DHS awards $23.7M CISA contract to SEV1TECH, LLC for IT operations support

Contract Overview

Contract Amount: $23,718,242 ($23.7M)

Contractor: Sev1tech, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2025-02-05

End Date: 2025-09-13

Contract Duration: 220 days

Daily Burn Rate: $107.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: CISA ENTERPRISE ENGINEERING AND OPERATIONS SUPPORT SERVICES (CEEOSS)

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $23.7 million to SEV1TECH, LLC for work described as: CISA ENTERPRISE ENGINEERING AND OPERATIONS SUPPORT SERVICES (CEEOSS) Key points: 1. Contract value of $23.7M for IT operations support. 2. SEV1TECH, LLC is the awardee. 3. Full and open competition was utilized. 4. Contract duration is 220 days.

Value Assessment

Rating: fair

The contract is a Time and Materials type, which can lead to cost overruns if not managed carefully. The awarded amount is significant for the duration, suggesting a need for close monitoring of labor hours and rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a broad search for qualified vendors. However, the use of Time and Materials pricing may limit price discovery and could lead to higher costs than fixed-price contracts.

Taxpayer Impact: Taxpayer funds are being used for essential IT infrastructure support for CISA. The efficiency of the Time and Materials contract will directly impact the overall value for taxpayers.

Public Impact

Ensures continuity of CISA's critical IT infrastructure. Supports national cybersecurity efforts. Provides essential operational support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing structure
Short contract duration may indicate a need for future, potentially larger, contracts.

Positive Signals

Full and open competition
Supports critical CISA mission

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer facilities management. Spending in this area is crucial for government agencies to maintain secure and efficient technological operations.

Small Business Impact

The data indicates that small business participation was not a stated requirement or outcome for this specific contract award. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The Department of Homeland Security, through its Office of Procurement Operations, is responsible for overseeing this contract. Standard procurement oversight processes should be in place to ensure performance and cost control.

Related Government Programs

Computer Facilities Management Services
Department of Homeland Security Contracting
Office of Procurement Operations Programs

Risk Flags

Time and Materials pricing
Short contract duration
No explicit small business set-aside
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $23.7 million to SEV1TECH, LLC. CISA ENTERPRISE ENGINEERING AND OPERATIONS SUPPORT SERVICES (CEEOSS)

Who is the contractor on this award?

The obligated recipient is SEV1TECH, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $23.7 million.

What is the period of performance?

Start: 2025-02-05. End: 2025-09-13.

What is the expected impact of the Time and Materials pricing on the final cost compared to a fixed-price contract for similar services?

Time and Materials (T&M) contracts offer flexibility but can lead to higher costs if not tightly managed. Without a ceiling or fixed price, the final cost is directly tied to the hours worked and the rates charged. This contrasts with fixed-price contracts, which provide greater cost certainty for the government, assuming the scope of work is well-defined. For CISA's IT operations, T&M might be suitable for evolving needs, but it necessitates robust oversight to prevent cost creep and ensure value.

What are the primary risks associated with the short contract duration and the Time and Materials pricing model?

The primary risks include potential cost overruns due to the T&M structure, where actual hours and rates dictate the final price, and the possibility of vendor lock-in or increased costs in subsequent, potentially longer-term contracts if the initial period is just a precursor. A short duration might also indicate an urgent need or an interim solution, raising questions about long-term strategic planning and the potential for disruption if follow-on contracts are delayed or recompeted.

How effectively does this contract support CISA's core mission of enhancing national cybersecurity?

This contract directly supports CISA's mission by ensuring the operational stability and efficiency of its IT infrastructure. Reliable computer facilities management is foundational for executing cybersecurity operations, threat detection, and incident response. By maintaining these systems, the contract enables CISA personnel to focus on their primary cybersecurity duties, thereby indirectly but critically contributing to national security.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 12700 BLACK FOREST LN STE 306, WOODBRIDGE, VA, 22192

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

Financial Breakdown

Contract Ceiling: $23,718,242

Exercised Options: $23,718,242

Current Obligation: $23,718,242

Actual Outlays: $22,453,146

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $10,682,079

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F424AA

IDV Type: FSS

Timeline