FEMA's $12M IT Services Contract with ARTEL LLC: A Deep Dive into Value and Competition

Contract Overview

Contract Amount: $12,002,789 ($12.0M)

Contractor: Artel LLC

Awarding Agency: Department of Homeland Security

Start Date: 2008-06-01

End Date: 2013-05-31

Contract Duration: 1,825 days

Daily Burn Rate: $6.6K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: MT WEATHER IT SERVICES

Place of Performance

Location: MOUNT WEATHER, CLARKE County, VIRGINIA, 20135

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $12.0 million to ARTEL LLC for work described as: MT WEATHER IT SERVICES Key points: 1. Value for money appears fair given the 5-year duration and scope of custom programming services. 2. Competition dynamics indicate a competitive delivery order, suggesting potential for price discovery. 3. Risk indicators are moderate, with a focus on performance and delivery within the IT sector. 4. Performance context shows a long-term engagement for essential IT support. 5. Sector positioning places this contract within the broader federal IT services market.

Value Assessment

Rating: fair

The contract's total value of approximately $12 million over five years for custom computer programming services suggests a moderate annual spend. Benchmarking against similar IT services contracts within federal agencies is crucial for a precise value assessment. Without specific performance metrics or detailed cost breakdowns, it's challenging to definitively state if this represents excellent value, but the duration and competitive nature provide a baseline for fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, implying that it was competed under a broader contract vehicle. The specific competition level for this delivery order itself is not detailed, but the 'full-and-open' designation suggests multiple bidders likely vied for it. This level of competition is generally positive for price discovery and ensuring a range of technical solutions are considered.

Taxpayer Impact: A competitive award process for this IT services contract helps ensure taxpayer dollars are used efficiently by fostering a market-driven price. It reduces the risk of overpayment and encourages contractors to offer their best value.

Public Impact

Federal Emergency Management Agency (FEMA) benefits from enhanced IT infrastructure and support. Custom computer programming services are delivered to support FEMA's mission-critical operations. The geographic impact is primarily within Virginia, where the contract is managed. Workforce implications include the employment of IT professionals for programming and support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in custom programming projects if not tightly managed.
Dependence on a single contractor for critical IT functions over a long period.
Ensuring continued relevance of technology and skills over the contract's five-year term.

Positive Signals

Long-term engagement suggests contractor stability and a proven track record with the agency.
Competitive award process indicates potential for cost-effectiveness.
Focus on custom programming implies tailored solutions meeting specific agency needs.

Sector Analysis

This contract falls within the federal IT services sector, a large and dynamic market. The NAICS code 541511 (Custom Computer Programming Services) indicates a focus on software development and IT integration. Federal spending in this area is substantial, driven by the need for agencies to modernize systems, enhance cybersecurity, and support digital transformation initiatives. Comparable spending benchmarks would involve looking at other agencies' procurements for similar custom programming and IT support services.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, if ARTEL LLC chose to engage small businesses. Without specific subcontracting plans or performance data, it's difficult to assess the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Emergency Management Agency (FEMA) contracting officers and program managers. Accountability measures would be tied to the delivery order's performance work statement, including milestones, quality standards, and delivery schedules. Transparency is generally facilitated through federal procurement databases like FPDS-NG, where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

FEMA IT Modernization Programs
Custom Software Development Services
Federal Civilian Agency IT Support Contracts
IT Professional Services

Risk Flags

Long-term contract duration may pose risks of technology obsolescence.
Dependence on a single vendor for critical IT functions.
Potential for scope creep in custom programming projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $12.0 million to ARTEL LLC. MT WEATHER IT SERVICES

Who is the contractor on this award?

The obligated recipient is ARTEL LLC.

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 $12.0 million.

What is the period of performance?

Start: 2008-06-01. End: 2013-05-31.

What is ARTEL LLC's track record with federal contracts, particularly with FEMA?

ARTEL LLC has a history of performing federal contracts, including work with agencies like FEMA. Analyzing their past performance on similar IT services contracts, especially those involving custom programming, would provide insight into their reliability, quality of work, and ability to meet deadlines. A review of past performance evaluations and any contract modifications or disputes would offer a more comprehensive understanding of their track record. Their sustained engagement with FEMA on this particular contract suggests a level of satisfaction or necessity from the agency's perspective.

How does the $12 million total award compare to similar IT services contracts for custom programming?

The $12 million total award over five years, averaging $2.4 million annually, places this contract in the mid-tier range for federal IT services. To benchmark value, one would compare this to contracts awarded by other agencies for similar custom computer programming services (NAICS 541511) with comparable durations and scopes. Factors like the complexity of the programming, the specific technologies involved, and the geographic location of service delivery can influence pricing. Without detailed cost breakdowns and specific performance metrics, a precise value-for-money assessment relative to market rates is challenging, but the competitive award suggests a reasonable market price was likely achieved.

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

Key risks include potential cost overruns if project requirements are not well-defined or change frequently, technical obsolescence of developed software over the contract's lifespan, and contractor performance issues. Mitigation strategies likely involve robust contract management, including clear performance work statements (PWS), regular progress reviews, change control processes, and performance monitoring. FEMA's oversight mechanisms, such as quality assurance surveillance plans (QASP) and defined acceptance criteria, are crucial for managing these risks and ensuring successful delivery of custom programming services.

How effective has this contract been in delivering the intended IT services for FEMA?

Assessing the effectiveness requires examining FEMA's internal performance evaluations and user satisfaction data related to the IT services provided by ARTEL LLC. Key performance indicators (KPIs) outlined in the contract's PWS would be critical. For instance, were project milestones met on time and within budget? Did the custom programming solutions enhance FEMA's operational efficiency or address specific technological gaps? Without access to these internal metrics, effectiveness can only be inferred from the contract's renewal or continued use, suggesting a degree of satisfaction or ongoing need.

What are the historical spending patterns for custom computer programming services at FEMA?

Historical spending patterns for custom computer programming services at FEMA would reveal trends in IT investment and contractor reliance. Analyzing past contracts, including their values, durations, and the contractors involved, can indicate whether FEMA has consistently invested in custom development or relied more on off-the-shelf solutions. Understanding these patterns helps contextualize the $12 million award, showing if it represents an increase, decrease, or steady level of spending in this category. It also highlights potential areas for consolidation or increased competition in future procurements.

Industry Classification

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

Solicitation ID: HSFEMW-08-Q-0007

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1893 PRESTON WHITE DR # 2, RESTON, VA, 20191

Business Categories: Category Business, Not Designated a Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $37,157,683

Exercised Options: $23,246,123

Current Obligation: $12,002,789

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F5151H

IDV Type: FSS

Timeline