DHS awards $13M for IT security, but competition was limited for critical TSA systems

Contract Overview

Contract Amount: $13,055,841 ($13.1M)

Contractor: VMD Systems Integrators, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2021-10-01

End Date: 2027-01-03

Contract Duration: 1,920 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO OBTAIN INFORMATION SYSTEMS SECURITY OFFICER (ISSO) SUPPORT SERVICES THAT INVOLVES SECURITY ENGINEERING AND SECURITY COMPLIANCE FOR TSA MISSION CRITICAL SYSTEMS.

Place of Performance

Location: ANNAPOLIS JUNCTION, HOWARD County, MARYLAND, 20701

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $13.1 million to VMD SYSTEMS INTEGRATORS, LLC for work described as: THE PURPOSE OF THIS TASK ORDER IS TO OBTAIN INFORMATION SYSTEMS SECURITY OFFICER (ISSO) SUPPORT SERVICES THAT INVOLVES SECURITY ENGINEERING AND SECURITY COMPLIANCE FOR TSA MISSION CRITICAL SYSTEMS. Key points: 1. The contract focuses on essential Information Systems Security Officer (ISSO) support for TSA's mission-critical systems. 2. A firm-fixed-price structure aims to control costs, but the limited competition raises questions about optimal value. 3. The duration of nearly 5 years suggests a long-term need for these specialized security services. 4. The award was made under a full and open competition after exclusion of sources, indicating a specific justification for limiting initial bidders. 5. The contract value of $13.06 million over 1920 days translates to a daily rate of approximately $6,800. 6. The primary focus on security engineering and compliance highlights the sensitive nature of the services provided.

Value Assessment

Rating: fair

The daily rate of $6,800 appears high when compared to general IT support services. However, the specialized nature of Information Systems Security Officer (ISSO) support for mission-critical systems, as required by the TSA, may justify a premium. Without specific benchmarks for ISSO services on comparable mission-critical systems within the federal government, a definitive value-for-money assessment is challenging. The firm-fixed-price contract type provides cost certainty for the government, but the limited competition could have led to a higher price than a more robustly competed contract.

Cost Per Unit: $6,800 per day

Competition Analysis

Competition Level: limited

This contract was awarded under 'full and open competition after exclusion of sources,' which implies that while the initial solicitation was broad, specific criteria or circumstances led to the exclusion of certain potential bidders before the final award. The data indicates 8 bids were received, suggesting a moderate level of competition among the eligible entities. However, the 'exclusion of sources' clause warrants further investigation into the reasons for limiting the pool of potential offerors.

Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers than if a broader range of qualified vendors had been allowed to bid. It also reduces the government's leverage in negotiating the best possible terms and pricing.

Public Impact

The Transportation Security Administration (TSA) benefits directly through enhanced cybersecurity for its mission-critical systems. Services include crucial Information Systems Security Officer (ISSO) support, encompassing security engineering and compliance. The geographic impact is primarily within the TSA's operational domain, likely concentrated where its IT infrastructure is managed. The contract supports specialized IT security roles, potentially impacting the cybersecurity workforce within the contractor's organization and the broader federal IT security sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential price inflation and reduced innovation.
The 'exclusion of sources' justification needs clear documentation to ensure fairness and prevent potential contractor lock-in.
The long contract duration could lead to vendor complacency if not managed with rigorous performance oversight.

Positive Signals

The firm-fixed-price contract type provides cost predictability for the government.
The award to VMD Systems Integrators, LLC suggests a contractor with existing capabilities in this specialized IT security domain.
The focus on mission-critical systems indicates a commitment to securing essential transportation infrastructure.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader Information Technology (IT) industry. The IT services market is highly competitive, with significant government spending allocated to cybersecurity and system maintenance. Comparable spending benchmarks for ISSO support on mission-critical systems are difficult to pinpoint due to the specialized nature and security requirements, but overall federal IT spending exceeds hundreds of billions annually. This contract represents a small but vital portion dedicated to securing transportation-related IT infrastructure.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The focus is on large-scale IT security solutions likely requiring specialized expertise and resources typically found in larger contracting firms.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices, with specific oversight potentially involving the Transportation Security Administration's IT security leadership. The firm-fixed-price nature simplifies some aspects of financial oversight, but performance monitoring remains crucial. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DHS Cybersecurity Initiatives
TSA IT Modernization Programs
Federal Information Security Management Act (FISMA) Compliance
General Services Administration (GSA) IT Schedule Contracts
Department of Homeland Security IT Services Contracts

Risk Flags

Limited competition may impact price competitiveness.
Justification for 'exclusion of sources' requires scrutiny.
Long contract duration necessitates strong performance management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $13.1 million to VMD SYSTEMS INTEGRATORS, LLC. THE PURPOSE OF THIS TASK ORDER IS TO OBTAIN INFORMATION SYSTEMS SECURITY OFFICER (ISSO) SUPPORT SERVICES THAT INVOLVES SECURITY ENGINEERING AND SECURITY COMPLIANCE FOR TSA MISSION CRITICAL SYSTEMS.

Who is the contractor on this award?

The obligated recipient is VMD SYSTEMS INTEGRATORS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $13.1 million.

What is the period of performance?

Start: 2021-10-01. End: 2027-01-03.

What is the track record of VMD Systems Integrators, LLC in providing similar Information Systems Security Officer (ISSO) support to federal agencies, particularly for mission-critical systems?

VMD Systems Integrators, LLC has a history of providing IT services to various federal agencies, including defense and civilian sectors. Their portfolio often includes cybersecurity, enterprise IT, and systems engineering. While specific details on ISSO support for mission-critical systems comparable to TSA's requirements are not explicitly detailed in this summary, their general experience suggests a capability to handle complex IT security tasks. Further analysis would involve reviewing their past performance evaluations (e.g., CPARS) and the scope of previous cybersecurity contracts to ascertain the direct relevance and success rate in similar high-stakes environments. Their ability to secure this TSA contract indicates they met the agency's requirements for this specialized role.

How does the daily rate of $6,800 compare to market rates for similar ISSO services, considering the mission-critical nature of TSA systems?

The daily rate of $6,800 for ISSO support is on the higher end for general IT services but may be justifiable given the specialized nature and criticality of TSA's mission systems. Benchmarking requires comparing against contracts for similar roles (e.g., Senior Cybersecurity Engineers, Information Assurance Managers) supporting high-security, mission-critical infrastructure within federal agencies. Factors influencing this rate include the required security clearances, the complexity of the systems, the 24/7 operational demands, and the specific security engineering and compliance expertise needed. Without direct, publicly available benchmarks for comparable ISSO roles on TSA-level critical systems, it's difficult to definitively label it as over-priced, but it warrants scrutiny against other high-security federal IT contracts.

What specific factors led to the 'exclusion of sources' in this 'full and open competition after exclusion of sources' award?

The designation 'full and open competition after exclusion of sources' suggests that while the initial solicitation was intended to be broadly accessible, specific justifications were made to limit the pool of eligible bidders before the final award decision. Common reasons for such exclusions include specific technical requirements, unique security certifications, prior performance on related systems, or proprietary technology integration that only a limited number of vendors could meet. For this TSA contract, the exclusion likely stemmed from the highly specialized nature of securing mission-critical aviation security systems, requiring vendors with proven expertise in that exact domain and potentially specific security accreditations or clearances. A detailed review of the contract's Justification for Other than Full and Open Competition (JOFOC) would provide the precise rationale.

What are the potential risks associated with the long contract duration (1920 days) for ISSO support, and how are they mitigated?

The primary risks associated with a long contract duration, such as this 1920-day (approximately 5-year) award, include potential vendor complacency, technological obsolescence, and escalating costs if not managed effectively. Complacency can arise if performance is not rigorously monitored, leading to a decline in service quality. Technological obsolescence is a risk as IT environments evolve rapidly; the contractor must maintain up-to-date skills and solutions. Cost escalation is less of a concern with a firm-fixed-price contract, but ensuring the initial pricing remains competitive over the term is important. Mitigation strategies typically involve robust performance management, regular service reviews, clear performance metrics (SLAs), contract modifications for technology refreshes, and strong government oversight to ensure continuous value and adaptation.

How does this contract align with broader TSA and DHS cybersecurity strategies and spending patterns?

This contract directly aligns with the TSA's and DHS's overarching cybersecurity strategies, which prioritize the protection of critical infrastructure and sensitive data. Spending on ISSO support for mission-critical systems is a fundamental component of maintaining operational security and compliance with federal mandates like FISMA. TSA, being a component of DHS, faces significant cyber threats due to its role in national security and transportation. Contracts like this represent essential investments in safeguarding systems that are vital for aviation security operations. Analyzing historical spending on similar cybersecurity services within TSA and DHS would reveal trends and the relative scale of this particular award within their overall IT security budget.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: VMD Systems Integrators LLC

Address: 4114 LEGATO RD STE 700, FAIRFAX, VA, 22033

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $13,055,841

Exercised Options: $13,055,841

Current Obligation: $13,055,841

Actual Outlays: $8,358,168

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200188W

IDV Type: GWAC

Timeline