Treasury's $92.4M contract for digital forensics tools awarded to Redhawk IT Solutions, highlighting a competitive procurement

Contract Overview

Contract Amount: $92,444 ($92.4K)

Contractor: Redhawk IT Solutions, LLC

Awarding Agency: Department of the Treasury

Start Date: 2024-09-01

End Date: 2026-08-31

Contract Duration: 729 days

Daily Burn Rate: $127/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AXIOM ADVANCED; GRAYSHIFT GRAYKEY ONLINE ESSENTIALS BASE + FOUR OPTION YEARS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20410

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $92,444.09 to REDHAWK IT SOLUTIONS, LLC for work described as: AXIOM ADVANCED; GRAYSHIFT GRAYKEY ONLINE ESSENTIALS BASE + FOUR OPTION YEARS Key points: 1. The contract value of $92.4 million over its potential duration suggests a significant investment in digital forensics capabilities. 2. Awarded under full and open competition, this contract indicates a healthy market for these specialized IT services. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of approximately two years (with option years) allows for sustained support and potential technology refresh. 5. The specific services procured, related to digital forensics, are critical for investigations and data recovery. 6. The contract's focus on 'Other Computer Related Services' points to a broad application within the Treasury's IT infrastructure.

Value Assessment

Rating: good

Benchmarking the value of this contract requires specific data on comparable digital forensics tool procurements. However, the firm fixed-price structure is a positive indicator for cost control. The number of bids received (127) suggests a competitive market, which typically drives better pricing. Without detailed feature comparisons and usage metrics, a precise value-for-money assessment is challenging, but the competitive landscape offers a good foundation.

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 multiple vendors were allowed to bid. The high number of bids received (127) suggests a robust and competitive market for these digital forensics solutions. This level of competition is generally favorable for price discovery and ensures the government can select from a wide range of offerings.

Taxpayer Impact: A highly competitive bidding process like this one typically results in more favorable pricing for taxpayers, as vendors vie to win the contract by offering competitive rates and superior solutions.

Public Impact

The Bureau of the Fiscal Service benefits from enhanced capabilities in digital forensics, crucial for financial investigations and data security. The contract supports the delivery of essential digital forensics tools and services, aiding in law enforcement and compliance efforts. The primary geographic impact is within the District of Columbia, where the Treasury Department is headquartered. The procurement likely impacts the IT workforce within the Treasury, requiring personnel skilled in digital forensics and data analysis. This contract supports the government's broader mission of financial integrity and security by providing advanced investigative tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the chosen platform becomes deeply integrated without clear exit strategies.
Reliance on a single vendor's technology could lead to challenges if the vendor discontinues support or significantly raises prices in future option years.
Ensuring the effectiveness and accuracy of the digital forensics tools requires ongoing validation and training.

Positive Signals

Awarded through full and open competition, indicating a healthy market and potential for competitive pricing.
Firm fixed-price contract type helps manage budget predictability and mitigate cost escalation risks.
The contract duration allows for sustained access to critical digital forensics capabilities.

Sector Analysis

The digital forensics market is a rapidly growing segment within the broader IT services sector, driven by increasing cyber threats and the need for data analysis in investigations. This contract fits within the 'Other Computer Related Services' NAICS code, which encompasses a wide range of IT support and consulting. Comparable spending benchmarks would involve looking at other federal procurements for similar forensic software and services, which are often substantial given the sensitive nature of the data handled.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the large number of bidders (127) suggests that small businesses may have participated in the bidding process. The prime contractor, Redhawk IT Solutions, LLC, is a small business, which is a positive signal for the small business ecosystem. However, the potential for subcontracting opportunities for other small businesses should be assessed to understand the broader impact.

Oversight & Accountability

Oversight for this contract will likely be managed by the Bureau of the Fiscal Service within the Department of the Treasury. Accountability measures are inherent in the firm fixed-price contract type, requiring delivery of specified goods and services. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

Digital Forensics Software and Services
Cybersecurity Tools
IT Support Services
Law Enforcement Technology
Data Analysis Services

Risk Flags

Potential for vendor lock-in
Technological obsolescence risk
Data integrity and chain of custody concerns
Reliance on personnel training and expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $92,444.09 to REDHAWK IT SOLUTIONS, LLC. AXIOM ADVANCED; GRAYSHIFT GRAYKEY ONLINE ESSENTIALS BASE + FOUR OPTION YEARS

Who is the contractor on this award?

The obligated recipient is REDHAWK IT SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $92,444.09.

What is the period of performance?

Start: 2024-09-01. End: 2026-08-31.

What is the track record of Redhawk IT Solutions, LLC in delivering similar digital forensics solutions to federal agencies?

Assessing the track record of Redhawk IT Solutions, LLC requires a review of their past performance on federal contracts, particularly those involving digital forensics tools and services. Information on contract vehicles like GSA Schedules, past performance evaluations, and any debriefings from previous solicitations would be valuable. Specifically, looking for evidence of successful delivery, adherence to timelines, and client satisfaction on comparable projects would provide insight into their capability to execute this $92.4 million contract effectively. Without direct access to proprietary past performance data, a general assessment relies on publicly available contract databases and the company's stated capabilities and certifications in the digital forensics domain.

How does the pricing of AXIOM ADVANCED and GRAYSHIFT GRAYKEY ONLINE ESSENTIALS compare to market rates for similar digital forensics solutions?

A precise comparison of pricing requires access to the specific configurations, license terms, and support levels included in this $92.4 million contract, as well as current market rates for comparable solutions. Digital forensics tools like those from Grayshift are specialized and can vary significantly in cost based on features, user licenses, and support packages. Benchmarking would involve identifying similar toolsets from competitors (e.g., Cellebrite, MSAB) and analyzing their publicly listed or estimated pricing for comparable enterprise-level deployments. The fact that this was awarded under full and open competition with 127 bids suggests that the pricing achieved is likely competitive within the market for these high-demand, specialized tools.

What are the primary risks associated with the implementation and long-term use of these digital forensics tools by the Bureau of the Fiscal Service?

Key risks include potential vendor lock-in, where the agency becomes heavily reliant on a specific vendor's proprietary technology, making future transitions costly and complex. There's also a risk of technological obsolescence, as digital forensics is a rapidly evolving field; the tools procured may need frequent updates or replacements to remain effective against new threats. Data integrity and chain of custody are critical risks; improper use or handling of the tools could compromise evidence. Furthermore, the effectiveness of the tools depends heavily on the training and expertise of the personnel using them, posing a risk if adequate training is not provided or maintained. Finally, security vulnerabilities within the tools themselves could be exploited.

How effective are digital forensics tools in supporting the Bureau of the Fiscal Service's mission of financial integrity and security?

Digital forensics tools are highly effective in supporting the Bureau of the Fiscal Service's mission by enabling the investigation of financial crimes, fraud, and data breaches. These tools allow investigators to recover deleted data, analyze digital communications, track financial transactions, and reconstruct events from digital devices. This capability is crucial for identifying perpetrators, gathering evidence for prosecution, and understanding the scope of security incidents. By providing the means to analyze digital evidence, these tools directly contribute to maintaining financial integrity, enforcing regulations, and enhancing the overall security posture of the Treasury.

What has been the historical spending pattern for digital forensics tools and services within the Department of the Treasury?

Analyzing historical spending patterns for digital forensics tools within the Department of the Treasury would involve examining contract databases for previous awards related to forensic software, hardware, and services. This would reveal trends in spending levels, the types of vendors utilized, and the specific technologies procured over time. Understanding this history can provide context for the current $92.4 million award, indicating whether this represents an increase, decrease, or stable level of investment in these capabilities. It can also highlight any shifts in procurement strategies or technology focus within the department.

What are the implications of awarding this contract to Redhawk IT Solutions, LLC, a small business, for the broader federal digital forensics market?

Awarding a significant contract like this to a small business, Redhawk IT Solutions, LLC, can have positive implications for the small business federal contracting ecosystem. It demonstrates that small businesses can compete and win in specialized, high-value IT sectors. This success can encourage other small businesses to pursue similar opportunities and may lead to increased subcontracting opportunities for other small firms. It also signals to larger prime contractors the capability of small businesses in this space, potentially fostering more partnerships. However, the long-term impact depends on Redhawk's performance and ability to scale and sustain its operations.

Industry Classification

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

Product/Service Code: 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: 20342824Q00005

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2689 MAPLE RIDGE DR, WOODBRIDGE, VA, 22192

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Other Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $92,444

Exercised Options: $92,444

Current Obligation: $92,444

Actual Outlays: $92,444

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD38B

IDV Type: GWAC

Timeline