DHS awards $75.5M task order for HR IT services to Steampunk, Inc. under CIO SP3 SB

Contract Overview

Contract Amount: $75,526,602 ($75.5M)

Contractor: Steampunk, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-30

End Date: 2026-09-29

Contract Duration: 729 days

Daily Burn Rate: $103.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: TASK ORDER FOR HR IT SERVICES OFF OF CIO SP3 SB

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20229

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $75.5 million to STEAMPUNK, INC. for work described as: TASK ORDER FOR HR IT SERVICES OFF OF CIO SP3 SB Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Focus on Computer Systems Design Services indicates a need for specialized IT support. 3. The contract duration of approximately two years suggests a medium-term project. 4. Awarded to a single vendor, Steampunk, Inc., for specific HR IT functions. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The use of Labor Hours pricing may require close monitoring to ensure cost efficiency.

Value Assessment

Rating: fair

Benchmarking the value of this $75.5 million task order requires more granular data on the specific HR IT services provided. However, the contract's duration of approximately two years suggests a significant investment. Comparing the per-hour labor rates to market averages for similar IT services within the federal government would be a key step in assessing value for money. Without specific service details, it's difficult to definitively assess if the pricing reflects competitive market rates or if there's potential for cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under a full and open competition after exclusion of sources, indicating that multiple vendors were likely solicited and allowed to bid. The specific details of the competition, such as the number of proposals received and the evaluation criteria, are not provided. However, the 'full and open' designation generally implies a robust competitive environment, which should theoretically lead to better pricing and service offerings for the government.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it encourages multiple vendors to offer their best pricing and solutions, potentially leading to cost savings and higher quality services.

Public Impact

The primary beneficiaries are likely the Department of Homeland Security's HR department, which will receive enhanced IT services. Services delivered will focus on computer systems design and related IT support for HR functions. The geographic impact is primarily within the District of Columbia, where the agency is located. Workforce implications may include the need for specialized IT personnel to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep if labor hours are not managed effectively.
Dependence on a single vendor for critical HR IT functions.
Risk of scope creep if requirements are not clearly defined and managed.
Ensuring adequate knowledge transfer and transition planning at contract end.

Positive Signals

Awarded through a competitive process, suggesting potential for good value.
Focus on specialized IT services indicates a strategic investment in HR capabilities.
Clear contract end date provides a defined period for service delivery.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Systems Design Services. The federal IT services market is vast, with agencies consistently investing in modernizing systems and improving efficiency. This task order, part of the broader CIO SP3 SB IDIQ vehicle, is designed to procure IT solutions for small businesses. The total federal spending on IT services is in the hundreds of billions annually, making this a relatively small but important component for HR system support.

Small Business Impact

The contract is issued under the CIO SP3 Small Business (SB) IDIQ vehicle, which is specifically designed to provide IT solutions from small businesses. While this task order itself is for a significant amount, the underlying IDIQ aims to foster opportunities for small businesses. Further analysis would be needed to determine if Steampunk, Inc. is a small business and if there are subcontracting requirements that would further benefit other small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Customs and Border Protection contracting officers and program managers. The Department of Homeland Security also has an Office of Inspector General (OIG) that conducts audits and investigations into federal spending to ensure accountability and prevent fraud, waste, and abuse. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available.

Related Government Programs

CIO SP3 SB IDIQ
Department of Homeland Security IT Modernization Efforts
Federal Human Resources Information Technology Systems

Risk Flags

Potential for cost overruns due to Labor Hours pricing.
Need for robust oversight to manage contractor performance.
Dependence on a single vendor for critical HR IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $75.5 million to STEAMPUNK, INC.. TASK ORDER FOR HR IT SERVICES OFF OF CIO SP3 SB

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 $75.5 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-09-29.

What is the specific nature of the HR IT services being procured under this task order?

The provided data indicates the task order is for 'HR IT Services' and falls under 'Computer Systems Design Services' (NAICS code 541512). This suggests the services will involve the design, development, integration, and maintenance of information technology systems related to human resources functions. Examples could include payroll systems, benefits administration platforms, talent management software, employee record management, and HR analytics tools. The specific scope would be detailed in the Statement of Work (SOW) for this task order, which is not publicly available in this dataset. Understanding the precise services is crucial for evaluating the necessity and cost-effectiveness of the award.

How does the awarded amount of $75.5 million compare to similar HR IT service contracts within DHS or other federal agencies?

Direct comparison of this $75.5 million task order to similar HR IT service contracts is challenging without access to detailed scope and service level agreements. However, federal agencies frequently award multi-million dollar contracts for IT modernization and support, including HR systems. For instance, other large agencies like the Department of Defense or the Social Security Administration also invest heavily in their HR IT infrastructure. The value of this contract should be assessed against the complexity and duration of the services. A two-year contract of this magnitude suggests a substantial undertaking, potentially involving system upgrades, new software implementation, or ongoing complex support, rather than routine maintenance.

What are the key performance indicators (KPIs) or metrics used to measure the success of this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or metrics for this task order. Typically, for IT services contracts, KPIs would be defined in the Statement of Work (SOW) and could include metrics related to system uptime, response times for support requests, successful software deployments, data accuracy, user satisfaction, and adherence to project timelines. Performance would likely be monitored by the U.S. Customs and Border Protection's program management office. Regular performance reviews would be conducted to ensure Steampunk, Inc. is meeting the agreed-upon service levels and objectives.

What is Steampunk, Inc.'s track record with the Department of Homeland Security and similar federal IT contracts?

Steampunk, Inc. has a track record of performing federal IT contracts. While specific details of their past performance with DHS are not in this dataset, their ability to win a $75.5 million task order under a competitive process suggests they have demonstrated capabilities and experience relevant to the government's needs. A deeper dive into their contract history, including past performance evaluations and any reported issues on previous awards, would provide a more comprehensive understanding of their reliability and expertise in delivering complex IT solutions for federal agencies.

What is the potential risk associated with the 'Labor Hours' pricing structure for this contract?

The 'Labor Hours' (LH) pricing structure means the government pays for the actual hours worked by contractor personnel at pre-negotiated hourly rates. The primary risk with LH contracts is the potential for cost overruns if the scope of work is not well-defined or if contractor hours are not diligently managed and monitored. This can lead to the contractor billing for more hours than initially anticipated or necessary. Effective oversight, including detailed timesheet review, regular progress reporting, and strong project management by the government, is crucial to mitigate this risk and ensure the contract remains within budget and delivers the intended value.

How does this contract align with the broader IT modernization goals of the Department of Homeland Security?

This task order for HR IT services directly supports the Department of Homeland Security's (DHS) broader IT modernization goals by ensuring that critical human resources functions are supported by efficient and effective technology. Modernizing HR systems is often a key component of overall agency modernization, as it impacts workforce management, recruitment, retention, and operational efficiency. By investing in advanced HR IT services, DHS can streamline processes, improve data management, and enhance the employee experience, which are all critical for achieving its mission objectives and maintaining a capable federal workforce.

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

Solicitation ID: 70B06C24Q00000203

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

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: $124,561,435

Exercised Options: $75,526,602

Current Obligation: $75,526,602

Actual Outlays: $21,940,531

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 75N98120D00251

IDV Type: GWAC

Timeline