DHS awarded $11.5M for CPIC support, with 2 bids received for this competitive delivery order
Contract Overview
Contract Amount: $11,548,828 ($11.5M)
Contractor: Dynamics Research Corporation
Awarding Agency: Department of Homeland Security
Start Date: 2007-09-29
End Date: 2012-09-28
Contract Duration: 1,826 days
Daily Burn Rate: $6.3K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: CPIC SUPPORT FOR BASE YEAR PLUS 4 OPTION YEARS.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20407
Plain-Language Summary
Department of Homeland Security obligated $11.5 million to DYNAMICS RESEARCH CORPORATION for work described as: CPIC SUPPORT FOR BASE YEAR PLUS 4 OPTION YEARS. Key points: 1. The contract value of $11.5 million over five years for CPIC support appears reasonable given the scope of administrative management and general management consulting services. 2. Competition dynamics indicate a limited but present level of market interest, with two bids submitted. 3. Risk indicators are moderate, stemming from the Time and Materials pricing structure which can lead to cost overruns if not closely managed. 4. Performance context is for base year plus four option years, suggesting a need for sustained support in CPIC. 5. The contract positions the vendor to provide essential administrative and management consulting within the Department of Homeland Security.
Value Assessment
Rating: good
The total contract value of $11.5 million over five years for CPIC support is within a reasonable range for administrative management and general management consulting services. Benchmarking against similar contracts for IT management support within federal agencies suggests this pricing is competitive. The Time and Materials (T&M) pricing, while offering flexibility, warrants close monitoring to ensure cost efficiency and prevent scope creep.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was awarded as a competitive delivery order, indicating that multiple vendors were solicited. However, only two bids were received, suggesting a limited competitive landscape for this specific requirement. While competition existed, the low number of bidders may have limited the potential for aggressive price negotiation and may indicate a niche market or specific requirements that only a few contractors could meet.
Taxpayer Impact: With only two bids, taxpayers may not have benefited from the full spectrum of potential cost savings that a more robust competition could have yielded. The limited number of offers suggests that the government had fewer options to drive down prices through competitive pressure.
Public Impact
The Department of Homeland Security (DHS) benefits from this contract through enhanced support for its Capital Planning and Investment Control (CPIC) processes. Services delivered include administrative management and general management consulting, crucial for effective resource allocation and project oversight. The geographic impact is primarily within the District of Columbia, where the Office of Procurement Operations is located. Workforce implications include the potential for specialized consulting roles to be filled, contributing to the efficiency of DHS's management functions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) pricing structure can lead to cost overruns if not diligently managed and monitored.
- Limited competition (2 bidders) may have restricted the government's ability to secure the most cost-effective solution.
- The duration of the contract (5 years) requires sustained oversight to ensure continued value and performance.
Positive Signals
- The contract was awarded competitively, indicating an effort to solicit multiple offers.
- The vendor, Dynamics Research Corporation, has a track record of performing federal contracts.
- The services provided are critical for effective CPIC, supporting efficient government operations.
Sector Analysis
This contract falls within the professional services sector, specifically administrative management and general management consulting. The market for such services within the federal government is substantial, with agencies consistently seeking expertise to manage complex IT investments and capital planning. Comparable spending benchmarks for CPIC support and management consulting services vary widely based on scope and duration, but the $11.5 million award over five years for this DHS contract appears aligned with industry standards for similar engagements.
Small Business Impact
This contract does not appear to have a small business set-aside (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from set-aside requirements. The prime contractor, Dynamics Research Corporation, is likely a large business, and any subcontracting would be at their discretion.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Homeland Security's Office of Procurement Operations. Accountability measures are embedded in the contract's performance standards and delivery schedules. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Capital Planning and Investment Control (CPIC)
- Management and Consulting Services
- IT Investment Management
- Federal Procurement Data System (FPDS)
- Department of Homeland Security IT Services
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Limited competition may impact price competitiveness.
- Need for robust oversight to ensure effective CPIC support.
Tags
dhs, administrative-management-consulting, general-management-consulting, cpic-support, competitive-delivery-order, time-and-materials, dynamics-research-corporation, district-of-columbia, department-of-homeland-security, professional-services, limited-competition
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $11.5 million to DYNAMICS RESEARCH CORPORATION. CPIC SUPPORT FOR BASE YEAR PLUS 4 OPTION YEARS.
Who is the contractor on this award?
The obligated recipient is DYNAMICS RESEARCH CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Office of Procurement Operations).
What is the total obligated amount?
The obligated amount is $11.5 million.
What is the period of performance?
Start: 2007-09-29. End: 2012-09-28.
What is the track record of Dynamics Research Corporation (DRC) with federal contracts, particularly in administrative and management consulting?
Dynamics Research Corporation (DRC) has a significant history of performing federal contracts across various agencies, including the Department of Homeland Security (DHS). Their expertise often lies in areas such as IT modernization, program management, and strategic consulting. For administrative management and general management consulting services, DRC has been awarded numerous contracts, demonstrating a consistent ability to meet government requirements. Analyzing their past performance on similar CPIC support or management consulting contracts would provide further insight into their reliability, quality of service, and ability to manage complex projects within budget and schedule. Their presence in the federal contracting space suggests a mature understanding of government procurement processes and compliance.
How does the $11.5 million contract value compare to similar CPIC support contracts awarded by DHS or other federal agencies?
The $11.5 million contract value for five years of CPIC support, awarded to Dynamics Research Corporation by DHS, appears to be within a reasonable range when benchmarked against similar federal contracts. CPIC support is a critical function for federal agencies, involving strategic planning, investment analysis, and IT portfolio management. Contract values for such services can vary significantly based on the agency's size, the complexity of its IT portfolio, and the specific services required. Contracts for similar management and consulting services within large federal departments often range from a few million to tens of millions of dollars over multi-year periods. The limited competition (two bidders) for this specific contract might suggest a specialized niche, but the overall value seems commensurate with the scope of work described.
What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract?
The primary risk associated with the Time and Materials (T&M) pricing structure in this contract is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and materials used. If not carefully managed and monitored, this structure can incentivize longer project durations or less efficient work, as the contractor is compensated for time spent. For the government, this means that the final cost can exceed initial estimates, making budget forecasting more challenging. Effective oversight, including detailed review of timesheets, labor categories, and material costs, is crucial to mitigate these risks and ensure that the government receives good value for its investment.
How effective are the Capital Planning and Investment Control (CPIC) processes supported by this contract in ensuring efficient federal IT spending?
The effectiveness of CPIC processes, supported by this contract, is crucial for ensuring efficient federal IT spending. CPIC is designed to align IT investments with agency missions, improve decision-making, and reduce redundant or ineffective spending. When implemented effectively, CPIC helps agencies prioritize projects, manage risks, and achieve desired outcomes. The services provided under this contract, focusing on administrative management and general management consulting for CPIC, aim to enhance these processes. The success of these efforts depends on the quality of the consulting provided, the agency's commitment to following CPIC guidelines, and robust oversight mechanisms. While the contract itself provides the support, the ultimate effectiveness hinges on how well the CPIC framework is utilized by DHS.
What has been the historical spending pattern for CPIC support services at the Department of Homeland Security?
Historical spending patterns for CPIC support services at the Department of Homeland Security (DHS) reflect a consistent need for expertise in managing its vast and complex IT portfolio. DHS, like other large federal agencies, invests heavily in IT to support its diverse missions, ranging from border security to emergency management. Consequently, spending on CPIC-related activities, including consulting, analysis, and program management support, has been substantial over the years. While specific historical figures for CPIC support contracts require detailed data analysis from sources like FPDS, it is evident that DHS allocates significant resources to ensure its IT investments are strategically aligned and efficiently managed. This $11.5 million contract represents a portion of that ongoing investment.
What is the significance of the 'Administrative Management and General Management Consulting Services' (NAICS 541611) classification for this contract?
The classification of 'Administrative Management and General Management Consulting Services' (NAICS 541611) signifies that the core services procured under this contract involve providing expert advice and assistance to government clients on organizational, administrative, and strategic planning issues. This can encompass a wide range of activities, including improving operational efficiency, developing management strategies, implementing organizational changes, and enhancing overall business processes. For CPIC support, this classification indicates that the contractor is expected to provide guidance on how to best manage the planning, acquisition, and oversight of federal IT investments, ensuring alignment with agency goals and maximizing return on investment. It is a broad category that allows for flexibility in addressing various management challenges.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HSHQDC-07-R-00116
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 60 FRONTAGE ROAD, ANDOVER, MA, 06
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $11,548,828
Exercised Options: $11,548,828
Current Obligation: $11,548,828
Parent Contract
Parent Award PIID: HSHQDC06D00033
IDV Type: IDC
Timeline
Start Date: 2007-09-29
Current End Date: 2012-09-28
Potential End Date: 2012-09-28 00:00:00
Last Modified: 2012-09-04
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