DHS's $20M contract for SEVP program operations support awarded to DYNAMIS, INC. shows fair value

Contract Overview

Contract Amount: $20,057,050 ($20.1M)

Contractor: Dynamis, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2013-09-24

End Date: 2018-10-06

Contract Duration: 1,838 days

Daily Burn Rate: $10.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL::IGF PROGRAM OPERATIONS SUPPORT FOR SEVP

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $20.1 million to DYNAMIS, INC. for work described as: IGF::CL::IGF PROGRAM OPERATIONS SUPPORT FOR SEVP Key points: 1. The contract was awarded through full and open competition, suggesting a competitive pricing environment. 2. The fixed-price contract type helps mitigate cost overrun risks for the government. 3. The duration of the contract (over 5 years) indicates a need for sustained support. 4. The services provided fall under administrative management and general management consulting, a common area for federal contracting. 5. The contract's value is moderate within the context of large federal IT and professional services spending. 6. The award to DYNAMIS, INC. represents a significant engagement for the contractor.

Value Assessment

Rating: fair

The contract value of approximately $20 million over five years for program operations support appears reasonable when benchmarked against similar administrative and management consulting services procured by federal agencies. While specific per-unit cost data is not available, the firm-fixed-price structure suggests that the contractor assumed the risk for cost overruns, which is a positive indicator for value. The duration and scope align with typical requirements for ongoing program support, implying a stable and predictable cost structure was negotiated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that the solicitation was broadly advertised and multiple bids were likely considered. The presence of three bidders suggests a degree of competition, which generally aids in price discovery and can lead to more favorable pricing for the government. However, the specific number of bidders is relatively low for a contract of this size and duration, which could warrant further investigation into market dynamics.

Taxpayer Impact: The competitive bidding process likely resulted in a more cost-effective outcome for taxpayers compared to a sole-source award. The government secured services through a structured procurement, aiming for the best value among qualified offerors.

Public Impact

The primary beneficiaries are the U.S. Immigration and Customs Enforcement (ICE) and the Student and Exchange Visitor Program (SEVP), which receive essential operational support. Services delivered include administrative management and general management consulting, crucial for the efficient functioning of the SEVP. The geographic impact is primarily within the United States, supporting federal agency operations. Workforce implications include the employment of personnel by DYNAMIS, INC. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if program requirements evolve significantly without contract modifications.
Dependence on a single contractor for critical program operations could pose continuity risks if not managed proactively.
The 'after exclusion of sources' clause in the competition type warrants a review to ensure no viable sources were unduly excluded.

Positive Signals

Firm-fixed-price contract type provides cost certainty and incentivizes contractor efficiency.
Full and open competition generally leads to better pricing and wider access to qualified vendors.
The contract duration suggests a stable, long-term need that has been met through a structured procurement process.

Sector Analysis

This contract falls within the professional services sector, specifically administrative and management consulting. The federal government is a significant consumer of these services, with annual spending in the hundreds of billions across various agencies. Contracts like this support the operational backbone of government programs, enabling agencies to manage complex initiatives such as student visa programs. Benchmarks for similar consulting contracts vary widely based on scope, duration, and specialized expertise required.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration for this specific award (ss: false, sb: false). While DYNAMIS, INC. may engage small businesses as subcontractors, there is no explicit requirement or set-aside noted in the provided data. This suggests that the primary focus was on securing the best overall offer through full and open competition, rather than specifically targeting small business prime contractors for this particular procurement.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Immigration and Customs Enforcement (ICE) contracting officer and program officials. Performance reviews, regular reporting, and adherence to the firm-fixed-price terms would be key accountability measures. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or identified during the contract's performance.

Related Government Programs

Student and Exchange Visitor Program (SEVP) Operations
Immigration and Customs Enforcement (ICE) Support Services
Federal Administrative Management Consulting
General Management Consulting Services

Risk Flags

Competition level appears adequate but could be higher for a contract of this value.
Performance data is not publicly available to fully assess value for money.
Potential for vendor lock-in given the multi-year duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20.1 million to DYNAMIS, INC.. IGF::CL::IGF PROGRAM OPERATIONS SUPPORT FOR SEVP

Who is the contractor on this award?

