DHS Coast Guard awards $21M for electronics systems maintenance, with LYNXNET, LLC as prime

Contract Overview

Contract Amount: $20,995,429 ($21.0M)

Contractor: Lynxnet, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2013-09-26

End Date: 2018-02-11

Contract Duration: 1,599 days

Daily Burn Rate: $13.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF D-17 ELECTRONICS SYSTEMS MAINTENANCE SUPPORT TASK ORDER UNDER ILMS IDIQ CONTRACT

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23703

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $21.0 million to LYNXNET, LLC for work described as: IGF::OT::IGF D-17 ELECTRONICS SYSTEMS MAINTENANCE SUPPORT TASK ORDER UNDER ILMS IDIQ CONTRACT Key points: 1. Contract value of $20.99M over approximately 4.5 years indicates a significant investment in maintaining critical electronics systems. 2. The contract was awarded under a full and open competition, suggesting a robust bidding process. 3. The prime contractor, LYNXNET, LLC, has been awarded this task order, raising questions about its track record and capacity for such a large contract. 4. The fixed-price contract type suggests that cost risks are largely borne by the contractor, which can incentivize efficiency. 5. The duration of the contract (1599 days) allows for sustained support but also requires careful performance monitoring. 6. The North American Industry Classification System (NAICS) code 541330 points to engineering services, highlighting the technical nature of the support required.

Value Assessment

Rating: fair

The contract value of $20.99 million for electronics systems maintenance over nearly 4.5 years appears substantial. Benchmarking this against similar contracts for specialized electronics support is difficult without more specific details on the systems maintained and the scope of services. The firm-fixed-price nature suggests the contractor assumes cost overruns, which is generally favorable for the government if the contractor is capable. However, without data on the contractor's past performance or specific service delivery metrics, a definitive value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which is a complex designation. While it implies an initial broad competition, the exclusion of specific sources later in the process warrants further investigation. The presence of 4 bids suggests a degree of competition, but the exclusion criteria could have limited the pool of potential offerors. This situation may have impacted price discovery and potentially led to a higher-than-optimal price if key competitors were excluded without clear justification.

Taxpayer Impact: The competitive process, even with exclusions, aimed to secure the best value for taxpayers. However, the exclusion of sources could mean that taxpayers did not benefit from the full range of competitive pricing that might have been available in a truly open competition.

Public Impact

The U.S. Coast Guard benefits from the maintenance of its vital electronics systems, ensuring operational readiness. Services delivered include the maintenance and support of complex electronic equipment essential for Coast Guard missions. The geographic impact is likely focused on Coast Guard installations and vessels where these electronics are deployed. The contract supports a specialized workforce within LYNXNET, LLC, contributing to employment in the engineering services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition process raises concerns about potential limitations on competitive pricing and fairness.
Lack of detailed performance metrics makes it difficult to assess the contractor's effectiveness and value for money.
The specific nature of the 'electronics systems' is not detailed, making it hard to gauge the complexity and criticality of the support provided.
The prime contractor, LYNXNET, LLC, may require scrutiny regarding its capacity and past performance on similar large-scale contracts.

Positive Signals

The contract is firm-fixed-price, which shifts cost risk to the contractor and can encourage efficient service delivery.
The award was made after a competitive process, indicating that multiple vendors were considered.
The contract duration allows for consistent and sustained support for critical Coast Guard systems.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which is a significant part of the broader professional, scientific, and technical services industry. The market for specialized electronics maintenance and support is driven by the needs of government agencies, particularly in defense and public safety. Spending in this sector can fluctuate based on technological advancements and the lifecycle of existing equipment. Comparable spending benchmarks would depend heavily on the specific types of electronics and the level of service required, but contracts of this size are common for maintaining complex government infrastructure.

Small Business Impact

The contract data indicates that small business participation was not a primary focus, as the 'small business set-aside' field is false. There is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary contractor, LYNXNET, LLC, is expected to perform the majority of the work, and the impact on the small business ecosystem may be minimal unless LYNXNET voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Coast Guard's contracting and program management offices. Accountability measures would be defined in the contract's terms and conditions, likely including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS, but detailed operational oversight information is often internal. 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

Department of Homeland Security IT and Technical Services Contracts
U.S. Coast Guard Maintenance and Support Contracts
Federal Engineering Services Contracts
Electronics Systems Maintenance Contracts

Risk Flags

Potential for limited competition due to source exclusion.
Contractor performance risk not fully assessed.
Lack of detailed scope of work and system criticality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $21.0 million to LYNXNET, LLC. IGF::OT::IGF D-17 ELECTRONICS SYSTEMS MAINTENANCE SUPPORT TASK ORDER UNDER ILMS IDIQ CONTRACT

Who is the contractor on this award?

The obligated recipient is LYNXNET, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $21.0 million.

What is the period of performance?

Start: 2013-09-26. End: 2018-02-11.

What is the track record of LYNXNET, LLC in performing similar electronics systems maintenance contracts for the U.S. Coast Guard or other federal agencies?

Assessing the track record of LYNXNET, LLC requires a deep dive into their contract history. Publicly available data indicates LYNXNET, LLC has been awarded various contracts, including task orders under larger IDIQs. However, the specific performance quality, timeliness, and adherence to budget on prior electronics systems maintenance contracts are not detailed in this summary. A thorough review would involve examining past performance evaluations, any contract disputes or terminations, and the scale and complexity of previously managed projects. Without this granular information, it's difficult to definitively assess their capability to successfully execute this $21 million task order over its nearly 4.5-year duration.

How does the awarded price of $20.99 million compare to market rates for similar electronics systems maintenance services?

Benchmarking the $20.99 million award against market rates for similar electronics systems maintenance services is challenging without a precise definition of the 'electronics systems' and the scope of maintenance. Engineering services (NAICS 541330) can vary widely in cost depending on specialization, required certifications, and labor rates. The contract is firm-fixed-price, which implies that LYNXNET, LLC has priced the contract to cover all costs and profit. To compare, one would need to identify comparable contracts, analyze their scope, duration, and pricing structures, and adjust for differences in complexity, geographic location, and specific technologies involved. The limited competition aspect, despite being 'full and open,' might also influence the final price.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how is performance monitored?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. Typically, for electronics systems maintenance, KPIs might include system uptime, response time to service calls, Mean Time Between Failures (MTBF), and successful repair rates. SLAs would define the expected standards for these metrics. Performance monitoring is usually conducted by the U.S. Coast Guard's contracting officer's representative (COR) through regular progress reports, site inspections, and performance reviews. The effectiveness of oversight depends on the clarity of the contract's performance requirements and the diligence of the COR in tracking and enforcing them.

What is the historical spending pattern for electronics systems maintenance by the U.S. Coast Guard, and how does this contract fit within that trend?

Analyzing the historical spending pattern for electronics systems maintenance by the U.S. Coast Guard requires access to multi-year budget and contract data. This $20.99 million task order represents a significant, but likely not unprecedented, investment. The Coast Guard operates a wide array of vessels and shore facilities, all equipped with complex electronics, necessitating substantial ongoing maintenance budgets. This contract likely fits within a broader strategy to ensure the operational readiness of these systems. Without historical data, it's difficult to determine if this award represents an increase, decrease, or stable level of spending compared to previous periods for similar services.

What specific types of electronics systems are covered under this contract, and what is their criticality to Coast Guard operations?

The provided data identifies the contract as being for 'ELECTRONICS SYSTEMS MAINTENANCE SUPPORT' but does not specify the exact types of systems. These could range from navigation and communication equipment to radar, sonar, weapons systems, or command and control platforms. The criticality of these systems to Coast Guard operations is inherently high, as they are essential for maritime law enforcement, search and rescue, port security, and national defense missions. Failure or degradation of these electronics could significantly impair the Coast Guard's ability to perform its duties, underscoring the importance of reliable maintenance support.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nana Regional Corporation Inc

Address: 6950 HARBOUR VIEW BLVD STE C, SUFFOLK, VA, 23435

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,995,429

Exercised Options: $20,995,429

Current Obligation: $20,995,429

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $124,940

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCG4413DILMS2

IDV Type: IDC

Timeline