DHS awarded $46M for IT services to Sevatec LLC, with 19 orders over 5 years

Contract Overview

Contract Amount: $46,004,408 ($46.0M)

Contractor: Sevatec LLC

Awarding Agency: Department of Homeland Security

Start Date: 2015-09-18

End Date: 2021-03-14

Contract Duration: 2,004 days

Daily Burn Rate: $23.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 19

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF CUSTOMER SERVICE PORTFOLIO JETS

Place of Performance

Location: FAIRFAX, FAIRFAX CITY County, VIRGINIA, 22031

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $46.0 million to SEVATEC LLC for work described as: IGF::OT::IGF CUSTOMER SERVICE PORTFOLIO JETS Key points: 1. The contract value of $46 million over five years suggests a moderate investment in IT services. 2. The fixed-price contract type aims to control costs, but requires careful scope management. 3. A single award to Sevatec LLC indicates a specific capability focus or a competitive win. 4. The duration of the contract (2004 days) points to a sustained need for these services. 5. The 'Computing Infrastructure Providers' NAICS code highlights the core IT support provided.

Value Assessment

Rating: good

The total award of $46 million over approximately five years averages to about $9.2 million annually. Benchmarking this against similar contracts for IT infrastructure and support services within DHS or other large federal agencies would provide a clearer picture of value. Without specific comparable contract data, it's difficult to definitively assess if this represents excellent or fair value. However, the firm fixed-price structure suggests an effort to ensure predictable costs for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that there were 19 delivery orders suggests an ongoing need and potentially a strong relationship or performance by the awarded contractor, Sevatec LLC. The number of bidders is not specified, but full and open competition generally fosters a competitive environment, which can lead to better pricing and service offerings.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and thus potentially lower prices.

Public Impact

U.S. Citizenship and Immigration Services (USCIS) benefits from enhanced computing infrastructure and data processing capabilities. The services provided support critical functions of USCIS, likely related to immigration processing and case management. The contract's impact is primarily within the federal government's IT infrastructure, supporting agency operations. Workforce implications are likely within the IT sector, potentially supporting jobs at Sevatec LLC and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if not managed carefully, despite competitive award.
Scope creep on delivery orders could increase costs beyond initial expectations.
Dependence on a single contractor for critical IT infrastructure services.

Positive Signals

Awarded through full and open competition, suggesting a fair process.
Firm fixed-price contract type helps control costs.
Long-term contract indicates sustained need and potential for stable service delivery.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computing infrastructure, data processing, and web hosting. The federal IT services market is substantial, with agencies like DHS being major consumers. Contracts of this nature are crucial for maintaining and upgrading the technological backbone of government operations. Comparable spending benchmarks would involve looking at other large-scale IT infrastructure support contracts awarded by agencies of similar size and mission.

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 specifically mandated for small businesses through a set-aside. However, the prime contractor, Sevatec LLC, may still engage small businesses as subcontractors to fulfill parts of the contract, depending on their own business practices and the nature of the services required.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Citizenship and Immigration Services (USCIS) contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving delivery orders. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

DHS IT Modernization Initiatives
USCIS Cloud Computing Services
Federal Data Center Consolidation Initiative
IT Infrastructure Support Services

Risk Flags

Potential for scope creep impacting cost and delivery.
Dependence on a single contractor for critical IT functions.
Need for robust performance monitoring to ensure service quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $46.0 million to SEVATEC LLC. IGF::OT::IGF CUSTOMER SERVICE PORTFOLIO JETS

Who is the contractor on this award?

The obligated recipient is SEVATEC LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $46.0 million.

What is the period of performance?

Start: 2015-09-18. End: 2021-03-14.

What is Sevatec LLC's track record with federal contracts, particularly within DHS?

Sevatec LLC has a history of performing federal contracts, including those with the Department of Homeland Security (DHS). This specific contract with USCIS for IT services represents a significant award. Analyzing their past performance on similar contracts, including any awards, past performance evaluations, and any reported issues or disputes, would provide a more comprehensive understanding of their capabilities and reliability. Their success in winning this 'full and open' competition suggests they met the government's requirements and were competitive. Further investigation into their contract portfolio, including contract values, agencies served, and contract types, would offer deeper insights into their experience and capacity.

How does the $46 million award compare to similar IT infrastructure contracts within DHS?

The $46 million award over approximately five years, averaging $9.2 million annually, places this contract in the mid-to-large tier for IT infrastructure support within a major federal agency like DHS. To benchmark effectively, one would compare this to other contracts for similar services (e.g., data center operations, cloud hosting, network management) awarded by agencies such as Customs and Border Protection (CBP), Immigration and Customs Enforcement (ICE), or the Transportation Security Administration (TSA). Factors like contract duration, number of delivery orders, and specific service requirements are crucial for a fair comparison. Without access to a detailed database of comparable contracts and their specific performance metrics, a precise value-for-money assessment is challenging, but the annual average suggests a substantial, ongoing IT support requirement.

What are the primary risks associated with this firm fixed-price contract for IT services?

The primary risks with a firm fixed-price (FFP) contract for IT services revolve around scope definition and management. If the scope of work is not clearly defined or if significant changes occur during performance, the contractor may face challenges in delivering the required services within the fixed price, potentially leading to cost overruns for them or reduced quality. For the government, the risk is that the contractor might cut corners on service quality to maintain profitability if the scope is underestimated or if unforeseen technical challenges arise. Effective contract management, including robust change control processes and clear performance metrics, is essential to mitigate these risks and ensure value delivery.

How effective has Sevatec LLC been in delivering services under this contract, based on available data?

Assessing the effectiveness of Sevatec LLC's service delivery under this specific contract requires access to performance evaluations, user feedback, and potentially data on service uptime, issue resolution times, and achievement of key performance indicators (KPIs). The fact that 19 delivery orders were issued over the contract period suggests a sustained need and likely ongoing utilization of the services. However, the number of orders alone does not guarantee effectiveness. A thorough review would involve examining any formal performance reviews, contract modifications, or any reported issues or successes related to the services provided. Without this granular performance data, effectiveness remains an assumption based on continued engagement.

What is the historical spending trend for similar IT infrastructure services at USCIS or DHS?

Historical spending trends for IT infrastructure services at USCIS and DHS are generally characterized by significant and often increasing investments, driven by the need to modernize legacy systems, adopt cloud technologies, and enhance cybersecurity. Agencies like USCIS rely heavily on robust IT infrastructure to manage vast amounts of data and process applications efficiently. Spending in this area can fluctuate based on specific modernization projects, security mandates, and shifts in technology. Analyzing past budgets and contract awards for IT infrastructure support over several fiscal years would reveal patterns of investment, identify key service areas, and potentially highlight any significant increases or decreases in spending, providing context for the $46 million award.

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: 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

Offers Received: 19

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Octo Consulting Group LLC (UEI: 117419678)

Address: 3112 FAIRVIEW PARK DR, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $69,252,670

Exercised Options: $46,004,408

Current Obligation: $46,004,408

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSHQDC13DE2075

IDV Type: IDC

Timeline