DHS awards $30.3M for Agile App Dev & OM Support to Mythics, LLC under full and open competition

Contract Overview

Contract Amount: $30,290,983 ($30.3M)

Contractor: Mythics, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2014-05-21

End Date: 2016-05-20

Contract Duration: 730 days

Daily Burn Rate: $41.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF TASK ORDER FOR AGILE APPLICATION DEVELOPMENT AND OM SUPPORT

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22311

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $30.3 million to MYTHICS, LLC for work described as: IGF::OT::IGF TASK ORDER FOR AGILE APPLICATION DEVELOPMENT AND OM SUPPORT Key points: 1. Contract awarded via BPA Call, indicating a pre-competed framework. 2. Firm Fixed Price contract type suggests predictable costs for the government. 3. Duration of 730 days provides a clear timeframe for service delivery. 4. The contract is for Agile Application Development and Operations & Maintenance. 5. Awarded to a single contractor, Mythics, LLC. 6. The North American Industry Classification System (NAICS) code is 511210 (Software Publishers).

Value Assessment

Rating: fair

The total award amount is $30.3 million over two years. Benchmarking this against similar contracts for Agile application development and O&M support is challenging without more specific service details. However, the firm fixed-price nature suggests the government aimed for cost certainty. The award value appears moderate for a two-year federal IT support contract of this nature, but a detailed value-for-money assessment would require comparison to specific service level agreements and market rates for comparable skill sets and support levels.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a Full and Open Competition, indicating that all responsible sources were permitted to submit an offer. The specific mechanism used was a BPA Call, which means the underlying Blanket Purchase Agreement (BPA) was likely competed previously. This approach generally fosters competitive pricing by allowing multiple vendors to bid on task orders issued against the BPA. The number of bidders for this specific task order is not provided, but the 'full and open' designation suggests a robust competitive environment.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring the government receives the best value available. It reduces the risk of overpayment compared to sole-source or limited competition awards.

Public Impact

The primary beneficiary is U.S. Customs and Border Protection (CBP), a component of DHS, which receives critical IT support. Services delivered include Agile application development and ongoing operations and maintenance for software systems. The geographic impact is primarily within the operational areas of CBP, likely supporting national border security functions. Workforce implications include the potential for employment of software developers, system administrators, and IT support personnel by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or KPIs in the provided data makes it difficult to assess the quality of services delivered.
The duration of the contract (2 years) may not be sufficient for long-term strategic application development or modernization efforts.
Reliance on a single contractor for both development and O&M could create vendor lock-in risks if not managed carefully.

Positive Signals

The use of a BPA Call suggests a streamlined procurement process for a pre-vetted set of services and vendors.
Firm Fixed Price contract type provides cost predictability for the agency.
Agile development methodology is generally associated with flexibility and faster delivery of functional software increments.

Sector Analysis

The software publishing and IT services sector is a significant area of federal spending. NAICS code 511210 covers companies primarily engaged in computer software publishing. This contract falls within the broader IT services category, which includes custom software development, IT support, and maintenance. Federal spending in this sector is driven by the need for modern, secure, and efficient IT systems to support agency missions. Comparable spending benchmarks would typically look at the average cost of similar IT support and development contracts across federal agencies, considering factors like contract type, duration, and complexity.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses like Mythics, LLC, are the primary awardees. This means that opportunities for small business subcontracting are not mandated by a set-aside provision. However, the contractor may still engage small businesses as subcontractors to fulfill specific needs. The overall impact on the small business ecosystem depends on the contractor's subcontracting strategy and the availability of relevant small business capabilities in the market.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Customs and Border Protection contracting officer and program managers. The firm fixed-price nature provides some cost control. Transparency is facilitated by the Federal Procurement Data System (FPDS), where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or identified.

Related Government Programs

Agile Software Development Services
IT Operations and Maintenance Support
Blanket Purchase Agreements (BPAs)
Department of Homeland Security IT Contracts
Custom Software Development

Risk Flags

Potential for scope creep in Agile development without robust change control.
Risk of vendor lock-in if O&M is heavily reliant on contractor-specific knowledge.
Difficulty in measuring true value-for-money without detailed performance metrics.
Dependence on contractor performance for critical IT operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $30.3 million to MYTHICS, LLC. IGF::OT::IGF TASK ORDER FOR AGILE APPLICATION DEVELOPMENT AND OM SUPPORT

Who is the contractor on this award?

The obligated recipient is MYTHICS, 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 $30.3 million.

What is the period of performance?

Start: 2014-05-21. End: 2016-05-20.

What is the track record of Mythics, LLC in performing similar federal contracts, particularly for Agile development and O&M?

Assessing Mythics, LLC's track record requires a deeper dive into their contract history beyond this single award. Federal procurement databases like FPDS-NG or SAM.gov would provide details on past performance, including other agencies served, contract values, and types of services rendered. Positive past performance ratings on similar contracts would indicate a lower risk for this award. Conversely, a history of performance issues, contract disputes, or terminations could raise concerns about their capability to deliver effectively on this $30.3 million task order. Without specific past performance data for Mythics, LLC on comparable Agile development and O&M contracts, it's difficult to definitively assess their capability.

How does the $30.3 million award value compare to market rates for similar Agile application development and O&M services over two years?

Benchmarking the $30.3 million award value requires comparing it against market rates for similar IT services. This involves analyzing average salaries for developers and support staff in relevant geographic locations, factoring in overhead, profit margins, and the specific skill sets required. For a two-year contract, this equates to approximately $15.15 million per year. Depending on the size of the development team, the complexity of the applications, and the scope of O&M, this figure could be considered competitive or high. A detailed comparison would involve looking at industry reports on IT service pricing, consulting firm benchmarks, and potentially other federal contracts with similar scope and service level agreements (SLAs) to determine if the government is receiving good value for money.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract, and how are they monitored?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, Agile development contracts would include metrics related to sprint velocity, defect rates, and on-time delivery of features. O&M SLAs often focus on system uptime, response times for issue resolution, and security patch deployment. Effective monitoring of these KPIs and SLAs is crucial for ensuring the contractor meets performance expectations and for justifying the contract's value. The contracting officer's representative (COR) or a designated technical point of contact would usually be responsible for tracking performance against these metrics and reporting any deficiencies.

What is the risk profile of this contract, considering the contractor, contract type, and service requirements?

The risk profile for this contract appears moderate. The contractor, Mythics, LLC, is awarded under a full and open competition, suggesting a competitive selection process. The Firm Fixed Price (FFP) contract type shifts some cost risk to the contractor, which can be beneficial for the government if managed properly. However, FFP can also disincentivize scope changes or lead to quality compromises if not carefully monitored. The requirement for both Agile development and ongoing O&M introduces complexity, as these require different skill sets and management approaches. Risks could include potential performance issues, cost overruns if scope creep occurs without proper change control, or challenges in transitioning developed applications to O&M. The lack of specific performance data in the summary makes a comprehensive risk assessment difficult.

How does this contract fit into the broader IT modernization or digital transformation efforts within U.S. Customs and Border Protection?

This contract likely supports U.S. Customs and Border Protection's (CBP) ongoing efforts to modernize its IT systems and enhance operational efficiency. Agile development methodologies are often employed to accelerate the delivery of new capabilities and adapt to evolving requirements in areas like border security, trade processing, or data analytics. The Operations & Maintenance (O&M) component ensures that existing critical systems remain functional and secure. Understanding how this specific contract aligns with CBP's strategic IT roadmap, such as specific application portfolios being modernized or key mission-critical systems being supported, would provide further context on its importance and impact.

What is the historical spending trend for similar Agile development and O&M services by the Department of Homeland Security or CBP?

Analyzing historical spending trends for similar services by DHS or CBP would provide valuable context for this $30.3 million award. This involves examining past contract awards for Agile development and O&M over several fiscal years. Trends might reveal an increasing or decreasing reliance on external contractors for these services, average contract values, and the prevalence of specific contract types (e.g., FFP vs. Cost-Plus). Understanding this history can help determine if current spending levels are consistent with past investments, if there's a growing demand for these services, or if there are opportunities to consolidate contracts or achieve better pricing through strategic sourcing.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4525 MAIN ST STE 1500, VIRGINIA BEACH, VA, 23462

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,290,983

Exercised Options: $30,290,983

Current Obligation: $30,290,983

Parent Contract

Parent Award PIID: HSHQDC13A00040

IDV Type: BPA

Timeline