DHS Awards $20.2M for Microsoft M365 Sharepoint O&M to DEV Technology Group Inc

Contract Overview

Contract Amount: $20,240,049 ($20.2M)

Contractor: DEV Technology Group Inc

Awarding Agency: Department of Homeland Security

Start Date: 2022-12-15

End Date: 2026-12-23

Contract Duration: 1,469 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MICROSOFT M365 OPERATIONS AND MAINTENANCE (O&M) SHAREPOINT COLLAB DOMAIN SWIFT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $20.2 million to DEV TECHNOLOGY GROUP INC for work described as: MICROSOFT M365 OPERATIONS AND MAINTENANCE (O&M) SHAREPOINT COLLAB DOMAIN SWIFT Key points: 1. Contract value represents a significant investment in essential collaboration tools. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of nearly 4 years indicates a long-term need for these services. 5. The award is for SharePoint collaboration domain services within the M365 suite. 6. Focus on operations and maintenance highlights the ongoing support required for these platforms.

Value Assessment

Rating: good

The contract value of $20.24 million over approximately 4 years for Microsoft M365 SharePoint O&M appears reasonable given the scope of services. Benchmarking against similar large-scale IT operations and maintenance contracts for enterprise software suites suggests that this pricing is within expected ranges. The firm fixed-price structure provides cost certainty, which is a positive indicator of value. However, a more granular analysis of specific service components and their associated costs would be needed for a definitive value-for-money assessment.

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 number of bidders is not specified, but the use of this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency's decision to use full and open competition suggests confidence in the market's ability to provide qualified vendors for these specialized IT services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at competitive market rates, preventing potential overspending and encouraging innovation among vendors.

Public Impact

Immigration and Customs Enforcement (ICE) personnel will benefit from enhanced SharePoint collaboration capabilities. Services delivered include operations and maintenance for the SharePoint collaboration domain within Microsoft 365. The geographic impact is primarily within the District of Columbia, where ICE headquarters is located. Workforce implications include the need for skilled IT professionals to manage and maintain the M365 environment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific M365 expertise is not widely available.
Reliance on a single vendor for critical O&M could pose continuity risks.
Ensuring adequate performance metrics are met throughout the contract duration.

Positive Signals

Firm fixed-price contract provides budget certainty.
Full and open competition suggests a robust vendor pool.
Long-term contract duration allows for stable service provision.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on cloud-based productivity and collaboration software operations and maintenance. The market for Microsoft 365 services, including SharePoint, is substantial, with numerous vendors offering specialized support. Comparable spending benchmarks for enterprise-level IT O&M contracts can range widely depending on the scope and complexity, but investments in the tens of millions are common for agencies of DHS's size. This contract represents a typical expenditure for maintaining critical digital infrastructure.

Small Business Impact

The data indicates that this contract was not 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 provision. However, the prime contractor, DEV TECHNOLOGY GROUP INC, may engage small businesses as subcontractors, though this is not explicitly detailed in the provided information.

Oversight & Accountability

Oversight for this contract will likely be managed by contracting officers and program managers within U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS). Accountability measures are typically enforced through contract performance reviews, adherence to service level agreements (SLAs), and payment milestones tied to deliverables. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Microsoft 365 Enterprise Agreements
Cloud Computing Services
IT Operations and Maintenance
Collaboration Software Support
Department of Homeland Security IT Modernization

Risk Flags

Potential for vendor lock-in
Cybersecurity risks associated with cloud services
Ensuring adequate performance and uptime
Dependency on Microsoft ecosystem

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20.2 million to DEV TECHNOLOGY GROUP INC. MICROSOFT M365 OPERATIONS AND MAINTENANCE (O&M) SHAREPOINT COLLAB DOMAIN SWIFT

Who is the contractor on this award?

The obligated recipient is DEV TECHNOLOGY GROUP 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 $20.2 million.

What is the period of performance?

Start: 2022-12-15. End: 2026-12-23.

What is the track record of DEV TECHNOLOGY GROUP INC in performing similar IT operations and maintenance contracts for federal agencies?

