DHS awards $7.1M contract for HSIN support to Nexttech Lintech LLC, a sole-source award

Contract Overview

Contract Amount: $7,094,152 ($7.1M)

Contractor: Nextech Lintech LLC

Awarding Agency: Department of Homeland Security

Start Date: 2024-03-06

End Date: 2027-03-10

Contract Duration: 1,099 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 32

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE OF THIS REQUIREMENT IS TO PROCURE HSIN EXTERNAL FACING TIER I, II, AND OPERATIONS SUPPORT.

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22150

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $7.1 million to NEXTECH LINTECH LLC for work described as: THE PURPOSE OF THIS REQUIREMENT IS TO PROCURE HSIN EXTERNAL FACING TIER I, II, AND OPERATIONS SUPPORT. Key points: 1. The contract focuses on essential operational support for the Homeland Security Information Network (HSIN). 2. The award was made under a 'full and open competition after exclusion of sources' justification, indicating a specific reason for limiting the field. 3. The duration of the contract is approximately three years, suggesting a need for sustained support. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services. 6. The award is a Delivery Order, implying it's part of a larger contract vehicle.

Value Assessment

Rating: fair

The contract value of $7.1 million over approximately three years for IT operations support appears within a reasonable range for government contracts of this nature. However, without specific details on the scope of services and the number of comparable contracts, a precise value-for-money assessment is challenging. The firm fixed-price structure is generally favorable for cost control, but the limited competition could potentially impact pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This designation suggests that while the competition was intended to be open, specific criteria or circumstances led to the exclusion of certain potential bidders. The number of bidders is not specified, but the justification implies a limited pool of qualified offerors, which can impact price discovery and potentially lead to higher costs compared to a truly open competition with multiple bids.

Taxpayer Impact: The limited competition means taxpayers may not have benefited from the lowest possible price that could have been achieved through a broader bidding process. This could result in a less efficient use of public funds if alternative, more cost-effective solutions were not fully explored.

Public Impact

The primary beneficiary is the Department of Homeland Security (DHS), which will receive critical IT operations support for its HSIN platform. The services delivered will ensure the continued functionality and security of a vital information-sharing network used across federal, state, and local agencies. The geographic impact is national, as HSIN supports a wide range of government entities involved in homeland security operations. The contract supports the IT sector workforce, likely involving skilled computer systems designers and support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential price inflation and reduced innovation.
The 'exclusion of sources' justification requires further scrutiny to ensure it was appropriate and did not unduly restrict competition.
Lack of detailed performance metrics in the provided data makes it difficult to assess the contractor's past performance and future effectiveness.

Positive Signals

The firm fixed-price contract structure provides cost certainty for the government.
The contract duration of nearly three years indicates a stable, ongoing need for these services.
The award to Nexttech Lintech LLC suggests they possess the specialized capabilities required for HSIN operations support.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design and related services. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading critical infrastructure like information networks. Benchmarks for similar IT support contracts vary widely based on scope, complexity, and security requirements, but a $7.1 million award over three years for operational support is a moderate-sized engagement within this sector.

Small Business Impact

The data indicates that small business participation (sb: false) and set-asides (ss: false) were not factors in this specific award. This means the contract was not specifically targeted towards small businesses, and there is no indication of subcontracting opportunities for small businesses within this particular delivery order. The impact on the small business ecosystem is therefore neutral to potentially negative if small businesses with relevant capabilities were excluded from consideration.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's procurement and program management offices. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services within the agreed price. Transparency could be enhanced by making the justification for 'exclusion of sources' publicly available and detailing the performance metrics against which Nexttech Lintech LLC will be measured.

Related Government Programs

Homeland Security Information Network (HSIN)
Department of Homeland Security IT Modernization Efforts
Federal Civilian IT Services Contracts
Computer Systems Design Services

Risk Flags

Limited competition justification requires review.
Potential for price inflation due to limited competition.
Need for clear performance metrics to ensure accountability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $7.1 million to NEXTECH LINTECH LLC. THE PURPOSE OF THIS REQUIREMENT IS TO PROCURE HSIN EXTERNAL FACING TIER I, II, AND OPERATIONS SUPPORT.

Who is the contractor on this award?

The obligated recipient is NEXTECH LINTECH 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 $7.1 million.

What is the period of performance?

Start: 2024-03-06. End: 2027-03-10.

What specific services are included under 'HSIN External Facing Tier I, II, and Operations Support'?

The provided data offers a high-level purpose but lacks granular detail on the specific services. 'Tier I' and 'Tier II' support typically refer to different levels of technical assistance, with Tier I being initial customer support and Tier II involving more in-depth troubleshooting. 'Operations Support' likely encompasses system maintenance, monitoring, security patching, user management, and ensuring the overall availability and performance of the HSIN platform. A comprehensive understanding would require reviewing the detailed Performance Work Statement (PWS) associated with this delivery order, which would outline specific tasks, deliverables, and service level agreements.

What was the justification for 'full and open competition after exclusion of sources', and how many other sources were considered?

The justification 'full and open competition after exclusion of sources' implies that while the initial intent was open competition, specific circumstances led to the exclusion of certain potential offerors. Common reasons include proprietary data, unique capabilities, or urgent needs where only a limited number of contractors could realistically meet the requirements within the timeframe. The provided data does not specify the exact justification or the number of other sources considered or excluded. Further investigation into the contract award file, specifically the Justification for Other than Full and Open Competition (JOFOC) or equivalent documentation, would be necessary to understand the rationale and the extent of competition.

How does the $7.1 million contract value compare to historical spending on HSIN operations support?

To assess this, one would need to analyze historical spending data for HSIN operations support contracts awarded by DHS. This would involve searching federal procurement databases (like FPDS or USASpending) for similar contracts over the past several years, filtering by the relevant agency (DHS), service type (IT operations, system support), and potentially the HSIN program itself. Comparing the total value, duration, and scope of this $7.1 million award against historical averages and outliers would reveal whether this represents an increase, decrease, or consistent level of investment in HSIN operations support.

What is Nexttech Lintech LLC's track record with similar government IT support contracts?

Evaluating Nexttech Lintech LLC's track record would involve searching federal procurement databases for past awards to this contractor. Key metrics to examine would include the types of services rendered, contract values, agencies served, performance ratings (if available), and any history of contract modifications, protests, or terminations. Understanding their experience with large-scale IT operations support, particularly for critical infrastructure or information networks similar to HSIN, would provide insight into their capability to successfully execute this current contract.

Are there any specific performance risks associated with this contract, given the limited competition?

Limited competition inherently introduces risks related to price and performance. Without robust competition, there's less pressure on the contractor to offer the most competitive pricing, potentially leading to higher costs for taxpayers. Furthermore, if the 'exclusion of sources' was not adequately justified, it might indicate a failure to identify all capable vendors, potentially limiting the pool of contractors with the best-suited expertise. Risks could also arise if the contractor lacks sufficient incentive to innovate or improve service delivery due to a lack of competitive pressure. Monitoring contractor performance closely against clearly defined metrics will be crucial to mitigate these risks.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - DELIVERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70RTAC24R00000004

Offers Received: 32

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 18481 W 10 MILE RD STE 202, SOUTHFIELD, MI, 48075

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,393,332

Exercised Options: $9,323,332

Current Obligation: $7,094,152

Actual Outlays: $5,348,097

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB22D0218

IDV Type: GWAC

Timeline