DHS awards $69.3M for DevSecOps services to SEV1TECH, LLC, with 16 delivery orders

Contract Overview

Contract Amount: $69,300,435 ($69.3M)

Contractor: Sev1tech, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2019-01-10

End Date: 2022-08-03

Contract Duration: 1,301 days

Daily Burn Rate: $53.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 16

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: RISK AND FRAUD DEVSECOPS SERVICES (RFDS) FOR THE OFFICE OF INFORMATION TECHNOLOGY (OIT)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20529

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $69.3 million to SEV1TECH, LLC for work described as: RISK AND FRAUD DEVSECOPS SERVICES (RFDS) FOR THE OFFICE OF INFORMATION TECHNOLOGY (OIT) Key points: 1. Contract value of $69.3M over approximately 3.5 years suggests a significant investment in IT security and development operations. 2. The contract was awarded under full and open competition, indicating a broad market search. 3. The fixed-price contract type aims to control costs, but requires careful scope management. 4. Performance occurred primarily in the District of Columbia, suggesting a focus on headquarters or regional IT operations. 5. The award to SEV1TECH, LLC, represents a substantial contract for the company within the IT services sector. 6. The absence of small business set-aside flags indicates the primary contractor is not a small business, and subcontracting opportunities may be limited.

Value Assessment

Rating: good

The contract's total value of $69.3 million over 1301 days averages to approximately $53,267 per day. This daily rate is within a reasonable range for complex IT development and security services, especially considering the specialized nature of DevSecOps. Benchmarking against similar government contracts for custom computer programming services (NAICS 541511) suggests this pricing is competitive, assuming the scope of work involved advanced security integration and continuous development practices.

Cost Per Unit: Approximately $53,267 per day (based on total award value and duration).

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 16 delivery orders suggests a potentially active bidding environment for taskings under this contract. A full and open competition generally fosters price discovery and allows the government to select from a wide range of qualified vendors, potentially leading to better value.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible price and quality for essential IT security and development services.

Public Impact

The Office of Information Technology (OIT) at DHS benefits from enhanced DevSecOps capabilities, improving the security and efficiency of its IT systems. Services delivered likely include software development, security integration, continuous integration/continuous deployment (CI/CD) pipeline management, and cybersecurity support. The primary geographic impact is in the District of Columbia, where USCIS IT operations are likely concentrated. The contract supports a workforce skilled in cybersecurity, software engineering, and IT operations, potentially creating or sustaining high-value jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if delivery orders are not tightly managed.
Reliance on a single contractor for critical DevSecOps services could pose a risk if performance issues arise.
The fixed-price nature requires meticulous definition of requirements to avoid disputes or cost overruns.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Fixed-price contract type provides cost certainty for the government.
Multiple delivery orders indicate flexibility in tasking and potential for ongoing relationship.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on custom computer programming services (NAICS 541511). The DevSecOps (Development, Security, and Operations) focus highlights a modern approach to software development that integrates security throughout the lifecycle. The market for such services is substantial, driven by increasing government needs for secure and agile IT infrastructure. Comparable spending benchmarks for similar IT security and development contracts within federal agencies often range from tens to hundreds of millions of dollars, depending on scope and duration.

Small Business Impact

The contract was not set aside for small businesses, and the 'sb' field is false, indicating that the primary award was not directed towards small business concerns. This suggests that SEV1TECH, LLC, is likely a large business. There is no explicit information on subcontracting plans, but for a contract of this size and nature, there is often an expectation or requirement for the prime contractor to engage small businesses for a portion of the work, though this is not guaranteed without specific clauses.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Citizenship and Immigration Services (USCIS) contracting officer and program managers within the Department of Homeland Security's Office of Information Technology. Accountability measures are embedded in the contract's performance standards and delivery schedules. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

DHS IT Modernization Programs
USCIS Cloud Migration Initiatives
Federal Cybersecurity Enhancement Programs
Custom Software Development Services
DevOps and Agile IT Services

Risk Flags

Potential for vendor lock-in if not managed carefully.
Risk of performance degradation if key personnel depart.
Dependency on specific technologies or platforms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $69.3 million to SEV1TECH, LLC. RISK AND FRAUD DEVSECOPS SERVICES (RFDS) FOR THE OFFICE OF INFORMATION TECHNOLOGY (OIT)

Who is the contractor on this award?

