DHS awards $3.2M for Coast Guard case tracking system to Hexagon US Federal

Contract Overview

Contract Amount: $3,222,570 ($3.2M)

Contractor: Hexagon US Federal, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2019-09-26

End Date: 2025-03-27

Contract Duration: 2,009 days

Daily Burn Rate: $1.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: USCG INVESTIGATIVE SERVICES FIELD ACTIVITY CASE TRACKING SYSTEM (FACTS)

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35824

State: Alabama Government Spending

Plain-Language Summary

Department of Homeland Security obligated $3.2 million to HEXAGON US FEDERAL, INC for work described as: USCG INVESTIGATIVE SERVICES FIELD ACTIVITY CASE TRACKING SYSTEM (FACTS) Key points: 1. Contract value represents a moderate investment for a specialized IT system. 2. Full and open competition suggests a healthy market for this type of solution. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. The contract duration extends over several years, indicating a long-term need. 5. No small business set-aside was utilized, suggesting large prime contractor involvement. 6. The system supports critical investigative functions for the U.S. Coast Guard.

Value Assessment

Rating: good

The contract value of $3.22 million for the FACTS system appears reasonable given the scope of supporting investigative services. Benchmarking against similar case management systems is challenging without more detailed feature comparisons, but the fixed-price nature provides cost certainty. The award to Hexagon US Federal, a known entity in government IT solutions, suggests a competitive selection process that likely yielded fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and encourages competitive offerings. The use of full and open competition suggests that the government sought the best value from a broad range of potential suppliers.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to innovative solutions that might not be available through restricted solicitations.

Public Impact

The U.S. Coast Guard's investigative services benefit directly from this system. Enhances the efficiency and effectiveness of tracking and managing investigative cases. Supports law enforcement and national security missions conducted by the Coast Guard. Potential positive impact on maritime safety and security through improved investigations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system becomes highly customized.
Reliance on a single vendor for critical system maintenance and upgrades.
Need for robust government oversight to ensure continued performance and value.

Positive Signals

Fixed-price contract provides cost predictability.
Full and open competition suggests a competitive market.
Award to an established federal IT provider.
System supports essential government functions.

Sector Analysis

The contract falls within the broader IT services sector, specifically focusing on software development and case management solutions for government agencies. The market for such specialized systems is competitive, with numerous firms offering solutions tailored to public sector needs. This contract represents a typical investment for a federal agency requiring robust data management and workflow automation for its operational and investigative units.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the prime contractor, Hexagon US Federal, is likely a large business. This suggests that small businesses may participate as subcontractors to Hexagon US Federal, contributing specialized services or components. Further analysis would be needed to determine the extent of small business subcontracting planned for this effort.

Oversight & Accountability

Oversight for this contract would typically reside within the U.S. Coast Guard and the Department of Homeland Security's contracting and program management offices. The fixed-price nature of the contract provides a degree of accountability by limiting cost increases. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly disclosed.

Related Government Programs

Federal Case Management Systems
Law Enforcement IT Support
Department of Homeland Security IT Contracts
U.S. Coast Guard IT Modernization

Risk Flags

Potential for scope creep in fixed-price contracts.
Cybersecurity risks associated with sensitive case data.
Dependence on contractor for system maintenance and updates.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3.2 million to HEXAGON US FEDERAL, INC. USCG INVESTIGATIVE SERVICES FIELD ACTIVITY CASE TRACKING SYSTEM (FACTS)

Who is the contractor on this award?

The obligated recipient is HEXAGON US FEDERAL, INC.

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 $3.2 million.

What is the period of performance?

Start: 2019-09-26. End: 2025-03-27.

What is the track record of Hexagon US Federal in delivering similar IT solutions to federal agencies?

Hexagon US Federal has a history of providing various IT solutions and services to federal agencies, including software development, data management, and geospatial technology. Their experience often spans across defense, intelligence, and civilian sectors. While specific details on past performance for case tracking systems would require deeper investigation into contract databases and performance reports, their presence in the federal IT market suggests a capacity to handle complex government requirements. Evaluating past performance on similar contracts, including adherence to schedule, budget, and technical specifications, is crucial for assessing their reliability on this U.S. Coast Guard project.

How does the $3.22 million contract value compare to similar case management systems procured by federal agencies?

Comparing the $3.22 million contract value for the FACTS system requires context regarding its scope, features, and duration. Case management systems can vary significantly in price based on complexity, user base, customization, and integration needs. For a multi-year contract supporting investigative services for a major agency like the U.S. Coast Guard, this value appears within a reasonable range. However, without specific details on the number of users, modules included, and the level of customization, a precise benchmark is difficult. Similar systems for law enforcement or regulatory bodies can range from hundreds of thousands to several million dollars over their lifecycle.

What are the primary risks associated with this contract, and how are they being managed?

Key risks for this contract include potential performance issues if the system doesn't meet the Coast Guard's specific investigative needs, schedule delays impacting operational readiness, and the possibility of cost growth if the fixed-price contract has poorly defined scope. Vendor lock-in is another risk, as is the cybersecurity of the system handling sensitive case data. Management of these risks is likely addressed through the fixed-price contract type, which shifts some cost risk to the contractor, and through government oversight mechanisms. Clear performance metrics, regular progress reviews, and robust cybersecurity protocols are essential to mitigate these risks.

How effective is the FACTS system expected to be in improving the U.S. Coast Guard's investigative capabilities?

The effectiveness of the FACTS system hinges on its ability to streamline investigative workflows, improve data accuracy and accessibility, and enhance collaboration among investigative personnel. By providing a centralized platform for case tracking, evidence management, and reporting, the system is designed to increase efficiency and reduce administrative burdens. Its success will be measured by its adoption rate among users, the reduction in time to close cases, and the quality of insights derived from the data. The long-term effectiveness will also depend on ongoing system maintenance, updates, and user training provided by Hexagon US Federal.

What are the historical spending patterns for investigative IT systems within the U.S. Coast Guard or DHS?

Historical spending on investigative IT systems within the U.S. Coast Guard and DHS generally reflects a consistent need for robust data management and case tracking solutions to support law enforcement, security, and operational missions. While specific figures for 'investigative systems' can be broad, agencies like DHS and its components often allocate significant budgets towards IT infrastructure, software development, and modernization efforts. Spending trends typically show an increasing reliance on integrated digital platforms to manage complex data, improve inter-agency communication, and enhance analytical capabilities. The $3.22 million for FACTS aligns with typical investments in specialized IT systems designed for critical government functions.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70Z02319RVXS45600

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 301 COCHRAN RD SW, HUNTSVILLE, AL, 35824

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $3,222,570

Exercised Options: $3,222,570

Current Obligation: $3,222,570

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA18D003G

IDV Type: FSS

Timeline