Sevatec LLC awarded $57.1M for TSA Law Enforcement IT support, with a 44.7M benchmark

Contract Overview

Contract Amount: $57,130,478 ($57.1M)

Contractor: Sevatec LLC

Awarding Agency: Department of Homeland Security

Start Date: 2020-05-08

End Date: 2023-11-06

Contract Duration: 1,277 days

Daily Burn Rate: $44.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS IS A TASK ORDER FOR THE LAW ENFORCEMENT/FEDERAL AIR MARSHALL SERVICE PORTFOLIO IN SUPPORT OF THE TSA APPLICATIONS DEVELOPMENT DIVISION UNDER THE GSA ALLIANT 2 IDIQ

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $57.1 million to SEVATEC LLC for work described as: THIS IS A TASK ORDER FOR THE LAW ENFORCEMENT/FEDERAL AIR MARSHALL SERVICE PORTFOLIO IN SUPPORT OF THE TSA APPLICATIONS DEVELOPMENT DIVISION UNDER THE GSA ALLIANT 2 IDIQ Key points: 1. Contract value is within the expected range for similar IT development services. 2. Full and open competition suggests a competitive pricing environment. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Performance period spans over three years, indicating a sustained need for services. 5. Task order falls under a large IDIQ contract, suggesting a broader strategic sourcing approach. 6. The contract supports critical law enforcement and federal air marshal services.

Value Assessment

Rating: good

The awarded amount of $57.1 million for computer systems design services appears reasonable when benchmarked against the contract's ceiling of $44.7 million, suggesting efficient utilization of funds. While direct comparisons are limited without more granular data on specific deliverables, the fixed-price nature of the contract provides cost certainty. The duration of the task order (over three years) also suggests a stable and predictable cost structure for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under a full and open competition, indicating that all eligible contractors had the opportunity to bid. The presence of 10 bids suggests a healthy level of competition for this requirement. This broad competition is generally favorable for price discovery and ensures the government can select from a wide pool of qualified vendors.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovation among offerors.

Public Impact

Benefits federal law enforcement agencies, including the Federal Air Marshal Service. Supports the development and maintenance of critical TSA applications. Enhances the operational capabilities of security and law enforcement personnel. Contributes to the technological infrastructure underpinning national security. Impacts the efficiency and effectiveness of air travel security protocols.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on contractor expertise could pose transition challenges if not managed proactively.
Ensuring continued alignment with evolving TSA security needs requires ongoing oversight.

Positive Signals

Fixed-price contract structure incentivizes contractor efficiency and cost control.
Full and open competition likely resulted in competitive pricing.
Long-term performance period allows for sustained support and knowledge retention.
Task order issued under a reputable IDIQ vehicle (GSA Alliant 2) suggests a streamlined procurement process.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. The federal government is a significant consumer of such services, with spending in this category often driven by modernization efforts, cybersecurity needs, and application development. The GSA Alliant 2 IDIQ, under which this task order was placed, is a major vehicle for IT services procurement, indicating this contract is part of a larger ecosystem of federal IT spending.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and the prime contractor, Sevatec LLC, is not identified as a small business in this context. Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor may engage small businesses for subcontracting opportunities, which would need to be assessed through subcontracting reports.

Oversight & Accountability

Oversight is likely managed by the Department of Homeland Security and the Transportation Security Administration through contract officers and technical representatives. The fixed-price nature of the contract provides a degree of financial oversight. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

GSA Alliant 2 IDIQ
TSA Application Development
Federal Air Marshal Service IT Support
Law Enforcement Technology Modernization
Homeland Security IT Services

Risk Flags

Potential for vendor lock-in if knowledge transfer is inadequate.
Risk of outdated technology if development cycles are not managed efficiently.
Dependency on specific security clearances for personnel.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $57.1 million to SEVATEC LLC. THIS IS A TASK ORDER FOR THE LAW ENFORCEMENT/FEDERAL AIR MARSHALL SERVICE PORTFOLIO IN SUPPORT OF THE TSA APPLICATIONS DEVELOPMENT DIVISION UNDER THE GSA ALLIANT 2 IDIQ

Who is the contractor on this award?

The obligated recipient is SEVATEC 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 $57.1 million.

What is the period of performance?

Start: 2020-05-08. End: 2023-11-06.

What is Sevatec LLC's track record with the Department of Homeland Security and TSA?

Sevatec LLC has a history of performing IT services for various federal agencies, including the Department of Homeland Security (DHS) and its components like the Transportation Security Administration (TSA). Their portfolio often includes application development, systems integration, and IT modernization efforts. Analyzing past performance reviews, contract modifications, and any past performance issues would provide a clearer picture of their reliability and effectiveness in delivering similar services. Prior successful task orders under the GSA Alliant 2 or other IDIQs for DHS/TSA would indicate a strong working relationship and understanding of agency needs.

How does the $57.1M award compare to similar TSA application development contracts?

Benchmarking this $57.1 million task order against similar TSA application development contracts requires access to a broader dataset of comparable awards. However, given the duration of over three years and the nature of IT development services for a federal agency, this value appears within a plausible range. Contracts for complex system development, integration, and sustainment can range from tens to hundreds of millions of dollars depending on scope, complexity, and the number of systems involved. The $44.7 million benchmark mentioned in the data suggests the awarded amount is within the expected financial parameters for this specific task order under the GSA Alliant 2 IDIQ.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential scope creep, technical challenges in application development, and ensuring the contractor's continued alignment with evolving TSA requirements. Scope creep is mitigated by the firm fixed-price contract type, which incentivizes the contractor to deliver within the agreed-upon scope and budget. Technical risks are managed through the selection of a contractor with a proven track record (like Sevatec) and potentially through government oversight of development milestones. Ensuring alignment with evolving needs is managed through ongoing communication, contract modifications if necessary, and the government's technical representatives.

How effective is the GSA Alliant 2 IDIQ vehicle for procuring these types of IT services?

The GSA Alliant 2 IDIQ is a widely used and generally effective vehicle for procuring a broad range of IT services for federal agencies. Its strengths lie in its comprehensive scope, allowing agencies to acquire complex IT solutions, and its streamlined ordering process compared to traditional full and open procurements. The vehicle's structure, which includes various socioeconomic small business categories and full and open competition options, provides flexibility. Its effectiveness is further supported by the large number of qualified contractors and the competitive environment it fosters, leading to potentially better pricing and access to innovative solutions for agencies like TSA.

What has been the historical spending trend for TSA application development and related IT services?

Historical spending trends for TSA application development and related IT services generally show a consistent and significant investment. Federal agencies, particularly those in security and transportation, continuously require updates, maintenance, and new development for their IT systems to address evolving threats, operational needs, and technological advancements. Spending in this area is often driven by modernization initiatives, cybersecurity enhancements, and the need to support mission-critical functions. Analyzing past years' budgets and contract awards for TSA IT services would reveal patterns of investment, highlighting areas of sustained focus and potential growth.

What is the significance of the 'Computer Systems Design Services' NAICS code for this contract?

The NAICS code 541512, 'Computer Systems Design Services,' is highly significant as it defines the primary nature of the work being procured. This code encompasses establishments primarily engaged in planning and designing computer systems that integrate hardware, software, and communication technologies. For this TSA contract, it means the work likely involves analyzing user needs, designing custom software solutions, integrating off-the-shelf software, and potentially advising on hardware and network infrastructure to support those systems. It signifies a focus on the architectural and design aspects of IT solutions rather than just software coding or hardware installation.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Octo Consulting Group LLC

Address: 10780 PARKRIDGE BLVD FL 4, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $59,745,904

Exercised Options: $57,130,478

Current Obligation: $57,130,478

Actual Outlays: $28,753,023

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0034

IDV Type: GWAC

Timeline