DHS awarded $18M for PMO support to Optimus Corp, a competitive delivery order

Contract Overview

Contract Amount: $17,976,242 ($18.0M)

Contractor: Optimus Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2007-09-25

End Date: 2013-09-24

Contract Duration: 2,191 days

Daily Burn Rate: $8.2K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MANAGEMENT OFFFICE (PMO) SUPPORT SERVICES TO ASSIST IN THE MANAGEMENT AND ADMINISTRATION OF THE DROM PROGRAM.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20536, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $18.0 million to OPTIMUS CORPORATION for work described as: MANAGEMENT OFFFICE (PMO) SUPPORT SERVICES TO ASSIST IN THE MANAGEMENT AND ADMINISTRATION OF THE DROM PROGRAM. Key points: 1. The contract value of $17.98 million over approximately six years suggests a significant investment in program management. 2. The fixed-price contract type aims to control costs by shifting risk to the contractor. 3. The administrative management and general management consulting services category indicates a focus on operational efficiency and strategic guidance. 4. The contract was awarded as a competitive delivery order, implying a structured procurement process. 5. The duration of the contract (2191 days) points to a long-term need for these support services. 6. The geographic location in Washington D.C. aligns with the concentration of federal agencies in the capital.

Value Assessment

Rating: good

The contract value of approximately $18 million for PMO support services over six years appears reasonable for a federal agency like DHS. While specific benchmarks for 'PMO Support Services' are difficult to ascertain without more granular data, the fixed-price nature of the contract suggests an effort to control costs. Comparing this to similar contracts for management consulting and administrative support within DHS or other large federal agencies would provide a more precise value-for-money assessment. The absence of detailed performance metrics in the provided data makes a definitive value assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' indicating that it was competed under a broader contract vehicle, likely a Multiple Award Indefinite Delivery/Indefinite Quantity (IDIQ) contract. The presence of 7 bidders suggests a healthy level of competition for this specific delivery order. A competitive process generally leads to better price discovery and ensures that the government receives proposals from multiple qualified vendors, increasing the likelihood of selecting the best value.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers as it likely resulted in a more favorable price and a higher quality of service compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the Department of Homeland Security (DHS) and specifically U.S. Immigration and Customs Enforcement (ICE), which receive essential program management and administrative support. The services delivered include management and administration of the DROM program, crucial for the effective functioning of ICE's operations. The geographic impact is concentrated in the District of Columbia, where the agency is headquartered and likely where the majority of the support services are performed. The contract supports the workforce by providing specialized skills in management consulting, contributing to the overall efficiency of federal program execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'PMO Support Services' is not tightly managed.
Reliance on a single contractor for extended periods can create vendor lock-in.
Ensuring consistent quality of service delivery over the contract's duration requires robust oversight.

Positive Signals

The fixed-price contract type incentivizes the contractor to manage costs effectively.
The competitive award process suggests that multiple vendors were evaluated, likely leading to a strong proposal.
The long-term nature of the contract allows for continuity and deep institutional knowledge development by the contractor.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is a significant component of federal spending, supporting a wide range of government functions. The market for these services is competitive, with numerous firms offering expertise in program management, operational efficiency, and strategic planning. Benchmarking this contract's value would involve comparing its per-year cost to similar management support contracts awarded by federal agencies, considering the scope and complexity of the program being supported.

Small Business Impact

The provided data indicates that small business participation was not a primary focus for this specific contract, as the 'ss' (small business set-aside) and 'sb' (small business) fields are false. This suggests that the contract was not specifically set aside for small businesses. Therefore, the direct impact on the small business ecosystem through this award is likely minimal, unless Optimus Corporation engages in significant subcontracting with small businesses, which is not detailed in the provided information.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Immigration and Customs Enforcement (ICE) contracting officer and program managers. Accountability measures are inherent in the fixed-price contract structure, which requires the contractor to deliver services within the agreed-upon budget. Transparency is generally facilitated through contract award databases and reporting requirements. The Inspector General for the Department of Homeland Security would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

DHS Program Management Support Services
ICE Administrative Support Contracts
Federal Management Consulting Services
Government Program Management Offices (PMOs)
Department of Homeland Security Contracts

Risk Flags

Contract Duration
Scope Definition
Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18.0 million to OPTIMUS CORPORATION. MANAGEMENT OFFFICE (PMO) SUPPORT SERVICES TO ASSIST IN THE MANAGEMENT AND ADMINISTRATION OF THE DROM PROGRAM.

