DHS awards $25.1M IT support contract to Cybermedia Technologies, LLC, with 2 delivery orders

Contract Overview

Contract Amount: $25,114,058 ($25.1M)

Contractor: Cybermedia Technologies, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2014-03-10

End Date: 2019-03-08

Contract Duration: 1,824 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IGF::CL::IGF IT ADMINISTRATION SERVICE SUPPORT

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $25.1 million to CYBERMEDIA TECHNOLOGIES, LLC for work described as: IGF::CL::IGF IT ADMINISTRATION SERVICE SUPPORT Key points: 1. Contract value of $25.1M over 5 years suggests a significant investment in IT administration. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The use of labor hours pricing may present risks if not managed closely for efficiency. 4. This contract falls under computer systems design services, a critical area for agency operations. 5. The duration of the contract (1824 days) allows for sustained support but requires ongoing performance monitoring.

Value Assessment

Rating: fair

The total award of $25.1M over approximately five years averages to about $5M annually. Without specific benchmarks for 'IT Administration Service Support' for an agency the size of DHS, it's difficult to definitively assess value. However, the use of labor hours pricing (PT: LABOR HOURS) can sometimes lead to higher costs if not tightly managed, as it directly ties cost to time spent rather than fixed deliverables. Comparing this to similar IT support contracts within federal agencies would be necessary for a more precise value assessment.

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'. This indicates that while the competition was intended to be broad, there was a specific exclusion of certain sources prior to the full and open process. The presence of 2 delivery orders suggests the contract has been actively utilized. The level of competition, despite the exclusion, is a positive sign for price discovery, though the specifics of the exclusion warrant further investigation.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging multiple vendors to bid, driving down prices and improving service quality. The exclusion of sources, however, could potentially limit the competitive landscape and may warrant scrutiny to ensure it did not unduly restrict options or inflate costs.

Public Impact

The primary beneficiary is the Department of Homeland Security (DHS), specifically U.S. Customs and Border Protection (CBP), receiving essential IT administration support. Services delivered include computer systems design and related support, crucial for the operational efficiency of CBP. The contract is geographically focused on Virginia (SN: VIRGINIA), indicating a concentration of IT support personnel or facilities in that state. The contract supports a workforce involved in IT administration and systems design, contributing to specialized federal IT employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hours pricing model can lead to cost overruns if not meticulously managed and monitored for efficiency.
The 'exclusion of sources' clause in the competition type requires further examination to understand its potential impact on market competition and pricing.
The contract's duration of nearly five years necessitates continuous oversight to ensure sustained performance and value.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process that likely considered multiple qualified vendors.
The contract has resulted in multiple delivery orders, indicating active use and perceived necessity of the services provided.
Cybermedia Technologies, LLC, is a known entity within federal contracting, suggesting a degree of established capability.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under Computer Systems Design Services (NA: 541512). This is a broad category encompassing the design, development, and implementation of IT solutions. The federal IT market is substantial, with agencies heavily reliant on contractors for specialized skills and support. Benchmarks for similar IT support contracts can vary widely based on scope, duration, and specific services, but contracts in this range often signify a need for ongoing, critical operational support.

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 to the small business ecosystem stemming from a set-aside provision. The primary contractor, Cybermedia Technologies, LLC, is likely a small business itself given the contract value, but the award mechanism did not prioritize small business participation through set-asides.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and U.S. Customs and Border Protection (CBP) contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement and delivery schedules. Transparency is generally facilitated through federal procurement databases like FPDS-NG, where contract awards are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

IT Services
Computer Systems Design
IT Administration Support
Department of Homeland Security Contracts
Cybersecurity Support Services

Risk Flags

Potential for cost overruns due to labor hours pricing.
Limited transparency on the 'exclusion of sources' rationale.
Need for robust performance monitoring over the contract's duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $25.1 million to CYBERMEDIA TECHNOLOGIES, LLC. IGF::CL::IGF IT ADMINISTRATION SERVICE SUPPORT

Who is the contractor on this award?

The obligated recipient is CYBERMEDIA TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $25.1 million.

What is the period of performance?

Start: 2014-03-10. End: 2019-03-08.

