Commerce Dept. awards $11.2M contract for automated export services to Flagship Customs Services, Inc

Contract Overview

Contract Amount: $11,194,500 ($11.2M)

Contractor: Flagship Customs Services, Inc.

Awarding Agency: Department of Commerce

Start Date: 2005-03-01

End Date: 2009-09-10

Contract Duration: 1,654 days

Daily Burn Rate: $6.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AUTOMATED EXPORT SERVICES

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $11.2 million to FLAGSHIP CUSTOMS SERVICES, INC. for work described as: AUTOMATED EXPORT SERVICES Key points: 1. Contract awarded for automated export services, a niche information service. 2. Sole-source award to Flagship Customs Services, Inc. raises competition concerns. 3. Long contract duration of 1654 days may indicate potential for cost overruns. 4. Firm fixed price contract type offers some cost certainty.

Value Assessment

Rating: questionable

The contract value of $11.2 million over approximately 4.5 years is difficult to benchmark without specific service details. The lack of competition makes a direct pricing assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these automated export services.

Public Impact

Impacts businesses relying on accurate export data and services. Potential for increased costs for businesses using these services. Highlights a lack of competitive bidding in a specific government service area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Long contract duration
Lack of competition

Positive Signals

Firm fixed price contract

Sector Analysis

The Information Services sector (NAICS 519190) encompasses a wide range of data processing and related services. Government spending in this area can vary significantly based on the specific services required.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure fair pricing and service delivery. Accountability for the decision not to compete is crucial.

Related Government Programs

All Other Information Services
Department of Commerce Contracting
U.S. Census Bureau Programs

Risk Flags

Sole-source award limits competition and potentially increases costs.
Long contract duration may lead to cost inefficiencies over time.
Lack of transparency regarding the justification for sole-sourcing.
Difficulty in assessing value for money due to absence of competitive bids.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $11.2 million to FLAGSHIP CUSTOMS SERVICES, INC.. AUTOMATED EXPORT SERVICES

Who is the contractor on this award?

The obligated recipient is FLAGSHIP CUSTOMS SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Census Bureau).

What is the total obligated amount?

The obligated amount is $11.2 million.

What is the period of performance?

Start: 2005-03-01. End: 2009-09-10.

What was the justification for the sole-source award, and were alternative competitive strategies considered?

The justification for a sole-source award is critical for understanding why competition was bypassed. Agencies typically cite unique capabilities, urgent needs, or lack of market availability. Without this information, it's impossible to assess if taxpayers received fair value or if alternative competitive strategies could have yielded better pricing and innovation.

How does the per-unit cost of these automated export services compare to industry benchmarks, given the lack of competition?

Benchmarking the per-unit cost is challenging due to the sole-source nature of this contract. Without competitive bids, there's no market-driven price point for comparison. An independent cost analysis or review of historical pricing for similar, albeit potentially less comprehensive, services would be necessary to assess value for money.

What measures are in place to ensure the effectiveness and efficiency of the services provided by Flagship Customs Services, Inc. under this long-term contract?

Given the contract's length (1654 days), robust performance metrics and oversight are essential. The Department of Commerce should have clear deliverables, service level agreements, and regular performance reviews to ensure the services are effective and meet the Census Bureau's needs. Without these, the long duration could mask inefficiencies.

Industry Classification

NAICS: Information › Other Information Services › All Other Information Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Descartes Systems Group Inc, the

Address: 1010 WAYNE AVENUE, SILVER SPRING, MD, 20910

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,194,500

Exercised Options: $11,194,500

Current Obligation: $11,194,500

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline