DHS awards $3.76M for Salesforce Support, raising questions on value and competition

Contract Overview

Contract Amount: $3,760,733 ($3.8M)

Contractor: Steampunk, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-08-15

End Date: 2026-09-29

Contract Duration: 775 days

Daily Burn Rate: $4.9K/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: SALESFORCE SUPPORT SERVICES

Place of Performance

Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $3.8 million to STEAMPUNK, INC. for work described as: SALESFORCE SUPPORT SERVICES Key points: 1. Value for money appears fair given the fixed-price nature, but detailed benchmarking is needed. 2. Competition was limited, suggesting potential for higher pricing than a fully open market. 3. Risk indicators are moderate, with performance context and sector positioning requiring further analysis. 4. This contract supports critical IT infrastructure for border security operations. 5. The IT services sector is highly competitive, making limited competition notable.

Value Assessment

Rating: fair

The contract's firm fixed-price structure provides some cost certainty. However, without specific performance metrics or comparable contract data, assessing the true value for money is challenging. The awarded amount of $3.76 million over approximately two years suggests a moderate annual spend. Benchmarking against similar Salesforce support contracts, especially those with full and open competition, would be crucial to determine if this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were excluded. The presence of 5 bidders suggests some level of market interest, but the exclusion of sources limits the scope of competition. This approach can sometimes lead to less aggressive pricing compared to a truly open competition where all potential offerors are considered.

Taxpayer Impact: The limited competition may have resulted in taxpayers paying a premium compared to what might have been achieved in a fully open and unrestricted bidding process.

Public Impact

U.S. Customs and Border Protection (CBP) personnel benefit from enhanced Salesforce capabilities. Services delivered include crucial IT support for a widely used customer relationship management platform. The geographic impact is national, supporting CBP operations across various locations. Workforce implications include ensuring IT support staff are available to maintain and improve the Salesforce system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to suboptimal pricing for taxpayers.
Exclusion of sources in the competition process warrants further investigation.
Lack of detailed performance metrics makes value assessment difficult.

Positive Signals

Firm fixed-price contract provides cost predictability.
Multiple bidders (5) indicate some market interest.
Contract supports a critical federal agency's IT infrastructure.

Sector Analysis

The IT services sector, particularly cloud-based solutions like Salesforce, is a significant area of federal spending. This contract falls within the Computer Systems Design Services category. Federal agencies increasingly rely on platforms like Salesforce for case management, data analysis, and citizen engagement. Spending benchmarks for similar support services can vary widely based on the scope of work and the specific modules or customizations required.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement. However, the prime contractor may choose to subcontract portions of the work, potentially to small businesses, though this is not mandated by the contract type.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. Transparency is facilitated through contract databases like FPDS. Accountability measures are inherent in the firm fixed-price structure, requiring the contractor to deliver specified services. The Inspector General's office for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award.

Related Government Programs

Salesforce Government Cloud
Federal Civilian IT Modernization
Customs and Border Protection IT Modernization
Department of Homeland Security IT Services

Risk Flags

Limited competition may impact price.
Contract performance needs monitoring.
Cybersecurity risks associated with sensitive data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3.8 million to STEAMPUNK, INC.. SALESFORCE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is STEAMPUNK, INC..

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 $3.8 million.

What is the period of performance?

Start: 2024-08-15. End: 2026-09-29.

What is the track record of Steampunk, Inc. in delivering similar Salesforce support services to federal agencies?

Assessing Steampunk, Inc.'s track record requires a review of their past performance on federal contracts, particularly those involving Salesforce support. Information on contract performance ratings, past issues, and successful project completions would be crucial. Agencies often maintain internal performance evaluations, and publicly available data might include contract awards and modifications. A deeper dive into contract databases and agency performance reports would reveal their history of delivering complex IT solutions and managing federal IT projects, providing insight into their reliability and capability for this specific Salesforce support task.

How does the awarded price compare to market rates for comparable Salesforce support services?

Benchmarking the $3.76 million award against market rates for similar Salesforce support services is essential for evaluating value. This involves comparing the contract's scope, duration (775 days), and service level agreements with other federal or commercial contracts. Factors like the number of users supported, specific Salesforce modules in use (e.g., Sales Cloud, Service Cloud, custom applications), and the complexity of integrations influence pricing. Without detailed service descriptions and performance metrics, a precise comparison is difficult, but general market data for IT support services and Salesforce consulting can provide a baseline for assessing if the price is within an expected range.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this Salesforce support contract include potential cost overruns if the scope is not well-defined (though mitigated by fixed-price), contractor performance issues impacting critical CBP operations, and cybersecurity vulnerabilities associated with managing sensitive data. Mitigation strategies likely involve robust contract management by DHS, clear performance standards, regular progress reviews, and adherence to strict cybersecurity protocols. The limited competition also presents a risk of suboptimal pricing. The agency's oversight and the contractor's own quality assurance processes are critical for managing these risks.

How effective is the current Salesforce implementation at U.S. Customs and Border Protection in achieving its intended mission objectives?

The effectiveness of the Salesforce implementation at CBP is directly tied to its ability to support border security and facilitate lawful trade. This includes its role in managing cases, tracking shipments, processing information, and enabling communication across different operational units. Evaluating effectiveness would involve examining metrics related to operational efficiency gains, data accuracy, user adoption rates, and the system's contribution to achieving CBP's strategic goals. Without specific performance data linked to mission outcomes, assessing the system's true effectiveness remains challenging, though the continued investment suggests perceived value.

What has been the historical spending trend for Salesforce support services at DHS or CBP over the past five years?

Analyzing historical spending on Salesforce support at DHS and CBP provides context for the current $3.76 million award. Understanding past investments helps identify trends in IT modernization, platform reliance, and budget allocation for CRM systems. If spending has been consistently high or increasing, it suggests a growing dependence on Salesforce. Conversely, a decrease might indicate a shift in strategy or consolidation. This historical data is crucial for assessing whether the current contract represents a sustainable investment or a potential anomaly in spending patterns.

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 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: 1753 PINNACLE DR STE 900, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $6,486,448

Exercised Options: $3,760,733

Current Obligation: $3,760,733

Actual Outlays: $2,258,687

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 75N98120D00251

IDV Type: GWAC

Timeline