DHS Awards $11.1M for MYID Intercede Software Maintenance to Countertrade Products, Inc

Contract Overview

Contract Amount: $11,057,445 ($11.1M)

Contractor: Countertrade Products, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-04-01

End Date: 2027-03-31

Contract Duration: 1,094 days

Daily Burn Rate: $10.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS ACTION IS BEING AWARDED TO CONTINUE MAINTENANCE ON EXISTING MYID INTERCEDE SOFTWARE.

Place of Performance

Location: ANNAPOLIS JUNCTION, HOWARD County, MARYLAND, 20701

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $11.1 million to COUNTERTRADE PRODUCTS, INC. for work described as: THIS ACTION IS BEING AWARDED TO CONTINUE MAINTENANCE ON EXISTING MYID INTERCEDE SOFTWARE. Key points: 1. Contract focuses on essential software maintenance, indicating ongoing operational needs. 2. Competition was full and open after source exclusion, suggesting a structured procurement process. 3. Risk appears moderate, tied to reliance on a specific software and vendor for critical functions. 4. Spending falls within IT services, a sector with variable but often high costs for specialized software.

Value Assessment

Rating: good

The $11.1 million award for software maintenance appears reasonable given the 3-year duration and the specialized nature of the MYID Intercede software. Benchmarking against similar long-term software support contracts would provide further validation.

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 method aims to ensure the best value is obtained by allowing all qualified vendors to compete, though the exclusion of specific sources warrants review.

Taxpayer Impact: Taxpayer funds are being used to ensure the continued operation of critical software, which is necessary for agency functions but represents an ongoing cost.

Public Impact

Ensures continued functionality of the MYID Intercede software, crucial for TSA operations. Supports the ongoing maintenance and updates necessary to keep the software secure and effective. Represents a significant investment in maintaining existing IT infrastructure rather than acquiring new systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential vendor lock-in if MYID Intercede is a proprietary or highly specialized system.
Reliance on a single vendor for critical software maintenance could pose continuity risks.
The 'exclusion of sources' in the competition method needs clear justification to ensure fairness.

Positive Signals

Award ensures continuity of essential IT services.
Full and open competition, even with exclusions, suggests an effort to achieve competitive pricing.
Fixed-price contract type provides cost certainty for the government.

Sector Analysis

This contract falls under IT services, specifically 'Other Computer Related Services.' Spending benchmarks for software maintenance vary widely based on complexity and criticality, but $11.1 million over three years for specialized software support is substantial.

Small Business Impact

The data does not indicate whether small businesses were involved in this procurement. Further analysis would be needed to determine the extent of small business participation or subcontracting opportunities.

Oversight & Accountability

The award is a delivery order under a larger contract, implying prior oversight. The 'exclusion of sources' clause requires careful monitoring to ensure it does not unduly restrict competition or lead to inflated costs.

Related Government Programs

Other Computer Related Services
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Potential for vendor lock-in.
Reliance on a single vendor for critical maintenance.
Lack of transparency regarding excluded sources.
Ongoing costs for legacy software maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $11.1 million to COUNTERTRADE PRODUCTS, INC.. THIS ACTION IS BEING AWARDED TO CONTINUE MAINTENANCE ON EXISTING MYID INTERCEDE SOFTWARE.

Who is the contractor on this award?

The obligated recipient is COUNTERTRADE PRODUCTS, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $11.1 million.

What is the period of performance?

Start: 2024-04-01. End: 2027-03-31.

What is the criticality of the MYID Intercede software to TSA's mission, and what are the potential impacts of its failure or degradation?

The criticality of the MYID Intercede software is paramount for the Transportation Security Administration's (TSA) operational effectiveness. As it supports maintenance on existing systems, its failure or degradation could directly impede security screening processes, passenger flow, or data management, potentially leading to significant operational disruptions and security vulnerabilities. Understanding its specific function is key to assessing the value of this maintenance contract.

What specific justification was provided for the 'exclusion of sources' during the full and open competition process?

The justification for excluding specific sources during the full and open competition is crucial for understanding the procurement's integrity. Without this rationale, it's difficult to assess if the exclusion was necessary due to unique capabilities, prior performance, or if it potentially limited competition unfairly. A clear justification ensures that the government obtained the best value and acted in the public interest.

How does the per-unit cost or total cost of ownership for MYID Intercede software maintenance compare to industry benchmarks for similar specialized software solutions?

Benchmarking the $11.1 million cost against industry standards for specialized software maintenance is essential for evaluating value. If this cost is significantly higher than comparable contracts, it could indicate potential overspending or a lack of competitive pressure. Conversely, if it aligns with or is below benchmarks, it suggests a reasonable investment for the services rendered.

Industry Classification

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

Product/Service Code: 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: 70T02024Q7503N003

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7585 W 66TH AVE, ARVADA, CO, 80003

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $14,997,445

Exercised Options: $14,997,445

Current Obligation: $11,057,445

Actual Outlays: $7,674,574

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC65B

IDV Type: GWAC

Timeline