DHS awards $20.8M contract for IT systems design to ITC Federal, LLC, with 10 offers received

Contract Overview

Contract Amount: $20,860,791 ($20.9M)

Contractor: ITC Federal, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2021-09-24

End Date: 2026-08-22

Contract Duration: 1,793 days

Daily Burn Rate: $11.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: DELIVERY MANAGEMENT OPERATIONS SERVICES (DMOS)

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22304

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $20.9 million to ITC FEDERAL, LLC for work described as: DELIVERY MANAGEMENT OPERATIONS SERVICES (DMOS) Key points: 1. Contract value of $20.8M over 5 years suggests a significant investment in IT support. 2. Full and open competition indicates a potentially competitive bidding process. 3. The contract is for Computer Systems Design Services, a critical function for agency operations. 4. Delivery Order type suggests this is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The Time and Materials pricing structure may pose cost control challenges if not managed carefully. 6. The contract is managed by U.S. Citizenship and Immigration Services within DHS. 7. The vendor, ITC Federal, LLC, has secured a substantial award in this domain.

Value Assessment

Rating: good

The contract value of $20.8 million over approximately five years averages to about $4.16 million annually. Benchmarking this against similar IT systems design contracts is challenging without more specific service details. However, the number of offers received (10) suggests a healthy level of interest, which can contribute to fair pricing. The Time and Materials (T&M) pricing model, while flexible, requires diligent oversight to ensure value for money and prevent cost overruns compared to fixed-price arrangements.

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 the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. The receipt of 10 offers suggests a robust competitive environment, which typically drives down prices and encourages innovation. A higher number of bidders generally leads to better price discovery and a stronger likelihood that the government is receiving competitive rates for the services rendered.

Taxpayer Impact: The strong competition for this contract is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source or limited competition award. It signals that taxpayer funds are being used efficiently by leveraging market forces to secure necessary IT services.

Public Impact

Citizens and immigrants will benefit from improved IT systems supporting USCIS operations. The contract delivers essential computer systems design services to a key component of DHS. The primary geographic impact is within Virginia, where the contractor is located. The contract supports IT professionals and potentially other roles within ITC Federal, LLC, impacting the workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not closely monitored.
The specific scope of 'Computer Systems Design Services' needs clear definition to ensure alignment with agency needs.
Reliance on a single vendor for critical IT systems design could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Multiple offers received (10) suggest strong vendor interest and potential for good pricing.
The contract duration of nearly five years provides stability for service delivery.

Sector Analysis

The IT services sector is a vast and critical component of federal spending. Computer Systems Design Services, specifically, encompass a wide range of activities from initial consultation and system analysis to design, development, and implementation. Federal agencies increasingly rely on specialized IT support to manage complex data, enhance cybersecurity, and improve operational efficiency. This contract fits within the broader trend of agencies outsourcing specialized IT functions to private sector firms, with spending in this category often fluctuating based on modernization needs and technological advancements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, ITC Federal, LLC, is likely a larger entity. While there is no direct small business set-aside, the contract's success could indirectly benefit small businesses if ITC Federal, LLC engages them as subcontractors for specialized tasks or components. However, without specific subcontracting plans detailed in the award, the direct impact on the small business ecosystem remains uncertain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and specifically the U.S. Citizenship and Immigration Services (USCIS). Mechanisms likely include regular performance reviews, milestone tracking, and financial audits, especially given the Time and Materials pricing structure. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected within the contract's execution.

Related Government Programs

Department of Homeland Security IT Services
USCIS IT Modernization Efforts
Computer Systems Design Services Contracts
Time and Materials IT Contracts
Federal IT Support Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Need for robust oversight to manage T&M expenditures effectively.
Dependence on a single vendor for critical IT systems design.
Clarity of scope definition for 'Computer Systems Design Services'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20.9 million to ITC FEDERAL, LLC. DELIVERY MANAGEMENT OPERATIONS SERVICES (DMOS)

Who is the contractor on this award?

The obligated recipient is ITC FEDERAL, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $20.9 million.

What is the period of performance?

