DHS awarded $35.9M in engineering services to Infozen, LLC, with 11 bids received

Contract Overview

Contract Amount: $35,921,202 ($35.9M)

Contractor: Infozen, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2011-09-02

End Date: 2013-05-28

Contract Duration: 634 days

Daily Burn Rate: $56.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: ENGINEERING SERVICES AND SUPPORT

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $35.9 million to INFOZEN, LLC for work described as: ENGINEERING SERVICES AND SUPPORT Key points: 1. The contract's cost-plus-award-fee structure incentivizes performance but requires careful monitoring of costs. 2. Full and open competition after exclusion of sources suggests a potentially competitive process, though the specific exclusion warrants review. 3. The contract duration of 634 days indicates a medium-term engagement for engineering services. 4. The award to Infozen, LLC, falls within the Computer Systems Design Services NAICS code. 5. The total award value of $35.9 million is a significant investment in engineering support for ICE. 6. The contract was awarded as a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

Benchmarking the value for this specific engineering services contract is challenging without more detailed scope information. The cost-plus-award-fee (CPAF) pricing structure can lead to higher costs if not managed diligently, as the contractor is reimbursed for allowable costs plus a fee that is adjusted based on performance. Comparing this to similar contracts would require analyzing the specific services rendered, the complexity, and the contractor's performance metrics. The provided data does not offer enough detail to definitively assess value for money against market rates or similar procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be open, certain sources were excluded from bidding. The presence of 11 bidders suggests a reasonable level of competition was achieved despite the exclusion. The specific reasons for excluding certain sources would be critical to understanding the true breadth of competition and its potential impact on price discovery.

Taxpayer Impact: The exclusion of sources, even with 11 bidders, may have limited the potential for the most competitive pricing. Taxpayers benefit from competition, and any unnecessary restrictions can lead to higher costs.

Public Impact

This contract provides essential engineering services and support to U.S. Immigration and Customs Enforcement (ICE). The services delivered likely contribute to the operational efficiency and technological infrastructure of ICE. The geographic impact is primarily focused on supporting ICE operations, which are national in scope. The contract supports a workforce of individuals with specialized engineering and IT skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Full and Open Competition After Exclusion of Sources' designation raises questions about whether the exclusion unnecessarily limited competition and potentially increased costs.
The Cost Plus Award Fee (CPAF) contract type requires robust oversight to ensure costs remain reasonable and the award fee is justified by performance.
Without detailed performance metrics, it's difficult to assess if the maximum award fee was earned appropriately.

Positive Signals

The award of 11 bids indicates a significant number of interested parties participated, suggesting the opportunity was attractive.
The contract is for engineering services, a critical function for government agencies.
The contract was awarded by the Department of Homeland Security, a key federal agency.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the IT industry. The market for engineering and IT support services for federal agencies is substantial, with agencies like DHS being major consumers. Comparable spending benchmarks would typically involve analyzing other contracts for similar IT and engineering support services awarded by federal agencies, considering factors like contract type, duration, and scope of work. The $35.9 million award is a notable sum for a single delivery order.

Small Business Impact

The data indicates that small business participation (ss and sb flags are false) was not a primary set-aside consideration for this contract. There is no explicit information on subcontracting plans for small businesses. This suggests that the primary focus was on full and open competition, and the impact on the small business ecosystem may be limited unless Infozen, LLC, voluntarily engages small businesses in its subcontracting efforts.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security and U.S. Immigration and Customs Enforcement. As a Cost Plus Award Fee (CPAF) contract, performance monitoring and cost control are crucial oversight mechanisms. Transparency would be enhanced through contract award databases and reporting requirements. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

IT Professional Services
Computer Systems Design Services
Engineering Services
Department of Homeland Security Contracts
Immigration and Customs Enforcement Support

Risk Flags

Potential for limited competition due to source exclusion.
Cost control risks inherent in CPAF contract type.
Need for robust performance monitoring and evaluation.
Lack of specific scope details hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $35.9 million to INFOZEN, LLC. ENGINEERING SERVICES AND SUPPORT

Who is the contractor on this award?