Who is the contractor on this award?

The obligated recipient is OPTIMUS CORPORATION.

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 $18.0 million.

What is the period of performance?

Start: 2007-09-25. End: 2013-09-24.

What is the historical spending trend for PMO support services at ICE?

Analyzing historical spending trends for PMO support services at ICE requires access to detailed contract databases beyond the scope of this single award. However, the award of an $18 million contract over six years suggests a consistent and significant need for such services. Federal agencies often rely on external support for program management due to the specialized skills required and the fluctuating demands of government programs. Trends in federal IT and administrative spending, as well as specific program lifecycles within ICE, would influence the overall spending on PMO support. A comprehensive analysis would involve examining contract awards over several fiscal years, identifying patterns in contract types, durations, and values within this service category.

How does Optimus Corporation's performance on this contract compare to industry benchmarks for similar services?

Evaluating Optimus Corporation's performance against industry benchmarks requires access to performance evaluations and contractor performance assessment reporting (CPAR) data, which is not provided here. Generally, performance benchmarks in management consulting and PMO support focus on factors such as on-time delivery, adherence to budget, quality of deliverables, client satisfaction, and responsiveness. For a fixed-price contract, meeting budget and schedule are critical performance indicators. Without specific CPARs or client feedback, a direct comparison is speculative. However, the fact that the contract was competitively awarded and potentially renewed (if this was a follow-on) could imply satisfactory performance, though this is not guaranteed.

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

Key risks associated with this contract include potential scope creep, where the definition of PMO support services expands beyond the original intent, leading to cost overruns or schedule delays. Another risk is contractor performance variability, where the quality of services may fluctuate. Dependence on a single contractor for an extended period could also pose a risk if the contractor's capabilities diminish or if their business strategy changes. Mitigation strategies typically involve robust contract management, clear definition of tasks and deliverables, regular performance reviews, and contingency planning. The fixed-price nature of the contract itself mitigates some financial risk by capping the government's expenditure, shifting cost overrun risk to the contractor.

What is the estimated cost per year for this contract, and how does it compare to similar federal contracts?

The total contract value is approximately $17,976,241.69 over a duration of 2191 days. To estimate the cost per year, we can divide the total value by the number of years. 2191 days is approximately 6 years (2191 / 365.25 ≈ 6.00). Therefore, the estimated annual cost is roughly $17,976,241.69 / 6 ≈ $2,996,040. This figure represents the average annual expenditure for PMO support services. Comparing this to similar federal contracts requires access to a database of comparable contracts, considering factors like agency, service type (administrative management, general management consulting), contract vehicle, and specific tasks performed. Without such a comparative dataset, it's difficult to definitively state if this annual cost is high or low.

What specific program or initiative is the DROM program, and why does it require extensive PMO support?

The provided data snippet defines the contract's purpose as 'MANAGEMENT OFFFICE (PMO) SUPPORT SERVICES TO ASSIST IN THE MANAGEMENT AND ADMINISTRATION OF THE DROM PROGRAM.' However, the specific nature of the 'DROM Program' is not detailed. Typically, programs requiring extensive PMO support are complex, multi-faceted initiatives involving significant budgets, multiple stakeholders, long timelines, and critical mission objectives. These could range from large-scale IT system implementations, major infrastructure projects, or complex operational initiatives within U.S. Immigration and Customs Enforcement (ICE). The need for dedicated PMO support suggests that the DROM program is of high importance and complexity, necessitating specialized management and administrative assistance to ensure its successful execution and alignment with agency goals.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: HSCEOP-07-Q-00092

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Maximus Inc (UEI: 082347477)

Address: 3130 FAIRVIEW PARK DR STE 800, FALLS CHURCH, VA, 22042

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $26,366,929

Exercised Options: $21,980,921

Current Obligation: $17,976,242

Parent Contract

Parent Award PIID: GS10F0120R

IDV Type: FSS

Timeline