DHS Coast Guard awards $10.8M IT services contract to SETA Corporation for telecommunications support

Contract Overview

Contract Amount: $10,785,801 ($10.8M)

Contractor: Seta Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2005-10-01

End Date: 2005-12-01

Contract Duration: 61 days

Daily Burn Rate: $176.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PROCUREMENT OF IT SERVICES FROM SETA CORPORATION FOR VTS PUGET SOUND AND VTS SAN FRANCISCO.

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94122

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $10.8 million to SETA CORPORATION for work described as: PROCUREMENT OF IT SERVICES FROM SETA CORPORATION FOR VTS PUGET SOUND AND VTS SAN FRANCISCO. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract value of $10.8M for a 61-day period indicates a high daily rate for IT services. 3. The primary contractor, SETA Corporation, is a key provider in this IT services category. 4. The contract falls under 'Other Telecommunications' (NAICS 517910), a critical but often complex sector. 5. The fixed-price contract type aims to control costs, but the high daily rate warrants scrutiny. 6. The short duration of the contract may suggest a specific, time-bound need or a bridge to a larger effort.

Value Assessment

Rating: fair

The contract's value of approximately $10.8 million for a 61-day period translates to a daily rate of about $176,816. This rate appears exceptionally high when compared to typical IT services contracts, even those involving specialized telecommunications. Without more detailed scope of work, it's difficult to benchmark precisely, but this daily expenditure warrants further investigation into the specific services rendered and the necessity of such a high cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of only one bid (as indicated by 'no': 1) is unusual for a full and open competition and raises questions about the effectiveness of the solicitation or the market's responsiveness. While competition was sought, the lack of multiple bids could limit price discovery and potentially lead to a less favorable outcome for the government.

Taxpayer Impact: A single bid in a full and open competition may mean taxpayers did not benefit from the full potential of competitive pricing, potentially leading to a higher cost than if multiple bids had been received.

Public Impact

The U.S. Coast Guard benefits from IT services supporting its VTS Puget Sound and VTS San Francisco operations. Services likely include telecommunications support, network management, and potentially system maintenance. The geographic impact is focused on the Puget Sound and San Francisco regions, critical for maritime operations. The contract supports the Coast Guard's mission of maritime safety, security, and environmental protection.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High daily rate of $176,816 raises concerns about cost-effectiveness for a short-term contract.
Only one bid received under 'full and open competition' suggests potential issues with the solicitation or market engagement.
Short contract duration (61 days) may indicate a stop-gap measure, potentially leading to future contract inefficiencies.

Positive Signals

Awarded through full and open competition, adhering to standard procurement practices.
Contract type is Firm Fixed Price, which helps in cost control if the scope is well-defined.
SETA Corporation is an established provider of IT services, suggesting some level of expertise.

Sector Analysis

The Information Technology (IT) services sector is vast and encompasses a wide range of support, from basic network maintenance to complex system development. Telecommunications, a sub-sector, is crucial for operational continuity. The contract's value, while significant for its short duration, is within the range of specialized IT support contracts. However, the high daily rate suggests a focus on highly specialized or urgent requirements within the telecommunications domain for the Coast Guard's Vessel Traffic Services (VTS) operations.

Small Business Impact

The data indicates that small business participation was not a specific set-aside (ss: false, sb: false). Therefore, this contract does not directly contribute to small business set-aside goals. There is no information provided on subcontracting plans, so the impact on the small business ecosystem is not directly ascertainable from this data alone. However, the prime contractor, SETA Corporation, may engage small businesses as subcontractors, which would indirectly benefit them.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a Firm Fixed Price contract, oversight would focus on delivery and acceptance of services. The Department of Homeland Security and the U.S. Coast Guard have internal oversight mechanisms. Given the short duration and specific nature, it's likely managed by program officials. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Vessel Traffic Services (VTS) Operations
Coast Guard IT Modernization Programs
Federal Telecommunications Infrastructure Contracts
Department of Homeland Security IT Procurement

Risk Flags

High Daily Rate
Limited Competition (Single Bid)
Short Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $10.8 million to SETA CORPORATION. PROCUREMENT OF IT SERVICES FROM SETA CORPORATION FOR VTS PUGET SOUND AND VTS SAN FRANCISCO.

