DHS awards $83.5M for IT support, with SEV1TECH LLC managing facilities and computer services

Contract Overview

Contract Amount: $83,490,828 ($83.5M)

Contractor: Sev1tech, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2018-09-28

End Date: 2023-09-08

Contract Duration: 1,806 days

Daily Burn Rate: $46.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::CL::IGF ENGINEERING SUPPORT SERVICES

Place of Performance

Location: SPRINGFIELD, ACCOMACK County, VIRGINIA, 20598

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $83.5 million to SEV1TECH, LLC for work described as: IGF::CL::IGF ENGINEERING SUPPORT SERVICES Key points: 1. Contract value represents a significant investment in IT infrastructure management. 2. Full and open competition suggests a potentially competitive bidding process. 3. The contract duration of 1806 days indicates a long-term need for these services. 4. Delivery order under a larger contract structure implies potential for follow-on work. 5. The use of Time and Materials pricing may present cost control challenges. 6. The contract is categorized under Computer Facilities Management Services, a critical IT function.

Value Assessment

Rating: fair

The total award of $83.5 million over approximately five years for IT support services requires careful benchmarking. While specific comparable contracts are not provided, the duration and scope suggest a substantial investment. The Time and Materials (T&M) pricing model, while flexible, can lead to cost overruns if not managed diligently. Without detailed performance metrics or a clear comparison to industry benchmarks for similar IT facilities management services, assessing the true value for money is challenging. The agency's ability to control costs under this T&M contract will be a key indicator of its value.

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 bids. The fact that it was competed suggests that the agency sought to leverage market competition to obtain the best value. The number of bidders is not specified, but the open competition is generally a positive sign for price discovery and ensuring a fair market price is achieved.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing that full and open competition aims to achieve, theoretically driving down costs compared to less competitive award methods.

Public Impact

The U.S. Customs and Border Protection (CBP) benefits from enhanced IT facilities management. Services delivered include computer facilities management, crucial for operational continuity. The primary geographic impact is within Virginia, where the contract is managed. The contract supports the IT workforce responsible for maintaining critical government systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials pricing structure.
Lack of specific performance metrics makes it difficult to assess efficiency.
Long contract duration may lead to vendor lock-in if not managed proactively.

Positive Signals

Awarded through full and open competition, suggesting market-driven pricing.
Contract supports critical IT infrastructure for a key federal agency.
SEV1TECH, LLC is a known entity in the federal contracting space.

Sector Analysis

The IT services sector, particularly computer facilities management, is a large and competitive market. Federal agencies are significant consumers of these services, often requiring specialized support for complex systems. This contract fits within the broader category of IT support services, which includes infrastructure maintenance, network management, and data center operations. Benchmarking this contract's value would involve comparing its total cost and scope against similar IT support contracts awarded by other federal agencies or large private sector organizations.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless SEV1TECH, LLC actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting officers and program managers. The Inspector General's office may conduct audits or investigations into contract performance and financial management. Transparency is facilitated through contract award databases, but detailed performance reports are often internal.

Related Government Programs

IT Infrastructure Management Services
Computer Facilities Management
Information Technology Support Contracts
Department of Homeland Security IT Spending

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Long contract duration requires sustained oversight.
Scope of services requires specialized IT facilities management expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $83.5 million to SEV1TECH, LLC. IGF::CL::IGF ENGINEERING SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SEV1TECH, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $83.5 million.

What is the period of performance?

Start: 2018-09-28. End: 2023-09-08.

What is SEV1TECH, LLC's track record with similar IT support contracts for federal agencies?

SEV1TECH, LLC has a history of performing IT support and management services for various federal agencies. Their portfolio often includes tasks related to network infrastructure, cybersecurity, and system administration. Analyzing their past performance on contracts of similar size and scope, particularly those involving computer facilities management, would provide insight into their capabilities and reliability. Reviewing past performance evaluations and any reported issues or successes on previous government contracts is crucial for assessing their suitability for this role. Their experience with the Department of Homeland Security or U.S. Customs and Border Protection specifically would be particularly relevant.

How does the $83.5 million award compare to similar IT facilities management contracts?

Benchmarking the $83.5 million award requires comparing it against contracts for similar IT facilities management services, considering factors like duration, scope of work, and the specific services provided (e.g., data center operations, network maintenance, help desk support). Without access to a comprehensive database of comparable federal contracts or detailed market research data, a precise comparison is difficult. However, for a five-year contract supporting critical IT infrastructure for a large agency like DHS, this figure appears within a plausible range, though the Time and Materials pricing model necessitates close monitoring to ensure it remains cost-effective compared to fixed-price or performance-based contracts.

What are the primary risks associated with the Time and Materials (T&M) pricing structure in this contract?

The primary risk with a Time and Materials (T&M) pricing structure is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and material costs incurred. If not managed rigorously with clear task definitions, labor hour ceilings, and vigilant oversight, contractors may bill for extended hours or less efficient work, leading to costs exceeding initial estimates. This places a significant burden on the government to actively manage and monitor the contractor's effort to ensure efficiency and prevent unnecessary expenditures. The agency must have robust mechanisms in place to track hours, validate costs, and ensure the work performed is necessary and efficient.

How effective are the oversight mechanisms for this contract, given its duration and T&M pricing?

The effectiveness of oversight for this contract hinges on the agency's implementation of robust management practices. Given the five-year duration and T&M pricing, continuous monitoring by contracting officers, technical monitors, and potentially program managers is essential. This includes regular reviews of timesheets, invoices, and progress reports, as well as performance evaluations. The Department of Homeland Security's established oversight protocols, including potential audits by its Inspector General, are critical. However, the inherent nature of T&M requires proactive and detailed oversight to mitigate risks of cost creep and ensure the contractor remains focused on efficient delivery of required services.

What is the historical spending pattern for IT facilities management services by U.S. Customs and Border Protection?

Analyzing historical spending patterns for IT facilities management by U.S. Customs and Border Protection (CBP) would reveal trends in their investment in this area. This includes understanding the typical contract values, durations, and types of services procured over time. Significant fluctuations or consistent high spending could indicate the criticality of these services to CBP's mission. Comparing past spending with the current $83.5 million award provides context on whether this represents an increase, decrease, or stable level of investment. Such analysis helps in understanding the agency's long-term strategy and resource allocation for IT infrastructure.

What are the implications of awarding this contract through 'full and open competition' for price discovery?

Awarding this contract through 'full and open competition' implies that the agency solicited bids from all interested and capable sources. This process is designed to foster a competitive environment where multiple vendors vie for the contract. The expectation is that this competition drives down prices as bidders strive to offer the most attractive terms and cost-effective solutions to win the award. It allows the market to determine a fair and reasonable price, potentially leading to better value for taxpayers compared to sole-source or limited competition scenarios. The number of bids received is a key indicator of the actual level of competition achieved.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 12700 BLACK FOREST LN STE 306, WOODBRIDGE, VA, 22192

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $96,063,896

Exercised Options: $85,691,915

Current Obligation: $83,490,828

Actual Outlays: $22,228,115

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $19,352,015

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F424AA

IDV Type: FSS

Timeline