DHS awards $19.3M CEEOSS contract to SEV1TECH, LLC for engineering operations support

Contract Overview

Contract Amount: $19,303,337 ($19.3M)

Contractor: Sev1tech, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-10

End Date: 2026-05-01

Contract Duration: 233 days

Daily Burn Rate: $82.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: CISA ENTERPRISE ENGINEERING 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 $19.3 million to SEV1TECH, LLC for work described as: CISA ENTERPRISE ENGINEERING OPERATIONS SUPPORT SERVICES (CEEOSS) Key points: 1. Contract value represents a significant investment in enterprise engineering operations. 2. SEV1TECH, LLC, a relatively new entity, secured this award. 3. The contract's duration and delivery order nature suggest ongoing support needs. 4. The use of Time and Materials pricing may introduce cost variability. 5. Engineering Services (NAICS 541330) is a critical sector for federal operations. 6. The award falls under the Department of Homeland Security's procurement umbrella.

Value Assessment

Rating: fair

The contract value of $19.3 million for a period of approximately 233 days (from award to estimated completion) suggests a substantial per-day expenditure. Benchmarking this against similar engineering support contracts within DHS or other agencies is challenging without more detailed scope of work and performance metrics. The Time and Materials (T&M) pricing structure, while common for evolving requirements, can lead to cost overruns if not closely managed, making a definitive value-for-money assessment difficult at this stage. Further analysis of the contractor's historical performance and the specific deliverables will be crucial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The fact that there was only one bid received (no: 1) is a significant point of concern. While the competition was open, the lack of multiple bidders could suggest potential issues with market awareness, the complexity of the requirements, or the attractiveness of the contract terms. This limited bidding environment may have reduced price discovery and potentially led to a less competitive outcome for the government.

Taxpayer Impact: A single bid in a full and open competition raises concerns about whether taxpayers received the best possible pricing. It suggests that fewer companies were either able or willing to compete, potentially limiting the downward pressure on costs that multiple bids typically provide.

Public Impact

The primary beneficiary is the Department of Homeland Security, specifically its Office of Procurement Operations, which will receive engineering operations support. The services delivered are critical for the functioning and maintenance of DHS's enterprise engineering infrastructure. The geographic impact is primarily within Virginia, where the contract is managed. Workforce implications may include the direct employment of engineers and technical staff by SEV1TECH, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only one bid received under full and open competition.
Time and Materials pricing structure introduces potential for cost escalation.
Contractor SEV1TECH, LLC is a relatively new entity, raising questions about established track record.
Short contract duration (233 days) may indicate a need for more stable, long-term solutions.

Positive Signals

Awarded through full and open competition, adhering to principles of broad market access.
Contract addresses critical engineering operations support for a key federal agency.
Contract value is clearly defined, providing a budget ceiling for the services.

Sector Analysis

The Engineering Services sector (NAICS 541330) is a vital component of the federal procurement landscape, supporting a wide array of government functions from infrastructure development to complex system design. Federal spending in this sector is substantial, often driven by national security, infrastructure modernization, and technological advancement needs. This contract for CISA Enterprise Engineering Operations Support Services fits within this broader context, representing a specific demand for specialized engineering expertise within the Department of Homeland Security. Comparable spending benchmarks would typically involve analyzing other large-scale engineering support contracts awarded to prime contractors by agencies like DoD, GSA, or DOT.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no explicit subcontracting requirements were mandated. The prime contractor, SEV1TECH, LLC, is not identified as a small business. Therefore, this award does not directly contribute to small business set-aside goals. The absence of subcontracting requirements means there is no direct mechanism within this specific contract to channel federal dollars into the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Homeland Security's contracting officers and program managers. Accountability measures will be tied to the performance standards outlined in the contract and the Time and Materials reporting requirements. Transparency is facilitated through federal procurement databases where contract awards are published. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.

Related Government Programs

DHS Enterprise IT Operations Support
Federal Engineering Consulting Services
Cybersecurity Engineering Support
IT Infrastructure Modernization Contracts

Risk Flags

Limited competition (1 bid)
Time and Materials pricing
Contractor's limited track record

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $19.3 million to SEV1TECH, LLC. CISA ENTERPRISE ENGINEERING 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 $19.3 million.

What is the period of performance?

Start: 2025-09-10. End: 2026-05-01.

What is the track record of SEV1TECH, LLC in performing similar federal contracts?

Information regarding the specific track record of SEV1TECH, LLC in performing federal contracts of this nature is limited based on the provided data. As a relatively new entity, its history of successful contract execution, particularly in complex engineering operations support for agencies like DHS, requires further investigation. A review of past performance evaluations, contract close-outs, and any reported issues or successes on prior government awards would be necessary to fully assess their capabilities and reliability. Without this detailed historical data, it is difficult to definitively gauge their experience level and past performance quality.

How does the per-day cost of this contract compare to industry benchmarks for similar engineering services?

Calculating a precise per-day cost requires dividing the total contract value ($19.3 million) by the contract duration in days (approximately 233 days). This yields a daily rate of roughly $82,832. Benchmarking this figure against industry standards for engineering operations support is complex due to variations in service scope, complexity, and geographic location. However, this rate appears substantial, suggesting a need to compare it with rates for highly specialized engineering expertise. Factors such as the specific technical skills required, the level of security clearance, and the urgency of the support will influence whether this rate is competitive or indicative of potential overpricing.

What are the primary risks associated with the Time and Materials (T&M) pricing structure for this contract?

The primary risk associated with the Time and Materials (T&M) pricing structure is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts do not have a predetermined total cost. The government pays for the actual labor hours and materials used, plus a markup. If the contractor's labor hours are not efficiently managed, or if material costs escalate unexpectedly, the total cost to the government can exceed initial estimates. This necessitates robust oversight and diligent monitoring by the government to ensure that hours and materials are reasonable, necessary, and allocable to the contract's objectives. Without strong controls, T&M can lead to less predictable spending and potentially higher overall costs.

What does the limited number of bids (one) in a full and open competition imply for the government's negotiating position?

A single bid in a full and open competition significantly weakens the government's negotiating position. Typically, multiple bids create a competitive environment where contractors vie for the award by offering lower prices and better terms. With only one offeror, the government lacks the leverage to negotiate price reductions or demand more favorable contract terms. The agency is essentially left to accept the offered price, which may not reflect the best value achievable in a more competitive scenario. This situation can lead to higher costs for taxpayers and may indicate underlying issues with the solicitation, market outreach, or the perceived attractiveness of the contract opportunity.

How does this contract align with DHS's broader strategy for enterprise engineering operations?

This contract directly supports DHS's strategy by providing essential engineering operations support services. The Department relies on robust engineering capabilities to maintain and enhance its complex technological infrastructure, which is critical for national security and public safety. By outsourcing these specialized services to SEV1TECH, LLC, DHS can ensure continuity of operations, leverage external expertise, and potentially focus its internal resources on core mission functions. The award signifies DHS's commitment to maintaining operational readiness and adapting its engineering support to evolving technological landscapes.

What are the potential implications of awarding a significant contract to a less established contractor like SEV1TECH, LLC?

Awarding a significant contract to a less established contractor like SEV1TECH, LLC introduces a higher degree of risk compared to contracting with a company with a long history of successful federal performance. Potential implications include a steeper learning curve for the contractor in navigating government processes, potential challenges in resource mobilization, and a less predictable performance trajectory. While such awards can foster competition and provide opportunities for newer companies, they necessitate enhanced government oversight, proactive risk management, and clear communication channels to mitigate potential disruptions and ensure successful contract execution. The government must be prepared to provide more guidance and closely monitor progress.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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

Solicitation ID: 70RCSJ25Q00000196

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, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,353,560

Exercised Options: $30,353,560

Current Obligation: $19,303,337

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $7,581,260

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA24D007W

IDV Type: FSS

Timeline