The obligated recipient is DYNAMIS, INC..

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 $20.1 million.

What is the period of performance?

Start: 2013-09-24. End: 2018-10-06.

What is the historical spending trend for SEVP program operations support by DHS?

Analyzing historical spending for SEVP program operations support by DHS requires access to detailed procurement data over multiple fiscal years. While this specific contract (ID: IGF::CL::IGF) spans from September 2013 to October 2018 with a value of approximately $20 million, it represents only one component of the overall SEVP operational budget. To understand trends, one would need to aggregate spending on similar contracts, task orders, and potentially internal resource allocations dedicated to SEVP operations. Factors influencing spending include policy changes, student enrollment numbers, program complexity, and the efficiency of contracted services. Without a broader dataset, it's difficult to establish a definitive trend, but this contract's value suggests a significant, multi-year investment in program support.

How does DYNAMIS, INC.'s performance on this contract compare to industry benchmarks for similar services?

Assessing DYNAMIS, INC.'s performance requires access to contractor performance evaluations (e.g., CPARS reports) which are not provided in the summary data. Industry benchmarks for administrative and management consulting services typically focus on metrics such as on-time delivery, quality of deliverables, cost control (especially relevant for cost-reimbursable contracts, though this is fixed-price), and customer satisfaction. For a firm-fixed-price contract like this, successful completion within the agreed-upon scope and price is the primary indicator of good performance. Without specific performance ratings or comparative data on similar contracts awarded to other firms, a direct benchmark comparison is speculative. However, the contract's completion without apparent major disputes suggests satisfactory performance.

What are the key risks associated with this contract and how were they mitigated?

Key risks for this contract include potential scope creep, contractor performance issues, and reliance on a single vendor for critical operations. Scope creep could occur if SEVP requirements evolved beyond the initial contract's definition, potentially leading to cost increases or delays if not managed through formal contract modifications. Contractor performance issues could impact the efficiency and effectiveness of SEVP operations. Reliance on DYNAMIS, INC. for over five years could pose continuity risks if the company faced financial instability or strategic shifts. Mitigation strategies likely included a well-defined scope of work, clear performance standards, regular oversight by ICE officials, and the firm-fixed-price structure which incentivized the contractor to manage costs and deliver within budget. The competitive award process also aimed to select a capable vendor.

What was the total federal spending on administrative management and general management consulting services in the years this contract was active?

Federal spending on NAICS code 541611 (Administrative Management and General Management Consulting Services) fluctuates annually. During the period this contract was active (2013-2018), overall federal spending on consulting services remained substantial. For instance, in FY2017, federal agencies obligated over $15 billion across various consulting categories. While precise figures for 541611 alone require detailed data extraction from sources like the Federal Procurement Data System (FPDS), it represents a significant portion of the total consulting spend. This $20 million contract for DYNAMIS, INC. was thus a relatively small component within the broader landscape of federal spending on management and administrative support services during those years.

Were there any significant changes in the scope or cost of this contract after its initial award?

The provided data indicates a single award action with a total value of $20,057,050.22 and a duration from September 24, 2013, to October 6, 2018. The contract type is 'FIRM FIXED PRICE' and the award was a 'DELIVERY ORDER'. Without access to the contract's modification history, it's impossible to definitively state whether there were significant changes in scope or cost post-award. However, the data suggests a single, consolidated value for the entire period. In federal contracting, modifications are common for adjustments, but the absence of explicit modification data here implies either minimal changes or that the provided 'total obligation' reflects the sum of all actions, including any minor adjustments within the fixed-price framework.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2000 14TH STREET N STE 550, ARLINGTON, VA, 22201

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

Financial Breakdown

Contract Ceiling: $21,574,451

Exercised Options: $20,057,050

Current Obligation: $20,057,050

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $7,693,454

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCG2312DATB016

IDV Type: IDC

Timeline