DHS awards $32.7M for FINCEN Business Operations Support, raising questions on value and competition

Contract Overview

Contract Amount: $32,754,035 ($32.8M)

Contractor: ITC Federal, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2018-06-15

End Date: 2022-08-28

Contract Duration: 1,535 days

Daily Burn Rate: $21.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FINCEN BUSINESS OPERATIONS SUPPORT SERVICES

Place of Performance

Location: CHESAPEAKE, CHESAPEAKE CITY County, VIRGINIA, 23326

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $32.8 million to ITC FEDERAL, LLC for work described as: FINCEN BUSINESS OPERATIONS SUPPORT SERVICES Key points: 1. Spending of $32.7M over 4 years for administrative management consulting. 2. Contract awarded via full and open competition after exclusion of sources. 3. No small business participation noted. 4. Firm Fixed Price contract type. 5. Sector: Administrative Management and General Management Consulting Services.

Value Assessment

Rating: fair

The contract's value of $32.7M over approximately 4 years for administrative management consulting services appears moderate. Benchmarking against similar contracts for management consulting is needed to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition approach. This method may restrict the pool of potential bidders and potentially impact price discovery.

Taxpayer Impact: The total award value of $32.7M represents taxpayer funds allocated for essential business operations support. The limited competition raises concerns about whether the most cost-effective solution was secured.

Public Impact

Taxpayers funded $32.7M for business operations support services. The U.S. Coast Guard within DHS is the end-user agency. Services provided fall under administrative management and general management consulting. No small business set-aside was utilized for this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition method used.
No small business participation.
Lack of clear value assessment without benchmarks.

Positive Signals

Firm Fixed Price contract type provides cost certainty.
Awarded by a major federal agency (DHS).

Sector Analysis

The administrative management and general management consulting services sector is broad, encompassing strategic planning, organizational design, and operational efficiency improvements. Federal spending in this area is substantial, with benchmarks varying widely based on scope and complexity.

Small Business Impact

This contract did not include any provisions for small business participation, either through set-asides or subcontracting goals. This represents a missed opportunity to support small businesses within the federal contracting landscape.

Oversight & Accountability

Oversight is primarily the responsibility of the Department of Homeland Security and the U.S. Coast Guard. The contract's performance and adherence to terms would be monitored by the contracting officer and relevant program managers.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Limited competition raises concerns about price optimization.
No small business participation noted.
Lack of detailed service description hinders value assessment.
Potential for uncompetitive pricing due to exclusion of sources.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $32.8 million to ITC FEDERAL, LLC. FINCEN BUSINESS OPERATIONS SUPPORT SERVICES

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. Coast Guard).

What is the total obligated amount?

The obligated amount is $32.8 million.

What is the period of performance?

Start: 2018-06-15. End: 2022-08-28.

What specific administrative management and general management consulting services were provided under this contract, and how did they align with the Coast Guard's strategic objectives?

The contract data indicates the North American Industry Classification System (NAICS) code 541611 for Administrative Management and General Management Consulting Services. While the specific deliverables are not detailed here, these services typically involve advising on management policies, strategies, and operational improvements. A deeper dive into the contract's statement of work would be necessary to understand its alignment with the U.S. Coast Guard's specific mission requirements and strategic goals.

Given the 'limited' competition, what steps were taken to ensure a fair and reasonable price was achieved for these services?

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting that while competition was sought, certain sources were excluded. To ensure a fair and reasonable price, the agency likely relied on techniques such as competitive proposals, cost/price analysis, and potentially market research to establish a baseline. However, the exclusion of sources inherently limits the competitive pressure, making robust price analysis critical.

What is the expected long-term impact of these business operations support services on the efficiency and effectiveness of the U.S. Coast Guard?

The long-term impact hinges on the quality and relevance of the consulting services provided. If the services successfully addressed identified operational inefficiencies, improved strategic planning, or enhanced organizational effectiveness, the Coast Guard could see benefits in mission execution, resource allocation, and overall performance. Without specific details on the services rendered and their outcomes, assessing the definitive impact remains speculative.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4713A EISENHOWER AVE, ALEXANDRIA, VA, 22304

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: $34,206,318

Exercised Options: $33,121,083

Current Obligation: $32,754,035

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSHQDC17DP2004

IDV Type: IDC

Timeline