DHS awards $30.7M contract for business operations support to ITC Federal, LLC

Contract Overview

Contract Amount: $30,714,144 ($30.7M)

Contractor: ITC Federal, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-08-29

End Date: 2026-08-31

Contract Duration: 1,463 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BUSINESS OPERATIONS SUPPORT SERVICES FOR ACCOUNTING AND BUSINESS FUNCTIONS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20593

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $30.7 million to ITC FEDERAL, LLC for work described as: BUSINESS OPERATIONS SUPPORT SERVICES FOR ACCOUNTING AND BUSINESS FUNCTIONS Key points: 1. Contract focuses on administrative management and general management consulting services. 2. Awarded via full and open competition, indicating a competitive bidding process. 3. The contract duration spans over four years, suggesting a long-term need. 4. Firm Fixed Price contract type aims to control costs and provide predictability. 5. The contract is a delivery order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The primary place of performance is Washington D.C.

Value Assessment

Rating: good

The contract value of $30.7 million over approximately four years for business operations support appears reasonable given the scope of administrative management and consulting services. Benchmarking against similar contracts for management consulting within federal agencies suggests this pricing is within expected ranges. The firm fixed-price structure provides cost certainty for the government, which is a positive indicator of value for money. However, a more granular analysis of the specific services delivered and their impact would be needed for a definitive value assessment.

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,' which typically means that all responsible sources were permitted to submit a bid. The presence of two bidders suggests a moderate level of competition for this specific award. While two bidders are better than one, a higher number of bids generally leads to more robust price discovery and potentially lower prices for the government. The specific reasons for excluding other sources, if any, would require further investigation.

Taxpayer Impact: The full and open competition, even with two bidders, suggests that taxpayers benefited from a process designed to solicit multiple offers, potentially leading to a more competitive price than a sole-source award.

Public Impact

The Department of Homeland Security, specifically the U.S. Coast Guard, will benefit from enhanced accounting and business function support. Services delivered include administrative management and general management consulting. The primary geographic impact is in Washington D.C., where the services will be performed. The contract supports the operational efficiency of critical government functions within DHS.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may not have yielded the absolute lowest price.
The specific deliverables and performance metrics are not detailed, making it hard to assess performance outcomes.
Potential for scope creep if not managed tightly, given the consulting nature of the services.

Positive Signals

Firm Fixed Price contract type provides cost certainty.
Full and open competition process is generally favorable for price discovery.
Long-term contract duration (over 4 years) indicates a stable, ongoing need for these services.
Award to ITC Federal, LLC, a known entity in government contracting.

Sector Analysis

The federal market for administrative management and general management consulting services is substantial, with agencies consistently seeking external expertise to improve efficiency and effectiveness. This contract fits within the broader IT and professional services sector, where agencies outsource specialized functions. Comparable spending benchmarks for similar consulting services can vary widely based on scope, duration, and the specific expertise required. The $30.7 million award over four years positions this as a significant, but not exceptionally large, contract within this domain.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this particular award. However, the prime contractor, ITC Federal, LLC, may engage small businesses as subcontractors depending on their own business practices and the specific needs of the contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Coast Guard contracting officers and program managers within the Department of Homeland Security. Performance monitoring, invoice review, and adherence to contract terms are standard accountability measures. Transparency is generally maintained through contract databases like FPDS.gov. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Homeland Security Administrative Support Contracts
U.S. Coast Guard Professional Services Contracts
Federal Management Consulting Services
Government Business Operations Support

Risk Flags

Limited Competition
Potential for Scope Creep
Performance Monitoring Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $30.7 million to ITC FEDERAL, LLC. BUSINESS OPERATIONS SUPPORT SERVICES FOR ACCOUNTING AND BUSINESS FUNCTIONS

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 $30.7 million.

What is the period of performance?

Start: 2022-08-29. End: 2026-08-31.

What is the track record of ITC Federal, LLC in performing similar government contracts?

ITC Federal, LLC has a history of performing various IT and professional services contracts for federal agencies. While specific details on past performance for identical services are not provided in this summary, their presence as a prime contractor suggests they have met past performance requirements. A deeper dive into their contract history, including past performance evaluations and any reported issues, would be necessary for a comprehensive assessment. Reviewing their awards for similar administrative or management consulting services would provide further insight into their capabilities and reliability in this specific domain.

How does the awarded amount compare to similar management consulting contracts within DHS or the broader federal government?

The awarded amount of $30.7 million over approximately four years for business operations support services falls within a common range for federal management consulting contracts. Agencies frequently award contracts in the multi-million dollar range for comprehensive support in areas like accounting, administrative management, and strategic consulting. Without specific details on the scope of work and deliverables for this contract, a precise comparison is difficult. However, the value appears consistent with contracts of similar duration and complexity awarded to other firms in the federal market for comparable services.

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

Key risks include potential for cost overruns if the firm fixed price is not adequately managed against scope, performance deficiencies if the contractor fails to meet service level agreements, and potential for scope creep. Mitigation strategies likely include robust contract management by the U.S. Coast Guard, clear definition of deliverables and performance metrics, regular progress reviews, and adherence to the firm fixed-price terms. The competitive nature of the award also serves as a baseline mitigation against excessively high pricing. The long duration necessitates ongoing vigilance in performance monitoring.

How effective is the U.S. Coast Guard in overseeing contracts of this nature?

The U.S. Coast Guard, as part of DHS, has established procurement and contract management processes. Their effectiveness in overseeing contracts like this one depends on the resources allocated to contract administration, the expertise of their contracting officers and program managers, and the clarity of the contract's performance work statement. Agencies typically employ a range of oversight mechanisms, including regular reporting requirements, site visits, and performance evaluations. The success of these oversight functions is crucial for ensuring the contractor delivers the required services effectively and efficiently.

What has been the historical spending trend for business operations support services within the U.S. Coast Guard or DHS?

Historical spending on business operations support services within the U.S. Coast Guard and DHS is likely substantial, reflecting the extensive administrative and management needs of these large organizations. Agencies consistently require support for functions such as accounting, human resources, logistics, and general management consulting to maintain operational efficiency. While specific historical data for this exact contract category is not provided, it can be inferred that spending in this area is a recurring necessity. Analyzing past contract awards for similar services would reveal trends in spending levels, contractor choices, and the evolution of service requirements over time.

What is the significance of the contract type (Firm Fixed Price) for taxpayer value?

The Firm Fixed Price (FFP) contract type is generally considered advantageous for taxpayer value when the scope of work is well-defined. Under an FFP contract, the contractor assumes the primary risk for cost overruns, meaning the government pays a set price regardless of the contractor's actual costs. This provides budget certainty and incentivizes the contractor to manage its costs efficiently. For taxpayers, this means predictable expenditures and a reduced risk of unexpected cost increases, provided the initial price was set competitively and the scope is accurately defined and managed.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

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: $72,620,635

Exercised Options: $36,992,007

Current Obligation: $30,714,144

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