State Department awards $23M for engineering support, with Integrated Communication Solutions Inc. securing the definitive contract

Contract Overview

Contract Amount: $23,051,784 ($23.1M)

Contractor: Integrated Communication Solutions, Inc.

Awarding Agency: Department of State

Start Date: 2006-06-05

End Date: 2016-09-25

Contract Duration: 3,765 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: REQUIREMENT FOR COMBINED ENGINEERING SUPPORT.

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $23.1 million to INTEGRATED COMMUNICATION SOLUTIONS, INC. for work described as: REQUIREMENT FOR COMBINED ENGINEERING SUPPORT. Key points: 1. The contract's cost-plus award fee structure suggests incentives for performance, but requires careful monitoring to ensure value. 2. With 8 bidders, the competition level indicates a reasonably active market for these services. 3. The long duration of the contract (over 10 years) necessitates ongoing performance evaluation. 4. The primary service category is Computer Systems Design, aligning with IT infrastructure needs. 5. The contract was awarded under full and open competition, generally favoring competitive pricing. 6. The absence of small business set-aside flags suggests larger prime contractors are expected to manage this requirement.

Value Assessment

Rating: fair

The total award obligation of $23.05 million over approximately 10 years averages to about $2.3 million annually. Benchmarking this against similar IT support contracts is challenging without more specific service details. However, the cost-plus award fee (CPAF) pricing structure can lead to higher costs if not managed tightly, as it includes incentives for the contractor. The value for money will depend heavily on the achieved award fees and the actual services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, with 8 bidders participating. This level of competition is generally positive, suggesting that multiple firms were interested and capable of performing the required engineering support. A robust competition typically drives down prices and encourages innovation. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of this competition in securing the best value.

Taxpayer Impact: The full and open competition indicates that taxpayers likely benefited from competitive pricing and a wider pool of potential service providers, rather than being limited to a select few.

Public Impact

The Department of State benefits from essential engineering support to maintain and enhance its IT infrastructure and systems. This contract supports the delivery of critical IT services necessary for diplomatic operations and national security. The primary geographic impact is likely within the United States, supporting the Department's domestic IT operations, though it could extend to overseas installations. The contract supports a workforce skilled in computer systems design and engineering, contributing to the IT sector's employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus award fee contracts can sometimes lead to higher overall costs if performance incentives are not carefully managed and monitored.
The long contract duration increases the risk of scope creep or misalignment with evolving technological needs if not actively managed.
Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the engineering support provided.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Multiple bidders (8) indicate a healthy market interest and capability for the required services.
The definitive contract type provides a framework for a long-term relationship, allowing for continuity of essential services.

Sector Analysis

This contract falls within the Computer Systems Design Services sector (NAICS 541512), a significant segment of the IT services industry. This sector encompasses a wide range of activities, including IT consulting, systems integration, and custom software development. The market size for IT services supporting government agencies is substantial, driven by the continuous need for modernization and maintenance of complex systems. This contract represents a portion of the Department of State's overall IT spending, contributing to its operational capabilities.

Small Business Impact

The contract data indicates that small business participation was not a primary focus, as it was not set aside for small businesses and the prime contractor is not identified as a small business. This suggests that the requirement was likely fulfilled by larger companies capable of managing complex engineering support. While there's no explicit subcontracting data provided, larger prime contractors often engage small businesses for specialized tasks, but the overall impact on the small business ecosystem for this specific contract is not directly evident from the provided data.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. The cost-plus award fee structure necessitates rigorous performance monitoring and evaluation to ensure the contractor meets objectives and earns award fees appropriately. Transparency is generally facilitated through contract award databases, but detailed performance reports and audits are typically internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of State IT Modernization Programs
Federal Civilian Agency IT Support Contracts
Computer Systems Design and Integration Services
Definitive Contracts for IT Services
Cost-Plus Award Fee Contracts

Risk Flags

Long contract duration may lead to outdated technology or scope creep if not actively managed.
Cost-Plus Award Fee structure requires diligent oversight to ensure value for money.
Specific performance metrics and outcomes are not detailed, hindering objective value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $23.1 million to INTEGRATED COMMUNICATION SOLUTIONS, INC.. REQUIREMENT FOR COMBINED ENGINEERING SUPPORT.

