DOT awards $3.3M for Invicti software, premium support, and resident engineer services

Contract Overview

Contract Amount: $3,321,944 ($3.3M)

Contractor: NEW Tech Solutions, Inc.

Awarding Agency: Department of Transportation

Start Date: 2023-09-27

End Date: 2027-04-16

Contract Duration: 1,297 days

Daily Burn Rate: $2.6K/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: INVICTI ON-PREMISES SOFTWARE SUBSCRIPTION LICENSES, PREMIUM SUPPORT, AND A RESIDENT ENGINEER. BASE PERIOD PLUS THREE OPTION PERIODS, TOTAL OF 7 MONTHS AND 3 YEARS (9/17/23 - 4/16/27). BASE PERIOD: 9/17/23 - 4/16/24 OPTION PERIOD 1: 4/17/24 -

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $3.3 million to NEW TECH SOLUTIONS, INC. for work described as: INVICTI ON-PREMISES SOFTWARE SUBSCRIPTION LICENSES, PREMIUM SUPPORT, AND A RESIDENT ENGINEER. BASE PERIOD PLUS THREE OPTION PERIODS, TOTAL OF 7 MONTHS AND 3 YEARS (9/17/23 - 4/16/27). BASE PERIOD: 9/17/23 - 4/16/24 OPTION PERIOD 1: 4/17/24 - Key points: 1. The contract provides essential software licenses and support for cybersecurity vulnerability management. 2. Competition was full and open after exclusion of sources, suggesting a deliberate procurement strategy. 3. The duration of over three years indicates a long-term need for these services. 4. The firm-fixed-price contract type shifts performance risk to the contractor. 5. The base period and three option periods allow for flexibility in service delivery. 6. The contract is for software and related support services, aligning with IT infrastructure needs.

Value Assessment

Rating: fair

The total award amount of $3,321,944.45 over approximately 3 years and 7 months appears to be a significant investment. Benchmarking this against similar cybersecurity software and support contracts is challenging without more specific details on the software's capabilities and the level of support provided. The inclusion of a resident engineer suggests a higher level of service than a standard subscription, which would naturally increase the overall cost. Further analysis would require comparing per-unit software costs and support hours to market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was intended to be broad, specific sources may have been excluded for a defined reason. With 6 bidders, this indicates a reasonable level of competition. This level of competition is generally positive for price discovery, suggesting that the government likely received competitive bids, although the specific reasons for excluding other sources warrant further investigation.

Taxpayer Impact: A competitive process, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and terms, potentially leading to cost savings.

Public Impact

The Federal Highway Administration (FHWA) benefits from enhanced cybersecurity posture. The contract delivers software licenses and premium support for vulnerability management. A resident engineer provides on-site expertise, potentially improving incident response and system integration. The services support the operational integrity of critical federal IT systems within the Department of Transportation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause requires careful review to ensure no viable competitors were unfairly barred.
The specific capabilities and limitations of the Invicti software need to be clearly understood to assess value.
The cost of the resident engineer should be benchmarked against industry standards for similar roles.

Positive Signals

Full and open competition, even with exclusions, suggests an effort to leverage market capabilities.
The firm-fixed-price contract type provides cost certainty for the government.
The multi-year duration indicates a sustained commitment to cybersecurity, a positive signal for system security.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on cybersecurity software and support. The market for vulnerability management solutions is competitive and growing, driven by increasing cyber threats. The Department of Transportation's spending on such solutions is crucial for protecting its vast network infrastructure. Comparable spending benchmarks would involve analyzing other federal agencies' investments in similar cybersecurity platforms and support services, considering factors like user base size and threat landscape.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the contract was not set aside for small businesses and the prime contractor, NEW TECH SOLUTIONS, INC., is not explicitly identified as a small business in the provided data. Further investigation into subcontracting plans would be necessary to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Transportation's contracting officers and program managers. The Federal Highway Administration's contracting office is responsible for ensuring compliance with contract terms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Cybersecurity Software Licenses
IT Support Services
Vulnerability Management Solutions
Federal IT Infrastructure Support
Software Subscriptions
Premium Technical Support

Risk Flags

Potential for scope creep in FFP contracts.
Need to verify contractor's past performance.
Justification for 'exclusion of sources' requires scrutiny.
Value for money assessment requires more detailed cost breakdown.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.3 million to NEW TECH SOLUTIONS, INC.. INVICTI ON-PREMISES SOFTWARE SUBSCRIPTION LICENSES, PREMIUM SUPPORT, AND A RESIDENT ENGINEER. BASE PERIOD PLUS THREE OPTION PERIODS, TOTAL OF 7 MONTHS AND 3 YEARS (9/17/23 - 4/16/27). BASE PERIOD: 9/17/23 - 4/16/24 OPTION PERIOD 1: 4/17/24 -

Who is the contractor on this award?

The obligated recipient is NEW TECH SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Highway Administration).

What is the total obligated amount?

The obligated amount is $3.3 million.

What is the period of performance?

Start: 2023-09-27. End: 2027-04-16.

What specific capabilities does the Invicti software provide, and how do they align with the FHWA's cybersecurity needs?

Invicti is a leading platform for application security testing (AST), offering both dynamic (DAST) and interactive (IAST) analysis to identify web application vulnerabilities. For the FHWA, this likely translates to capabilities in scanning web applications, APIs, and cloud environments for common threats like SQL injection, cross-site scripting (XSS), and misconfigurations. The 'premium support' suggests access to advanced technical assistance, potentially including faster response times, dedicated support engineers, and proactive monitoring. The 'resident engineer' implies a dedicated resource embedded within the agency to facilitate integration, provide training, and offer expert guidance on leveraging the software effectively, thereby enhancing the agency's ability to proactively manage and remediate security risks across its digital assets.

How does the per-unit cost of the Invicti software and support compare to market rates for similar solutions?

Determining the precise per-unit cost comparison is difficult without knowing the exact number of licenses, the specific tiers of support purchased, and the duration of the subscription for each component. Invicti's pricing is typically based on the number of web applications or scan targets. However, general market analysis indicates that enterprise-grade application security solutions, especially those including premium support and dedicated personnel like a resident engineer, can range from tens of thousands to hundreds of thousands of dollars annually per organization, depending on scale and features. The total award of approximately $3.3 million over 3.6 years suggests an average annual cost of around $920,000. This figure needs to be evaluated against the agency's specific deployment size and the competitive bids received to ascertain true value for money.

What are the potential risks associated with a firm-fixed-price contract for software and support services?

Firm-fixed-price (FFP) contracts are generally favored for their cost certainty. However, for complex software and support, risks can emerge. If the scope of work is not precisely defined, the contractor might deliver only the minimum required, potentially leaving the agency with unmet needs or requiring costly change orders. Conversely, if the agency's requirements evolve significantly, the FFP structure can make it difficult and expensive to adapt. For software, the risk also lies in the vendor's ability to provide timely updates and patches, and the agency's internal capacity to adopt and utilize the software effectively. The inclusion of a resident engineer mitigates some operational risks by providing on-site expertise, but the overall success still hinges on clear communication and a well-defined statement of work.

What is the track record of NEW TECH SOLUTIONS, INC. in providing similar cybersecurity services to federal agencies?

Information regarding the specific track record of NEW TECH SOLUTIONS, INC. in providing Invicti software, premium support, and resident engineer services to federal agencies is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and client testimonials. Federal procurement databases often contain past performance information, which would be crucial for evaluating the contractor's reliability, technical expertise, and ability to meet contractual obligations. Without this data, it's difficult to definitively assess their experience and success in delivering comparable services.

How does the competition level (6 bidders) impact the potential for cost savings for the government?

Having six bidders in a full and open competition generally indicates a healthy level of market interest and a robust competitive environment. This typically leads to better price discovery, as each bidder is incentivized to offer competitive pricing and favorable terms to win the contract. The presence of multiple qualified vendors suggests that the government had a good selection of options, increasing the likelihood that the awarded price reflects a fair market value. While the specific details of the bids are not available, a six-bidder scenario is usually considered positive for achieving cost efficiencies compared to sole-source or limited-competition awards.

What are the implications of the 'after exclusion of sources' clause on the overall fairness and competitiveness of the procurement?

The 'Full and Open Competition After Exclusion of Sources' clause suggests that while the procurement was intended to be broadly competed, certain potential sources were intentionally excluded. This exclusion must be justified by specific criteria, such as technical capabilities, past performance, or unique qualifications, as outlined in federal acquisition regulations. The implication is that the competition was robust among the remaining eligible sources. However, it raises a question about whether the exclusion criteria were appropriate and if any potentially capable small businesses or other vendors were inadvertently or unfairly prevented from bidding. A thorough review of the justification for exclusion is necessary to ensure the process remained fair and maximized competition.

Industry Classification

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

Product/Service Code: 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: 4179 BUSINESS CENTER DR, FREMONT, CA, 94538

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,413,328

Exercised Options: $3,321,944

Current Obligation: $3,321,944

Actual Outlays: $2,327,647

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC82B

IDV Type: GWAC

Timeline