DHS awarded $60.8M for TTAC OCE operations and maintenance to Infozen, LLC over 8 years

Contract Overview

Contract Amount: $60,838,250 ($60.8M)

Contractor: Infozen, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2006-03-28

End Date: 2014-12-15

Contract Duration: 3,184 days

Daily Burn Rate: $19.1K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: OPERATIONS AND MAINTENANCE SUPPORT FOR THE TTAC OCE

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $60.8 million to INFOZEN, LLC for work described as: OPERATIONS AND MAINTENANCE SUPPORT FOR THE TTAC OCE Key points: 1. Contract value represents significant investment in critical operational support. 2. Competition dynamics for this delivery order warrant further examination. 3. Long contract duration may present risks related to evolving needs and technology. 4. Performance context is crucial given the operational nature of the services. 5. Sector positioning within consulting services highlights demand for specialized technical support. 6. The contract's cost-plus award fee structure incentivizes performance but requires careful oversight.

Value Assessment

Rating: fair

The total award of $60.8 million over approximately 8 years suggests a substantial investment. Benchmarking this against similar long-term operational support contracts for complex systems is difficult without more specific service details. The cost-plus award fee structure, while common for performance-based services, can lead to higher costs if not managed tightly. Without detailed performance metrics and comparison data, assessing the true value-for-money is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a competitive delivery order, indicating that multiple vendors likely competed for this specific task order under a broader contract vehicle. The number of bidders and the specific competition process are not detailed here, but the 'competitive' designation suggests an effort to leverage market forces. The level of competition can influence pricing and innovation, with more bidders generally leading to better price discovery.

Taxpayer Impact: A competitive award process, even for a delivery order, is generally favorable for taxpayers as it aims to secure the best possible pricing and service through market selection.

Public Impact

The primary beneficiaries are likely the Department of Homeland Security (DHS) and its Transportation Security Administration (TSA), who receive essential operational and maintenance support. The services delivered are critical for the functioning of the TTAC OCE system, ensuring its availability and performance. The geographic impact is centered around the locations where the TTAC OCE system is deployed and supported, likely within Maryland. Workforce implications include the potential for direct and indirect employment for Infozen, LLC and its subcontractors, particularly in specialized technical consulting roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (8 years) increases the risk of cost overruns due to scope creep or unforeseen technological changes.
Cost-plus award fee structure requires diligent oversight to ensure costs remain reasonable and performance targets are met.
Limited information on specific performance metrics makes it difficult to fully assess value for money.
The nature of 'operations and maintenance' can be prone to evolving requirements, potentially leading to contract modifications and increased costs.

Positive Signals

Awarded through a competitive process, suggesting potential for favorable pricing and service.
The contract's focus on operations and maintenance indicates a need for sustained, reliable support for a critical system.
The cost-plus award fee structure, if managed well, can incentivize high performance and quality service delivery.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically consulting. The market for these services is large and competitive, driven by government and commercial demand for specialized expertise. Contracts for operations and maintenance of complex systems are common across various federal agencies. Comparable spending benchmarks would depend on the specific nature and scale of the TTAC OCE system.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) was not a specific set-aside for this contract. Therefore, there are no direct small business set-aside implications. However, Infozen, LLC, as the prime contractor, may engage small businesses as subcontractors, contributing to the broader small business ecosystem. The extent of subcontracting to small businesses would need further investigation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security and the Transportation Security Administration. Given the cost-plus award fee structure, robust performance monitoring and financial auditing mechanisms are essential. Transparency would be enhanced by public reporting of performance metrics and award fee determinations. Inspector General jurisdiction would apply for any investigations into fraud, waste, or abuse.

Related Government Programs

Department of Homeland Security IT Support Contracts
Transportation Security Administration Systems Maintenance
Federal Consulting Services
Operations and Maintenance Contracts
Cost-Plus Award Fee Contracts

Risk Flags

Long contract duration
Cost-plus contract type
Potential for scope creep
Need for robust performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $60.8 million to INFOZEN, LLC. OPERATIONS AND MAINTENANCE SUPPORT FOR THE TTAC OCE

Who is the contractor on this award?

The obligated recipient is INFOZEN, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $60.8 million.

What is the period of performance?

Start: 2006-03-28. End: 2014-12-15.

What is the specific nature and criticality of the TTAC OCE system that necessitates such a long-term operational support contract?

The TTAC OCE (Transportation Security Administration Command Center Operations and Engineering) system is a critical component for the TSA's operational oversight and management. Its functions likely involve real-time monitoring, data analysis, and communication infrastructure essential for ensuring aviation security and operational efficiency across airports. The criticality stems from its role in enabling rapid response to security threats, managing passenger flow, and coordinating airport operations. A long-term support contract is indicative of the system's complexity, its integral role in daily TSA functions, and the need for continuous, specialized maintenance and upgrades to ensure its reliability and effectiveness in a dynamic security environment.

How does the 'Cost Plus Award Fee' (CPAF) structure compare to other contract types for similar operational support services in terms of cost efficiency and performance incentives?

The Cost Plus Award Fee (CPAF) structure is designed to incentivize contractor performance by allowing the contractor to recover allowable costs plus a base fee, with the potential for an additional award fee based on meeting or exceeding performance objectives. Compared to fixed-price contracts, CPAF can be more costly for the government if performance targets are aggressively set or if costs are not tightly controlled, as it shifts some cost risk to the government. However, it is often preferred for complex services where the scope is difficult to define precisely upfront, such as operations and maintenance, as it allows for flexibility and encourages high quality. Other contract types like Cost Plus Incentive Fee (CPIF) or Cost Plus Fixed Fee (CPFF) have different risk/reward profiles. CPIF shares cost savings or overruns, while CPFF offers a fixed fee regardless of cost variations. CPAF's effectiveness hinges on well-defined performance standards and rigorous evaluation by the government.

What were the key performance indicators (KPIs) used to determine the award fee for Infozen, LLC under this contract, and how did they perform against these metrics?

The specific Key Performance Indicators (KPIs) used to determine the award fee for Infozen, LLC under this contract are not detailed in the provided data. Typically, for operations and maintenance support contracts of this nature, KPIs would focus on system uptime and availability, response times to incidents, resolution times for reported issues, adherence to maintenance schedules, successful implementation of upgrades or patches, and user satisfaction. The 'award fee' component suggests that Infozen, LLC's performance was evaluated against these (or similar) metrics, and they received additional compensation based on their success. Without access to the contract's Performance Work Statement (PWS) and the government's performance evaluations, a precise assessment of their performance against these metrics cannot be made.

Given the 8-year duration, what mechanisms were in place to ensure the contract remained relevant and cost-effective as technology and TSA requirements evolved?

The 8-year duration of this contract implies that mechanisms for adaptation and cost-effectiveness were likely built into the contract structure. This typically includes provisions for contract modifications, change orders, and potentially periodic reviews of the scope of work and pricing. The Cost Plus Award Fee (CPAF) structure itself allows for adjustments in performance objectives and associated award fees as requirements evolve. Furthermore, the competitive delivery order nature suggests that even within a longer-term vehicle, specific task orders might have been competed or re-evaluated. Regular technical reviews and strategic planning sessions between the TSA and Infozen, LLC would also be crucial to anticipate technological shifts and evolving security needs, ensuring the services provided remained aligned with current requirements and offered continued value.

How does the total spending of $60.8 million compare to historical spending on similar operational support for TSA systems or other DHS components?

Comparing the $60.8 million total award for TTAC OCE operations and maintenance to historical spending requires access to broader federal procurement data and specific details about the TTAC OCE system's scale and complexity. Without this comparative data, it's difficult to definitively state whether this amount is high or low. However, $60.8 million over approximately 8 years averages to about $7.6 million per year. This figure needs to be contextualized against the criticality and operational scope of the TTAC OCE system. For highly complex, mission-critical systems within large agencies like DHS, annual spending in the millions for comprehensive operations and maintenance support is not uncommon. A detailed analysis would involve benchmarking against contracts for similar IT infrastructure support, command and control systems, or security operations centers within DHS or comparable agencies.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting 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: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 9420 KEY WEST AVENUE SUITE 101, ROCKVILLE, MD, 20850

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business

Financial Breakdown

Contract Ceiling: $245,952,222

Exercised Options: $65,467,165

Current Obligation: $60,838,250

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSTS0206DTTC028

IDV Type: IDC

Timeline