DHS awards $62.9M cyber support contract to ARETECSBD LLC, highlighting custom programming services

Contract Overview

Contract Amount: $62,914,023 ($62.9M)

Contractor: Aretecsbd LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-06-16

End Date: 2027-02-15

Contract Duration: 1,340 days

Daily Burn Rate: $47.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: CYBER SECURITY SUPPORT SERVICES (C3S) - OPERATIONS FOR THE OFFICE OF INFORMATION TECHNOLOGY (OIT), INFORMATION SECURITY DIVISION (ISD) ON A FIRM-FIXED-PRICE & TIME AND MATERIALS BASIS.

Place of Performance

Location: STEENS, LOWNDES County, MISSISSIPPI, 39766

State: Mississippi Government Spending

Plain-Language Summary

Department of Homeland Security obligated $62.9 million to ARETECSBD LLC for work described as: CYBER SECURITY SUPPORT SERVICES (C3S) - OPERATIONS FOR THE OFFICE OF INFORMATION TECHNOLOGY (OIT), INFORMATION SECURITY DIVISION (ISD) ON A FIRM-FIXED-PRICE & TIME AND MATERIALS BASIS. Key points: 1. Contract focuses on essential cyber security operations for USCIS's IT office. 2. Firm-fixed-price and time-and-materials elements suggest a mix of defined and flexible scope. 3. Competition was full and open, indicating broad market engagement. 4. Contract duration extends over three years, suggesting a need for sustained support. 5. The award value is substantial, reflecting the critical nature of cybersecurity. 6. The North American Industry Classification System (NAICS) code 541511 points to specialized custom computer programming.

Value Assessment

Rating: good

The contract value of $62.9 million over approximately three years appears reasonable for comprehensive cybersecurity support services. Benchmarking against similar contracts for custom computer programming and cybersecurity operations within federal agencies suggests this pricing is within expected ranges. The mix of firm-fixed-price and time-and-materials components allows for cost control on defined tasks while accommodating unforeseen needs, which is a common and often effective pricing strategy in IT services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of three bidders indicates a moderate level of competition for this specific requirement. While more bidders could potentially drive prices lower, three offers suggest that the market has sufficient interest and capability to respond to such solicitations, leading to a reasonably competitive outcome.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple vendors to offer competitive pricing and innovative solutions, potentially leading to better value for the government.

Public Impact

Citizens and immigrants benefit from enhanced security of their personal data and online interactions with USCIS. The Office of Information Technology (OIT) and Information Security Division (ISD) receive critical operational support. Services are delivered within the Department of Homeland Security, impacting national security and immigration processes. The contract supports specialized IT workforce roles in cybersecurity and custom programming. Geographic impact is primarily within the operational scope of USCIS, though data security has national implications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if time-and-materials portion is not closely managed.
Dependence on a single contractor for critical cybersecurity functions could pose a risk if performance degrades.
Ensuring continuous alignment with evolving cybersecurity threats and USCIS's specific needs requires proactive contract management.

Positive Signals

Award to a single entity (ARETECSBD LLC) can streamline communication and project execution.
The firm-fixed-price component provides cost certainty for a defined portion of the work.
The contract's duration suggests a stable, long-term partnership for critical services.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on custom computer programming and cybersecurity. The federal market for cybersecurity services is substantial and growing, driven by increasing digital threats and the need to protect sensitive government data. Comparable spending benchmarks for similar cybersecurity support contracts often range from tens to hundreds of millions of dollars, depending on scope and duration. This contract's value aligns with significant, multi-year engagements for specialized IT support.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates ARETECSBD LLC is not a small business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. Future analysis could explore whether opportunities exist for small businesses to participate in subcontracting roles under this larger prime contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Citizenship and Immigration Services (USCIS) contracting officers and program managers within the Office of Information Technology. The Department of Homeland Security (DHS) also has an Office of Inspector General (OIG) that provides independent oversight of DHS programs and operations, including contract compliance and performance. Transparency is facilitated through contract award databases, but detailed performance metrics are typically internal.

Related Government Programs

Cybersecurity Services
IT Professional Services
Custom Computer Programming
Information Security
Cloud Computing Services
IT Operations and Maintenance

Risk Flags

Potential for cost creep in Time & Materials (T&M) components.
Dependence on contractor performance for critical cybersecurity functions.
Need for continuous adaptation to evolving cyber threats.
Ensuring adequate knowledge transfer and continuity if contract is re-competed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $62.9 million to ARETECSBD LLC. CYBER SECURITY SUPPORT SERVICES (C3S) - OPERATIONS FOR THE OFFICE OF INFORMATION TECHNOLOGY (OIT), INFORMATION SECURITY DIVISION (ISD) ON A FIRM-FIXED-PRICE & TIME AND MATERIALS BASIS.

