Commerce Dept. awards $18.9M for Customs Services to Flagship, citing no competition
Contract Overview
Contract Amount: $18,918,067 ($18.9M)
Contractor: Flagship Customs Services, Inc.
Awarding Agency: Department of Commerce
Start Date: 2011-09-16
End Date: 2016-09-30
Contract Duration: 1,841 days
Daily Burn Rate: $10.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TO7
Place of Performance
Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $18.9 million to FLAGSHIP CUSTOMS SERVICES, INC. for work described as: TO7 Key points: 1. Significant award value of $18.9M over 5 years. 2. Sole-source award indicates limited competition. 3. Potential risk due to lack of competitive pricing. 4. IT services sector, specifically custom computer programming.
Value Assessment
Rating: questionable
The contract was awarded on a firm-fixed-price basis. However, without competitive bidding, it's difficult to assess if the $18.9M price represents fair market value compared to similar custom computer programming services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded as a sole-source, 'NOT AVAILABLE FOR COMPETITION' delivery order. This significantly limits price discovery and competitive pressure, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The lack of competition raises concerns about whether taxpayers received the best possible value for the $18.9M spent on these services.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. Government reliance on a single vendor for critical customs services could pose a risk. The long contract duration (5 years) limits flexibility to seek better pricing or solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Firm-fixed-price contract type
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming services. The average contract value for this NAICS code can vary widely, but a $18.9M award over five years for a single delivery order warrants scrutiny for competitive pricing.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or if this award was intended to support small business participation. The sole-source nature suggests limited opportunity for small business prime contractors.
Oversight & Accountability
The 'NOT AVAILABLE FOR COMPETITION' designation requires strong justification from the agency to ensure proper oversight and accountability. Further review of the justification for sole-source award is recommended.
Related Government Programs
- Custom Computer Programming Services
- Department of Commerce Contracting
- U.S. Census Bureau Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for overpayment due to limited price discovery.
- Long-term reliance on a single vendor.
- Lack of transparency regarding justification for sole-source award.
Tags
custom-computer-programming-services, department-of-commerce, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $18.9 million to FLAGSHIP CUSTOMS SERVICES, INC.. TO7
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 $18.9 million.
What is the period of performance?
Start: 2011-09-16. End: 2016-09-30.
What was the specific justification provided by the U.S. Census Bureau for awarding this contract on a sole-source basis?
The provided data states 'NOT AVAILABLE FOR COMPETITION' as the contract type. A comprehensive justification would typically detail why only Flagship Customs Services, Inc. could meet the agency's requirements, such as unique capabilities, proprietary technology, or urgent needs that preclude a competitive process. Without this detailed justification, it's difficult to fully assess the necessity of the sole-source award.
How does the $18.9M contract value compare to industry benchmarks for similar custom computer programming services, considering the lack of competitive data?
Benchmarking is challenging without competitive data. However, for a five-year contract of this nature, $18.9M ($3.78M annually) for custom computer programming services could be considered within a reasonable range if the scope of work is extensive and complex. The primary risk is that without competition, the government may not have secured the most cost-effective solution available in the market.
What mechanisms are in place to ensure the effectiveness and quality of the custom computer programming services delivered by Flagship Customs Services, Inc. under this sole-source award?
While the contract is firm-fixed-price, ensuring effectiveness relies heavily on the agency's contract management and performance monitoring. The U.S. Census Bureau should have robust quality assurance surveillance plans (QASP) in place to track deliverables, milestones, and overall service performance. Regular performance reviews and clear communication channels are crucial to mitigate risks associated with a sole-source provider.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Descartes Systems Group Inc, the (UEI: 243048550)
Address: 1010 WAYNE AVE STE 1225, SILVER SPRING, MD, 20910
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,000,000
Exercised Options: $19,775,479
Current Obligation: $18,918,067
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: DOCYA132309CQ0010
IDV Type: IDC
Timeline
Start Date: 2011-09-16
Current End Date: 2016-09-30
Potential End Date: 2016-09-30 00:00:00
Last Modified: 2018-01-30
More Contracts from Flagship Customs Services, Inc.
- Automated Export Services — $11.2M (Department of Commerce)
View all Flagship Customs Services, Inc. federal contracts →
Other Department of Commerce Contracts
- THE Purpose of This Contract IS to Develop the Ground System That Will Support Noaa S Next Generation Geostationary Satellite Series, Goes-R. This NEW Series of Spacecraft, SET to Begin Launching in 2015, IS Expected to Double the Clarity of Today S Satellite Imagery and Provide AT Least 20 Times More Atmospheric Observations From Space. the Contractor IS to Design, Develop, Test and Implement the Goes-R Ground System. the Ground System Will Capture Data From the Goes-R Satellites, and Process and Distribute the Information to Operational Users — $1.8B (L3harris Technologies, Inc.)
- Engineering Services and Development Leading to the Delivery of the Jpss Common Ground System Instrument and Support — $1.6B (Raytheon Company)
- Enterprise Solutions Framework (ESF) for Multi-Tiered Acquisition Framework for Systems Engineering and Integration - Program Tier Work Order 003 - 2020 Census Technical Integrator — $1.5B (T-Rex Solutions LLC)
- THE Goal of the Decennial Response Integration System (dris) Contract IS to Obtain a Practical Solution to Providing Respondent Assistance and Data Capture for the 2010 Census — $930.7M (Lockheed Martin Services, LLC)
- 2020 Census Questionnaire Assistance (2020 CQA) — $918.3M (Maximus Federal Services, Inc.)