DHS awards $191.8M contract for service center operations support to ITC Federal, LLC

Contract Overview

Contract Amount: $191,821,731 ($191.8M)

Contractor: ITC Federal, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-12-01

End Date: 2025-11-30

Contract Duration: 1,095 days

Daily Burn Rate: $175.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: Other

Official Description: SERVICE CENTER OPERATIONS SUPPORT SERVICES (SCOSS) NEXT GENERATION (NEXTGEN) TO INCLUDE PROGRAM MANAGEMENT, CORRESPONDENCE MANAGEMENT, DATA COLLECTION & FILE OPERATIONS SUPPORT FOR THE SERVICE CENTER OPERATIONS (SCOPS) DIRECTORATE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20529

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $191.8 million to ITC FEDERAL, LLC for work described as: SERVICE CENTER OPERATIONS SUPPORT SERVICES (SCOSS) NEXT GENERATION (NEXTGEN) TO INCLUDE PROGRAM MANAGEMENT, CORRESPONDENCE MANAGEMENT, DATA COLLECTION & FILE OPERATIONS SUPPORT FOR THE SERVICE CENTER OPERATIONS (SCOPS) DIRECTORATE Key points: 1. Contract focuses on program management, correspondence, and data operations for USCIS Service Center Operations. 2. Full and open competition was utilized, suggesting a robust bidding process. 3. The contract duration of three years (1095 days) provides a stable period for service delivery. 4. The contract type is 'Delivery Order', indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. The primary service area is Washington D.C., indicating a concentration of operations in the capital region. 6. The contractor, ITC Federal, LLC, is tasked with critical administrative functions for USCIS.

Value Assessment

Rating: good

The contract value of $191.8 million over three years averages approximately $63.9 million annually. Benchmarking this against similar administrative support contracts is challenging without specific details on the scope and complexity of 'Service Center Operations Support Services'. However, the pricing structure, likely based on labor hours, allows for flexibility. Further analysis would require comparing the labor rates and overhead applied by ITC Federal to industry standards for comparable government contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This indicates that while the competition was open, certain sources were excluded, which warrants further investigation into the rationale behind the exclusion. The presence of multiple bidders (3 were mentioned) suggests a competitive environment, which generally leads to better price discovery and value for the government.

Taxpayer Impact: A full and open competition, even with exclusions, generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality compared to sole-source or limited competition awards.

Public Impact

USCIS benefits from streamlined service center operations, potentially leading to improved processing times for immigration services. The contract supports critical administrative functions that underpin the delivery of immigration and citizenship services to the public. The geographic impact is concentrated in Washington D.C., where the service center operations are likely managed. The contract supports a workforce involved in program management, correspondence, and data operations, contributing to federal employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' clause in the full and open competition requires scrutiny to ensure fairness and prevent undue restrictions on potential bidders.
The reliance on labor hours for payment could lead to cost overruns if not managed diligently through performance monitoring and rate controls.
The specific nature of 'Service Center Operations Support Services' is broad and may require detailed performance metrics to ensure effective service delivery.

Positive Signals

The use of full and open competition indicates an effort to leverage market competition for the best value.
The contract duration of three years provides stability and allows the contractor to build expertise in supporting USCIS operations.
The award to ITC Federal, LLC suggests they possess the necessary capabilities and experience to meet the government's requirements for these critical support services.

Sector Analysis

This contract falls within the administrative and support services sector, specifically focusing on government operations. The market for such services is substantial, encompassing a wide range of back-office functions for federal agencies. Comparable spending benchmarks would typically be found within the broader category of professional, scientific, and technical services, particularly those related to administrative and program management support for large government entities like the Department of Homeland Security.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this award. This suggests that the primary focus was on full and open competition to secure the best overall value. There is no explicit mention of subcontracting requirements for small businesses, which could limit opportunities for the small business ecosystem in this specific contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Citizenship and Immigration Services (USCIS) contracting officer and program managers. Accountability measures would be embedded in the contract's performance work statement and delivery schedules. Transparency is generally maintained through contract award databases and public reporting, though specific operational details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

USCIS Administrative Support Contracts
Federal Program Management Services
Department of Homeland Security IT and Administrative Support
Service Center Operations Support

Risk Flags

Potential for cost overruns due to labor hours contract type.
Need to scrutinize 'Exclusion of Sources' rationale.
Dependence on effective performance monitoring and KPIs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $191.8 million to ITC FEDERAL, LLC. SERVICE CENTER OPERATIONS SUPPORT SERVICES (SCOSS) NEXT GENERATION (NEXTGEN) TO INCLUDE PROGRAM MANAGEMENT, CORRESPONDENCE MANAGEMENT, DATA COLLECTION & FILE OPERATIONS SUPPORT FOR THE SERVICE CENTER OPERATIONS (SCOPS) DIRECTORATE

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 $191.8 million.

What is the period of performance?

Start: 2022-12-01. End: 2025-11-30.

What is the track record of ITC Federal, LLC in performing similar government contracts, particularly within DHS or USCIS?

Assessing ITC Federal, LLC's track record requires a review of their past performance on federal contracts. This would involve examining contract databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) for awards of similar size, scope, and complexity. Key indicators would include on-time delivery, quality of services, adherence to budget, and any past performance issues or disputes. A strong history of successful contract completion with positive performance reviews would indicate a lower risk for this new award. Conversely, a history of performance issues or contract terminations could raise concerns about their ability to meet the requirements of the SCOSS NEXTGEN contract.

How does the awarded value of $191.8 million compare to historical spending on similar service center operations support at USCIS?

To compare the awarded value, one would need to analyze historical spending data for USCIS service center operations support. This involves identifying previous contracts with similar objectives, such as program management, correspondence management, and data operations, and examining their total awarded values and durations. If previous contracts were significantly lower in value for comparable services, it might suggest an increase in costs or scope. Conversely, if the current award is in line with or lower than previous spending, it could indicate efficient procurement or a more competitive market. Analyzing trends in annual spending for these services over the past 5-10 years would provide valuable context for assessing the current award's value.

What are the specific risks associated with the 'Exclusion of Sources' clause in this full and open competition?

The 'Exclusion of Sources' clause within a 'Full and Open Competition' framework introduces a specific risk: it implies that while the competition was broadly open, certain potential bidders were intentionally prevented from participating. The risk lies in understanding the justification for these exclusions. If the exclusions were based on legitimate technical requirements or security mandates, the risk to the government might be minimal. However, if the exclusions were arbitrary or designed to favor specific contractors, it could limit competition, potentially leading to higher prices or suboptimal service quality. This clause warrants careful review to ensure it does not inadvertently stifle innovation or reduce the pool of qualified offerors, thereby impacting the overall value obtained by the government.

What are the key performance indicators (KPIs) that will be used to measure the effectiveness of ITC Federal, LLC's support services?

The effectiveness of ITC Federal, LLC's support services under the SCOSS NEXTGEN contract will be measured through a set of Key Performance Indicators (KPIs) defined in the Performance Work Statement (PWS). These KPIs are crucial for ensuring the contractor meets USCIS's requirements. While specific KPIs are not detailed in the provided data, they would typically include metrics related to timeliness (e.g., response times for correspondence, processing times for data entry), accuracy (e.g., error rates in data collection and file operations), program management efficiency (e.g., adherence to project milestones, budget management), and overall customer satisfaction. Regular performance reviews and reporting against these KPIs will be essential for oversight and for determining contractor performance ratings.

How does the labor hours contract type (PT: LABOR HOURS) influence cost control and contractor performance monitoring for this contract?

The 'Labor Hours' contract type (PT: LABOR HOURS) means that the government pays the contractor based on the actual hours worked by their personnel at pre-negotiated hourly rates. This type of contract offers flexibility, allowing USCIS to adjust staffing levels as needed without extensive contract modifications. However, it also places a significant emphasis on cost control and performance monitoring. The government must diligently track the hours worked by contractor personnel to prevent overbilling. Furthermore, performance monitoring is critical to ensure that the labor hours are being used efficiently and effectively to achieve the contract's objectives. Without robust oversight and clear performance metrics, there is a risk of cost overruns if hours are not managed prudently or if productivity is low.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70SBUR22R00000030

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 4114 LEGATO RD STE 850, FAIRFAX, VA, 22033

Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $194,050,931

Exercised Options: $191,821,731

Current Obligation: $191,821,731

Actual Outlays: $185,678,810

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSHQDC16DP2017

IDV Type: IDC

Timeline