State Department awards $18.6M for IT security services to VMD Systems Integrators, LLC
Contract Overview
Contract Amount: $18,653,379 ($18.7M)
Contractor: VMD Systems Integrators, LLC
Awarding Agency: Department of State
Start Date: 2021-09-30
End Date: 2025-09-29
Contract Duration: 1,460 days
Daily Burn Rate: $12.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: LABOR HOURS
Sector: IT
Official Description: NEW TASK ORDER FOR SECURITY SERVICES IN SUPPORT OF IRM.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006
Plain-Language Summary
Department of State obligated $18.7 million to VMD SYSTEMS INTEGRATORS, LLC for work described as: NEW TASK ORDER FOR SECURITY SERVICES IN SUPPORT OF IRM. Key points: 1. Contract value represents a significant investment in safeguarding sensitive government information. 2. Competition was conducted after exclusion of sources, suggesting potential limitations in market reach. 3. Performance period spans four years, indicating a long-term need for these security services. 4. The contract is for computer systems design services, a critical component of IT infrastructure. 5. The task order is a delivery order under a larger contract vehicle. 6. The contract is not set aside for small businesses, potentially impacting small business participation.
Value Assessment
Rating: fair
The contract value of $18.6 million over four years for security services appears reasonable given the scope of IT security. However, without specific benchmarks for comparable security service contracts at the Department of State or across similar agencies, a precise value-for-money assessment is challenging. The pricing structure, based on labor hours, allows for flexibility but can also lead to cost overruns if not managed effectively. The absence of detailed performance metrics makes it difficult to gauge the effectiveness and efficiency of the services rendered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This procurement method suggests that while the initial solicitation may have been broad, certain sources were excluded prior to the final award. The exact reasons for this exclusion are not detailed, but it implies a potentially narrower field of bidders than a truly full and open competition. The number of bidders is not specified, making it difficult to assess the intensity of competition and its impact on price discovery.
Taxpayer Impact: The 'exclusion of sources' aspect raises questions about whether taxpayers received the most competitive pricing possible. A more open competition could have potentially driven down costs through increased bidder engagement.
Public Impact
The primary beneficiaries are the Department of State and its personnel, who will receive enhanced protection for their IT systems and data. The services delivered will focus on computer systems design and security, crucial for maintaining operational integrity. The geographic impact is centered in the District of Columbia, where the Department of State's primary operations are located. Workforce implications may include the need for specialized cybersecurity professionals, potentially creating or sustaining jobs in this field.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to exclusion of sources may have resulted in higher costs.
- Lack of detailed performance metrics makes it difficult to assess service effectiveness.
- Labor hour pricing can be susceptible to scope creep and cost overruns if not tightly managed.
Positive Signals
- Contract addresses critical IT security needs for a major federal agency.
- Long-term performance period suggests a stable and ongoing requirement for these services.
- VMD Systems Integrators, LLC is an established entity in the government contracting space.
Sector Analysis
The IT security services sector is a rapidly growing and critical segment of the federal contracting market. Agencies are increasingly reliant on sophisticated solutions to protect against cyber threats. Spending in this area is substantial across all government departments, with significant investments in areas like network security, data protection, and threat intelligence. This contract fits within the broader category of IT professional services, specifically focusing on computer systems design and security implementation.
Small Business Impact
This contract was not set aside for small businesses, and the data indicates no small business participation (ss: false, sb: false). This means that opportunities for small businesses to compete for or subcontract on this specific task order were likely limited. The prime contractor, VMD Systems Integrators, LLC, is not a small business, and there is no explicit requirement for subcontracting with small businesses mentioned in the provided data. This could mean a missed opportunity to foster small business growth within the federal IT security landscape.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of State's contracting officers and program managers. Accountability measures would be tied to the delivery order terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.
Related Government Programs
- Department of State IT Modernization Programs
- Federal Cybersecurity Initiatives
- Computer Systems Design Services Contracts
- Information Security Services
Risk Flags
- Limited competition may impact price.
- Labor hour contract type can lead to cost uncertainty.
- Cybersecurity is a high-risk area.
Tags
it-security, department-of-state, district-of-columbia, delivery-order, computer-systems-design, limited-competition, labor-hours, information-technology, federal-government, cybersecurity
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $18.7 million to VMD SYSTEMS INTEGRATORS, LLC. NEW TASK ORDER FOR SECURITY SERVICES IN SUPPORT OF IRM.
Who is the contractor on this award?
The obligated recipient is VMD SYSTEMS INTEGRATORS, LLC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $18.7 million.
What is the period of performance?
Start: 2021-09-30. End: 2025-09-29.
What is the track record of VMD Systems Integrators, LLC with the Department of State and other federal agencies?
VMD Systems Integrators, LLC has a history of contracting with various federal agencies, including the Department of State. Analyzing their past performance on similar IT and security-related contracts is crucial. This includes examining contract values, performance reviews, any past performance issues or awards, and their success rate in fulfilling contract obligations. A review of their portfolio with the State Department specifically would reveal their experience in providing security services within that agency's unique environment. Their broader federal contracting history can indicate their capacity and reliability in handling large-scale IT projects and security solutions, providing context for this current award.
How does the awarded amount compare to similar IT security contracts at the Department of State?
Comparing the $18.6 million award for security services to similar contracts at the Department of State requires access to historical contract data for comparable services. Key metrics for comparison would include the scope of work (e.g., network security, data protection, system design), the duration of the contract, and the number of bidders. If other State Department contracts for similar IT security functions over a four-year period were awarded at significantly lower or higher amounts, it would provide a benchmark. Factors like the specific technologies used, the level of security clearance required, and the criticality of the systems being protected also influence pricing. Without this comparative data, it's difficult to definitively state if this award represents excellent, fair, or questionable value.
What are the primary risks associated with this contract, and how are they being mitigated?
Primary risks for this IT security services contract include potential cybersecurity breaches, contractor performance failures, cost overruns due to the labor-hour pricing model, and vendor lock-in. Mitigation strategies would involve robust oversight from the Department of State, including regular performance reviews, strict adherence to security protocols, and clear deliverables. The 'exclusion of sources' in the competition phase might also indicate a risk if it limited the pool of qualified bidders, potentially impacting innovation or cost-effectiveness. Ensuring clear contract terms, defined performance metrics, and contingency plans for security incidents are vital to managing these risks effectively.
How effective has the Department of State been in managing its IT security contracts historically?
The effectiveness of the Department of State in managing its IT security contracts historically can be assessed through various indicators. These include the frequency and severity of cybersecurity incidents, the success rate of IT modernization efforts, audit findings from the Inspector General, and the overall value derived from IT spending. Agencies often face challenges in keeping pace with evolving cyber threats and integrating new technologies securely. Analyzing past contract performance, including any penalties or contract modifications, can shed light on the department's management capabilities. Positive indicators would include a low number of breaches, successful project completions on time and within budget, and positive audit reports.
What has been the historical spending trend for computer systems design services at the Department of State?
Analyzing the historical spending trend for computer systems design services at the Department of State provides context for the current $18.6 million award. This involves examining annual or quarterly spending data for this specific NAICS code (541512) over several fiscal years. A rising trend might indicate increasing reliance on external expertise for IT infrastructure development and modernization, possibly driven by evolving technological needs or agency priorities. Conversely, a declining trend could suggest insourcing of these services or a shift in strategic focus. Understanding this trend helps in evaluating whether the current award is consistent with past investment patterns or represents a significant change in resource allocation.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 19AQMM21Q0133
Offers Received: 2
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Parent Company: VMD Systems Integrators LLC
Address: 4114 LEGATO RD STE 700, FAIRFAX, VA, 22033
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $32,245,780
Exercised Options: $26,983,023
Current Obligation: $18,653,379
Actual Outlays: $8,408,386
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200188W
IDV Type: GWAC
Timeline
Start Date: 2021-09-30
Current End Date: 2025-09-29
Potential End Date: 2026-09-29 00:00:00
Last Modified: 2026-03-09
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