Department of State awards $358.7M contract for visa center operations to FCI Federal, LLC

Contract Overview

Contract Amount: $358,704,610 ($358.7M)

Contractor: FCI Federal, LLC

Awarding Agency: Department of State

Start Date: 2014-04-03

End Date: 2020-02-29

Contract Duration: 2,158 days

Daily Burn Rate: $166.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPERATION OF THE NATIONAL VISA CENTER AND KENTUCKY CONSULAR CENTER IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20522

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $358.7 million to FCI FEDERAL, LLC for work described as: OPERATION OF THE NATIONAL VISA CENTER AND KENTUCKY CONSULAR CENTER IGF::OT::IGF Key points: 1. The contract value represents a significant investment in the operational efficiency of critical consular services. 2. FCI Federal, LLC secured this award through a competitive process, suggesting a market-driven price point. 3. The duration of the contract (over 5 years) indicates a need for sustained, long-term support. 4. The fixed-price nature of the contract shifts performance risk to the contractor. 5. This contract falls within the Computer Facilities Management Services NAICS code, highlighting the IT-intensive nature of visa processing. 6. The award was made by the Department of State, the primary agency responsible for visa operations.

Value Assessment

Rating: good

The contract value of $358.7 million over approximately 5.8 years (2158 days) suggests an average annual value of roughly $61.8 million. Benchmarking this against similar large-scale IT and operational support contracts for government agencies requires detailed analysis of scope and service levels. However, the firm fixed-price structure generally indicates that the contractor bears the risk of cost overruns, which can be a positive indicator of value if performance is met. Without specific per-unit cost data or detailed service level agreements, a precise value-for-money assessment is challenging, but the competitive award process provides a baseline for fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised and multiple responsible sources were permitted to submit offers. The fact that there were 5 bids received suggests a healthy level of competition for this significant contract. A competitive process like this typically leads to better price discovery and encourages contractors to offer their best value propositions to win the award.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely resulted in a more cost-effective solution for the government compared to a sole-source or limited competition award.

Public Impact

Citizens and foreign nationals seeking U.S. visas benefit from efficient and effective processing services. The contract supports the critical function of national security and immigration processing. Operations are centered in the District of Columbia, impacting the local economy and workforce. The contract ensures the continued operation of the National Visa Center and Kentucky Consular Center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively procured.
Dependence on a single contractor for critical national security and immigration functions.
Risk of service degradation if contractor performance management is not rigorous.

Positive Signals

Awarded through full and open competition, indicating a competitive market for these services.
Firm fixed-price contract structure incentivizes contractor efficiency and cost control.
Long-term contract duration suggests stability and commitment to service delivery.

Sector Analysis

This contract falls under the Computer Facilities Management Services (NAICS 541513) sector, which encompasses establishments primarily engaged in providing on-site management and/or operation of clients' computer systems and/or data processing facilities. This is a large and growing sector driven by the increasing reliance of government agencies on IT infrastructure for core operations. The Department of State's reliance on IT for visa processing, including data management, system maintenance, and operational support, is typical for agencies managing large-scale public-facing services. Comparable spending benchmarks would involve looking at other large federal IT support contracts, particularly those involving critical infrastructure management.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large-value contract likely requiring significant resources and expertise, it is common for such awards to go to larger prime contractors. However, the prime contractor, FCI Federal, LLC, may engage small businesses as subcontractors to fulfill specific aspects of the contract, contributing to the small business ecosystem. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

The Department of State's Office of Inspector General (OIG) typically provides oversight for contracts of this nature, ensuring compliance with terms, conditions, and performance standards. The contract's firm fixed-price structure inherently includes accountability for performance, as the contractor is responsible for delivering services within the agreed-upon price. Transparency is generally maintained through contract award databases and public reporting, though specific performance metrics and oversight reports may be internal.

Related Government Programs

Department of State IT Services
Consular Operations Support
National Visa Center Operations
Kentucky Consular Center Operations
Federal IT Management Contracts

Risk Flags

Contract Duration
Contract Value
Sole Source Potential
Performance Risk
Cybersecurity Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $358.7 million to FCI FEDERAL, LLC. OPERATION OF THE NATIONAL VISA CENTER AND KENTUCKY CONSULAR CENTER IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is FCI FEDERAL, LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $358.7 million.

What is the period of performance?

Start: 2014-04-03. End: 2020-02-29.

What is the track record of FCI Federal, LLC in performing similar government contracts?

FCI Federal, LLC has a history of performing government contracts, primarily within the IT and professional services domains. Analyzing their past performance on contracts with the Department of State or other agencies for similar operational support or IT management services would be crucial. Key indicators to examine include past performance ratings, any instances of contract disputes or terminations, and their ability to meet cost, schedule, and performance requirements on previous awards. A review of their contract history in federal procurement databases would provide insights into their experience and reliability in handling large-scale, critical government functions like visa processing operations.

How does the awarded price compare to market rates for similar IT facilities management services?

Determining the precise market rate comparison for this $358.7 million contract requires detailed analysis of the specific services rendered, including IT infrastructure management, data processing, and operational support for the National Visa Center and Kentucky Consular Center. Benchmarking would involve comparing the contract's estimated annual value (approximately $61.8 million) against industry reports for similar-sized contracts in the federal IT services sector, considering factors like labor rates, technology employed, and service level agreements. The 'full and open competition' award with five bidders suggests that the price achieved is likely competitive within the market, but a definitive comparison would necessitate access to detailed cost breakdowns and market intelligence data.

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

Key risks include potential performance failures by the contractor leading to delays or inefficiencies in visa processing, cybersecurity threats to sensitive data, and over-reliance on a single vendor. Mitigation strategies likely involve robust performance monitoring by the Department of State, clearly defined service level agreements (SLAs), and contingency planning. The firm fixed-price contract shifts some financial risk to FCI Federal, LLC, incentivizing them to perform efficiently. Cybersecurity protocols and regular audits are essential to protect data integrity. The Department of State's oversight mechanisms, including potential Inspector General reviews, also serve as risk mitigation tools.

How effective has the operation of the National Visa Center and Kentucky Consular Center been under previous contracts or management?

Assessing the effectiveness of the National Visa Center (NVC) and Kentucky Consular Center (KCC) operations under previous contracts or management requires examining key performance indicators (KPIs) related to visa processing times, accuracy rates, customer satisfaction, and system uptime. Historical data from the Department of State, including reports from the Government Accountability Office (GAO) or the Office of Inspector General (OIG), would provide insights into operational efficiency and any identified challenges. Improvements in technology, process streamlining, and contractor performance have likely contributed to the centers' effectiveness over time, but a detailed analysis of historical performance metrics is needed for a comprehensive evaluation.

What are the historical spending patterns for the operation of the National Visa Center and Kentucky Consular Center?

Historical spending for the operation of the National Visa Center and Kentucky Consular Center would reveal trends in federal investment in these critical consular functions. Analyzing past contract awards for similar services, including their values, durations, and awarded contractors, can indicate whether spending has been consistent, increasing, or decreasing. This context is vital for understanding the significance of the current $358.7 million award and whether it represents a substantial shift in budget allocation. Examining spending over the last 5-10 years would provide a clearer picture of the long-term financial commitment to these operations and identify any significant fluctuations or patterns.

What is the potential impact of this contract on the IT services market for federal agencies?

This contract, valued at $358.7 million and awarded through full and open competition, signals a significant demand for comprehensive IT facilities management services within the federal government. It highlights the ongoing need for specialized contractors capable of managing complex, mission-critical IT operations for large agencies like the Department of State. The award to FCI Federal, LLC, and the competitive nature of the procurement, can influence market dynamics by setting benchmarks for pricing, service delivery, and performance expectations. It may also encourage other IT service providers to enhance their capabilities and offerings to compete for similar large-scale federal contracts in the future.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings LLC

Address: 602 S KING ST STE 102, LEESBURG, VA, 20175

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $391,639,427

Exercised Options: $391,639,427

Current Obligation: $358,704,610

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $577,308

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline