DHS's $20.5M Cisco maintenance renewal with C & C International Computers & Consultants, Inc. shows potential for cost savings

Contract Overview

Contract Amount: $20,540,865 ($20.5M)

Contractor: C & C International Computers & Consultants, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2013-09-30

End Date: 2018-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $11.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CISCO SMARTNET AND UCSS MAINTENANCE RENEWALS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $20.5 million to C & C INTERNATIONAL COMPUTERS & CONSULTANTS, INC. for work described as: CISCO SMARTNET AND UCSS MAINTENANCE RENEWALS Key points: 1. The contract's value of $20.5 million over five years suggests a significant investment in IT infrastructure maintenance. 2. Competition was full and open after exclusion of sources, indicating a deliberate procurement process. 3. The firm-fixed-price contract type aims to control costs, but requires careful monitoring of service delivery. 4. The duration of 1825 days (5 years) is standard for such maintenance agreements. 5. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 6. The contract was awarded as a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the Cisco products and services covered. However, the total value of $20.5 million over five years, averaging $4.1 million annually, represents a substantial expenditure for IT maintenance. Without comparable contract data or detailed service level agreements, it's difficult to definitively assess value for money. The firm-fixed-price structure provides cost certainty, but the agency must ensure that the services delivered meet the required performance standards to justify the expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This designation implies that while the competition was intended to be broad, specific circumstances led to the exclusion of certain potential bidders. The number of bidders is not specified, but the 'full and open' nature suggests an effort to solicit a wide range of offers. This approach generally promotes price discovery and can lead to more competitive pricing, provided there is genuine interest and capability among potential offerors.

Taxpayer Impact: A competitive bidding process, even with exclusions, is generally favorable for taxpayers as it encourages multiple vendors to offer their best pricing and terms, potentially leading to cost savings for the government.

Public Impact

The primary beneficiaries are the Department of Homeland Security (DHS) and its Transportation Security Administration (TSA), ensuring the continued operation of critical IT systems. The contract provides maintenance and support for Cisco hardware and software, crucial for network infrastructure and cybersecurity. The geographic impact is likely nationwide, supporting TSA operations across various airports and facilities. Workforce implications include the need for skilled IT personnel within TSA to manage and utilize the supported systems, as well as the personnel employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with Cisco products and maintenance services.
Risk of overpaying if competitive pressures were not fully realized due to source exclusions.
Dependence on a single contractor for critical IT maintenance could pose operational risks.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Full and open competition, even with exclusions, aims for a competitive market.
Long-term maintenance agreement ensures continuity of IT operations.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on network hardware and software maintenance. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading federal IT infrastructure. This contract represents a portion of the government's ongoing investment in ensuring the reliability and security of its digital backbone. Comparable spending benchmarks would involve analyzing other large-scale IT maintenance contracts for similar network equipment across federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside. The primary contractor, C & C International Computers & Consultants, Inc., is likely a larger entity capable of handling this scale of contract. Opportunities for small businesses would typically arise if they were subcontractors to the prime, which is not indicated here.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Homeland Security and the Transportation Security Administration contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

IT Infrastructure Maintenance
Network Equipment Support
Cisco Systems Contracts
Department of Homeland Security IT Spending
Transportation Security Administration Technology Procurement

Risk Flags

Potential for cost savings not fully realized due to competition exclusions.
Lack of specific service details makes value assessment difficult.
Dependence on a single vendor for critical infrastructure maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20.5 million to C & C INTERNATIONAL COMPUTERS & CONSULTANTS, INC.. CISCO SMARTNET AND UCSS MAINTENANCE RENEWALS

Who is the contractor on this award?

The obligated recipient is C & C INTERNATIONAL COMPUTERS & CONSULTANTS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.5 million.

What is the period of performance?

Start: 2013-09-30. End: 2018-09-29.

What specific Cisco products and services are covered under this $20.5 million maintenance contract?

The provided data does not specify the exact Cisco products and services covered by this contract. Typically, such maintenance renewals encompass support for routers, switches, firewalls, wireless access points, and associated software licenses. This can include hardware break-fix services, software updates and patches, technical support, and potentially access to Cisco's online knowledge base and tools. A detailed review of the contract's Statement of Work (SOW) would be necessary to ascertain the precise scope of services and the specific hardware/software models included. Without this detail, a precise value-for-money assessment is difficult.

How does the annual cost of this contract compare to industry benchmarks for similar Cisco maintenance agreements?

Directly comparing the annual cost of $4.1 million ($20.5M / 5 years) without knowing the specific Cisco hardware models, quantities, and service levels (e.g., 8x5 NBD vs. 24x7x4) is challenging. However, for enterprise-level Cisco maintenance, annual costs often range from 15% to 25% of the original hardware purchase price. If the original cost of the covered equipment was significantly higher, say $80-$130 million, then this annual maintenance cost might fall within a reasonable range. Conversely, if the original equipment cost was lower, this renewal could represent a higher-than-average maintenance percentage. Further analysis would require knowing the installed base value and the specific support contract tiers.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) for this contract. However, for IT maintenance contracts of this nature, common KPIs often include: response times for technical support requests, resolution times for hardware failures, availability of network services, successful application of software patches and updates, and adherence to Service Level Agreements (SLAs). The contracting officer's representative (COR) at TSA would typically monitor these metrics. Performance is crucial for ensuring the reliability and security of the TSA's network infrastructure, directly impacting operational capabilities.

What was the historical spending pattern for Cisco maintenance by the TSA prior to this contract?

The provided data does not include historical spending patterns for Cisco maintenance by the TSA. To assess this, one would need to query contract databases for previous awards to C & C International Computers & Consultants, Inc. or other vendors for similar Cisco maintenance services over preceding years. Analyzing historical spending would reveal trends in contract values, durations, and potentially changes in pricing or scope. Understanding past expenditures can help identify significant increases or decreases in spending, which might warrant further investigation into the reasons behind such shifts, such as technology upgrades or changes in operational requirements.

What is the track record of C & C International Computers & Consultants, Inc. in performing similar federal IT maintenance contracts?

The provided data does not offer details on the track record of C & C International Computers & Consultants, Inc. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), other federal contract awards, and any reported issues or successes in fulfilling similar IT maintenance agreements. Their ability to secure a $20.5 million contract with DHS suggests a level of established capability and past performance, but a deeper dive into their specific history with Cisco maintenance and federal agencies is needed for a thorough evaluation.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7777 N DAVIE ROAD EXT, HOLLYWOOD, FL, 33024

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $23,677,081

Exercised Options: $20,540,865

Current Obligation: $20,540,865

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSHQDC12D00011

IDV Type: IDC

Timeline