Who is the contractor on this award?

The obligated recipient is SETA CORPORATION.

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 $10.8 million.

What is the period of performance?

Start: 2005-10-01. End: 2005-12-01.

What specific IT services were provided under this contract to justify the high daily rate of $176,816?

The contract description is 'PROCUREMENT OF IT SERVICES FROM SETA CORPORATION FOR VTS PUGET SOUND AND VTS SAN FRANCISCO.' While the NAICS code 517910 points to 'Other Telecommunications,' the exact services are not detailed in the provided data. Given the high daily rate, these services likely involved highly specialized technical support, potentially including real-time system monitoring, emergency response, or the deployment/maintenance of critical communication infrastructure for the Vessel Traffic Services in two major maritime hubs. Without a detailed Statement of Work (SOW), it is impossible to definitively justify the cost, but it suggests a need for immediate, expert-level support.

Why did a 'full and open competition' result in only one bid?

Several factors could contribute to a single bid in a full and open competition. The solicitation might have had highly specific or restrictive requirements that only SETA Corporation could meet, effectively limiting the pool of potential bidders. Alternatively, the contract's short duration and high daily rate might have made it unattractive to other large IT service providers, or perhaps the solicitation timing coincided with other major industry events or deadlines. It's also possible that the government's outreach efforts did not effectively reach all potential qualified vendors in the market. This outcome warrants review by the contracting agency to ensure future solicitations attract adequate competition.

How does the $10.8 million contract value for 61 days compare to similar IT services contracts for the Coast Guard or DHS?

A contract value of $10.8 million for just 61 days, averaging $176,816 per day, is exceptionally high for standard IT services. Typical IT support contracts, even for specialized systems, rarely reach such daily expenditure levels unless they involve immediate, mission-critical, high-risk, or highly specialized emergency response services. For context, many large-scale IT modernization projects or multi-year service contracts operate at significantly lower daily rates. This contract's value suggests a unique and urgent requirement, possibly related to a system failure, a critical operational need, or a specialized technology deployment that commands a premium.

What is the track record of SETA Corporation with the Department of Homeland Security and the U.S. Coast Guard?

SETA Corporation has a history of receiving contracts from various U.S. federal agencies, including the Department of Homeland Security and its components like the U.S. Coast Guard. While this specific contract highlights a significant award, SETA Corporation's broader track record would need to be assessed through databases like FPDS or SAM.gov to understand the volume, types, and performance history of their previous engagements. Generally, being awarded contracts, especially through competitive processes, suggests a level of capability and past performance deemed acceptable by government agencies. However, a deeper dive would be needed to evaluate their overall performance trends and any past issues.

What are the potential risks associated with a short-duration, high-value IT contract like this?

Short-duration, high-value contracts carry several risks. Firstly, the high daily rate can lead to significant overspending if the scope is not precisely managed or if the services are not fully utilized. Secondly, the urgency often associated with such contracts can lead to rushed decision-making, potentially overlooking critical requirements or risks. There's also a risk of 'contractor lock-in' if the services are highly specialized and difficult to transition. For the government, there's the risk that the short duration prevents the contractor from fully understanding the long-term needs or developing sustainable solutions. Finally, if the competition was indeed limited, there's a risk of paying a premium for services that could have been procured more cost-effectively.

How does this contract fit into the broader context of the U.S. Coast Guard's IT modernization or telecommunications infrastructure needs?

This contract, focused on 'Other Telecommunications' for Vessel Traffic Services (VTS) in Puget Sound and San Francisco, likely addresses specific, immediate operational needs rather than a broad IT modernization effort. VTS systems are critical for maritime safety and security, relying heavily on robust and reliable communication networks. This contract might be fulfilling a gap, supporting an upgrade to a specific component, or providing essential services during a transition period. It's unlikely to represent a large-scale modernization program on its own, but it could be a component of a larger strategy to ensure the reliability and effectiveness of the Coast Guard's communication infrastructure in key operational areas.

Industry Classification

NAICS: Information › Other Telecommunications › Other Telecommunications

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6862 ELM STREET, STE 600, MCLEAN, VA, 90

Business Categories: Category Business, Minority Owned Business, Not Designated a Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,785,801

Exercised Options: $10,785,801

Current Obligation: $10,785,801

Timeline