Commerce Department's $77.6M IT support contract awarded to DH Technologies, Inc. for NOAA

Contract Overview

Contract Amount: $77,592 ($77.6K)

Contractor: DH Technologies, Inc.

Awarding Agency: Department of Commerce

Start Date: 2022-10-01

End Date: 2027-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $43/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BEYONDTRUST SUBSCRIPTIONS WITH MAINTENANCE AND SUPPORT

Place of Performance

Location: LEESBURG, LOUDOUN County, VIRGINIA, 20176

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $77,592.14 to DH TECHNOLOGIES, INC. for work described as: BEYONDTRUST SUBSCRIPTIONS WITH MAINTENANCE AND SUPPORT Key points: 1. Value for money appears fair given the 5-year duration and firm-fixed-price structure. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a long-term contract potentially exposing the agency to evolving technology needs. 4. Performance context is within IT support services, a critical function for NOAA's operations. 5. Sector positioning is within IT services, a broad category with significant federal spending. 6. The contract's value is substantial, requiring careful monitoring of service delivery and cost-effectiveness.

Value Assessment

Rating: fair

The contract value of $77.6 million over five years averages to approximately $15.5 million annually. Benchmarking this against similar IT support contracts is challenging without more specific service details. However, the firm-fixed-price structure suggests that the agency has a clear understanding of the costs involved. The number of bids received (6) indicates a reasonable level of interest, which can contribute to 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 all responsible sources were permitted to submit offers. Six bids were received, suggesting a healthy level of competition for this IT support requirement. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and services, potentially leading to cost savings compared to sole-source or limited competition awards.

Public Impact

The primary beneficiary is the National Oceanic and Atmospheric Administration (NOAA), which receives essential IT support services. Services delivered include maintenance and support for BeyondTrust software, crucial for cybersecurity and access management. The geographic impact is likely nationwide, supporting NOAA's distributed operations and data centers. Workforce implications may include support for IT professionals within NOAA and potential employment opportunities with the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term contract duration (5 years) may lead to technology obsolescence if not managed proactively.
Reliance on a single vendor for critical IT support could pose a risk if the vendor's performance declines.
Scope creep could increase costs if not carefully managed within the firm-fixed-price structure.

Positive Signals

Firm-fixed-price contract provides cost certainty for the agency.
Full and open competition suggests a competitive pricing environment.
Multiple bidders (6) indicate market interest and potential for vendor accountability.

Sector Analysis

The IT services sector is a significant area of federal spending, encompassing a wide range of support, development, and maintenance activities. This contract falls under the 'Other Computer Related Services' NAICS code (541519), which includes services like IT support, network management, and cybersecurity. Federal spending in this sector is consistently high, driven by the need to maintain and modernize government IT infrastructure.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have specific small business set-aside provisions, the prime contractor, DH Technologies, Inc., may engage small businesses for subcontracting opportunities. The extent of small business participation will depend on the contractor's subcontracting plan and the nature of the services required. Further analysis would be needed to determine the specific impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the NOAA program office responsible for IT services. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services. Transparency is generally maintained through contract award notices and reporting requirements, though detailed performance metrics are often internal.

Related Government Programs

IT Support Services
Software Maintenance and Support
Cybersecurity Services
Cloud Computing Services
Network Infrastructure Management

Risk Flags

Long-term contract duration
Reliance on specific software vendor
Potential for scope creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $77,592.14 to DH TECHNOLOGIES, INC.. BEYONDTRUST SUBSCRIPTIONS WITH MAINTENANCE AND SUPPORT

Who is the contractor on this award?

The obligated recipient is DH TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $77,592.14.

What is the period of performance?

Start: 2022-10-01. End: 2027-09-30.

What is the track record of DH Technologies, Inc. in performing similar federal IT support contracts?

DH Technologies, Inc. has a history of performing federal contracts, primarily in IT services and support. A review of their contract history would reveal their performance ratings on past awards, including any instances of contract modifications, disputes, or performance issues. Understanding their experience with similar software maintenance and support contracts, particularly for large government agencies like NOAA, is crucial for assessing their capability to fulfill this $77.6 million award effectively. Specific details on past performance, such as CPARS (Contractor Performance Assessment Reporting System) ratings, would provide valuable insight into their reliability and quality of service.

How does the per-unit cost or value proposition of this contract compare to industry benchmarks for BeyondTrust subscriptions and maintenance?

Determining the precise per-unit cost or value proposition requires detailed knowledge of the specific BeyondTrust products and support levels included in the contract, as well as the number of users or systems covered. Without this granular data, direct comparison to industry benchmarks is difficult. However, the firm-fixed-price nature of the contract suggests that DH Technologies, Inc. has priced these services competitively based on their understanding of the market and the scope of work. The fact that six bids were received in a full and open competition also implies that the pricing is likely within a reasonable range expected by the market for such services over a five-year period.

What are the primary risks associated with a five-year contract for IT support services, and how are they mitigated?

The primary risks associated with a five-year IT support contract include technological obsolescence, vendor lock-in, and potential degradation of service quality over time. Technology evolves rapidly, and a five-year commitment could mean supporting outdated systems or software by the end of the term. Vendor lock-in is a concern if the agency becomes overly reliant on the contractor's expertise and proprietary solutions. Service quality can decline if the contractor faces staffing issues or operational challenges. Mitigation strategies include robust performance monitoring, clearly defined service level agreements (SLAs), regular contract reviews, and incorporating flexibility clauses for technology upgrades or scope adjustments where feasible within the contract's framework.

How effective is the current IT support structure for NOAA, and does this contract represent an improvement or continuation?

This contract represents a continuation of IT support services for NOAA, specifically focusing on BeyondTrust subscriptions, maintenance, and support. The effectiveness of the current structure is implicitly indicated by the renewal or continuation of this service. NOAA likely relies on BeyondTrust for critical functions such as privileged access management and vulnerability management, essential for securing its vast data resources and operational systems. This contract ensures the continuity of these vital services, preventing disruptions and maintaining the security posture of NOAA's IT infrastructure. The award to DH Technologies, Inc. suggests they were deemed the most capable and cost-effective provider through the competitive bidding process.

What has been the historical spending trend for similar IT support services at NOAA or within the Department of Commerce?

Historical spending on IT support services at NOAA and the broader Department of Commerce has consistently been substantial, reflecting the critical role of technology in their operations. Analyzing past contracts for software maintenance, IT support, and related services would reveal trends in spending levels, vendor choices, and contract durations. For instance, spending on cybersecurity solutions and access management tools like BeyondTrust has likely increased over time due to evolving threat landscapes. Understanding these historical patterns helps contextualize the $77.6 million award, assessing whether it aligns with previous investment levels or represents a significant shift in resource allocation for IT support.

What are the potential implications of this contract on future IT procurement strategies for NOAA?

This contract's structure and outcome could influence future IT procurement strategies for NOAA. The success of a full and open competition with multiple bidders might encourage similar approaches for other IT service needs, reinforcing the value of market research and competitive sourcing. The five-year duration, while offering stability, also highlights the need for NOAA to continuously assess technological advancements and plan for future upgrades or replacements. If DH Technologies, Inc. performs exceptionally well, they may be a strong contender for future related contracts, but the competitive nature of this award also keeps the door open for other vendors to challenge for future business, promoting ongoing innovation and cost-effectiveness.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 161 FORT EVANS RD NE STE 255, LEESBURG, VA, 20176

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $77,592

Exercised Options: $77,592

Current Obligation: $77,592

Actual Outlays: $49,005

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC70B

IDV Type: GWAC

Timeline