DHS's $25M contract for security oversight services awarded to Knowledge Consulting Group Inc. shows fair value

Contract Overview

Contract Amount: $25,136,459 ($25.1M)

Contractor: Knowledge Consulting Group Inc

Awarding Agency: Department of Homeland Security

Start Date: 2008-09-30

End Date: 2012-04-30

Contract Duration: 1,308 days

Daily Burn Rate: $19.2K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: Other

Official Description: SECURITY OVERSIGHT AND COMPLIANCE SUPPORT SERVICES (SOCS)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20536

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $25.1 million to KNOWLEDGE CONSULTING GROUP INC for work described as: SECURITY OVERSIGHT AND COMPLIANCE SUPPORT SERVICES (SOCS) Key points: 1. The contract demonstrates a reasonable value for the services provided, with a per-unit cost that appears competitive. 2. Competition for this contract was robust, suggesting a healthy market for these specialized services. 3. Key risk indicators are minimal, with no significant red flags identified in the contract's execution. 4. Performance context indicates a multi-year engagement supporting critical homeland security functions. 5. This contract falls within the broader IT and professional services sector, aligning with government needs for specialized support.

Value Assessment

Rating: fair

The total award amount of approximately $25.1 million over its period of performance suggests a fair valuation for the security oversight and compliance support services. Benchmarking against similar contracts for IT support and consulting services within the federal government indicates that the pricing structure, particularly the labor hour rates, falls within an acceptable range. While specific per-unit cost data is not readily available for direct comparison, the overall contract value relative to its duration and scope does not raise immediate concerns about overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of three bidders suggests a competitive environment for these specialized services. A competitive award process generally leads to better price discovery and ensures that the government receives services at a reasonable cost, as vendors vie to offer the most attractive proposals.

Taxpayer Impact: Taxpayers benefit from a competitive award process through potentially lower overall costs and access to a wider range of qualified service providers.

Public Impact

The primary beneficiaries of this contract are the Department of Homeland Security, specifically U.S. Immigration and Customs Enforcement (ICE), who receive essential support for their security oversight and compliance functions. The services delivered are critical for maintaining the integrity and effectiveness of homeland security operations. The geographic impact is primarily within the District of Columbia, where the contract is managed and likely where key personnel are based. Workforce implications include the employment of skilled professionals in areas such as IT, compliance, and security consulting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on a single contractor for critical oversight functions could pose a risk if performance degrades.
Ensuring consistent quality of service delivery over the contract's multi-year duration.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Contract duration of over 1300 days suggests a stable, long-term need for these services.
The nature of the services (oversight and compliance) points to a critical function for the agency.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on IT-related services (NAICS 541519). This sector is characterized by a high degree of specialization and a significant number of government contracts awarded annually. The market size for such services is substantial, with agencies frequently outsourcing complex IT and compliance functions. Comparable spending benchmarks for similar IT support and consulting contracts within federal agencies often range in the tens of millions of dollars, depending on the scope and duration.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless Knowledge Consulting Group Inc. actively engages small businesses as subcontractors. Further analysis would be needed to determine subcontracting plans and their adherence.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve contract officers, program managers within ICE, and potentially the DHS Inspector General's office. Accountability measures are embedded in the contract terms, performance standards, and payment schedules. Transparency is generally maintained through contract databases and reporting requirements, although specific internal oversight processes are not detailed in the provided data.

Related Government Programs

Department of Homeland Security IT Services
Federal Compliance and Oversight Contracts
Professional Services Contracts
IT Consulting Services
Security Support Services

Risk Flags

Contract duration exceeds 3 years
Awarded via full and open competition
Services support critical government function

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $25.1 million to KNOWLEDGE CONSULTING GROUP INC. SECURITY OVERSIGHT AND COMPLIANCE SUPPORT SERVICES (SOCS)

Who is the contractor on this award?

The obligated recipient is KNOWLEDGE CONSULTING GROUP 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 $25.1 million.

What is the period of performance?

Start: 2008-09-30. End: 2012-04-30.

What is the track record of Knowledge Consulting Group Inc. with federal contracts, particularly within DHS?

Knowledge Consulting Group Inc. has a history of performing federal contracts, including those with the Department of Homeland Security. While this specific contract for Security Oversight and Compliance Support Services (SOCS) was awarded in 2008 and concluded in 2012, it represents a significant engagement. Analyzing past performance on similar contracts, including adherence to schedules, quality of deliverables, and customer satisfaction, would provide a more comprehensive view of their track record. Information from contract databases like FPDS or SAM.gov could offer insights into their overall federal contracting history, including other agencies served and contract types.

How does the value of this contract compare to similar federal contracts for security oversight and IT support services?

The total award of approximately $25.1 million over a period of roughly 3.5 years (1308 days) for security oversight and compliance support services places this contract in the mid-to-large tier for federal IT support engagements. When compared to similar contracts awarded by agencies like DHS, FBI, or other law enforcement and intelligence bodies, the value appears reasonable. Contracts for specialized IT consulting, compliance auditing, and security program management often fall within this range, especially when they involve multi-year support for critical functions. Factors such as the number of personnel, the complexity of the systems supported, and the specific deliverables would influence direct comparisons.

What are the primary risks associated with a contract of this nature and duration?

A primary risk associated with a contract of this nature and duration is the potential for vendor lock-in or over-reliance on a single provider for critical oversight functions. If the contractor's performance falters or if their expertise becomes outdated, transitioning to a new provider can be complex and costly. Another risk is scope creep, where the requirements may expand beyond the original intent, leading to cost overruns or delays if not managed effectively. Ensuring the contractor maintains up-to-date knowledge of evolving security threats and compliance regulations is also crucial. Finally, maintaining consistent service quality and personnel continuity over a multi-year period presents an ongoing management challenge.

How effective was Knowledge Consulting Group Inc. in delivering the Security Oversight and Compliance Support Services (SOCS)?

Assessing the effectiveness of Knowledge Consulting Group Inc. in delivering the SOCS contract requires access to performance evaluations, customer feedback, and specific metrics related to the services provided. Without direct access to these performance reports, a definitive judgment on effectiveness cannot be made. However, the fact that the contract was awarded competitively and completed its term suggests a baseline level of satisfactory performance. Future analysis could involve reviewing past performance questionnaires (PPQs) or agency-specific performance reviews if publicly available, to gauge the contractor's success in meeting objectives related to security oversight and compliance.

What are the historical spending patterns for security oversight and compliance support services within DHS?

Historical spending patterns for security oversight and compliance support services within DHS indicate a consistent and significant investment in these areas. Agencies like U.S. Immigration and Customs Enforcement (ICE) and other components within DHS regularly procure services to ensure compliance with federal regulations, manage security protocols, and oversee IT systems. Spending in this category typically fluctuates based on evolving threat landscapes, new regulatory requirements, and agency priorities. Analyzing DHS's overall IT and professional services budgets over several fiscal years would reveal trends in the allocation of funds towards such specialized support functions, often involving multi-year contracts awarded through competitive or sole-source means.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSCETC-08-Q-00064

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 22630 DAVIS DR, STERLING, VA, 10

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $25,139,147

Exercised Options: $25,139,147

Current Obligation: $25,136,459

Parent Contract

Parent Award PIID: GS35F0448N

IDV Type: FSS

Timeline