DHS awards $11.9M for HR system decommissioning and Salesforce migration support

Contract Overview

Contract Amount: $11,919,455 ($11.9M)

Contractor: Cybermedia Technologies, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-09-06

End Date: 2026-03-05

Contract Duration: 1,276 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: HUMAN RESOURCES AND ADMINISTRATIVE SYSTEMS SUPPORT - DE-COMMISSIONING SUPPORT OF THE HUMAN RESOURCE BUSINESS ENGINE (HRBE) AND CONTINUED MAINTENANCE UNTIL THE SALESFORCE PLATFORM IS FULLY IMPLEMENTED.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $11.9 million to CYBERMEDIA TECHNOLOGIES, LLC for work described as: HUMAN RESOURCES AND ADMINISTRATIVE SYSTEMS SUPPORT - DE-COMMISSIONING SUPPORT OF THE HUMAN RESOURCE BUSINESS ENGINE (HRBE) AND CONTINUED MAINTENANCE UNTIL THE SALESFORCE PLATFORM IS FULLY IMPLEMENTED. Key points: 1. Contract focuses on critical HR system transition, aiming to modernize operations. 2. Cybermedia Technologies, LLC, a small business, secured this significant award. 3. The contract duration extends over three years, indicating a substantial project. 4. Performance is measured through labor hours, suggesting a need for flexible support. 5. The award is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. This supports the Department of Homeland Security's ongoing IT modernization efforts.

Value Assessment

Rating: good

The contract value of $11.9 million for HR system decommissioning and maintenance appears reasonable given the scope and duration. Benchmarking against similar IT system transition projects is challenging without more granular data on specific services. However, the use of labor hours allows for flexibility, which can be cost-effective for evolving project needs. The contractor, Cybermedia Technologies, LLC, is a small business, which may influence pricing dynamics compared to larger firms.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the full and open nature suggests a competitive process that should drive fair pricing. The award being a delivery order under an IDIQ contract implies that the initial IDIQ vehicle itself was competed.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality, ensuring that government funds are used efficiently.

Public Impact

Federal employees within the Department of Homeland Security will benefit from a more streamlined and modern HR system. The contract ensures continued support for existing HR systems during the transition to a new platform. This project supports the modernization of critical IT infrastructure within a key federal agency. The successful implementation of the Salesforce platform is expected to improve HR service delivery and data management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in decommissioning and migration projects.
Reliance on labor hours could lead to cost overruns if not managed tightly.
Ensuring seamless data migration from the legacy HRBE to Salesforce is a significant technical challenge.

Positive Signals

Contract awarded to a small business, supporting federal small business goals.
Full and open competition suggests a robust and fair bidding process.
Clear objective to transition to a modern, potentially more efficient platform (Salesforce).

Sector Analysis

This contract falls within the IT services sector, specifically focusing on custom computer programming and IT system support. The market for HR system modernization and cloud migration is substantial within the federal government, driven by agencies seeking to replace legacy systems with more agile and scalable solutions. Comparable spending benchmarks would typically involve other large-scale IT system transitions or cloud migrations within federal agencies, often valued in the millions to tens of millions of dollars.

Small Business Impact

Cybermedia Technologies, LLC, the awardee, is identified as a small business. This contract's award to a small business aligns with federal procurement goals to support the small business ecosystem. While the contract itself is not a small business set-aside, the awardee's status is significant. Further analysis would be needed to determine if subcontracting opportunities are anticipated for other small businesses.

Oversight & Accountability

Oversight will likely be managed by the U.S. Customs and Border Protection program office within DHS. Accountability measures will be tied to the delivery order's performance work statement and milestones. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics are typically internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Civilian Human Capital Management IT Modernization
Salesforce Government Cloud Implementations
Legacy IT System Decommissioning Programs
Department of Homeland Security IT Infrastructure Support

Risk Flags

Potential for schedule delays in complex system migrations.
Risk of data integrity issues during transfer from legacy to new system.
Cybersecurity risks associated with handling sensitive HR data.
Cost management challenges inherent in labor-hour contracts.
Ensuring user adoption and satisfaction with the new platform.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $11.9 million to CYBERMEDIA TECHNOLOGIES, LLC. HUMAN RESOURCES AND ADMINISTRATIVE SYSTEMS SUPPORT - DE-COMMISSIONING SUPPORT OF THE HUMAN RESOURCE BUSINESS ENGINE (HRBE) AND CONTINUED MAINTENANCE UNTIL THE SALESFORCE PLATFORM IS FULLY IMPLEMENTED.

Who is the contractor on this award?

The obligated recipient is CYBERMEDIA TECHNOLOGIES, 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 $11.9 million.

What is the period of performance?

Start: 2022-09-06. End: 2026-03-05.

What is the track record of Cybermedia Technologies, LLC in supporting large-scale federal IT system transitions?

Cybermedia Technologies, LLC has a track record of providing IT services to federal agencies. While specific details on their experience with large-scale HR system decommissioning and migration projects like this one require deeper investigation into past performance reports and contract vehicles, their award by DHS suggests they possess relevant capabilities. As a small business, their capacity for managing projects of this magnitude is a key consideration. Further review of their contract history, client testimonials, and any past performance evaluations would provide a more comprehensive understanding of their suitability for this complex task. The government's due diligence during the procurement process, especially under full and open competition, would have assessed these factors.

How does the estimated cost compare to similar HR system modernization or decommissioning projects within the federal government?

Directly comparing the $11.9 million cost without detailed service breakdowns and project complexities is challenging. However, federal IT modernization projects, especially those involving the transition from legacy systems to modern platforms like Salesforce, often range from several million to tens of millions of dollars. Factors influencing cost include the size of the user base, the complexity of data migration, the scope of customization required for the new platform, and the duration of support needed for both legacy system decommissioning and new system implementation. Given the multi-year duration and the critical nature of HR systems, this contract value appears within a plausible range for a federal agency of DHS's size, assuming efficient project management and execution.

What are the primary risks associated with decommissioning the HRBE and implementing Salesforce, and how are they being mitigated?

Key risks include data integrity issues during migration, potential disruption to HR services for DHS employees, cybersecurity vulnerabilities during the transition, and the possibility of cost overruns or schedule delays. Mitigation strategies likely involve rigorous data validation and testing protocols, phased migration approaches, comprehensive cybersecurity measures throughout the project lifecycle, and robust project management with clear performance metrics and oversight. The use of labor hours allows for flexibility but requires diligent monitoring to control costs. The contract's multi-year duration also provides a buffer for addressing unforeseen challenges, provided effective change management is in place.

What is the expected impact of this contract on the efficiency and effectiveness of DHS's Human Resources operations?

The primary goal is to enhance efficiency and effectiveness by replacing a potentially outdated HRBE system with the modern Salesforce platform. This transition is expected to streamline HR processes, improve data accuracy and accessibility, enhance user experience for employees and HR staff, and provide better analytics for decision-making. By decommissioning the legacy system, DHS can also reduce maintenance costs and technical debt associated with older infrastructure. The success of this impact hinges on the effective implementation and adoption of the new Salesforce platform, which this contract aims to support.

How has spending on HR IT systems evolved within DHS over the past five years, and does this contract represent a shift in strategy?

Analyzing DHS's historical spending on HR IT systems over the past five years would reveal trends in investment in legacy system maintenance versus modernization efforts. A significant increase in spending on new platform implementations, like this Salesforce migration, would indicate a strategic shift towards modernizing core IT infrastructure. Conversely, continued high spending on legacy systems might suggest slower adoption of new technologies. This contract, focused on decommissioning and migration, strongly suggests a strategic move away from older systems towards a more integrated and modern HR technology stack, aligning with broader federal IT modernization initiatives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: 70B06C22Q00000217

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cybermedia Technologies LLC

Address: 8444 WESTPARK DR STE 620, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $14,277,683

Exercised Options: $11,919,455

Current Obligation: $11,919,455

Actual Outlays: $11,744,839

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA20D00CN

IDV Type: FSS

Timeline