DHS awards $28.8M for Enterprise Cybersecurity Services to Favor TechConsulting, LLC
Contract Overview
Contract Amount: $28,801,223 ($28.8M)
Contractor: Favor Techconsulting, LLC
Awarding Agency: Department of Homeland Security
Start Date: 2021-09-10
End Date: 2026-08-20
Contract Duration: 1,805 days
Daily Burn Rate: $16.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ENTERPRISE CYBERSECURITY SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20223
Plain-Language Summary
Department of Homeland Security obligated $28.8 million to FAVOR TECHCONSULTING, LLC for work described as: ENTERPRISE CYBERSECURITY SERVICES Key points: 1. Contract value of $28.8M over 5 years suggests a significant investment in cybersecurity capabilities. 2. The contract was awarded under full and open competition, indicating a broad search for qualified vendors. 3. The fixed-price contract type aims to control costs and provide predictable spending. 4. The duration of 1805 days (approx. 5 years) allows for sustained cybersecurity support. 5. The award to Favor TechConsulting, LLC, represents a key vendor for the U.S. Secret Service's IT needs. 6. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services.
Value Assessment
Rating: good
The contract value of $28.8 million over approximately five years averages to about $5.76 million per year. This figure needs to be benchmarked against similar enterprise cybersecurity service contracts awarded by agencies like DHS or other federal entities to fully assess value. Without specific per-unit cost data or detailed service breakdowns, a precise value-for-money assessment is challenging, but the duration and scope suggest a substantial, ongoing need.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that the agency initially considered excluding certain sources but ultimately opened the competition broadly. This suggests a robust competition process where multiple vendors had the opportunity to bid. The presence of 3 bids indicates a moderate level of competition, which is generally favorable for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: A full and open competition, even with a limited number of bids, generally benefits taxpayers by encouraging competitive pricing and ensuring that the government explores a wide range of potential solutions and providers.
Public Impact
The U.S. Secret Service benefits from enhanced enterprise cybersecurity services, crucial for protecting sensitive government information and infrastructure. This contract ensures the delivery of critical computer systems design and cybersecurity support to a key component of the Department of Homeland Security. The services provided are essential for maintaining the operational integrity and security of the Secret Service's digital assets. The contract's location in the District of Columbia suggests a primary operational focus within the nation's capital.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if follow-on work is not competed.
- Dependence on a single vendor for critical cybersecurity infrastructure.
- Risk of cost overruns if contract scope is not meticulously managed.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process.
- Firm Fixed Price contract type helps control costs.
- Long-term contract duration allows for stable and consistent service delivery.
Sector Analysis
Enterprise cybersecurity services fall under the broader IT services sector, specifically computer systems design. This market is characterized by rapid technological advancements and a high demand for specialized skills. Federal spending in this area is substantial, driven by increasing cyber threats. Comparable contracts often involve significant dollar values due to the complexity and criticality of cybersecurity functions. The market includes a mix of large prime contractors and specialized small businesses.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While Favor TechConsulting, LLC is the prime contractor, there is no explicit information on subcontracting plans for small businesses within this award. Future analysis could explore whether the prime contractor has a history of engaging small businesses in their subcontracting efforts for similar federal contracts.
Oversight & Accountability
Oversight for this contract would primarily fall under the U.S. Secret Service and the Department of Homeland Security's contracting and program management offices. Transparency is facilitated by public contract databases like FPDS. Accountability measures are inherent in the firm-fixed-price structure and performance requirements. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Department of Homeland Security IT Services
- U.S. Secret Service Technology Modernization
- Federal Cybersecurity Contracts
- Computer Systems Design Services
Risk Flags
- Potential for scope creep in a dynamic cybersecurity environment.
- Dependence on a single vendor for critical infrastructure.
- Need for continuous monitoring of vendor performance and evolving threats.
Tags
it-services, cybersecurity, department-of-homeland-security, u.s.-secret-service, firm-fixed-price, full-and-open-competition, delivery-order, computer-systems-design, district-of-columbia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $28.8 million to FAVOR TECHCONSULTING, LLC. ENTERPRISE CYBERSECURITY SERVICES
Who is the contractor on this award?
The obligated recipient is FAVOR TECHCONSULTING, LLC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Secret Service).
What is the total obligated amount?
The obligated amount is $28.8 million.
