Cybersecurity support services contract awarded to IT Concepts, Inc. for over $47.9 million

Contract Overview

Contract Amount: $47,915,303 ($47.9M)

Contractor: IT Concepts, Inc.

Awarding Agency: Social Security Administration

Start Date: 2022-07-21

End Date: 2025-09-28

Contract Duration: 1,165 days

Daily Burn Rate: $41.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: CALL ORDER 28321322FA0010255 TO ACQUIRE CYBERSECURITY SUPPORT SERVICES FOR THE OFFICE OF INFORMATION SECURITY (OIS).

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21235

State: Maryland Government Spending

Plain-Language Summary

Social Security Administration obligated $47.9 million to IT CONCEPTS, INC. for work described as: CALL ORDER 28321322FA0010255 TO ACQUIRE CYBERSECURITY SUPPORT SERVICES FOR THE OFFICE OF INFORMATION SECURITY (OIS). Key points: 1. The contract value represents a significant investment in safeguarding sensitive government data. 2. Competition dynamics for this IT support service contract are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contract duration and service scope. 4. Performance context is established by comparing this award to similar cybersecurity service contracts. 5. The contract positions the agency to enhance its cybersecurity posture within the IT services sector.

Value Assessment

Rating: good

The contract value of approximately $47.9 million over its period of performance (July 2022 - September 2025) appears reasonable for comprehensive cybersecurity support services. Benchmarking against similar large-scale IT support contracts for federal agencies suggests that the pricing is within an expected range, especially considering the specialized nature of cybersecurity. The labor hour pricing model allows for flexibility in resource allocation based on evolving threats and needs, which can be cost-effective if managed efficiently. Further analysis of specific labor categories and rates would provide a more granular assessment of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive process was intended. This approach generally promotes price discovery and allows the government to select the offer that represents the best value, considering both technical approach and cost. The absence of specific bidder numbers limits a detailed assessment of the intensity of the competition.

Taxpayer Impact: A full and open competition aims to ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages innovation.

Public Impact

The Office of Information Security (OIS) within the Social Security Administration (SSA) is the primary beneficiary, receiving enhanced cybersecurity capabilities. The services delivered are critical for protecting sensitive citizen data and maintaining the integrity of SSA's IT systems. The geographic impact is primarily national, supporting the SSA's nationwide operations. The contract supports a workforce skilled in cybersecurity and IT support, potentially including both direct hires and subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on a single contractor for critical cybersecurity functions could pose a risk if performance falters.
Ensuring continuous alignment with evolving cybersecurity threats and best practices requires proactive contract management.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Contract duration allows for sustained support and development of long-term cybersecurity strategies.
Focus on cybersecurity is crucial for protecting sensitive government data and maintaining public trust.

Sector Analysis

The cybersecurity services market is a rapidly growing and critical segment of the IT services industry. Federal agencies are increasingly investing in cybersecurity solutions to defend against sophisticated cyber threats. This contract falls within the broader IT professional services category, specifically focusing on computer systems design and related services. The market is characterized by a mix of large established players and specialized niche providers. Benchmarks for similar cybersecurity support contracts often range from tens to hundreds of millions of dollars, depending on the scope and duration.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract award. While the contract itself is not set aside for small businesses, the prime contractor, IT Concepts, Inc., may engage small businesses as subcontractors. The extent of subcontracting to small businesses would need further investigation to determine its impact on the small business ecosystem. Without specific subcontracting plans, it's difficult to assess the direct benefit to small businesses from this particular award.

Oversight & Accountability

Oversight for this contract is likely managed by the contracting officer and program officials within the Social Security Administration's Office of Information Security. Accountability measures would be embedded in the contract's performance work statement, including service level agreements and reporting requirements. Transparency is generally facilitated through contract award databases and public reporting mechanisms. The Inspector General for the Department of Health and Human Services (which oversees the SSA) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Cybersecurity Strategy
IT Services Procurement
Cybersecurity Support Services
Social Security Administration IT Modernization

Risk Flags

Potential for vendor lock-in if not managed carefully.
Reliance on labor hours can sometimes lead to cost overruns if not tightly controlled.
Cybersecurity landscape is constantly evolving, requiring continuous adaptation of services.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $47.9 million to IT CONCEPTS, INC.. CALL ORDER 28321322FA0010255 TO ACQUIRE CYBERSECURITY SUPPORT SERVICES FOR THE OFFICE OF INFORMATION SECURITY (OIS).

Who is the contractor on this award?

The obligated recipient is IT CONCEPTS, INC..

Which agency awarded this contract?

Awarding agency: Social Security Administration (Social Security Administration).

What is the total obligated amount?

The obligated amount is $47.9 million.

What is the period of performance?

Start: 2022-07-21. End: 2025-09-28.

What is the track record of IT Concepts, Inc. in performing similar federal cybersecurity contracts?

A review of federal procurement data indicates that IT Concepts, Inc. has a history of performing IT and cybersecurity-related services for various federal agencies. While specific details on past performance for contracts of this exact magnitude and scope require deeper investigation into contract databases and past performance reviews, their presence in the federal contracting space suggests experience. It is important to analyze their performance metrics on previous contracts, including on-time delivery, quality of service, and adherence to budget, to fully assess their capability for this current cybersecurity support role. Any past performance issues or commendations would be critical factors in evaluating their reliability.

How does the awarded value compare to the estimated value or initial budget for these cybersecurity services?

The provided data shows an awarded amount of $47,915,302.77. Without access to the original contract solicitation, pre-negotiation objectives, or the agency's independent government cost estimate (IGCE), it is challenging to definitively compare the awarded value to the initial budget. However, the fact that it was awarded under full and open competition suggests that the final price reflects market conditions and negotiated rates. If the awarded value is significantly lower than initial estimates, it could indicate successful negotiation and competitive pressure. Conversely, if it aligns closely or exceeds estimates, further scrutiny of the justification for the final price would be warranted to ensure optimal value for taxpayer dollars.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for CALL ORDER 28321322FA0010255 are not detailed in the provided summary data. Typically, cybersecurity support service contracts include metrics related to incident response times, system uptime, vulnerability remediation rates, security audit compliance, and the effectiveness of threat detection and prevention measures. These KPIs and SLAs are crucial for measuring the contractor's performance and ensuring the Social Security Administration receives the expected level of cybersecurity protection. A thorough review of the contract's Performance Work Statement (PWS) would be necessary to identify these specific performance benchmarks and their associated penalties or incentives.

What is the historical spending trend for cybersecurity support services at the Social Security Administration?

Analyzing historical spending trends for cybersecurity support services at the Social Security Administration (SSA) is essential for contextualizing this $47.9 million award. While the provided data is for a single contract, a comprehensive review would involve examining SSA's IT and cybersecurity budgets over the past several fiscal years. This would reveal whether spending on such services has been increasing, decreasing, or remaining relatively stable. Understanding these trends can help identify patterns, assess the agency's long-term commitment to cybersecurity, and determine if this contract represents a significant shift or continuation of established spending practices. It also aids in benchmarking against peer agencies.

Are there any specific cybersecurity threats or vulnerabilities that this contract is intended to address?

The contract aims to acquire 'Cybersecurity Support Services for the Office of Information Security (OIS)' without specifying particular threats. However, given the nature of federal IT systems and the increasing sophistication of cyber adversaries, it is highly probable that this contract is designed to address a broad spectrum of current and emerging threats. These could include advanced persistent threats (APTs), ransomware attacks, phishing campaigns, insider threats, and vulnerabilities in software and hardware. The services likely encompass areas such as threat intelligence, security monitoring, incident response, vulnerability management, and security architecture design to bolster the SSA's overall defensive posture against these diverse risks.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 28321322Q00000136

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1600 SPRING HILL RD STE 305, VIENNA, VA, 22182

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $87,342,414

Exercised Options: $47,915,303

Current Obligation: $47,915,303

Actual Outlays: $38,940,868

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 28321320A00040024

IDV Type: BPA

Timeline