The obligated recipient is SEV1TECH, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $69.3 million.

What is the period of performance?

Start: 2019-01-10. End: 2022-08-03.

What is the track record of SEV1TECH, LLC with the Department of Homeland Security and similar federal contracts?

SEV1TECH, LLC has a history of performing IT services for federal agencies. While specific details on past performance with DHS are not provided in this summary, their ability to win a $69.3 million contract indicates a demonstrated capability to meet government requirements. Analyzing their contract history in FPDS would reveal the types of services rendered, past performance ratings, and any significant issues encountered on previous federal awards. For this specific contract, the existence of 16 delivery orders suggests a generally positive working relationship and successful execution of tasks to date, warranting further investigation into performance metrics and any documented feedback.

How does the daily rate of approximately $53,267 compare to market rates for DevSecOps services?

The daily rate of approximately $53,267 for this contract, translating to roughly $200-$250 per hour per person assuming an 8-hour day and multiple personnel, is competitive for specialized DevSecOps services. This field requires highly skilled professionals in software development, cybersecurity, and IT operations. Market rates for senior DevSecOps engineers and architects can range from $150 to over $300 per hour, depending on experience, location, and specific skill sets. Given the government's purchasing power and the potential for a blended team rate across various skill levels, this daily average appears to be within a reasonable and potentially advantageous range for the government, reflecting good value for money.

What are the primary risks associated with a fixed-price contract of this magnitude for DevSecOps services?

The primary risks with a fixed-price contract for complex DevSecOps services revolve around scope definition and management. If the initial requirements are not precisely defined or if the scope evolves significantly without formal change orders, the contractor may incur unexpected costs, potentially leading to reduced quality or disputes. Conversely, the government risks paying for features or services that are not ultimately needed if the scope is overly broad. For DevSecOps, which is inherently iterative and evolving, managing scope creep while maintaining the fixed-price structure requires robust project management, clear communication, and a well-defined change control process to ensure both parties' interests are protected and the project remains within budget.

How effective has the full and open competition process been in ensuring value for this contract?

The full and open competition process is generally considered effective in ensuring value by fostering a competitive environment that drives down prices and encourages innovation. For this $69.3 million contract, the process likely attracted multiple bidders, allowing USCIS to select a vendor offering the best combination of technical capability and price. The fact that 16 delivery orders have been issued suggests that the initial award was successful in meeting USCIS's needs, and the competitive framework likely continued to influence pricing and service delivery across these subsequent taskings. Without direct comparison data from other proposals, it's difficult to quantify the exact value achieved, but the process itself is a strong indicator of an effort to secure competitive pricing.

What is the historical spending trend for DevSecOps services within DHS or USCIS?

Historical spending on DevSecOps services within DHS or USCIS is not detailed in the provided data. However, the increasing adoption of DevSecOps methodologies across the federal government suggests a growing trend in this area. Agencies are shifting towards more agile and secure development practices to improve IT service delivery and cybersecurity posture. This $69.3 million award represents a significant investment, likely reflecting a strategic initiative to modernize IT operations. To understand historical trends, one would need to analyze aggregated spending data for similar IT services (e.g., custom programming, cybersecurity, IT operations support) over several fiscal years within DHS and its components.

What are the implications of the contract being primarily performed in the District of Columbia?

The primary performance location in the District of Columbia suggests that the services are being delivered to support IT operations directly within USCIS headquarters or major regional offices located there. This concentration can facilitate closer collaboration between the contractor's team and government personnel, potentially improving communication and project oversight. It may also imply a focus on systems critical to national immigration services that are managed from the capital region. However, it could also mean higher labor costs due to the cost of living in the DC area, which would be factored into the overall pricing strategy. The geographic focus simplifies logistical oversight but might limit opportunities for geographically dispersed federal employees.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 16

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Retro-Tech Systems, LLC

Address: 111 VETERANS MEMORIAL BLVD STE 1600, METAIRIE, LA, 70005

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership

Financial Breakdown

Contract Ceiling: $76,347,722

Exercised Options: $69,300,435

Current Obligation: $69,300,435

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $18,686,288

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0027M

IDV Type: FSS

Timeline