DHS awards $29.1M contract for I-901 Fee Website to U.S. Bancorp under full and open competition

Contract Overview

Contract Amount: $29,131,120 ($29.1M)

Contractor: U.S. Bancorp

Awarding Agency: Department of Homeland Security

Start Date: 2012-09-28

End Date: 2018-04-27

Contract Duration: 2,037 days

Daily Burn Rate: $14.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: I-901 FEE WEBSITE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20036

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $29.1 million to U.S. BANCORP for work described as: I-901 FEE WEBSITE Key points: 1. The contract value of $29.1 million over approximately 6 years represents a significant investment in financial transaction processing. 2. U.S. Bancorp, a large financial institution, was selected through full and open competition, suggesting a competitive bidding process. 3. The firm fixed price contract type aims to control costs, but the duration and potential for contract modifications warrant monitoring. 4. The sector involves financial transactions processing, crucial for government fee collection and management.

Value Assessment

Rating: good

The contract value of $29.1 million over approximately 6 years for a fee website appears reasonable given the scope of financial transactions processed. Benchmarking against similar government financial processing contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds were likely used efficiently, with pricing driven by market forces.

Public Impact

Ensures efficient processing of fees for immigration services, impacting applicants and the Department of Homeland Security. Provides a critical online platform for financial transactions, enhancing accessibility and reducing manual processing. Supports the operational needs of U.S. Immigration and Customs Enforcement by managing revenue streams.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of over 6 years could lead to scope creep or outdated technology if not managed effectively.
Lack of specific small business participation noted, which could be an area for improvement in future procurements.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
Firm fixed price contract type helps in budget certainty and cost control.
Significant investment in a critical government function.

Sector Analysis

The contract falls within the Financial Transactions Processing, Reserve, and Clearinghouse Activities sector. Government spending in this area is essential for managing revenue and operational efficiency, with benchmarks varying based on the complexity and volume of transactions.

Small Business Impact

The data indicates that small business participation was not a primary factor in this award ('sb': false). Future procurements in this area could explore opportunities to engage small businesses, potentially through subcontracting or set-aside awards.

Oversight & Accountability

The contract's duration and value necessitate ongoing oversight from the Department of Homeland Security to ensure performance, cost control, and adherence to contract terms. Regular reviews and performance metrics are crucial for accountability.

Related Government Programs

Financial Transactions Processing, Reserve, and Clearinghouse Activities
Department of Homeland Security Contracting
U.S. Immigration and Customs Enforcement Programs

Risk Flags

Long contract duration may lead to technology obsolescence.
Potential for scope creep despite fixed-price contract.
Limited visibility into small business participation.
Reliance on a single vendor for critical financial processing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $29.1 million to U.S. BANCORP. I-901 FEE WEBSITE

Who is the contractor on this award?

The obligated recipient is U.S. BANCORP.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $29.1 million.

What is the period of performance?

Start: 2012-09-28. End: 2018-04-27.

What is the specific functionality and scope of the I-901 Fee Website, and how does it compare to industry standards for similar financial transaction platforms?

The I-901 Fee Website is crucial for processing fees associated with immigration benefits, such as the Form I-901, Fee for Application for Travel Document. Its scope likely includes secure payment processing, user account management, and integration with government databases. Benchmarking against private sector financial platforms would reveal if the government's solution is leveraging modern, user-friendly, and secure technologies, or if it represents a more basic, albeit functional, system.

Given the firm fixed price contract, what mechanisms are in place to manage potential cost overruns or scope creep over the contract's 6-year duration?

While a firm fixed price contract aims to cap costs, effective management requires clear contract terms, robust change control processes, and diligent oversight. The contracting officer must carefully review any proposed changes for necessity and impact on cost and schedule. Regular performance reviews and communication with the contractor are essential to identify and address potential issues proactively before they escalate into significant cost overruns or scope creep.

How does the performance of U.S. Bancorp on this contract contribute to the overall effectiveness of the Department of Homeland Security's fee collection and immigration processing operations?

The effectiveness of U.S. Bancorp's performance directly impacts the efficiency and reliability of fee collection, which funds critical immigration services. A well-functioning website ensures timely processing of payments, reduces administrative burden, and improves the applicant experience. Conversely, performance issues could lead to delays, revenue shortfalls, and increased operational costs for DHS, ultimately hindering the effectiveness of immigration processing.

Industry Classification

NAICS: Finance and Insurance › Activities Related to Credit Intermediation › Financial Transactions Processing, Reserve, and Clearinghouse Activities

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSCEMD-12-R-00002

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 800 NICOLLET MALL STE 1500, MINNEAPOLIS, MN, 55402

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,151,120

Exercised Options: $29,151,120

Current Obligation: $29,131,120

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline