DHS Awards $1.89M for NETSCOUT Maintenance and Licenses to TECHANAX LLC

Contract Overview

Contract Amount: $1,885,227 ($1.9M)

Contractor: Techanax LLC

Awarding Agency: Department of Homeland Security

Start Date: 2024-06-27

End Date: 2027-04-15

Contract Duration: 1,022 days

Daily Burn Rate: $1.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NETSCOUT MAINTENANCE AND LICENSES

Place of Performance

Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $1.9 million to TECHANAX LLC for work described as: NETSCOUT MAINTENANCE AND LICENSES Key points: 1. The contract is for essential network security maintenance and licenses. 2. TECHANAX LLC is the awardee, with limited information on its market position. 3. Potential risk exists if TECHANAX LLC is a niche provider, impacting future pricing. 4. The sector is IT services, specifically 'Other Computer Related Services'.

Value Assessment

Rating: fair

The contract value of $1.89M over approximately 3 years appears reasonable for specialized maintenance and licensing. Benchmarking against similar contracts for network security software and support is needed for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition scenario. This method may not yield the most competitive pricing compared to broad full and open competition.

Taxpayer Impact: Taxpayer funds are being used for critical cybersecurity infrastructure. The pricing impact of limited competition warrants scrutiny to ensure value for money.

Public Impact

Ensures continued operation and security of critical U.S. Customs and Border Protection network infrastructure. Supports national security by maintaining vital surveillance and data analysis capabilities. Potential for increased costs if competition remains limited in future procurements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher prices.
Reliance on a single vendor for critical maintenance.
Lack of transparency on TECHANAX LLC's market share and capabilities.

Positive Signals

Contract supports essential border security functions.
Clear contract duration and delivery order structure.

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services.' Spending in this area is substantial across federal agencies, driven by the need for advanced cybersecurity and network management tools.

Small Business Impact

The data does not indicate if TECHANAX LLC is a small business. Further analysis is needed to determine the impact on small business participation in this contract and the broader IT services market.

Oversight & Accountability

The contract is a delivery order under a larger agreement, implying some level of prior vetting. However, the limited competition aspect necessitates robust oversight to ensure fair pricing and performance.

Related Government Programs

Other Computer Related Services
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Limited competition
Potential for price escalation
Vendor lock-in
Lack of detailed market analysis provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $1.9 million to TECHANAX LLC. NETSCOUT MAINTENANCE AND LICENSES

Who is the contractor on this award?

The obligated recipient is TECHANAX 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 $1.9 million.

What is the period of performance?

Start: 2024-06-27. End: 2027-04-15.

What is the specific functionality provided by NETSCOUT maintenance and licenses, and how critical is it to CBP operations?

NETSCOUT systems typically provide network performance monitoring, application analysis, and cybersecurity threat detection. For CBP, this is critical for managing vast amounts of data, ensuring border security operations are not hampered by network issues, and identifying potential security breaches in real-time across their extensive infrastructure.

What are the risks associated with limited competition for specialized IT maintenance and licensing?

Limited competition can lead to inflated prices as the vendor faces less pressure to offer competitive rates. It also increases vendor lock-in risk, making it difficult and costly to switch providers if performance issues arise or better alternatives emerge. Furthermore, it can stifle innovation if the incumbent vendor has less incentive to improve their offerings.

How does this contract contribute to the overall effectiveness of U.S. Customs and Border Protection's mission?

By ensuring the reliable operation and security of critical network infrastructure, this contract directly supports CBP's mission. It enables the continuous flow of information necessary for border management, law enforcement, and trade facilitation, thereby enhancing overall operational effectiveness and national security.

Industry Classification

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

Product/Service Code: IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14000 CROWN COURT SUITE 206, WOODBRIDGE, VA, 22193

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,371,484

Exercised Options: $1,885,227

Current Obligation: $1,885,227

Actual Outlays: $1,885,227

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD24B

IDV Type: GWAC

Timeline