DHS awards $39.7M for IT project management and technical support to ASRC Federal

Contract Overview

Contract Amount: $39,732,652 ($39.7M)

Contractor: Asrc Federal Data Network Technologies, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2021-09-07

End Date: 2024-09-06

Contract Duration: 1,095 days

Daily Burn Rate: $36.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: DHS IDENTITY SERVICES BRANCH (ISB) PROJECT MANAGEMENT AND TECHNICAL SUPPORT RENEWAL. THIS INCLUDES PMO, DEVELOPMENT/ENGINEERING FOR ALM, TIE, APPAUTH, AND OPERATIONS FOR ALL ISB SYSTEMS. THIS IS A T&M ORDER.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $39.7 million to ASRC FEDERAL DATA NETWORK TECHNOLOGIES, LLC for work described as: DHS IDENTITY SERVICES BRANCH (ISB) PROJECT MANAGEMENT AND TECHNICAL SUPPORT RENEWAL. THIS INCLUDES PMO, DEVELOPMENT/ENGINEERING FOR ALM, TIE, APPAUTH, AND OPERATIONS FOR ALL ISB SYSTEMS. THIS IS A T&M ORDER. Key points: 1. The contract focuses on critical identity services (ALM, TIE, APPAUTH) for DHS. 2. ASRC Federal Data Network Technologies, LLC is the incumbent contractor. 3. The contract is a Time and Materials (T&M) order, which can pose cost risks. 4. The sector is IT services, specifically Computer Systems Design.

Value Assessment

Rating: questionable

The Time and Materials (T&M) pricing model for this $39.7M contract raises concerns about cost control. Without fixed price elements or strong oversight, the final cost could significantly exceed initial estimates, especially given the 3-year duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the T&M nature of the award may limit price discovery and incentivize increased labor hours rather than efficient solutions.

Taxpayer Impact: The T&M contract type presents a risk of cost overruns, potentially leading to higher taxpayer expenditure than a fixed-price contract for similar services.

Public Impact

Ensures continued operation and development of essential DHS identity management systems. Supports national security by maintaining the integrity of federal identity services. Potential for increased costs due to T&M contract type impacts taxpayer funds. ASRC Federal continues to hold a significant contract with a key federal agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type
Potential for cost overruns
Long contract duration (3 years)

Positive Signals

Full and open competition
Supports critical DHS functions
Incumbent contractor with established expertise

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical area for government IT infrastructure. Benchmarks for similar T&M contracts in this space can vary widely, but effective cost management is paramount.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to ASRC Federal Data Network Technologies, LLC, a large business. There is no indication of small business participation in this specific award.

Oversight & Accountability

The Time and Materials contract type necessitates robust oversight from DHS to monitor labor hours, control costs, and ensure efficient service delivery. Regular performance reviews and audits are crucial for accountability.

Related Government Programs

Computer Systems Design Services
Department of Homeland Security Contracting
Office of Procurement Operations Programs

Risk Flags

Time and Materials pricing model
Potential for cost overruns
Lack of small business participation
Long contract duration
Reliance on incumbent contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $39.7 million to ASRC FEDERAL DATA NETWORK TECHNOLOGIES, LLC. DHS IDENTITY SERVICES BRANCH (ISB) PROJECT MANAGEMENT AND TECHNICAL SUPPORT RENEWAL. THIS INCLUDES PMO, DEVELOPMENT/ENGINEERING FOR ALM, TIE, APPAUTH, AND OPERATIONS FOR ALL ISB SYSTEMS. THIS IS A T&M ORDER.

Who is the contractor on this award?

The obligated recipient is ASRC FEDERAL DATA NETWORK TECHNOLOGIES, 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 $39.7 million.

What is the period of performance?

Start: 2021-09-07. End: 2024-09-06.

What specific metrics are in place to ensure the value delivered by ASRC Federal aligns with the T&M expenditures?

The agency should implement strict monitoring of labor hours, require detailed justifications for all work performed, and conduct regular performance reviews against defined objectives. Key Performance Indicators (KPIs) related to system uptime, response times, and project milestones should be tracked and compared against T&M costs to ensure value realization and prevent scope creep or inefficient resource allocation.

How does DHS mitigate the inherent risks of cost overruns associated with this T&M contract?

DHS can mitigate T&M risks through several strategies. This includes establishing clear ceilings on the contract, implementing rigorous approval processes for all work hours, defining specific deliverables with associated cost estimates, and conducting frequent audits of invoices and timesheets. Strong project management and proactive communication with the contractor are essential to identify and address potential cost escalations early.

What is the long-term strategy for ensuring the effectiveness and cost-efficiency of DHS identity services beyond this renewal?

The long-term strategy should involve exploring more fixed-price or performance-based contract structures for future procurements to incentivize efficiency and predictable costs. Additionally, DHS should consider investing in internal capabilities, exploring technological advancements that could reduce reliance on external support, and conducting market research to ensure competitive pricing and innovative solutions are consistently evaluated.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70RTAC21Q00000073

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation

Address: 7000 MUIRKIRK MEADOWS DR STE 100, BELTSVILLE, MD, 20705

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,071,421

Exercised Options: $39,732,652

Current Obligation: $39,732,652

Actual Outlays: $31,771,849

Subaward Activity

Number of Subawards: 24

Total Subaward Amount: $21,187,098

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA19D00FN

IDV Type: FSS

Timeline