DHS Spends $429M on HTEE Maintenance, Awarded Sole-Source to CTSC, LLC
Contract Overview
Contract Amount: $429,163,276 ($429.2M)
Contractor: Ctsc, LLC
Awarding Agency: Department of Homeland Security
Start Date: 2004-01-08
End Date: 2010-09-29
Contract Duration: 2,456 days
Daily Burn Rate: $174.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: HTEE EQUIPMENT MAINTENANCE AND REPAIR
Place of Performance
Location: LORTON, FAIRFAX County, VIRGINIA, 22079
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $429.2 million to CTSC, LLC for work described as: HTEE EQUIPMENT MAINTENANCE AND REPAIR Key points: 1. Significant spending of $429M on HTEE maintenance and repair. 2. Sole-source award to CTSC, LLC raises questions about competition. 3. Contract duration of 2456 days (approx. 6.7 years) indicates long-term reliance. 4. The Wired Telecommunications Carriers sector is broad; specific service details are crucial. 5. Potential for cost overruns given the Cost Plus Award Fee structure.
Value Assessment
Rating: questionable
The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed tightly. Without benchmark data for HTEE maintenance and repair, assessing the value is difficult, but the large sum warrants scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competition. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for a contract of this magnitude suggests taxpayers may not have received the best possible price.
Public Impact
Citizens rely on Customs and Border Protection for national security, making HTEE maintenance critical. The significant investment in telecommunications infrastructure highlights the importance of reliable services. Long-term sole-source contracts can stifle innovation and lead to vendor lock-in.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost Plus Award Fee contract type
- Long contract duration
- Lack of competition
Positive Signals
- Essential service for national security
Sector Analysis
This contract falls under the Wired Telecommunications Carriers sector, which is vital for government operations. Spending benchmarks for specialized HTEE maintenance are not readily available, but $429M is a substantial investment.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation is needed to assess small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and effective service delivery. The long duration also necessitates ongoing accountability checks.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- Potential for inflated costs due to sole-source award.
- Risk of vendor lock-in and reduced innovation.
- Lack of transparency in pricing due to contract type.
- Long contract duration may not reflect current market conditions.
Tags
wired-telecommunications-carriers, department-of-homeland-security, va, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $429.2 million to CTSC, LLC. HTEE EQUIPMENT MAINTENANCE AND REPAIR
Who is the contractor on this award?
The obligated recipient is CTSC, LLC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).
What is the total obligated amount?
The obligated amount is $429.2 million.
What is the period of performance?
Start: 2004-01-08. End: 2010-09-29.
What specific HTEE equipment and services are covered under this contract, and how does their criticality justify a sole-source award?
The contract covers maintenance and repair for High Technology Equipment (HTEE). A sole-source award typically requires justification based on unique capabilities, urgent need, or lack of viable alternatives. Understanding the specific HTEE components and the justification provided by DHS is crucial to assessing if this was the most appropriate procurement method.
What measures were in place to ensure cost control and prevent overspending with a Cost Plus Award Fee contract for over six years?
Cost Plus Award Fee contracts incentivize contractors to meet performance targets while managing costs. Oversight mechanisms would typically include regular audits, performance reviews, and clear criteria for award fees. The effectiveness of these measures in controlling costs for this specific $429M contract over its long duration is a key area for review.
How has the lack of competition impacted the overall cost-effectiveness and technological advancement of HTEE maintenance for U.S. Customs and Border Protection?
Sole-source awards inherently limit competitive pressure, which can lead to higher prices and slower adoption of new technologies. Without competitive bidding, CTSC, LLC may have had less incentive to innovate or offer the most cost-effective solutions. This could result in taxpayers paying more than necessary and potentially using less advanced maintenance practices.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: THE Chenega Corporation (UEI: 622692994)
Address: 5971 KINGSTOWNE VILLAGE PKWY, ALEXANDRIA, VA, 08
Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Native American Owned Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,276,564,612
Exercised Options: $1,100,310,450
Current Obligation: $429,163,276
Timeline
Start Date: 2004-01-08
Current End Date: 2010-09-29
Potential End Date: 2013-09-29 00:00:00
Last Modified: 2010-12-22
More Contracts from Ctsc, LLC
- 200212!017712!2100!AB07 !USA Communications-Electronics !daab0702cp617 !A!N! !Y! !20020329!20120930!048418730!048418730!622692994!n!chenega Technology Services CO!6800 Versar Center !springfield !va!22151!24480!025!34!fort Monmouth !monmouth !NEW Jersey!+000000200000!n!n!000000000000!s216!facilities Operations Support Services !S1 !services !1000!NOT Discernable or Classified !561210!E! !3! ! ! ! ! !99990909!B! ! !B! !a!n!r!2!002!k! !C!Y!Z! ! !n!a!n!n!f! ! ! !d!a!000!a!b!n! ! ! ! ! ! !0001! — $301.0M (Department of Defense)
- Administrative Action Changing Contract Number Only for Contract Hsbp1004c00193 Prime Integration Contract. Congressional Notification of Award Made September 2003 — $158.2M (Department of Homeland Security)
- Maintenance Program Support and Training — $94.1M (Department of Homeland Security)
- Federal Contract — $12.3M (Department of Defense)
Other Department of Homeland Security Contracts
- THE United States Coast Guard HAS a Requirement to Procure UP to Twenty-Six (26) Fast Response Cutters (frcs) on a Firm Fixed Price (FFP) Basis With an Economic Price Adjustment (EPA). Phase II of the FRC Program Will Complete the Fleet for a Total of 58 Cutters — $2.1B (Bollinger Shipyards Lockport, L.L.C.)
- Design and Construct NEW Vertical Barrier and Power Distribution, Lighting, Cameras, Equipment Shelters and Linear Ground Detection System (lgds) in Hildago County, NM — $1.8B (Fisher Sand & Gravel CO)
- Production&delivery of National Security Cutter (NSC) 6 — $1.7B (Huntington Ingalls Incorporated)
- YUM-2 Vertical Border and Waterborne Barrier Construction — $1.7B (Fisher Sand & Gravel CO)
- Construct Vertical Border Barrier — $1.6B (Fisher Sand & Gravel CO)