DHS awards $39.8M for Computing Infrastructure to SEVATEC LLC under full and open competition
Contract Overview
Contract Amount: $39,834,513 ($39.8M)
Contractor: Sevatec LLC
Awarding Agency: Department of Homeland Security
Start Date: 2017-09-26
End Date: 2021-09-25
Contract Duration: 1,460 days
Daily Burn Rate: $27.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CT::IGF ICAM-US
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20529
Plain-Language Summary
Department of Homeland Security obligated $39.8 million to SEVATEC LLC for work described as: IGF::CT::IGF ICAM-US Key points: 1. The contract value of $39.8M over 4 years for computing infrastructure services is substantial. 2. SEVATEC LLC secured this award through full and open competition, indicating a competitive market. 3. Potential risks include vendor lock-in and ensuring continued cost-effectiveness over the contract duration. 4. The sector is IT, specifically computing infrastructure and data processing services.
Value Assessment
Rating: good
The contract value of $39.8M over 4 years averages to approximately $9.96M annually. This appears reasonable for comprehensive computing infrastructure services, though a direct per-unit cost comparison is difficult without more granular data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, suggesting multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offering.
Taxpayer Impact: Full and open competition aims to secure the best possible prices for taxpayers by fostering a competitive environment among qualified vendors.
Public Impact
Citizenship and immigration services rely on robust IT infrastructure for processing applications and managing data. The contract supports critical government functions related to national security and immigration. The use of a firm-fixed-price contract provides cost certainty for the government.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope creeps beyond initial estimates.
- Dependence on a single vendor for critical IT infrastructure.
- Ensuring data security and privacy of sensitive immigration information.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Firm-fixed-price contract provides budget predictability.
- Long-term contract allows for stable service delivery.
Sector Analysis
This contract falls within the IT sector, specifically focusing on computing infrastructure, data processing, and web hosting. Spending in this area is crucial for government operations, with benchmarks varying widely based on the scope and complexity of services required.
Small Business Impact
While the award was made to SEVATEC LLC, the data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded by the Department of Homeland Security, U.S. Citizenship and Immigration Services. Oversight would typically involve contract management officials ensuring performance and adherence to terms, with potential for IG reviews.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Homeland Security Contracting
- U.S. Citizenship and Immigration Services Programs
Risk Flags
- Vendor Lock-in
- Data Security and Privacy
- Scope Creep
- Reliance on a Single Provider
Tags
computing-infrastructure-providers-data-, department-of-homeland-security, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $39.8 million to SEVATEC LLC. IGF::CT::IGF ICAM-US
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 $39.8 million.
What is the period of performance?
Start: 2017-09-26. End: 2021-09-25.
What specific computing infrastructure services are included in this contract, and how do they align with USCIS's operational needs?
The contract covers computing infrastructure, data processing, and web hosting. These services are fundamental for USCIS's mission, supporting the digital infrastructure required for processing immigration applications, managing citizen data, and facilitating online services. The specific details would be outlined in the contract's statement of work, detailing servers, storage, network capabilities, and associated support.
What is the benchmark for similar computing infrastructure contracts awarded by federal agencies of comparable size and scope?
Benchmarking requires comparing the contract's total value ($39.8M over 4 years) against similar IT service contracts for agencies with comparable user bases and data processing needs. Factors like service level agreements, security requirements, and geographic distribution of services influence pricing. Without specific service details, a precise benchmark is difficult, but the annual average of ~$9.96M suggests a significant investment.
How effectively does the firm-fixed-price structure mitigate risks associated with potential cost increases in the IT infrastructure market?
A firm-fixed-price (FFP) contract provides the government with cost certainty, as the price is set regardless of the contractor's actual costs. This mitigates the risk of cost overruns due to market fluctuations in hardware, software, or labor. However, it shifts the risk of cost underestimation to the contractor, potentially leading to less competitive bids if the contractor perceives high market volatility.
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: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Octo Consulting Group LLC
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: $39,834,513
Exercised Options: $39,834,513
Current Obligation: $39,834,513
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
Start Date: 2017-09-26
Current End Date: 2021-09-25
Potential End Date: 2021-09-25 00:00:00
Last Modified: 2022-04-02
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