What is the period of performance?
Start: 2021-09-10. End: 2026-08-20.
What is the track record of Favor TechConsulting, LLC in delivering enterprise cybersecurity services to the federal government?
Favor TechConsulting, LLC has been awarded federal contracts primarily within the IT services and computer systems design domain. While specific details on their performance for enterprise cybersecurity services under this particular contract are not immediately available from the provided data, their past awards indicate experience in areas relevant to system design and integration. A deeper dive into their contract history, including past performance reviews and any reported issues on previous federal awards, would be necessary to fully assess their track record. Examining contract close-out data and any debriefings from competitors could also provide further insights into their capabilities and reliability in delivering complex IT solutions.
How does the annual value of this contract compare to similar enterprise cybersecurity service contracts awarded by DHS or other federal agencies?
The annual value of this contract, approximately $5.76 million ($28.8M / 5 years), needs to be benchmarked against comparable federal contracts for enterprise cybersecurity services. Without access to a broader dataset of similar awards, a direct comparison is difficult. However, this figure suggests a substantial investment, typical for comprehensive cybersecurity solutions supporting large federal agencies. Factors such as the scope of services (e.g., network security, threat intelligence, incident response, system design), the specific threats addressed, and the size/complexity of the agency's infrastructure would influence the benchmark. Agencies like the Department of Defense or other components of DHS often award contracts in this range or higher for similar critical services.
What are the primary risks associated with this contract, and what mitigation strategies are likely in place?
Key risks include potential cost overruns if the scope of work expands beyond the initial fixed-price agreement, vendor performance issues leading to gaps in cybersecurity, and over-reliance on a single provider. Mitigation strategies likely involve robust contract management by the U.S. Secret Service, including clear performance metrics, regular progress reviews, and defined change control processes. The firm-fixed-price structure itself is a risk mitigation tool for cost control. To address performance risks, the government typically includes clauses for remedies in case of non-performance and may conduct market research for alternative solutions periodically.
How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach in ensuring value for taxpayers in this cybersecurity contract?
This contracting approach aims to balance the desire for broad competition with potential efficiencies or specific requirements that might initially suggest excluding certain sources. By ultimately opening it to full and open competition, the government maximizes its chances of receiving competitive bids from a wide range of qualified vendors, which generally leads to better pricing and innovation. The fact that 3 bids were received suggests that while the competition was broad, the specialized nature of enterprise cybersecurity may limit the number of highly qualified bidders. This level of competition is generally considered adequate for ensuring value, but a higher number of bidders would typically provide stronger price discovery.
What are the historical spending patterns for enterprise cybersecurity services within the U.S. Secret Service or DHS?
Historical spending data for enterprise cybersecurity services within the U.S. Secret Service or DHS would reveal trends in investment in this critical area. This contract, valued at $28.8 million over five years, represents a significant, ongoing commitment. Analyzing past contracts for similar services would show whether spending has been increasing, decreasing, or remaining stable, reflecting evolving threat landscapes and agency priorities. It would also indicate the typical contract vehicles used (e.g., IDIQs, task orders) and the average contract values, providing context for the current award's scale and duration.
What are the implications of the firm-fixed-price (FFP) contract type for managing cybersecurity risks and costs?
The Firm Fixed Price (FFP) contract type is generally favored for services where the scope of work is well-defined and unlikely to change significantly. For cybersecurity services, this means the contractor assumes most of the risk for cost overruns. This structure provides cost certainty for the government and incentivizes the contractor to manage their resources efficiently. However, if the cybersecurity landscape shifts rapidly or unforeseen technical challenges arise, an FFP contract might make it difficult or costly to adapt the scope without formal contract modifications, potentially leading to disputes or delays. Careful initial scope definition and robust change management are crucial for FFP contracts in dynamic fields like cybersecurity.
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 - IT MANAGEMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 70US0921R70090055
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8075 LEESBURG PIKE STE 300, VIENNA, VA, 22182
Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $28,801,223
Exercised Options: $28,801,223
Current Obligation: $28,801,223
Actual Outlays: $20,726,414
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $59,160
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 75N98118D00012
IDV Type: GWAC
Timeline
Start Date: 2021-09-10
Current End Date: 2026-08-20
Potential End Date: 2026-08-20 00:00:00
Last Modified: 2025-08-15
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