DHS's $64M IGF Security Assurance Support Services contract awarded to Steampunk, Inc. shows fair value with 5 bidders

Contract Overview

Contract Amount: $64,030,869 ($64.0M)

Contractor: Steampunk, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2017-09-08

End Date: 2022-03-07

Contract Duration: 1,641 days

Daily Burn Rate: $39.0K/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 SECURITY ASSURANCE SUPPORT SERVICES (SASS)

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $64.0 million to STEAMPUNK, INC. for work described as: IGF::CL,CT::IGF SECURITY ASSURANCE SUPPORT SERVICES (SASS) Key points: 1. The contract's value appears reasonable given the scope of IT security assurance services. 2. A competitive landscape with 5 bidders suggests a healthy market for these specialized services. 3. The firm-fixed-price structure mitigates cost overrun risks for the government. 4. Performance duration of over 4 years indicates a significant, ongoing need for these services. 5. The contract falls within the broad IT services sector, supporting critical government functions.

Value Assessment

Rating: fair

The contract's total value of approximately $64 million over its 5-year period suggests a moderate annual spend. Benchmarking against similar IT security assurance contracts is challenging without more granular data on service specifics. However, the firm-fixed-price (FFP) award type generally indicates that the government secured a defined scope of work at a negotiated price, which can be a good indicator of value if the scope was well-defined and the price competitive. The number of bidders also provides some confidence in the pricing's market alignment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with five distinct bidders vying for the opportunity. The presence of multiple bidders indicates a robust market for these specialized security assurance services. A competitive process like this typically drives down prices and encourages innovation as contractors strive to offer the best value proposition to secure the award. The diversity of bidders also suggests that the solicitation was accessible to a range of qualified firms.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that likely resulted in a more favorable price for the government compared to a sole-source or limited competition award. This ensures that public funds are used efficiently for essential security services.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), receiving enhanced cybersecurity and assurance services. Services delivered include critical IT security assurance, likely encompassing vulnerability assessments, penetration testing, security audits, and policy development. The geographic impact is primarily within the operational areas of DHS and ICE, supporting their nationwide mission. Workforce implications include the employment of skilled cybersecurity professionals by Steampunk, Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not tightly managed throughout the contract's duration.
Dependence on a single contractor for critical security functions could pose a risk if performance falters.
Ensuring continuous alignment with evolving cybersecurity threats and best practices requires proactive oversight.

Positive Signals

Firm-fixed-price contract type helps control costs and provides budget certainty.
Awarded under full and open competition, indicating a competitive market and potentially better pricing.
Long-term nature of the contract suggests a stable and ongoing need for these vital security services.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on cybersecurity and assurance. The market for these services is substantial and growing, driven by increasing cyber threats to government and private entities. Comparable spending benchmarks would typically involve analyzing other large-scale IT security support contracts awarded by federal agencies. The size of this contract, approximately $64 million, places it as a significant award within this specialized niche.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While Steampunk, Inc. is the prime contractor, there is no explicit information on subcontracting goals for small businesses. The impact on the small business ecosystem would depend on whether Steampunk, Inc. actively seeks out small businesses for subcontracting opportunities to fulfill parts of the contract, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS). Performance monitoring, adherence to contract terms, and quality assurance are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

DHS Cybersecurity Support Contracts
Federal IT Security Services
Information Assurance Services
Computer Systems Design Services

Risk Flags

Contract Duration
Performance Monitoring
Cybersecurity Threat Evolution

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $64.0 million to STEAMPUNK, INC.. IGF::CL,CT::IGF SECURITY ASSURANCE SUPPORT SERVICES (SASS)

Who is the contractor on this award?

The obligated recipient is STEAMPUNK, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $64.0 million.

What is the period of performance?

Start: 2017-09-08. End: 2022-03-07.

What is Steampunk, Inc.'s track record with federal contracts, particularly in IT security?

Steampunk, Inc. has a history of federal contracting, with this contract representing a significant award from the Department of Homeland Security (DHS) for security assurance support. While specific details on their past performance metrics for this exact service type are not provided, the award itself suggests they met the qualifications and competitive requirements set forth by ICE. Further analysis would involve examining their contract history across various agencies, including on-time delivery, quality of service, and any past performance issues or commendations. Their ability to secure a multi-year, firm-fixed-price contract indicates a level of established capability and trust within the federal contracting landscape, particularly in the IT and cybersecurity domain.

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

Direct comparison of pricing for this $64 million contract is difficult without granular data on the specific services rendered and the labor categories involved. However, the contract was awarded under full and open competition with five bidders, which generally implies that the pricing was market-driven and competitive. The firm-fixed-price (FFP) structure also provides a degree of cost certainty. To benchmark effectively, one would need to identify comparable contracts for similar IT security assurance services (e.g., vulnerability assessments, penetration testing, security audits) awarded around the same period by agencies like the DoD, GSA, or other components of DHS, and then analyze their total values, durations, and scope of work.

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

Key risks include potential performance deficiencies by the contractor, changes in government requirements leading to scope creep, and the inherent cybersecurity risks associated with handling sensitive government data. Mitigation strategies likely include robust contract oversight by ICE, clearly defined performance work statements (PWS), regular performance reviews, and adherence to strict security protocols. The firm-fixed-price nature of the contract also mitigates financial risk for the government by capping costs. However, ensuring the contractor remains up-to-date with evolving cyber threats and maintains high-quality service delivery throughout the contract's duration requires continuous vigilance.

How effective has Steampunk, Inc. been in delivering the security assurance services under this contract?

Assessing the effectiveness of Steampunk, Inc.'s service delivery requires access to performance reports, customer satisfaction surveys, and potentially data on security incidents or improvements achieved during their tenure. The provided data does not include these performance metrics. However, the contract's duration (over 4 years) and the fact that it is a delivery order under a larger IDIQ contract suggest a level of satisfaction or at least continued need for their services by ICE. A comprehensive effectiveness evaluation would necessitate reviewing official performance evaluations and any documented outcomes related to enhanced security posture for ICE.

What are the historical spending patterns for IGF Security Assurance Support Services, and how does this contract fit within them?

The provided data focuses on a single contract award of $64 million to Steampunk, Inc. for IGF Security Assurance Support Services (SASS) from 2017 to 2022. To understand historical spending patterns, one would need to examine prior contracts for similar services awarded by ICE or DHS, looking at total annual expenditures, the number and value of contracts awarded over time, and the primary contractors involved. This contract represents a significant, multi-year investment in IT security assurance for ICE. Without historical data, it's difficult to definitively state how it fits into broader patterns, but its size suggests a sustained commitment to bolstering cybersecurity infrastructure and capabilities.

What is the potential impact of this contract on the broader cybersecurity market and competition?

This contract, valued at approximately $64 million and awarded through full and open competition, contributes to the overall activity and growth within the federal cybersecurity services market. The presence of five bidders indicates a healthy level of competition, encouraging firms to invest in capabilities and competitive pricing strategies. For Steampunk, Inc., this award represents a substantial revenue stream and a significant reference point for future business. It also signals to other firms in the sector the types of services and contract vehicles that are in demand within agencies like ICE, potentially influencing their strategic focus and market entry approaches.

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

Solicitation ID: HSCETC-17-R-00008

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Strategic Enterprise Solutions Inc.

Address: 1753 PINNACLE DR STE 900, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $68,744,897

Exercised Options: $64,030,869

Current Obligation: $64,030,869

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSHQDC13DE2025

IDV Type: IDC

Timeline