FEMA's $19.4M contract for IT support to Global Tech Inc. shows fair value but limited competition

Contract Overview

Contract Amount: $19,359,621 ($19.4M)

Contractor: Global Tech Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2011-06-10

End Date: 2015-06-12

Contract Duration: 1,463 days

Daily Burn Rate: $13.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE: TO5 PROGRAM ISSO SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20472, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $19.4 million to GLOBAL TECH INC. for work described as: SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE: TO5 PROGRAM ISSO SUPPORT Key points: 1. The contract's value appears reasonable given the duration and services provided, aligning with industry benchmarks for IT support. 2. Competition was limited, with only one bid received, potentially impacting price negotiation and innovation. 3. The contract's fixed-price nature mitigates cost overrun risks for the government. 4. Performance was generally satisfactory, though specific metrics are not detailed. 5. This contract falls within the IT services sector, supporting critical FEMA operations. 6. The duration of the contract (nearly four years) suggests a need for stable, long-term support.

Value Assessment

Rating: fair

The total award amount of $19.4 million over approximately 1463 days (around 4 years) suggests an average annual cost of roughly $4.85 million. This figure appears to be within a reasonable range for comprehensive IT support services, especially considering the specialized nature of ISSO (Information System Security Officer) roles. Benchmarking against similar government IT support contracts indicates that this pricing is neither exceptionally high nor low, placing it in the fair value category. The firm-fixed-price contract type further helps in managing costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while the intent was open competition, specific circumstances led to the exclusion of certain sources, and ultimately only one bid was received. The limited number of bidders (one) raises concerns about the effectiveness of the competition. A single bidder scenario often suggests potential issues with the solicitation's reach, clarity, or the market's responsiveness, which can lead to less competitive pricing and potentially fewer innovative solutions.

Taxpayer Impact: A single bid limits the government's ability to negotiate the best possible price and may indicate that the contract terms or requirements were not attractive enough to elicit broader market interest, potentially costing taxpayers more than a more competitive process might have.

Public Impact

The primary beneficiaries are the Department of Homeland Security and the Federal Emergency Management Agency (FEMA), receiving essential IT and cybersecurity support. Services delivered include Information System Security Officer (ISSO) support, crucial for maintaining the security and integrity of FEMA's IT systems. The contract's impact is primarily within the District of Columbia, where the agency operates. The contract supports a specialized IT workforce, contributing to the pool of cybersecurity professionals within the federal government.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than achievable in a more robustly contested procurement.
The 'exclusion of sources' clause warrants further investigation to understand if it unduly restricted competition.
Lack of multiple bids could mean missed opportunities for innovative solutions from a wider range of vendors.

Positive Signals

The firm-fixed-price contract type effectively transfers risk of cost overruns to the contractor.
The contract duration suggests a stable and predictable IT support environment for FEMA.
The services provided are critical for national security and disaster response operations.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and related services. The market for government IT support is substantial, with agencies increasingly reliant on specialized technical assistance for cybersecurity, system maintenance, and operational efficiency. Benchmarks for similar IT support contracts often vary widely based on scope, duration, and security requirements, but the annual value here appears consistent with mid-sized engagements for specialized roles like ISSOs.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information suggesting significant subcontracting opportunities for small businesses. The award to Global Tech Inc., a presumably larger entity, suggests that the primary focus was on securing the required technical expertise rather than promoting small business participation. Further analysis would be needed to determine if any subcontracting plans were mandated or voluntarily pursued.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Emergency Management Agency (FEMA) contracting officers and program managers. The firm-fixed-price structure provides a degree of financial oversight by setting a ceiling on costs. Transparency is generally facilitated through federal procurement databases like FPDS, where contract details are recorded. The Inspector General for the Department of Homeland Security would have jurisdiction for audits and investigations if any performance or financial irregularities were suspected.

Related Government Programs

IT Security Services
Information System Auditing
Cybersecurity Support
Computer Systems Design
Federal IT Procurement

Risk Flags

Limited competition
Potential for higher costs due to single bid
Contract duration may exceed evolving technology needs

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $19.4 million to GLOBAL TECH INC.. SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE: TO5 PROGRAM ISSO SUPPORT

Who is the contractor on this award?

The obligated recipient is GLOBAL TECH INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $19.4 million.

What is the period of performance?

Start: 2011-06-10. End: 2015-06-12.

What is the track record of Global Tech Inc. in performing similar federal IT support contracts?

Global Tech Inc. has a history of performing federal IT support contracts, including those involving systems engineering and technical assistance. Reviewing their past performance on similar contracts, particularly those with agencies like DHS or FEMA, would provide insight into their reliability, quality of service, and ability to meet deadlines and technical specifications. Data from contract databases often includes past performance ratings, which can indicate whether the company has consistently met or exceeded expectations. Understanding their experience with Information System Security Officer (ISSO) roles specifically is crucial, as these require specialized knowledge and adherence to strict security protocols. A review of their contract history might reveal any past issues, such as performance disputes or contract terminations, which would be important risk indicators.

How does the value of this contract compare to other similar IT support contracts awarded by FEMA or DHS?

Comparing the value of this $19.4 million contract to similar IT support contracts awarded by FEMA or DHS requires careful consideration of scope, duration, and specific services. This contract, valued at approximately $4.85 million annually over four years for ISSO support, appears to be within a reasonable range for specialized IT services. However, a more precise benchmark would involve identifying contracts with comparable tasks (e.g., cybersecurity, systems administration, technical assistance) and similar contract lengths and types (firm-fixed-price). If other contracts for similar ISSO support were awarded at a significantly lower annual rate, it might suggest this contract's value is on the higher end. Conversely, if similar contracts commanded higher prices, it would indicate fair or even good value. The limited competition aspect also plays a role; a more competitive environment might have driven the price down.

What are the primary risks associated with this contract, and how were they mitigated?

The primary risks associated with this contract include potential underperformance by the contractor, cybersecurity vulnerabilities if ISSO duties are not executed flawlessly, and the risk of receiving suboptimal value due to limited competition. The mitigation strategies employed include the firm-fixed-price contract type, which shifts financial risk to the contractor and incentivizes cost control. Clear performance standards and regular oversight by FEMA contracting officers are crucial for monitoring service delivery and addressing any issues promptly. For cybersecurity risks, the contractor's expertise and adherence to stringent security protocols are paramount, likely overseen by agency security officials. The limited competition risk is harder to mitigate post-award but highlights the importance of robust market research and solicitation strategies in future procurements to ensure a competitive landscape.

How effective has FEMA been in managing IT support contracts of this nature historically?

FEMA's historical effectiveness in managing IT support contracts like this one can be assessed by examining their overall procurement performance, contract close-out rates, and any reported issues with IT service delivery. Agencies like FEMA, dealing with critical national security and disaster response missions, often require highly specialized IT support. Their ability to manage such contracts effectively depends on having skilled contracting officers, robust program management, and clear performance metrics. Historical data might reveal patterns of successful contract execution, timely delivery of services, and adherence to budget. Conversely, any documented instances of contract disputes, cost overruns on fixed-price contracts (which are less common but can occur due to scope changes), or significant service disruptions would indicate areas for improvement in their contract management practices.

What is the trend in federal spending on IT support services, and how does this contract fit within that trend?

Federal spending on IT support services has been on a consistent upward trend for years, driven by increasing digitalization, cybersecurity threats, and the need for modern infrastructure across government agencies. This contract, representing a portion of FEMA's IT budget, aligns with this broader trend. Agencies are increasingly outsourcing specialized IT functions, including cybersecurity, cloud migration, and systems maintenance, to external contractors. The specific focus on ISSO support reflects the heightened emphasis on information security within the federal government. While this $19.4 million contract is significant for FEMA, it represents a small fraction of the overall federal IT spending, which amounts to tens of billions of dollars annually. Understanding this context helps in evaluating the contract's relative scale and importance.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3103 N 10TH ST STE 200, ARLINGTON, VA, 22201

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $20,209,227

Exercised Options: $20,074,227

Current Obligation: $19,359,621

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSFEHQ10D0390

IDV Type: IDC

Timeline