Who is the contractor on this award?

The obligated recipient is ARETECSBD 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 $62.9 million.

What is the period of performance?

Start: 2023-06-16. End: 2027-02-15.

What is the track record of ARETECSBD LLC in performing similar federal cybersecurity contracts?

A review of federal procurement data indicates that ARETECSBD LLC has a history of performing IT and cybersecurity-related services for various federal agencies. While specific details on past performance quality for contracts of this magnitude are not fully detailed in the award notice, their presence in the federal contracting space suggests experience. Further investigation into past performance reviews, contract close-outs, and any reported issues or commendations would provide a more comprehensive understanding of their track record. Analyzing their award history for similar services, such as custom programming or information security support, would also be beneficial in assessing their capability to meet the demands of this USCIS contract.

How does the pricing structure (firm-fixed-price vs. time-and-materials) compare to industry standards for similar cybersecurity support?

The hybrid pricing structure, combining firm-fixed-price (FFP) and time-and-materials (T&M), is a common approach in federal IT and cybersecurity contracts. FFP provides cost certainty for well-defined tasks, while T&M offers flexibility for evolving requirements or unforeseen issues. For cybersecurity operations, FFP might apply to routine monitoring or maintenance, whereas T&M could cover incident response or specialized system integration. Industry standards often favor FFP where scope is clear to mitigate contractor risk and control costs. However, the dynamic nature of cybersecurity often necessitates T&M for adaptability. The balance between these two in this $62.9 million contract will be crucial; an excessive reliance on T&M without stringent oversight could lead to cost overruns, while a well-managed T&M component ensures responsiveness to emerging threats.

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

Key risks include potential cost overruns in the time-and-materials portion if not managed effectively, contractor performance issues impacting critical cybersecurity operations, and the risk of vendor lock-in or over-reliance. Mitigation strategies likely involve robust contract surveillance by USCIS program managers, clear performance metrics and Service Level Agreements (SLAs), regular progress reviews, and potentially exercising options judiciously. The full and open competition itself acts as a risk mitigation by ensuring a capable vendor was selected. Furthermore, DHS's established cybersecurity protocols and incident response plans provide a framework that the contractor must adhere to, limiting deviations.

How effective is the current competition level (3 bidders) in ensuring value for taxpayers?

A competition level of three bidders is generally considered moderate and can provide reasonable value for taxpayers. It indicates that the requirement was attractive enough to elicit multiple responses from capable firms. However, it is not as robust as a competition with five or more bidders, which typically exerts stronger downward pressure on pricing. The effectiveness in ensuring value depends heavily on the specific capabilities and pricing strategies of the three competing firms. If the bidders were highly competitive and offered innovative solutions at aggressive price points, taxpayers could still receive excellent value. Conversely, if the bidders were closely aligned in their offerings or if one bidder had a significant advantage, the value proposition might be less optimized compared to a more crowded field.

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

Historical spending on cybersecurity support services within USCIS and the broader DHS has generally trended upwards over the past decade, reflecting the increasing sophistication of cyber threats and the growing reliance on digital infrastructure. Agencies consistently allocate significant portions of their IT budgets to cybersecurity measures, including personnel, technology, and support services. While the specific historical spending for 'Cyber Security Support Services (C3S) - Operations' by the Office of Information Technology (OIT) is not detailed here, the overall trend suggests a sustained and potentially increasing investment in this area. This $62.9 million award is consistent with the significant, long-term investments required to maintain robust cybersecurity postures in large federal agencies.

What are the potential implications of the contract's duration (ending Feb 2027) on long-term cybersecurity strategy?

The contract's duration, extending through February 2027, provides stability and continuity for USCIS's cybersecurity operations. This allows ARETECSBD LLC to develop deep institutional knowledge and integrate closely with the OIT and ISD. Such a timeframe is beneficial for implementing and sustaining complex security measures, fostering a strong working relationship, and potentially achieving economies of scale over time. However, it also means that USCIS is committed to this specific vendor and approach for several years. This necessitates careful monitoring to ensure the strategy remains aligned with evolving threats and technological advancements. Flexibility within the contract and proactive contract management will be key to adapting to future needs beyond the current term.

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 › IT AND TELECOM - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70SBUR23Q00000002

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 10201 FAIRFAX BLVD, FAIRFAX, VA, 22030

Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $93,859,569

Exercised Options: $62,914,023

Current Obligation: $62,914,023

Actual Outlays: $36,846,378

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA20D007K

IDV Type: FSS

Timeline