DEV TECHNOLOGY GROUP INC has a history of performing IT services for federal agencies. While specific details on past Microsoft 365 SharePoint O&M contracts are not provided in this data snippet, their presence as a prime contractor suggests experience in the federal IT landscape. A deeper dive into their contract history, past performance evaluations, and client feedback would be necessary to fully assess their track record for this specific type of service. Reviewing their award history with agencies like DHS or other large federal entities could reveal patterns of successful project completion and adherence to contractual obligations. Understanding their experience with similar cloud-based collaboration platforms is crucial for evaluating their capability to manage this contract effectively.

How does the awarded amount of $20.24 million compare to the estimated value or previous spending on similar SharePoint O&M services?

The awarded amount of $20.24 million for approximately 4 years of Microsoft 365 SharePoint O&M services provides a benchmark for this specific contract. Without historical data for this exact service within ICE or comparable agencies, direct comparison is challenging. However, the firm fixed-price nature suggests the agency has a defined budget expectation. To assess value, one would compare this to industry benchmarks for enterprise-level SharePoint support, considering factors like user base size, complexity of the environment, and required support levels. If previous contracts for similar services were significantly lower or higher, it would warrant further investigation into the reasons, such as changes in scope, market conditions, or service requirements.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks for this contract include potential vendor performance issues, cybersecurity vulnerabilities within the SharePoint environment, and the possibility of scope creep if requirements are not clearly defined and managed. Mitigation strategies likely involve robust performance monitoring by ICE, adherence to strict security protocols mandated by DHS, and clear change management processes. The firm fixed-price contract itself mitigates financial risk for the government regarding cost overruns. However, ensuring the vendor has adequate resources and expertise to maintain the system's integrity and availability throughout the contract term is critical. Regular security audits and performance reviews are essential to identify and address risks proactively.

How effective is the chosen procurement method (full and open competition) in ensuring the best value for taxpayers in this context?

Full and open competition is generally considered the most effective method for ensuring best value for taxpayers when procuring IT services like Microsoft 365 O&M. This approach maximizes the pool of potential bidders, fostering a competitive environment that drives down prices and encourages innovation. By allowing any qualified vendor to participate, the government increases its chances of finding a provider that offers a superior balance of cost, quality, and service. The success of this method hinges on the clarity of the solicitation requirements and the rigor of the evaluation process. If the competition yields multiple strong proposals, it strongly suggests that taxpayers are receiving competitive market rates for these essential services.

What are the potential long-term implications of this contract on the agency's IT infrastructure and future technology adoption?

This contract signifies a commitment to maintaining and operating the current Microsoft 365 SharePoint environment, suggesting it is a core component of ICE's collaboration strategy. The long-term implication is the continued reliance on Microsoft's ecosystem. This could streamline future integrations with other M365 services but might also present challenges if ICE decides to pivot to different collaboration platforms in the future, potentially incurring migration costs or requiring new skill sets. The focus on O&M ensures the stability and functionality of existing tools, supporting current operational needs. However, it doesn't inherently drive innovation or the adoption of entirely new technologies, which might require separate strategic initiatives.

Are there any specific performance metrics or service level agreements (SLAs) tied to this contract that ensure accountability?

While the provided data does not explicitly list the performance metrics or SLAs, it is standard practice for IT O&M contracts of this nature to include them. These typically cover aspects such as system uptime, response times for issue resolution, security compliance, and data availability. The firm fixed-price nature of the contract implies that the vendor is obligated to meet these predefined standards to receive full payment. ICE's contracting officer and technical points of contact would be responsible for monitoring adherence to these SLAs. Failure to meet agreed-upon metrics could result in penalties, reduced payment, or even contract termination, serving as key accountability mechanisms.

Industry Classification

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11480 COMMERCE PARK DR, RESTON, VA, 20191

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $25,849,617

Exercised Options: $20,240,049

Current Obligation: $20,240,049

Actual Outlays: $16,227,625

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CTD022D00000010

IDV Type: IDC

Timeline