DHS awards $56.4M for data and business intelligence support to Sevatec LLC

Contract Overview

Contract Amount: $56,418,286 ($56.4M)

Contractor: Sevatec LLC

Awarding Agency: Department of Homeland Security

Start Date: 2017-06-12

End Date: 2021-06-11

Contract Duration: 1,460 days

Daily Burn Rate: $38.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF DATA AND BUSINESS INTELLIGENCE SUPPORT SERVICES (DBIS) III

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $56.4 million to SEVATEC LLC for work described as: IGF::OT::IGF DATA AND BUSINESS INTELLIGENCE SUPPORT SERVICES (DBIS) III Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1460 days (4 years) indicates a significant, long-term need for these services. 3. The Cost Plus Fixed Fee (CPFF) contract type can present cost control challenges if not managed closely. 4. The award value of $56.4 million places this contract within a substantial spending category. 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 as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

The contract value of $56.4 million over four years averages to approximately $14.1 million annually. Benchmarking this against similar data and business intelligence support contracts is difficult without more specific service details. However, the CPFF pricing structure requires careful monitoring to ensure value for money, as it allows for reimbursement of allowable costs plus a fixed fee, which can sometimes lead to higher overall costs compared to fixed-price contracts if cost overruns occur.

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 bids. The data shows 4 offers were received, suggesting a moderate level of competition for this requirement. A competitive process generally helps in achieving better pricing and service quality by allowing multiple vendors to vie for the contract.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining competitive pricing and innovative solutions, thereby maximizing the value of federal spending.

Public Impact

Benefits U.S. Citizenship and Immigration Services (USCIS) by providing essential data and business intelligence support. Enhances the agency's ability to process information and make data-driven decisions. Supports the operational efficiency of a critical component of the Department of Homeland Security. The services delivered are crucial for managing immigration data and related business processes. The primary geographic impact is within the District of Columbia, where USCIS operations are often centralized.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type may lead to cost overruns if not rigorously managed.
Limited public information on specific performance metrics makes it difficult to assess the contractor's effectiveness beyond contract completion.
The reliance on a single delivery order under a potentially larger IDIQ vehicle could indicate a lack of broader market engagement for this specific service need.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
The contractor, Sevatec LLC, is a known entity in the federal contracting space, suggesting some level of established capability.
The contract duration of four years implies a stable and predictable need for these services, allowing for focused execution.

Sector Analysis

The contract falls within the IT and professional services sector, specifically focusing on data processing, business intelligence, and computing infrastructure. The market for these services is large and highly competitive, with numerous vendors offering solutions. This contract represents a significant investment by USCIS in leveraging data analytics and IT infrastructure to support its mission. Comparable spending benchmarks would typically be found within IT services contracts awarded by large federal agencies for similar data management and analytical support.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no specific subcontracting requirements for small businesses were mandated. Sevatec LLC is not listed as a small business. This means that opportunities for small businesses to participate in this contract are likely limited unless Sevatec proactively engages them as subcontractors, which is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Citizenship and Immigration Services (USCIS) contracting officers and program managers. As a Department of Homeland Security contract, it may also be subject to review by the DHS Office of Inspector General (OIG) for potential fraud, waste, or abuse. Transparency is generally maintained through contract award databases, but detailed performance and cost oversight information is often internal to the agency.

Related Government Programs

Department of Homeland Security IT Services
USCIS Data Management Contracts
Business Intelligence and Analytics Support
Cloud Computing and Data Hosting Services
Federal IT Infrastructure Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Potential for scope creep if requirements are not clearly defined and managed.
Dependence on contractor performance for critical data intelligence functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $56.4 million to SEVATEC LLC. IGF::OT::IGF DATA AND BUSINESS INTELLIGENCE SUPPORT SERVICES (DBIS) III

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 $56.4 million.

What is the period of performance?

Start: 2017-06-12. End: 2021-06-11.

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

Sevatec LLC has a history of performing federal IT contracts, including work with various agencies within the Department of Homeland Security. While specific details on past performance for data and business intelligence support services at USCIS are not fully elaborated in this data snippet, Sevatec has been involved in providing a range of IT solutions, including software development, cybersecurity, and cloud services. Their experience often spans complex government IT modernization efforts. A deeper dive into contract databases like FPDS or SAM.gov would reveal the scope, value, and performance ratings of their prior engagements, offering a more comprehensive view of their capabilities and reliability in delivering similar services.

How does the $56.4 million award compare to other data and business intelligence contracts awarded by USCIS or DHS?

The $56.4 million award over four years for data and business intelligence support services is a substantial contract, aligning with the significant IT investments made by large federal agencies like USCIS. To provide a precise comparison, one would need to analyze the average award values for similar NAICS codes (e.g., 518210) and contract types (e.g., CPFF) within DHS and USCIS over comparable timeframes. Generally, contracts of this magnitude indicate a critical need for ongoing, high-level data support. It suggests USCIS is investing significantly in its data infrastructure and analytical capabilities, which is consistent with the growing importance of data-driven decision-making across government.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this nature?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' component means the government reimburses the contractor's allowable costs. If the contractor's costs exceed initial estimates, the government pays more. This necessitates robust oversight from the contracting officer to ensure that all costs incurred are reasonable, allocable, and necessary for contract performance. Without diligent monitoring and control, CPFF contracts can become more expensive than fixed-price alternatives, potentially impacting the overall value for taxpayers.

How effective is full and open competition in ensuring value for money for data and business intelligence services?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting. By allowing all responsible sources to compete, it fosters a competitive environment that drives down prices, encourages innovation, and improves the quality of services offered. For data and business intelligence services, which can be complex and varied, competition allows agencies to solicit a wide range of technical approaches and pricing structures. The receipt of four offers in this case suggests a healthy level of competition, which should have contributed to achieving a fair market price and selecting a capable vendor.

What is the historical spending trend for data and business intelligence support services at USCIS?

Analyzing historical spending trends for data and business intelligence support services at USCIS requires access to comprehensive contract data over multiple fiscal years. Without that specific historical data, it's difficult to ascertain a precise trend. However, given the increasing reliance on data analytics across all government functions, it is reasonable to infer that spending in this area has likely been stable or increasing. Agencies like USCIS manage vast amounts of sensitive data, making robust business intelligence and data processing capabilities essential for their operations and mission fulfillment. This $56.4 million award suggests a significant and sustained commitment to these capabilities.

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: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1604 SPRING HILL RD STE 200, VIENNA, VA, 22182

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: $56,423,286

Exercised Options: $56,418,286

Current Obligation: $56,418,286

Actual Outlays: $301,556

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSHQDC13DE2075

IDV Type: IDC

Timeline