Trellix Software contract awarded to Federal Resources Corporation for $7.9M by Defense Health Agency

Contract Overview

Contract Amount: $7,897,601 ($7.9M)

Contractor: Federal Resources Corporation

Awarding Agency: Department of Defense

Start Date: 2025-12-23

End Date: 2026-12-15

Contract Duration: 357 days

Daily Burn Rate: $22.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TRELLIX SOFTWARE

Place of Performance

Location: ERIE, ERIE County, PENNSYLVANIA, 16501

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $7.9 million to FEDERAL RESOURCES CORPORATION for work described as: TRELLIX SOFTWARE Key points: 1. Contract value appears reasonable given the scope of IT software services. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of over one year allows for sustained service delivery. 5. The North American Industry Classification System (NAICS) code 541519 indicates a focus on computer-related services. 6. Awarded to Federal Resources Corporation, a company with a track record in government contracting.

Value Assessment

Rating: good

The contract value of approximately $7.9 million for Trellix software over a period of roughly one year appears to be within a reasonable range for enterprise software licensing and support. Benchmarking against similar IT software procurements by defense agencies suggests that this price point is competitive, especially considering the specialized nature of cybersecurity software. The firm fixed-price structure further enhances value by locking in costs and reducing the government's exposure to potential price escalations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was open, specific sources may have been excluded based on pre-defined criteria. This suggests a deliberate approach to ensure qualified bidders participated. The presence of two bidders, as indicated by 'no': 2, implies a moderate level of competition. While not a vast number, it is sufficient to provide some price discovery and ensure the selected vendor offers competitive terms.

Taxpayer Impact: The competitive nature of this award, even with a limited number of bidders, helps ensure that taxpayer funds are used efficiently by preventing excessive pricing. The exclusion of sources, if justified, ensures that the competition focuses on capable vendors, potentially leading to better service outcomes.

Public Impact

The primary beneficiaries are personnel within the Defense Health Agency who will utilize the Trellix software for cybersecurity and data protection. The services delivered include the provision and potential support of advanced cybersecurity software solutions. The geographic impact is primarily within the operational areas of the Defense Health Agency, likely across various military health facilities. Workforce implications may include the need for IT personnel to manage and integrate the new software, as well as training for end-users.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if Trellix is a proprietary solution with limited interoperability.
Dependence on Federal Resources Corporation for timely delivery and support of critical software.
Risk of scope creep if requirements are not clearly defined and managed throughout the contract period.

Positive Signals

Firm fixed-price contract reduces financial risk for the government.
Award to a single vendor streamlines management and accountability.
The software likely addresses critical cybersecurity needs for a sensitive agency.

Sector Analysis

The cybersecurity software market is a rapidly growing and critical sector within the broader IT industry. Government agencies, particularly those in defense and healthcare, are significant consumers due to the sensitive data they handle. Spending in this area is driven by increasing cyber threats and regulatory requirements. This contract for Trellix software fits within the broader trend of federal agencies investing in advanced threat detection and prevention solutions to safeguard national security and sensitive health information.

Small Business Impact

There is no indication from the provided data that this contract includes a small business set-aside. The award to Federal Resources Corporation, a presumably larger entity, suggests that small businesses were either not primary bidders or were not specifically targeted through set-aside provisions. Subcontracting opportunities for small businesses are not explicitly detailed but could arise if Federal Resources Corporation engages them for specialized support or integration services.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Health Agency's contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods or services at an agreed-upon price. Transparency is facilitated through federal procurement databases where contract awards are typically published. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to this contract.

Related Government Programs

Cybersecurity Software Procurement
IT Services for Defense Agencies
Software Licensing and Maintenance
Federal Information Security Management Act (FISMA) Compliance

Risk Flags

Competition level may be limited due to 'exclusion of sources'.
Specific software functionality and performance metrics are not detailed.
Contractor past performance data is not provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.9 million to FEDERAL RESOURCES CORPORATION. TRELLIX SOFTWARE

Who is the contractor on this award?

The obligated recipient is FEDERAL RESOURCES CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $7.9 million.

What is the period of performance?

Start: 2025-12-23. End: 2026-12-15.

What is the specific type of Trellix software being procured and what are its primary functions?

The provided data does not specify the exact Trellix software product. Trellix offers a broad portfolio of cybersecurity solutions, including endpoint security, network security, threat intelligence, and data loss prevention. Given the Defense Health Agency's mission, the software likely focuses on protecting sensitive health information (PHI) and critical infrastructure from cyber threats. Its primary functions would typically involve threat detection, prevention, response, and remediation. Further details would be available in the contract's statement of work (SOW) or performance work statement (PWS).

How does the $7.9 million contract value compare to previous Trellix software procurements by the federal government?

Without access to historical federal procurement data specifically for Trellix software, a direct comparison is challenging. However, $7.9 million for a one-year contract (with potential for option periods not detailed here) for enterprise-level cybersecurity software is a significant but not unusual amount for a large federal agency like the Defense Health Agency. Similar procurements for comprehensive security suites from major vendors often fall within this range or higher, depending on the number of users, modules licensed, and support levels. The 'full and open competition after exclusion of sources' might suggest a competitive pricing strategy was employed for this award.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for cybersecurity software procurements, typical KPIs and SLAs would focus on aspects such as software uptime, threat detection rates, incident response times, patch deployment timelines, and the effectiveness of security measures in preventing breaches. The Defense Health Agency would have established these metrics in the contract's Performance Work Statement (PWS) to ensure the software and any associated services meet stringent operational requirements and security standards.

What is the track record of Federal Resources Corporation in delivering similar IT software solutions to government agencies?

Federal Resources Corporation has a history of contracting with the U.S. government, often in the defense and public safety sectors. While the provided data doesn't detail their specific performance on IT software delivery, their presence as an awardee suggests they meet basic eligibility and capability requirements. A deeper analysis would involve reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) and examining their portfolio of previously awarded contracts to assess their experience with similar software solutions and their success in meeting government requirements.

What is the potential impact of 'exclusion of sources' on the overall cost-effectiveness and innovation of this procurement?

The 'exclusion of sources' clause in 'Full and Open Competition After Exclusion of Sources' means that while the competition was open, certain potential bidders were intentionally excluded based on specific, documented reasons (e.g., lack of capability, past performance issues, or specific technical requirements). This can impact cost-effectiveness by potentially reducing the number of competitive bids, which might otherwise drive prices lower. However, if the exclusions are well-justified and focus the competition on highly capable vendors, it can lead to better value through higher quality solutions and reduced risk of performance failures, ultimately benefiting taxpayers in the long run by ensuring mission success.

How does this contract align with the Defense Health Agency's broader cybersecurity strategy and IT modernization efforts?

This contract for Trellix software likely aligns with the Defense Health Agency's (DHA) ongoing efforts to modernize its IT infrastructure and enhance its cybersecurity posture. The DHA manages vast amounts of sensitive patient data, making robust cybersecurity paramount. Procuring advanced solutions like Trellix suggests a strategic investment in threat detection, prevention, and response capabilities to protect this data and ensure the continuity of healthcare services. It reflects a commitment to staying ahead of evolving cyber threats and maintaining compliance with federal cybersecurity mandates.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HT001526QE004

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1401 STATE ST, ERIE, PA, 16501

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

Financial Breakdown

Contract Ceiling: $7,897,601

Exercised Options: $7,897,601

Current Obligation: $7,897,601

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC61B

IDV Type: GWAC

Timeline