Who is the contractor on this award?

The obligated recipient is INTEGRATED COMMUNICATION SOLUTIONS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.1 million.

What is the period of performance?

Start: 2006-06-05. End: 2016-09-25.

What specific engineering support services were included under this contract?

The provided data indicates the contract is for 'REQUIREMENT FOR COMBINED ENGINEERING SUPPORT' under NAICS code 541512 (Computer Systems Design Services). However, the specific nature of the engineering support is not detailed. This could range from IT infrastructure design, network engineering, cybersecurity support, software development lifecycle support, to systems integration and maintenance. Without further documentation, it's difficult to ascertain the precise scope. The 'combined' aspect suggests a broad range of integrated engineering disciplines were required to meet the Department of State's needs.

How does the $23 million total obligation compare to similar IT support contracts at the Department of State?

Comparing the $23.05 million total obligation for this 10-year contract requires context on the specific services rendered. Annualized, it's approximately $2.3 million per year. The Department of State, like other large federal agencies, procures significant IT support. Contracts for similar scope and duration can range from a few million to tens of millions annually, depending on complexity, number of users supported, and criticality. Given the long duration and the nature of engineering support, this amount appears within a plausible range for a large agency's sustained IT needs, but a direct comparison is difficult without knowing the exact deliverables and service levels.

What are the key risks associated with a Cost Plus Award Fee (CPAF) contract of this duration?

The primary risks with a CPAF contract, especially one spanning over a decade, include potential for cost overruns if performance incentives are not tightly managed, and the contractor potentially focusing on achieving award fees rather than optimal long-term solutions. For the government, there's a risk of paying higher prices than necessary if the award fee criteria are too easily met or poorly defined. The long duration also increases the risk of the contract becoming misaligned with evolving technological requirements or agency priorities if not actively managed and potentially re-competed or modified.

What does the track record of Integrated Communication Solutions, Inc. suggest about their ability to perform this contract?

Information on Integrated Communication Solutions, Inc.'s specific track record for performing large-scale engineering support contracts with the Department of State is not detailed in the provided data. To assess their capability, one would need to examine their past performance on similar government contracts, including client satisfaction, adherence to schedule and budget, and technical execution. A review of their contract history, including any past performance evaluations or awards/debarments, would be crucial for a comprehensive assessment of their reliability and expertise for this requirement.

How has the spending on 'Computer Systems Design Services' evolved at the Department of State over the past decade?

Analyzing the evolution of spending on 'Computer Systems Design Services' (NAICS 541512) at the Department of State over the past decade would reveal trends in IT investment. This contract, awarded in 2006 and ending in 2016, represents a portion of that spending during that period. Generally, federal agencies have seen increasing IT spending driven by modernization efforts, cybersecurity needs, and cloud migration. A detailed analysis would require accessing historical contract databases to aggregate spending across all contracts within this NAICS code for the Department of State, showing peaks, troughs, and shifts in focus.

What are the implications of 'definitive contract' type for this engineering support requirement?

A 'definitive contract' is a standard contract type that specifies all the terms and conditions, including price and quantity, upfront. For this engineering support requirement, it means that the scope of work, pricing, and delivery schedules were established at the time of award. This provides clarity and predictability for both the government and the contractor. Unlike indefinite-delivery/indefinite-quantity (IDIQ) contracts, which allow for more flexibility in task orders, a definitive contract implies a more fixed commitment for the entire duration and value, suggesting the requirement was well-defined at the outset.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 8

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 5300 WESTVIEW DR., FREDERICK, MD, 21703

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $23,051,785

Exercised Options: $23,051,785

Current Obligation: $23,051,784

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline