DHS Coast Guard Awards $9.88M for Accounts Payable Services to ITC Federal

Contract Overview

Contract Amount: $9,881,894 ($9.9M)

Contractor: ITC Federal, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-06-01

End Date: 2026-08-31

Contract Duration: 1,187 days

Daily Burn Rate: $8.3K/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: ACCOUNTS PAYABLE SERVICE

Place of Performance

Location: CHESAPEAKE, CHESAPEAKE CITY County, VIRGINIA, 23326

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $9.9 million to ITC FEDERAL, LLC for work described as: ACCOUNTS PAYABLE SERVICE Key points: 1. The contract value of $9.88M for accounts payable services is moderate. 2. ITC Federal, LLC is the sole awardee under a full and open competition after exclusion of sources. 3. The contract duration is over 3 years, indicating a need for sustained services. 4. The sector is Office Administrative Services, which is a common area for federal contracting.

Value Assessment

Rating: fair

The contract value of $9.88M for accounts payable services appears reasonable given the 3-year duration. Benchmarking against similar contracts for administrative services would provide a clearer picture of value.

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, suggesting a competitive process was intended. However, the 'exclusion of sources' clause warrants further investigation into why specific sources were excluded and its impact on price discovery.

Taxpayer Impact: Taxpayer funds are being used for essential administrative services. The competitive nature of the award aims to ensure fair pricing, but the exclusion clause could potentially limit optimal cost savings.

Public Impact

Ensures efficient processing of vendor payments for the U.S. Coast Guard. Supports the operational readiness of a key Department of Homeland Security agency. Provides essential administrative support, freeing up personnel for core mission activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'exclusion of sources' clause.
Lack of specific performance metrics or KPIs in the provided data.
No indication of small business participation.

Positive Signals

Awarded under a competitive process.
Supports a critical national security agency.
Firm Fixed Price contract type helps control costs.

Sector Analysis

This contract falls within the Office Administrative Services sector, which encompasses a wide range of support functions for government agencies. Spending in this area is generally consistent across departments, focusing on efficiency and operational support.

Small Business Impact

The provided data indicates that small business participation was not a factor in this award (sb: false). Further analysis would be needed to determine if opportunities for small businesses were overlooked or if the nature of the service did not lend itself to small business involvement.

Oversight & Accountability

The contract is managed by the Department of Homeland Security for the U.S. Coast Guard. Oversight would typically involve contract performance monitoring, financial reviews, and ensuring compliance with federal acquisition regulations.

Related Government Programs

Office Administrative Services
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
No clear indication of small business participation.
Lack of detailed performance metrics in the provided data.
The 'Office Administrative Services' category is broad and may obscure specific service efficiencies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $9.9 million to ITC FEDERAL, LLC. ACCOUNTS PAYABLE SERVICE

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 $9.9 million.

What is the period of performance?

Start: 2023-06-01. End: 2026-08-31.

What specific services are included under 'Accounts Payable Service' and how do they align with the Coast Guard's operational needs?

Accounts Payable Services typically encompass the processing of invoices, vendor payments, expense reimbursements, and maintaining accurate financial records related to payables. For the Coast Guard, this ensures timely payment to suppliers for goods and services critical to maintaining its fleet, infrastructure, and operational readiness, thereby supporting its maritime security and safety missions.

What was the rationale behind the 'exclusion of sources' in this full and open competition, and did it impact the final price?

The rationale for excluding specific sources in a 'full and open competition after exclusion of sources' award is often tied to specific technical requirements, prior performance issues, or unique capabilities not met by all potential offerors. Without further details, it's difficult to ascertain the exact reasons or quantify the price impact, though such exclusions can sometimes limit the competitive landscape and potentially affect price discovery.

How does the $9.88M contract value compare to industry benchmarks for similar accounts payable services over a 3-year period?

Benchmarking this $9.88M contract against industry standards for accounts payable services over approximately three years requires detailed analysis of contract scope, service level agreements, and the specific complexities involved. Preliminary assessment suggests it's a moderate value, but a definitive comparison necessitates access to broader market data and potentially a cost-per-transaction analysis to ensure optimal value for taxpayer dollars.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative 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

Solicitation ID: 70Z02323Q80000002

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: $11,290,275

Exercised Options: $11,290,275

Current Obligation: $9,881,894

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSHQDC16DP2017

IDV Type: IDC

Timeline