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only one bid received under full and open solicitation.
Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to prevent cost escalation.
The specific nature of the CLS platform may present unique technical risks.
The R&D scope implies inherent uncertainty in deliverables and timelines.

Positive Signals

Awarded under full and open competition, adhering to principles of broad market access.
The contract supports a critical area of national security and emergency preparedness.
G & H International Services Inc. is a known entity in government contracting.
The two-year performance period allows for focused development and testing.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for specialized R&D services supporting homeland security and emergency management is often niche, requiring contractors with specific expertise. Comparable spending benchmarks are difficult to establish without more detail on the CLS platform's technical specifications, but R&D contracts can range significantly in value based on complexity and duration.

Small Business Impact

The contract indicates that small business set-asides were not utilized (sb: false). There is no explicit mention of subcontracting goals for small businesses within the provided data. This suggests that the primary contractor, G & H International Services Inc., will likely manage the majority of the work internally or through larger partners, with potential limited opportunities for small business subcontractors unless specified in the contract's statement of work.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Homeland Security's contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates robust financial oversight to track expenditures against the fixed fee and ensure compliance with contract terms. Transparency will depend on DHS's reporting practices and any Inspector General (IG) involvement, which is standard for contracts of this nature.

Related Government Programs

Homeland Security Advanced Research Projects Agency (HSARPA) initiatives
National Urban Security Technology Laboratory (NUSTL) projects
Emergency Management and Response Technology Development
Critical Infrastructure Protection Research

Risk Flags

Limited competition (1 bid)
CPFF contract type requires close cost monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $6.0 million to G & H INTERNATIONAL SERVICES INC. NEW CONTRACT COMMUNITY LIFELINE SYSTEM (CLS) PLATFORM

Who is the contractor on this award?

The obligated recipient is G & H INTERNATIONAL SERVICES INC.

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 $6.0 million.

What is the period of performance?

Start: 2023-09-22. End: 2025-09-21.

What is the specific technical scope and expected outcome of the Community Lifeline System (CLS) Platform?

The provided data does not detail the specific technical scope or expected outcomes of the Community Lifeline System (CLS) Platform. However, based on the contract's NAICS code (541715 - Research and Development in the Physical, Engineering, and Life Sciences) and the awarding agency (Department of Homeland Security), it can be inferred that the CLS platform is likely a technological solution designed to enhance communication, coordination, and resilience during emergencies or critical events. This could involve software development, data integration, network infrastructure research, or a combination thereof, aimed at improving the ability of communities to respond to and recover from disruptions.

How does the Cost Plus Fixed Fee (CPFF) structure impact cost control for this R&D contract?

The Cost Plus Fixed Fee (CPFF) contract structure means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. For R&D, this structure can be beneficial as it allows flexibility to explore solutions without strict cost ceilings initially. However, it places a significant burden on the government to meticulously monitor and audit costs to prevent overruns. The 'fixed fee' component provides some incentive for the contractor to manage costs efficiently to protect their profit margin, but it does not offer the same cost-saving pressure as fixed-price contracts. Robust oversight is crucial to ensure the government receives good value and that costs do not escalate beyond what is necessary for the R&D effort.

What are the potential risks associated with a single bid under full and open competition?

A single bid under full and open competition presents several potential risks. Firstly, it significantly limits the government's ability to compare pricing and technical approaches, potentially leading to a suboptimal price for taxpayers. Secondly, it raises questions about the effectiveness of the solicitation process – was the market adequately reached, or are there high barriers to entry for other potential bidders? This lack of competition could indicate a lack of market interest, a highly specialized niche, or that other potential contractors were deterred for reasons unknown. Consequently, the government may not have achieved the best possible value or innovation that broader competition could have fostered.

What is the track record of G & H International Services Inc. in R&D contracts with the federal government?

The provided data does not include specific details on G & H International Services Inc.'s track record in R&D contracts. However, as a contractor awarded this definitive contract by the Department of Homeland Security, it is presumed they possess the necessary qualifications and experience. Further research into their contract history, past performance evaluations, and specific R&D project successes would be required to fully assess their capabilities and reliability in this domain. The award itself suggests they met the government's criteria for this specific requirement.

How does this $6M R&D contract compare to other federal spending in the 'Research and Development in the Physical, Engineering, and Life Sciences' sector?

A $6 million contract for R&D in the physical, engineering, and life sciences is considered a moderate-sized award within this broad sector. Federal spending in R&D is extensive, encompassing billions of dollars annually across various agencies like the Department of Defense, National Science Foundation, and NIH. While this specific contract is significant for the project it funds, it represents a small fraction of the overall federal R&D investment. Its value is more appropriately benchmarked against similar specialized R&D efforts within homeland security or related fields, rather than the entirety of federal R&D spending.

What are the implications of the two-year performance period for the CLS platform development?

A two-year performance period (730 days) for the Community Lifeline System (CLS) Platform R&D suggests a focused, phased approach to development and testing. This duration is typical for projects requiring significant research, prototyping, and validation without being excessively long, which could lead to scope creep or outdated technology. It implies that the initial phase of development is expected to yield tangible results or a functional prototype within this timeframe. The success of the project will depend on effective project management and clear milestones being met within these two years.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 303 N VIRGINIA AVE, FALLS CHURCH, VA, 22046

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

Financial Breakdown

Contract Ceiling: $5,996,383

Exercised Options: $5,996,383

Current Obligation: $5,996,383

Actual Outlays: $5,914,688

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline