DHS Awards $10.7M Contract for MRR PC&I Funded Positions to Inter-Op.net, Inc

Contract Overview

Contract Amount: $10,714,164 ($10.7M)

Contractor: Inter-Op.net, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-08-16

End Date: 2026-06-15

Contract Duration: 303 days

Daily Burn Rate: $35.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: LABOR HOURS

Sector: IT

Official Description: MRR PC&I FUNDED POSITIONS.

Place of Performance

Location: ELIZABETH CITY, PASQUOTANK County, NORTH CAROLINA, 27909

State: North Carolina Government Spending

Plain-Language Summary

Department of Homeland Security obligated $10.7 million to INTER-OP.NET, INC. for work described as: MRR PC&I FUNDED POSITIONS. Key points: 1. Contract focuses on critical IT support services for the U.S. Coast Guard. 2. The contract duration is 303 days, indicating a focused, short-term need. 3. Competition was full and open after exclusion of sources, suggesting a deliberate procurement strategy. 4. The contract type is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. The North Carolina location for service delivery may indicate regional IT support capabilities. 6. The absence of small business set-asides suggests the primary contractor is not a small business or the scope did not lend itself to set-asides.

Value Assessment

Rating: fair

Benchmarking the value of this $10.7 million contract is challenging without knowing the specific services rendered under 'MRR PC&I FUNDED POSITIONS'. However, the contract's duration of approximately 10 months suggests a significant monthly expenditure. Comparing this to similar IT support contracts within DHS or the Coast Guard would be necessary for a precise value assessment. The 'LABOR HOURS' pricing structure indicates that cost is tied to effort, which can be efficient if managed well but carries risk of cost overruns if not closely monitored.

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 procurement method indicates that while the competition was intended to be broad, certain sources were specifically excluded prior to the solicitation. The exact reasons for exclusion are not provided, but this approach can sometimes limit the pool of potential bidders. The number of bidders is not specified, making it difficult to fully assess the level of competition and its impact on price discovery.

Taxpayer Impact: The 'full and open' aspect is generally positive for taxpayers, as it aims to solicit the widest possible range of offers. However, the 'exclusion of sources' clause warrants further scrutiny to ensure it did not unduly restrict competition and lead to higher prices.

Public Impact

The U.S. Coast Guard benefits from potentially enhanced IT infrastructure and support services. This contract supports the operational readiness and technological capabilities of a key DHS agency. The services are likely to be performed in North Carolina, potentially creating or sustaining local IT jobs. Improved IT systems can indirectly support maritime safety, security, and environmental protection missions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency regarding the specific 'MRR PC&I FUNDED POSITIONS' makes it difficult to assess the true value and necessity of the services.
The 'exclusion of sources' clause in the competition raises questions about potential limitations on competitive pricing.
The 'LABOR HOURS' pricing model can lead to cost overruns if not meticulously managed and overseen.
Without details on the number of bidders, it's hard to confirm if maximum competitive pressure was achieved.

Positive Signals

The contract was awarded through a full and open competition, indicating an effort to leverage market capabilities.
The U.S. Coast Guard is a critical agency, and ensuring its IT infrastructure is robust is a positive signal for operational effectiveness.
The contract has a defined end date, suggesting a clear scope and timeline for the services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT support and potentially system maintenance or development. The IT services market is vast and highly competitive, with significant government spending allocated annually. Contracts like this are common as agencies rely heavily on external vendors for specialized IT expertise and support to maintain and upgrade complex systems. Benchmarking would involve comparing the labor rates and overall cost against similar IT support contracts awarded by federal agencies for comparable services.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor is there information on subcontracting plans. This suggests that the primary focus was on securing the required services from a qualified vendor without specific small business participation mandates. The absence of set-asides may mean the contract's scope or value did not align with typical small business set-aside criteria, or that the prime contractor is not a small business itself.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Coast Guard's contracting and program management offices within the Department of Homeland Security. Accountability measures would be defined in the contract's terms and conditions, likely including performance metrics, reporting requirements, and payment schedules tied to deliverables. Transparency is facilitated by the contract award notice, but detailed performance data and oversight activities are not publicly available.

