DHS awards $27.6M for IT services to Dev Technology Group, Inc. under full and open competition

Contract Overview

Contract Amount: $27,659,389 ($27.7M)

Contractor: DEV Technology Group Inc

Awarding Agency: Department of Homeland Security

Start Date: 2016-01-25

End Date: 2021-07-24

Contract Duration: 2,007 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CL,CT::IGF TASK ORDER FOR PROCESS MANAGEMENT AND INFORMATION SECURITY SERVICES

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $27.7 million to DEV TECHNOLOGY GROUP INC for work described as: IGF::CL,CT::IGF TASK ORDER FOR PROCESS MANAGEMENT AND INFORMATION SECURITY SERVICES Key points: 1. Contract awarded for process management and information security services. 2. Significant duration of contract (over 5 years) suggests a need for sustained support. 3. Firm Fixed Price contract type indicates predictable costs for the government. 4. Awarded by U.S. Customs and Border Protection, a major component of DHS. 5. The North American Industry Classification System (NAICS) code 518210 points to a focus on data processing and hosting services. 6. The contract was awarded under a task order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of $27.6 million over approximately five years averages to about $5.5 million annually. Without specific benchmarks for similar process management and information security task orders within DHS or CBP, a precise value-for-money assessment is challenging. However, the firm fixed-price structure provides cost certainty. Further analysis would require comparing the scope of services and deliverables to other contracts of similar nature and duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, potentially leading to better pricing and service quality. The fact that there were 5 bids received suggests a healthy level of interest and competition for this requirement.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, driving down prices through market forces and ensuring the government receives the best value.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection, receiving essential IT support for their operations. Services delivered include process management and information security, crucial for protecting sensitive data and ensuring operational efficiency. The geographic impact is likely concentrated within the operational areas of CBP, which spans numerous ports of entry and internal facilities across the United States. Workforce implications may include the direct employment of personnel by Dev Technology Group, Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and integrated.
Reliance on a single vendor for critical information security functions requires robust oversight.
Scope creep could increase costs if not managed effectively under the firm fixed-price structure.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition suggests a competitive award process.
Award to an established company (Dev Technology Group, Inc.) may indicate a track record of performance.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computing infrastructure, data processing, and information security. The market for these services is highly competitive, with numerous providers ranging from large system integrators to specialized firms. Government spending in this area is substantial, driven by the need to modernize legacy systems, enhance cybersecurity, and support complex operational requirements. Comparable spending benchmarks would typically involve analyzing other task orders for similar IT support services awarded by federal agencies, particularly within the Department of Homeland Security.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Dev Technology Group, Inc., is responsible for fulfilling the contract requirements, and any subcontracting decisions would be at their discretion, not mandated by a set-aside provision.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Customs and Border Protection contracting officer and their representatives. As a task order under a larger IDIQ, the underlying contract vehicle likely has its own oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. The Inspector General for the Department of Homeland Security would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Homeland Security IT Modernization Programs
CBP Information Technology Support Services
Federal Cybersecurity Contracts
IT Services for Law Enforcement Agencies
Data Processing and Hosting Services Contracts

Risk Flags

Potential for vendor lock-in
Reliance on single vendor for critical security functions
Scope creep risk under FFP

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $27.7 million to DEV TECHNOLOGY GROUP INC. IGF::CL,CT::IGF TASK ORDER FOR PROCESS MANAGEMENT AND INFORMATION SECURITY SERVICES

Who is the contractor on this award?

The obligated recipient is DEV TECHNOLOGY GROUP INC.

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 $27.7 million.

What is the period of performance?

Start: 2016-01-25. End: 2021-07-24.

What is the track record of Dev Technology Group, Inc. with federal contracts, particularly within DHS?

Dev Technology Group, Inc. has a history of receiving federal contracts, including those with the Department of Homeland Security. Analyzing their past performance on similar IT services contracts, especially those involving process management and information security, would provide insight into their reliability and capability. A review of their contract history would reveal the number and value of previous awards, any performance issues or awards for excellence, and their experience with firm fixed-price contracts. Understanding their prior engagement with DHS would indicate their familiarity with the agency's specific needs and operational environment. This context is crucial for assessing the risk associated with the current award and the likelihood of successful contract execution.

How does the pricing of this contract compare to similar IT services contracts awarded by federal agencies?

Benchmarking the pricing of this $27.6 million contract against similar IT services contracts requires access to detailed cost data and service scope comparisons. As a firm fixed-price contract, the government has a defined cost, but the value-for-money depends on the efficiency and effectiveness of the services delivered relative to the price. Comparing the average annual cost (approximately $5.5 million) to contracts for comparable process management and information security services, adjusted for contract duration, scope, and complexity, would be necessary. Without specific comparable data points, it's difficult to definitively state if the pricing is competitive. However, the full and open competition suggests market forces were at play to achieve a reasonable price.

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

Key risks include potential scope creep, which could lead to cost overruns if not managed tightly under the firm fixed-price structure, and over-reliance on a single vendor for critical information security functions. Mitigation strategies would involve robust contract management by CBP, clear definition of deliverables, performance monitoring, and potentially requiring the contractor to implement knowledge transfer or redundancy plans. Ensuring strong oversight from the contracting officer's representative (COR) and regular performance reviews are essential. The firm fixed-price nature itself acts as a risk mitigation tool for the government by capping the financial exposure, provided the scope is well-defined.

How effective are the services provided under this contract in enhancing CBP's information security posture?

Assessing the effectiveness of the services requires evaluating key performance indicators (KPIs) related to information security and process management as defined in the contract. Metrics such as incident response times, vulnerability remediation rates, system uptime, and successful completion of security audits would be critical. The contract's duration suggests ongoing needs, implying that the services are integral to CBP's daily operations and security framework. A thorough evaluation would involve reviewing performance reports, audit findings, and feedback from CBP's IT and security personnel to determine if the contractor is meeting or exceeding expectations and contributing to a stronger security posture.

What has been the historical spending trend for similar IT services at U.S. Customs and Border Protection?

To understand historical spending trends for similar IT services at CBP, one would need to analyze contract data over several fiscal years. This would involve identifying contracts with similar NAICS codes (e.g., 518210) and service descriptions (process management, information security) awarded by CBP. Examining the total annual spending on these types of services, the number of contracts awarded, and the average contract value would reveal trends. Significant increases or decreases in spending could indicate shifts in IT priorities, budget allocations, or the adoption of new technologies. Understanding this historical context helps in evaluating whether the current $27.6 million award is consistent with past investment levels or represents a notable change.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1984 ISAAC NEWTON SQ W STE 302, RESTON, VA, 20190

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $29,376,678

Exercised Options: $27,659,389

Current Obligation: $27,659,389

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSHQDC13DE2058

IDV Type: IDC

Timeline