DHS awards $41.4M contract for security assurance support to Steampunk, Inc

Contract Overview

Contract Amount: $41,384,251 ($41.4M)

Contractor: Steampunk, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2022-03-08

End Date: 2023-08-14

Contract Duration: 524 days

Daily Burn Rate: $79.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NEW AWARD FOR SECURITY ASSURANCE SUPPORT AND SERVICES

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $41.4 million to STEAMPUNK, INC. for work described as: NEW AWARD FOR SECURITY ASSURANCE SUPPORT AND SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for computer systems design services, indicating a focus on IT infrastructure. 3. The duration of 524 days suggests a medium-term project with ongoing support needs. 4. The fixed-price contract type aims to control costs and provide budget certainty. 5. The award is a delivery order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The small business set-aside flag is false, indicating no specific preference for small businesses in this award.

Value Assessment

Rating: good

The contract value of $41.4 million over approximately 17 months appears reasonable for comprehensive security assurance support. Benchmarking against similar IT services contracts within DHS and other agencies for system design and support would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overrun risks for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources.' This indicates that while the competition was broad, there might have been specific reasons for excluding certain sources initially, which were then overcome to allow for full competition. The number of bidders is not specified, but the 'full and open' nature suggests multiple interested parties were likely considered.

Taxpayer Impact: A competitive award process generally leads to better pricing for taxpayers by encouraging vendors to offer their best terms. This approach helps ensure the government receives services at a fair market value.

Public Impact

U.S. Immigration and Customs Enforcement (ICE) will benefit from enhanced security assurance for its systems. The contract delivers critical computer systems design and support services. The services are likely to be performed in Virginia, where the System for Award Management (SAM) indicates the contractor's presence. The contract supports the government's cybersecurity and IT infrastructure resilience.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and not easily transferable.
Reliance on a single contractor for critical security assurance could pose a risk if performance falters.

Positive Signals

Firm fixed-price contract helps control costs and provides budget predictability.
Full and open competition suggests a robust selection process and potential for competitive pricing.
Award to Steampunk, Inc. indicates a selection based on perceived capability and value.

Sector Analysis

This contract falls within the Computer Systems Design Services sector (NAICS 541512), a significant segment of the federal IT market. This sector encompasses a wide range of services, including IT consulting, systems integration, and IT support. Federal spending in this area is consistently high, driven by the need to maintain and modernize complex government IT infrastructures.

Small Business Impact

The contract was not set aside for small businesses (ss=false, sb=false). This means the competition was open to all eligible businesses, including large corporations. There is no explicit information provided regarding subcontracting plans for small businesses, but given the nature of the award, it's possible that Steampunk, Inc. may engage small businesses for specialized support, though it's not a requirement of this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by contracting officers and program managers within U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS). Performance metrics and deliverables outlined in the contract would be used to monitor Steampunk, Inc.'s adherence to terms. Transparency is facilitated through public contract databases like SAM.gov.

Related Government Programs

DHS Cybersecurity Support Contracts
Federal IT Services Contracts
Computer Systems Design Services
Information Technology Support Services

Risk Flags

Potential for performance issues impacting critical security functions.
Risk of vendor lock-in due to specialized nature of services.
Dependency on contractor for maintaining system integrity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $41.4 million to STEAMPUNK, INC.. NEW AWARD FOR SECURITY ASSURANCE SUPPORT AND 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. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $41.4 million.

What is the period of performance?

Start: 2022-03-08. End: 2023-08-14.

What is Steampunk, Inc.'s track record with federal contracts, particularly within DHS?

Steampunk, Inc. has a history of receiving federal contracts, primarily within the Department of Homeland Security (DHS) and other civilian agencies. Their awards often relate to IT modernization, cybersecurity, and digital transformation services. Analyzing their past performance ratings, any contract modifications, and the types of services previously rendered can provide insight into their reliability and capability. For instance, reviewing their performance on similar security assurance or systems design contracts would be crucial. A deeper dive into their contract history on platforms like SAM.gov or FPDS would reveal the total value of contracts awarded, their on-time delivery rates, and any reported issues or successes.

How does the $41.4 million value compare to similar security assurance contracts awarded by DHS?

The $41.4 million award for security assurance support over approximately 17 months represents a significant investment. To benchmark its value, we would compare it to other contracts for similar services (e.g., cybersecurity, systems design, IT support) awarded by DHS or comparable agencies like the Department of Justice or the General Services Administration. Key comparison points include contract duration, scope of work, and the specific technologies or methodologies employed. If similar contracts for comparable scope and duration were awarded at a lower total value or with more favorable terms (e.g., lower hourly rates, more deliverables), it might suggest this award is on the higher end. Conversely, if it aligns with or is lower than market rates for specialized security services, it indicates good value.

What are the primary risks associated with this contract for the government?

The primary risks associated with this contract include potential performance issues where Steampunk, Inc. may not meet the required security assurance standards or delivery timelines, impacting ICE's operational security. There's also a risk of cost overruns if the firm fixed-price contract doesn't adequately account for unforeseen complexities, although this is mitigated by the contract type. Another risk is vendor lock-in, where ICE becomes heavily reliant on Steampunk, Inc.'s proprietary knowledge or systems, making future transitions difficult or costly. Finally, cybersecurity vulnerabilities introduced or not adequately addressed by the contractor could pose a significant risk to sensitive government data.

How effective is the 'full and open competition after exclusion of sources' method in ensuring value?

The 'full and open competition after exclusion of sources' method aims to balance broad competition with specific requirements. Initially, certain sources might be excluded based on predefined criteria (e.g., specific technical capabilities, past performance). However, the subsequent 'full and open' phase allows any responsible source to submit an offer, provided they meet the revised solicitation requirements. This approach can ensure value by potentially narrowing the field to technically capable vendors while still allowing for competitive pricing among them. It can be effective if the initial exclusion criteria are justified and the subsequent competition is robust, leading to a technically sound and cost-effective solution.

What is the historical spending trend for computer systems design services at ICE?

Historical spending on computer systems design services (NAICS 541512) at U.S. Immigration and Customs Enforcement (ICE) has generally trended upwards over the past decade, reflecting the increasing reliance on technology for law enforcement and immigration management. This trend is driven by the need to modernize legacy systems, enhance data analytics capabilities, and bolster cybersecurity defenses. Analyzing specific annual spending figures for this category would reveal fluctuations based on agency priorities, budget allocations, and major IT initiatives. This $41.4 million award represents a substantial single-year investment within this category, suggesting a significant project or ongoing need.

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 - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $60,222,834

Exercised Options: $48,020,988

Current Obligation: $41,384,251

Actual Outlays: $28,040,707

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 75N98120D00251

IDV Type: GWAC

Timeline