DHS awarded $13M for IT services, with a fixed-price incentive contract to Robbins Gioia LLC

Contract Overview

Contract Amount: $13,034,732 ($13.0M)

Contractor: Robbins Gioia Limited Liability Company

Awarding Agency: Department of Homeland Security

Start Date: 2007-05-01

End Date: 2008-04-30

Contract Duration: 365 days

Daily Burn Rate: $35.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE

Sector: IT

Official Description: NOT REQUIRED

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA (CITY) County, VIRGINIA, 22311

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $13.0 million to ROBBINS GIOIA LIMITED LIABILITY COMPANY for work described as: NOT REQUIRED Key points: 1. The contract utilized a fixed-price incentive structure, aiming to align contractor performance with government objectives. 2. Competition was conducted under 'full and open competition after exclusion of sources,' suggesting a specific justification for limiting initial bidders. 3. The contract duration was 365 days, indicating a relatively short-term engagement for the services provided. 4. The award was made to a single contractor, Robbins Gioia LLC, for 'Other Computer Related Services'. 5. The contract's value of approximately $13 million falls within a moderate spending range for IT services. 6. The 'VA' (Virginia) state code suggests the primary performance location or administrative hub.

Value Assessment

Rating: fair

Benchmarking the value of this $13 million contract is challenging without specific performance metrics or detailed service descriptions. The fixed-price incentive (FPI) contract type suggests an attempt to control costs while incentivizing performance, but the ultimate value depends on how effectively these incentives were structured and met. Comparing it to similar 'Other Computer Related Services' contracts awarded by DHS or CBP would provide a clearer picture of whether the pricing was competitive for the scope of work. The absence of detailed performance data makes a definitive value assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This procurement method implies that while the competition was intended to be open, specific sources may have been excluded for reasons not detailed in the provided data. This could indicate a need for specialized capabilities or a prior relationship that justified the exclusion of other potential bidders. The number of bidders is not specified, but the method suggests a potentially narrower field than a standard full and open competition.

Taxpayer Impact: The 'exclusion of sources' aspect could mean taxpayers did not benefit from the broadest possible competition, potentially leading to a less competitive price than if all qualified vendors had been allowed to bid.

Public Impact

The primary beneficiary is the U.S. Customs and Border Protection (CBP) within the Department of Homeland Security (DHS). The services delivered are categorized as 'Other Computer Related Services,' likely supporting CBP's IT infrastructure, operations, or data management. The geographic impact is likely concentrated in Virginia, where the contract's administrative code (VA) points. The contract supports the federal government's need for specialized IT services to fulfill its border security and trade facilitation mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition details raise questions about optimal price discovery for taxpayers.
The 'exclusion of sources' requires further investigation to ensure fairness and necessity.
Lack of specific performance metrics makes it difficult to assess the contractor's effectiveness and value.
Fixed-price incentive contracts can sometimes lead to cost overruns if not managed meticulously.

Positive Signals

The use of a fixed-price incentive contract signals an effort to manage costs and performance.
The contract was awarded to a single, presumably qualified, vendor for specialized services.
The contract falls under the Department of Homeland Security, a critical national security agency.

Sector Analysis

The IT services sector is vast and critical to government operations. This contract, falling under 'Other Computer Related Services' (NAICS 541519), likely involves support, maintenance, consulting, or integration services for complex IT systems. The market for such services is highly competitive, with numerous firms offering specialized expertise. Government spending in this area is substantial, driven by the need to modernize aging infrastructure, enhance cybersecurity, and leverage technology for mission effectiveness. This contract represents a portion of DHS's broader IT procurement strategy.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Robbins Gioia LLC, would determine any subcontracting opportunities based on its own business strategy and the specific needs of the contract, independent of any small business goals mandated by the government for this particular award.

Oversight & Accountability

Oversight for this contract would fall under the Department of Homeland Security (DHS) and specifically the U.S. Customs and Border Protection (CBP). As a fixed-price incentive contract, performance monitoring and financial oversight would be crucial to ensure the contractor meets objectives and stays within budget. Transparency would depend on DHS's reporting practices for contract awards and performance. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise during the contract's lifecycle.

Related Government Programs

Department of Homeland Security IT Modernization Programs
Customs and Border Protection Information Technology Services
Federal IT Services Procurement
Other Computer Related Services Contracts

Risk Flags

Limited competition details
Unclear performance metrics
Potential for cost overruns in FPI contracts
Ambiguity in 'exclusion of sources' justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $13.0 million to ROBBINS GIOIA LIMITED LIABILITY COMPANY. NOT REQUIRED

Who is the contractor on this award?

The obligated recipient is ROBBINS GIOIA LIMITED LIABILITY COMPANY.

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 $13.0 million.

What is the period of performance?

Start: 2007-05-01. End: 2008-04-30.

What specific 'Other Computer Related Services' were provided under this contract?

The provided data categorizes the service under NAICS code 541519, 'Other Computer Related Services.' This broad category can encompass a wide range of IT support, including but not limited to IT consulting, systems integration, network management, software support, and IT infrastructure maintenance. Without further details from the contract's statement of work or performance reports, the precise nature of the services rendered remains unspecified. These services are crucial for agencies like CBP to maintain and enhance their operational capabilities, which often rely heavily on complex IT systems for data processing, communication, and surveillance.

How did the 'full and open competition after exclusion of sources' impact the final contract price?

The procurement method 'full and open competition after exclusion of sources' suggests that while the competition was intended to be open, certain potential bidders were deliberately excluded. The impact on the final price is difficult to quantify without knowing who was excluded and why. Typically, broader competition leads to lower prices due to increased market pressure. If the exclusion was justified by highly specialized requirements that only a few firms could meet, the resulting price might be higher than in a truly open market. Conversely, if the exclusion was arbitrary or poorly justified, it could have led to a less competitive outcome and a higher price for taxpayers.

What were the key performance indicators (KPIs) and incentives within the Fixed Price Incentive (FPI) contract structure?

The data indicates the contract type was Fixed Price Incentive (FPI). In an FPI contract, the final price is adjusted based on the contractor's performance relative to established targets. Key performance indicators (KPIs) would have been defined in the contract's statement of work, likely relating to service delivery, system uptime, response times, or project milestones. The incentive structure would have established a ceiling price, target price, and target profit, with mechanisms for sharing cost savings or cost overruns between the government and the contractor. Without access to the contract details, the specific KPIs and incentive formulas remain unknown, making it impossible to assess how effectively they drove performance or controlled costs.

What is the track record of Robbins Gioia LLC with federal contracts, particularly within DHS?

Robbins Gioia LLC has a history of federal contracting. While specific details of their past performance with DHS or CBP are not provided in this dataset, a comprehensive analysis would involve reviewing their contract history, including award values, contract types, performance ratings (if available), and any past performance issues or commendations. Understanding their experience with similar IT services and their success in meeting government requirements is crucial for assessing their capability and reliability on this particular contract. A review of federal procurement databases and contract award histories would be necessary for a thorough assessment.

How does the $13 million award compare to typical spending for similar IT services at CBP?

The $13 million award for 'Other Computer Related Services' represents a moderate investment for a large federal agency like CBP. To benchmark this spending, one would need to compare it against historical CBP or DHS contracts for similar IT services, considering factors like contract duration, scope of work, and the specific technologies involved. The average cost per unit or per service hour, if derivable, would also be a useful comparison point. Without this comparative data, it's difficult to definitively state whether $13 million is high, low, or average for the services rendered. However, it suggests a significant, but not exceptionally large, IT support engagement.

What are the potential risks associated with a Fixed Price Incentive contract for 'Other Computer Related Services'?

Fixed Price Incentive (FPI) contracts carry inherent risks. For the government, there's a risk that the contractor may not fully achieve the performance targets, leading to suboptimal service delivery despite the incentive structure. If the target cost is set too high, the government might end up paying more than necessary. Conversely, if the incentive sharing formula is unfavorable, the contractor might not be sufficiently motivated to control costs. For 'Other Computer Related Services,' which can be complex and evolving, defining clear, measurable KPIs and realistic cost targets can be challenging, increasing the risk of disputes or unmet expectations. Effective oversight is critical to mitigate these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Address: 11 CANAL CENTER PLAZA, ALEXANDRIA, VA, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,034,732

Exercised Options: $13,034,732

Current Obligation: $13,034,732

Parent Contract

Parent Award PIID: HSBP1006A01067

IDV Type: BPA

Timeline