Start: 2021-09-24. End: 2026-08-22.

What is the track record of ITC Federal, LLC in delivering similar IT systems design services to the federal government?

Assessing ITC Federal, LLC's track record requires a deeper dive into their past performance on federal contracts, particularly those involving Computer Systems Design Services. While this award indicates they were deemed capable by USCIS, a comprehensive review would involve examining past contract performance evaluations (e.g., CPARS reports), the size and complexity of previous projects, and any history of performance issues or commendations. Without access to specific performance data for ITC Federal, LLC, it's difficult to definitively assess their reliability and expertise beyond the fact that they secured this significant award. Their ability to successfully manage this $20.8M contract over nearly five years will be a key indicator of their capabilities.

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

The average annual value of this contract is approximately $4.16 million ($20.8M / 5 years). To benchmark this effectively, we would need to compare it against the average annual values of other Computer Systems Design Services contracts awarded by DHS and USCIS over a similar period. Factors such as contract duration, scope of work, and specific service requirements heavily influence contract value. If similar contracts for comparable services typically range from $2M to $6M annually, then this award falls within a reasonable range. However, without a broader dataset of comparable contracts, it's difficult to definitively state whether this represents particularly high or low spending.

What are the primary risks associated with the Time and Materials (T&M) pricing structure for this contract?

The primary risk associated with the Time and Materials (T&M) pricing structure is the potential for cost overruns and a lack of definitive cost control. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual time and materials used. If not managed rigorously, this can lead to scope creep, inefficient labor utilization, and inflated costs, as the contractor may have less incentive to complete tasks quickly or efficiently. For the government, this necessitates robust oversight, detailed tracking of hours and materials, and clear definition of 'best practices' to ensure fair pricing and prevent contractor inefficiencies from being passed on. The success of this contract hinges on effective government monitoring of the T&M expenditures.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring competitive pricing for IT services?

The 'Full and Open Competition After Exclusion of Sources' method is generally considered effective in ensuring competitive pricing for IT services. This approach signifies that the solicitation was widely publicized, allowing all responsible vendors to participate, but specific sources were excluded for defined reasons (e.g., existing contracts, specific capabilities). The key benefit is the broad reach, which encourages multiple bids. With 10 offers received, this suggests a healthy competition that should drive prices down towards market rates. The effectiveness is maximized when the solicitation clearly defines requirements and evaluation criteria, ensuring that vendors compete on both price and technical merit, ultimately benefiting the taxpayer through potentially lower costs and better value.

What is the historical spending trend for Computer Systems Design Services at USCIS or DHS?

Analyzing historical spending trends for Computer Systems Design Services at USCIS or DHS would provide crucial context for this $20.8M award. If historical spending in this category has been consistently high, it might indicate a stable, ongoing need for these services. Conversely, a sudden spike could signal a new initiative or a shift in strategy. Understanding past spending patterns, including the number and value of similar contracts awarded over the last 5-10 years, helps determine if this award is an anomaly or part of a sustained investment. It also aids in identifying potential cost efficiencies or areas where spending has increased disproportionately.

What are the implications of this contract being a Delivery Order under a larger IDIQ contract?

This contract being a Delivery Order (DO) under an unspecified larger Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract means that the underlying framework and terms were likely established previously, possibly through a different competitive process. The IDIQ vehicle allows the government to procure services over a period, and this DO represents a specific task order with defined scope, price, and delivery schedule. The implications include potential efficiencies gained from pre-negotiated terms and rates, but also a need to ensure that the original IDIQ competition was robust and that this specific DO aligns with the overall scope and intent of the parent contract. It also means that the $20.8M is a ceiling for this specific order, not necessarily the total amount spent.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70SBUR21R00000011

Offers Received: 10

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 4114 LEGATO RD, FAIRFAX, VA, 22033

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

Financial Breakdown

Contract Ceiling: $20,860,791

Exercised Options: $20,860,791

Current Obligation: $20,860,791

Actual Outlays: $13,660,425

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCH18D0027

IDV Type: GWAC

Timeline