DHS Coast Guard awards $9.2M for LRIT services, a sole-source delivery order

Contract Overview

Contract Amount: $9,203,710 ($9.2M)

Contractor: Pole Star Space Applications USA Inc

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-01

End Date: 2025-09-29

Contract Duration: 393 days

Daily Burn Rate: $23.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DELIVERY ORDER FOR LRIT SERVICES, ISSUED OFF IDIQ ORDERING PERIOD FOUR.

Place of Performance

Location: SAINT PETERSBURG, PINELLAS County, FLORIDA, 33711

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $9.2 million to POLE STAR SPACE APPLICATIONS USA INC for work described as: DELIVERY ORDER FOR LRIT SERVICES, ISSUED OFF IDIQ ORDERING PERIOD FOUR. Key points: 1. Value for money is difficult to assess due to the sole-source nature of this award. 2. Competition dynamics are absent, as this was not competed. 3. Risk indicators are moderate, given the sole-source award and fixed-price contract. 4. Performance context is limited to navigational services for shipping. 5. Sector positioning is within the critical maritime domain awareness and safety infrastructure.

Value Assessment

Rating: fair

Benchmarking the value of this $9.2 million delivery order is challenging without competitive bids. The fixed-price contract type offers some cost certainty, but the lack of competition means there's no direct comparison to market rates or other potential providers. The awarded amount of $9.2 million for approximately 393 days of service needs further scrutiny to determine if it aligns with industry standards for similar navigational services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source delivery order, meaning it was not competed among multiple vendors. The U.S. Coast Guard likely justified this approach based on specific requirements or existing relationships. The absence of a competitive bidding process limits price discovery and may result in a higher cost than if multiple firms had vied for the contract.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the lack of competition. Without a bidding process, there is less incentive for the contractor to offer the most cost-effective solution.

Public Impact

Beneficiaries include the U.S. Coast Guard and the maritime industry relying on navigational services. Services delivered are crucial for ensuring the safety and efficiency of shipping traffic. Geographic impact is primarily within Florida, where the services are stationed. Workforce implications are likely related to the specialized personnel required to operate and maintain the LRIT system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential cost savings for taxpayers.
Lack of transparency in the justification for sole-source procurement.
Fixed-price contract, while offering cost certainty, could lead to overpayment if initial estimates were high.

Positive Signals

Delivery order issued off an existing IDIQ contract suggests some level of pre-qualification.
Fixed-price contract provides budget predictability for the awarded amount.
Contract supports critical national security and maritime safety functions.

Sector Analysis

This contract falls within the broader Information Technology and Defense sectors, specifically supporting critical maritime infrastructure. The market for Long Range Identification and Tracking (LRIT) systems and services is specialized, often dominated by a few key players due to technical requirements and government contracts. Comparable spending benchmarks are difficult to establish without more detailed service descriptions and market analysis, but government spending on maritime surveillance and communication systems is substantial.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting requirements. As a sole-source award to a specific vendor, it does not directly contribute to the small business ecosystem through competitive opportunities. Further analysis would be needed to determine if the prime contractor has any small business subcontracting plans in place.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's internal procurement and program management offices. The U.S. Coast Guard is responsible for ensuring contract performance and adherence to terms. Transparency is limited due to the sole-source nature, and it is unclear if an Inspector General review is specifically associated with this particular delivery order, though general oversight functions would apply.

Related Government Programs

Maritime Domain Awareness Systems
Navigational Aids and Services
Department of Homeland Security IT Services
Coast Guard Communications Systems

Risk Flags

Sole-source award
Lack of competition
Limited performance data available

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $9.2 million to POLE STAR SPACE APPLICATIONS USA INC. DELIVERY ORDER FOR LRIT SERVICES, ISSUED OFF IDIQ ORDERING PERIOD FOUR.

Who is the contractor on this award?

The obligated recipient is POLE STAR SPACE APPLICATIONS USA 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 $9.2 million.

What is the period of performance?

Start: 2024-09-01. End: 2025-09-29.

What is the specific justification for awarding this LRIT services contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED,' implying a sole-source award. The specific justification for this sole-source determination is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services, often due to unique capabilities, proprietary technology, or urgent and compelling needs. For LRIT services, this could stem from the need for interoperability with existing systems, specialized expertise held by a single vendor, or a critical operational requirement that cannot be met through a competitive process within the necessary timeframe. A full justification would typically be documented by the agency in accordance with federal acquisition regulations (FAR).

How does the awarded amount of $9.2 million compare to historical spending on similar LRIT services by the Coast Guard or other agencies?

Without access to historical spending data for similar LRIT services, a direct comparison is not possible. The awarded amount of $9.2 million covers a period of approximately 393 days, equating to roughly $23,419 per day. To assess value, this daily rate would need to be benchmarked against the cost of similar services provided by other entities, considering factors like scope, technology, and service level agreements. The fact that this is a sole-source award further complicates direct comparisons, as competitive pressures that typically drive down costs are absent. Further research into agency procurement histories and market analysis reports would be necessary for a robust comparison.

What are the key performance indicators (KPIs) for this LRIT services contract, and how will performance be measured?

The provided data does not specify the key performance indicators (KPIs) or the methods for measuring performance for this LRIT services contract. Typically, for navigational services, KPIs might include system uptime, data accuracy and timeliness, response times to alerts, and adherence to communication protocols. The contract's terms and conditions, likely detailed in the full contract document, would outline these performance metrics and the associated remedies or incentives for meeting or failing to meet them. The U.S. Coast Guard would be responsible for monitoring these KPIs and ensuring the contractor meets the required service levels.

What is the track record of Pole Star Space Applications USA Inc. in delivering LRIT services or similar government contracts?

The provided data identifies Pole Star Space Applications USA Inc. as the contractor but does not offer details on their track record. To assess their reliability and past performance, one would need to examine their contract history with the government, including past performance evaluations, any disputes or claims, and their experience with similar LRIT or maritime communication systems. Publicly available contract databases and federal procurement reports can often provide insights into a contractor's performance on previous awards. A thorough review would be necessary to understand their capabilities and history of successful delivery.

What are the potential risks associated with a sole-source award for critical navigational services?

Sole-source awards for critical services like LRIT present several risks. Firstly, the lack of competition can lead to higher costs for taxpayers, as the contractor faces less pressure to offer competitive pricing. Secondly, it limits the government's ability to explore innovative solutions or leverage new technologies that might be offered by other vendors. Thirdly, there's a potential for vendor lock-in, making it difficult and costly to switch providers in the future. Finally, without competitive benchmarking, it's harder to ensure the government is receiving the best value and quality of service. These risks underscore the importance of robust justification for sole-source procurements.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Water Transportation › Navigational Services to Shipping

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Prime PS Topco Limited

Address: 3201 34TH ST S A7, SAINT PETERSBURG, FL, 33711

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $9,203,710

Exercised Options: $9,203,710

Current Obligation: $9,203,710

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z02320DPR600200

IDV Type: IDC

Timeline