DHS awards $296M task order to QSS Group for IT services, raising questions on value and competition
Contract Overview
Contract Amount: $296,175,989 ($296.2M)
Contractor: QSS Group, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2005-06-01
End Date: 2010-11-30
Contract Duration: 2,008 days
Daily Burn Rate: $147.5K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: CONTRACTOR SHALL PROVIDE SYSTEMS ENGINEERING AND TECHNICAL SERVICES IN ACCORDANCE WITH THE SETS II PERFORMANCE WORK STATEMENT AND OTHER TERMS AND CONDITIONS OF THIS FIRM-FIXED PRICE AND COST-PLUS AWARD FEE TASK ORDER.
Place of Performance
Location: KEARNEYSVILLE, BERKELEY County, WEST VIRGINIA, 25430
Plain-Language Summary
Department of Homeland Security obligated $296.2 million to QSS GROUP, INC. for work described as: CONTRACTOR SHALL PROVIDE SYSTEMS ENGINEERING AND TECHNICAL SERVICES IN ACCORDANCE WITH THE SETS II PERFORMANCE WORK STATEMENT AND OTHER TERMS AND CONDITIONS OF THIS FIRM-FIXED PRICE AND COST-PLUS AWARD FEE TASK ORDER. Key points: 1. The contract's value of $296M for IT services warrants scrutiny, especially given the Cost Plus Award Fee structure. 2. Competition details are limited, but the 'Competitive Delivery Order' designation suggests some level of bidding. 3. Potential risks include cost overruns due to the award fee structure and the broad 'Other Computer Related Services' NAICS code. 4. The IT sector, particularly systems engineering, is a significant area of government spending.
Value Assessment
Rating: questionable
The $296M value for systems engineering and technical services is substantial. Without specific benchmarks for similar contracts, it's difficult to definitively assess pricing. The Cost Plus Award Fee structure introduces variability and potential for higher-than-expected costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
Designated as a 'Competitive Delivery Order,' suggesting some competition occurred. However, the specifics of the competition and how price discovery was achieved are not detailed, leaving room for potential inefficiencies.
Taxpayer Impact: The significant contract value means taxpayer funds are heavily invested. The effectiveness of the competition and cost controls will directly impact the return on this investment.
Public Impact
Taxpayers are funding critical IT infrastructure and services for the U.S. Coast Guard. The contract supports jobs within the IT services sector, specifically in West Virginia. The long duration (over 5 years) indicates a sustained need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure can incentivize spending.
- Limited detail on competition effectiveness.
- Broad NAICS code may obscure specific service costs.
Positive Signals
- Contract awarded through a competitive process.
- Supports essential Coast Guard operations.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on systems engineering and technical support. Government spending in this area is consistently high, driven by the need for modernizing and maintaining complex technological systems.
Small Business Impact
The data indicates the contractor is QSS GROUP, INC., and the contract was not set-aside for small businesses (ss: false, sb: false). Therefore, there is no direct analysis of small business participation in this specific task order.
Oversight & Accountability
The Cost Plus Award Fee structure requires robust oversight to ensure costs are reasonable and award fees are justified. The Department of Homeland Security and U.S. Coast Guard are responsible for monitoring performance and expenditures.
Related Government Programs
- Other Computer Related Services
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Potential for cost overruns due to Cost Plus Award Fee structure.
- Lack of detailed competition metrics.
- Broad NAICS code may obscure specific service costs and value.
- Long contract duration increases exposure to changing technological needs and market prices.
Tags
other-computer-related-services, department-of-homeland-security, wv, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $296.2 million to QSS GROUP, INC.. CONTRACTOR SHALL PROVIDE SYSTEMS ENGINEERING AND TECHNICAL SERVICES IN ACCORDANCE WITH THE SETS II PERFORMANCE WORK STATEMENT AND OTHER TERMS AND CONDITIONS OF THIS FIRM-FIXED PRICE AND COST-PLUS AWARD FEE TASK ORDER.
Who is the contractor on this award?
The obligated recipient is QSS GROUP, INC..
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 $296.2 million.
What is the period of performance?
Start: 2005-06-01. End: 2010-11-30.
What specific performance metrics were used to determine award fees for QSS Group, and how were these metrics aligned with mission objectives?
The effectiveness of the Cost Plus Award Fee structure hinges on clearly defined, measurable performance metrics directly tied to the U.S. Coast Guard's mission. Without access to the Performance Work Statement (PWS) and award fee criteria, it's impossible to assess if QSS Group was incentivized appropriately or if taxpayer funds were used efficiently to achieve desired outcomes.
What was the competitive landscape for this task order, and did the 'Competitive Delivery Order' process ensure the best possible price for the government?
While labeled 'Competitive Delivery Order,' the limited information necessitates further investigation into the number of bidders, the evaluation process, and the pricing strategies employed. Understanding the competitive dynamics is crucial to determine if the government secured optimal value and if alternative, more cost-effective solutions were considered.
How does the total cost of this task order compare to industry benchmarks for similar systems engineering and technical support services, considering the contract duration and scope?
A comprehensive cost-benefit analysis requires comparing the $296 million expenditure over five years against established industry benchmarks for comparable services. Factors like the specific technologies supported, the level of expertise required, and the geographic location of services should be considered to ascertain if the pricing represents fair market value.
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
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Dell Computer Corporation (UEI: 114315195)
Address: 4500 FORBES BLVD STE 200, LANHAM, MD, 04
Business Categories: Category Business, Minority Owned Business, Small Business, Indian (Subcontinent) American Owned Business
Financial Breakdown
Contract Ceiling: $330,436,725
Exercised Options: $304,816,149
Current Obligation: $296,175,989
Parent Contract
Parent Award PIID: GS09F0047Z
IDV Type: GWAC
Timeline
Start Date: 2005-06-01
Current End Date: 2010-11-30
Potential End Date: 2010-11-30 00:00:00
Last Modified: 2014-01-10
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