Related Government Programs

DHS IT Support Services
USCG IT Modernization
Federal IT Services Contracts
Information Technology Professional Services

Risk Flags

Potential for limited competition due to source exclusion.
Risk of cost overruns with 'LABOR HOURS' pricing.
Lack of clarity on specific services provided.
Unknown track record of the prime contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $10.7 million to INTER-OP.NET, INC.. MRR PC&I FUNDED POSITIONS.

Who is the contractor on this award?

The obligated recipient is INTER-OP.NET, 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 $10.7 million.

What is the period of performance?

Start: 2025-08-16. End: 2026-06-15.

What specific services are included under 'MRR PC&I FUNDED POSITIONS'?

The designation 'MRR PC&I FUNDED POSITIONS' is highly specific and likely refers to internal project codes or service categories within the Department of Homeland Security or the U.S. Coast Guard. Without access to the agency's internal documentation or the full contract statement of work, the precise nature of these services remains unclear. It could encompass a range of IT functions such as personnel management for IT roles, funding for specific IT positions, or support for a particular system or program identified by 'MRR PC&I'. Further clarification from the awarding agency would be required to understand the exact scope and purpose of these funded positions.

How does the pricing structure ('LABOR HOURS') compare to fixed-price contracts for similar IT support?

Contracts priced on 'LABOR HOURS' (time and materials) are common for IT support where the scope of work can be variable or difficult to define precisely upfront. This structure allows flexibility but can lead to higher costs if not managed effectively, as the government pays for the actual hours worked by the contractor's personnel. Fixed-price contracts, conversely, offer cost certainty to the government but require a well-defined scope of work. For IT support, labor hour contracts are often used for ongoing maintenance, help desk services, or projects with evolving requirements. Value for money with labor hour contracts depends heavily on robust oversight, accurate timekeeping, and competitive labor rates. If the 'MRR PC&I FUNDED POSITIONS' involve unpredictable tasks or evolving needs, a labor hour contract might be appropriate, but it necessitates diligent monitoring to prevent cost overruns compared to a well-scoped fixed-price alternative.

What are the implications of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' for cost and innovation?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause indicates that the solicitation was made available to all responsible sources, but specific entities were excluded prior to the solicitation process. This exclusion could be based on various factors, such as past performance issues, security concerns, or specific technical requirements that only a subset of vendors could meet. While 'full and open' aims for broad competition, the exclusion of sources can limit the number of potential bidders, potentially reducing competitive pressure on pricing and innovation. If the excluded sources were significant players in the relevant market, the remaining competition might not achieve the best possible value for taxpayers. The specific rationale for exclusion is critical to understanding its impact.

What is the typical duration and value range for similar IT support contracts awarded by the U.S. Coast Guard?

The U.S. Coast Guard, like other branches of the Department of Homeland Security, frequently awards IT support contracts. Durations can vary significantly, from short-term task orders lasting a few months to multi-year IDIQ contracts. The value range is also broad, depending on the complexity and scope of services. Contracts for basic IT support or help desk functions might range from hundreds of thousands to a few million dollars, while contracts for major system development, integration, or cybersecurity services can easily reach tens or hundreds of millions. This $10.7 million contract, with a duration of approximately 10 months, appears to be a substantial, focused effort, likely addressing a specific IT need or project within the Coast Guard's operational framework.

What is the track record of INTER-OP.NET, INC. with federal contracts, particularly within DHS?

Information regarding the specific track record of INTER-OP.NET, INC. with federal contracts, especially within the Department of Homeland Security (DHS), is not detailed in the provided data. A comprehensive assessment would require reviewing historical contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past issues or successes. Companies that consistently win and successfully execute federal contracts, particularly with agencies like DHS, generally demonstrate a strong understanding of government procurement processes, compliance requirements, and service delivery standards. Without specific data on INTER-OP.NET, INC.'s past performance, it is difficult to assess their reliability and capability for this particular contract.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 70Z03824RJ0000013

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: ONE COLUMBUS CENTER, VIRGINIA BEACH, VA, 23462

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $10,714,164

Exercised Options: $10,714,164

Current Obligation: $10,714,164

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70Z03825DJ0000009

IDV Type: IDC

Timeline