What is the track record of Cybermedia Technologies, LLC with federal contracts, particularly within DHS?

Cybermedia Technologies, LLC has a history of federal contracting, including work with the Department of Homeland Security (DHS). Analyzing their past performance, including contract values, types of services rendered, and any performance reviews or past performance questionnaires (PPQs), would provide insight into their reliability and capability. A review of their contract history might reveal patterns in contract types (e.g., labor hour vs. fixed price), agencies served, and their success rate in meeting delivery schedules and performance requirements. Specific to DHS, understanding their prior engagements would indicate familiarity with the agency's unique operational needs and security protocols. Without access to detailed performance data beyond the award information, a comprehensive assessment of their track record is limited, but the fact they secured this contract suggests a level of demonstrated capability.

How does the $25.1M contract value compare to similar IT administration support contracts within DHS or other large federal agencies?

The $25.1M contract value over approximately five years, averaging around $5M annually, places this contract in the mid-to-large tier for specialized IT support services within a major federal agency like DHS. To benchmark effectively, one would need to compare it against contracts for similar 'Computer Systems Design Services' (NAICS 541512) awarded by agencies of comparable size and complexity, such as the Department of Defense, GSA, or HHS. Factors like the specific services required (e.g., help desk, network management, system integration), the labor categories and rates involved, and the contract duration are crucial for a meaningful comparison. If similar contracts for comparable services are consistently awarded at lower total values or with more favorable pricing structures (e.g., fixed-price), it could indicate that this contract's value might be on the higher side, warranting closer scrutiny of its efficiency and necessity.

What are the primary risks associated with the 'labor hours' pricing structure used in this contract?

The primary risk associated with a 'labor hours' (LH) pricing structure is the potential for cost overruns and reduced cost certainty for the government. Unlike fixed-price contracts, where the contractor assumes more risk for delivering a defined scope within a set budget, LH contracts reimburse the contractor for the actual hours worked by their personnel at pre-negotiated hourly rates. This means the total cost is directly dependent on the number of hours expended. If the contractor is inefficient, mismanages resources, or if the scope of work expands without adequate controls, the government could end up paying significantly more than initially anticipated. Effective oversight, including detailed timesheet review, performance monitoring, and strong program management to control scope creep, is crucial to mitigate these risks and ensure value for taxpayer money.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause imply for the competitive landscape and potential cost savings?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause indicates a nuanced approach to competition. 'Full and open competition' is the preferred method, aiming to maximize the number of potential bidders and foster robust price discovery. However, the 'after exclusion of sources' qualifier means that certain potential offerors were identified and excluded from participating in the competition *before* it was opened to the remaining pool. The reasons for exclusion must be justifiable (e.g., based on past performance issues, security concerns, or specific capability gaps). While this method still allows for competition among the remaining vendors, the exclusion could potentially limit the breadth of competition compared to a truly unrestricted full and open process. This might result in fewer bids, potentially leading to less aggressive pricing than might have been achieved otherwise, and could impact the overall cost savings realized by the government.

How has historical spending on IT administration services by U.S. Customs and Border Protection trended over the past 5-10 years?

To assess historical spending trends for IT administration services by U.S. Customs and Border Protection (CBP), one would need to analyze procurement data over the specified period. This involves querying federal procurement databases (like FPDS-NG) for contracts awarded by CBP related to IT services, specifically focusing on categories like computer systems design, IT support, and network administration. The analysis should look at the total dollar value of these contracts year-over-year, the number of contracts awarded, and the types of competition used (e.g., full and open, sole source). Identifying trends such as increasing or decreasing spending, shifts towards specific types of IT services, or changes in reliance on large prime contractors versus small businesses would provide valuable context for the current $25.1M award. Understanding this historical trajectory helps determine if current spending aligns with past patterns or represents a significant shift in CBP's IT support strategy and investment.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1900 CAMPUS COMMONS DR STE 100, RESTON, VA, 20191

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, 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

Financial Breakdown

Contract Ceiling: $25,114,058

Exercised Options: $25,114,058

Current Obligation: $25,114,058

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS06F0685Z

IDV Type: GWAC

Timeline