The obligated recipient is INFOZEN, LLC.

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 $35.9 million.

What is the period of performance?

Start: 2011-09-02. End: 2013-05-28.

What specific engineering services were provided under this contract?

The contract falls under NAICS code 541512 (Computer Systems Design Services), suggesting the engineering services were likely related to IT systems, software development, system integration, and technical support. Without the full contract details or statement of work, the precise nature of the engineering tasks remains unspecified. However, given the agency (ICE) and the NAICS code, it's reasonable to infer these services supported ICE's mission-critical IT infrastructure, data management, or operational systems.

How does the $35.9 million award compare to similar engineering services contracts awarded by DHS or ICE?

Comparing the $35.9 million award requires context regarding the contract's scope, duration, and specific services. ICE and DHS procure a wide range of engineering and IT services, with contract values varying significantly. A $35.9 million award for a 634-day delivery order is substantial, indicating a significant scope of work. To benchmark effectively, one would need to identify other CPAF contracts for similar computer systems design or engineering support services awarded to prime contractors by ICE or comparable agencies, looking at total value, period of performance, and performance outcomes.

What are the key risks associated with a Cost Plus Award Fee (CPAF) contract like this one?

The primary risk with CPAF contracts is the potential for cost overruns and reduced cost-consciousness by the contractor, as they are reimbursed for allowable costs plus a fee. The 'award' portion of the fee is performance-based, which can incentivize good work, but it also requires robust government oversight to ensure the fee is earned appropriately and not simply awarded. Risks include inadequate performance measurement, difficulty in defining objective award criteria, and potential for the contractor to focus on maximizing the fee rather than delivering the most cost-effective solution. Effective administration and clear performance metrics are crucial to mitigate these risks.

What does 'Full and Open Competition After Exclusion of Sources' mean for this contract's value?

This contracting term signifies that the competition was intended to be open to all qualified offerors, but specific sources were intentionally excluded from the bidding process. While 11 bids were received, the exclusion of certain potential bidders could limit the competitive pressure on pricing. The rationale behind the exclusion is critical; if justified (e.g., due to specific capabilities or prior performance), the competition might still be robust. However, if the exclusions were arbitrary or overly restrictive, it could have led to a less competitive environment and potentially higher costs for the government and taxpayers.

What is Infozen, LLC's track record with federal contracts, particularly with DHS?

Information regarding Infozen, LLC's specific track record with federal contracts, especially with DHS, is not detailed in the provided data. A comprehensive analysis would require accessing federal procurement databases (like SAM.gov or FPDS) to review their past performance, contract types, award values, and any past performance evaluations or disputes. Understanding their history with similar services and agencies would provide insight into their reliability, performance quality, and ability to manage complex contracts like this engineering services award.

How has spending on Computer Systems Design Services (NAICS 541512) by DHS evolved over time?

Analyzing the evolution of DHS spending on NAICS 541512 requires historical data from federal procurement databases. Generally, spending in this category has seen significant growth across the federal government, driven by modernization efforts, cybersecurity needs, and the increasing reliance on IT infrastructure. For DHS specifically, spending likely correlates with its evolving mission requirements, including border security, immigration, and national security initiatives. A detailed trend analysis would involve aggregating contract data for this NAICS code awarded by DHS over several fiscal years.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HSCETC-11-R-00013

Offers Received: 11

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mantech International Corporation (UEI: 053518312)

Address: 6700A ROCKLEDGE DR STE 300, BETHESDA, MD, 20817

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Subchapter S Corporation, Indian (Subcontinent) American Owned Business

Financial Breakdown

Contract Ceiling: $97,446,271

Exercised Options: $48,300,384

Current Obligation: $35,921,202

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $1,948,629

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS06F0631Z

IDV Type: GWAC

Timeline