IT Security Services contract awarded to ELECTROSOFT SERVICES, LLC for over $4M, with a 333-day duration

Contract Overview

Contract Amount: $4,078,397 ($4.1M)

Contractor: Electrosoft Services, LLC

Awarding Agency: Department of Commerce

Start Date: 2024-04-21

End Date: 2025-03-20

Contract Duration: 333 days

Daily Burn Rate: $12.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT SECURITY SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230

State: District of Columbia Government Spending

Plain-Language Summary

Department of Commerce obligated $4.1 million to ELECTROSOFT SERVICES, LLC for work described as: IT SECURITY SERVICES Key points: 1. Value for money appears fair given the fixed-price nature and market benchmarks. 2. Competition was conducted under a 'full and open competition after exclusion of sources' clause, suggesting a potentially limited but justified bidding process. 3. Risk indicators are moderate, with a defined performance period and fixed pricing mitigating some financial uncertainties. 4. Performance context is within IT security services, a critical area for government operations. 5. Sector positioning is within IT services, specifically computer systems design. 6. The contract's value is within a typical range for specialized IT security support.

Value Assessment

Rating: fair

The contract's total value of approximately $4.08 million for a 333-day period suggests a daily rate of roughly $12,247. This rate needs to be benchmarked against similar IT security service contracts. The firm-fixed-price structure provides cost certainty for the government, but the ultimate value depends on the quality and effectiveness of the services delivered. Without specific deliverables or performance metrics, a definitive value assessment is challenging.

Cost Per Unit: $12,247 per day

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This procurement method implies that while the competition was intended to be open, specific sources were excluded, possibly due to specialized requirements or prior relationships. The number of bidders is not specified, but the exclusion clause suggests a potentially narrower field than a purely open competition, which could impact price discovery.

Taxpayer Impact: The exclusion of certain sources, even with an open competition framework, may limit the potential for the most competitive pricing. Taxpayers benefit from a structured competition, but the specific exclusion could mean slightly higher costs than if all potential vendors were considered.

Public Impact

The primary beneficiaries are likely federal agencies requiring enhanced IT security to protect sensitive data and systems. Services delivered include computer systems design and IT security support, crucial for maintaining operational integrity. The geographic impact is centered in the District of Columbia, where the Department of Commerce is headquartered. Workforce implications may involve specialized IT security professionals employed by ELECTROSOFT SERVICES, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to source exclusion clause.
Lack of detailed performance metrics makes value assessment difficult.
Reliance on a single award for a critical service area.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded to a single entity for specialized IT security services.
Defined period of performance with clear start and end dates.

Sector Analysis

The IT security services market is a rapidly growing and critical sector within the broader technology industry. Government spending in this area is substantial, driven by increasing cyber threats and the need to protect sensitive national security and citizen data. This contract fits within the computer systems design and related services sub-sector, which includes a wide range of IT support and consulting. Comparable spending benchmarks would involve analyzing other federal contracts for similar IT security and systems design services, often measured by daily rates or project values.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary consideration for this specific contract award. There is no indication of a small business set-aside. Therefore, the direct impact on the small business ecosystem is likely minimal, and there are no explicit subcontracting requirements for small businesses mentioned in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Commerce's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services. Transparency is generally maintained through contract databases like FPDS, where this award is recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Security Services
Computer Systems Design Services
Department of Commerce IT Support
Federal Cybersecurity Contracts

Risk Flags

Limited competition potential due to source exclusion.
Lack of detailed performance metrics for value assessment.
Potential for higher costs compared to unrestricted competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $4.1 million to ELECTROSOFT SERVICES, LLC. IT SECURITY SERVICES

Who is the contractor on this award?

The obligated recipient is ELECTROSOFT SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (Office of the Secretary).

What is the total obligated amount?

The obligated amount is $4.1 million.

What is the period of performance?

Start: 2024-04-21. End: 2025-03-20.

What is the track record of ELECTROSOFT SERVICES, LLC in delivering IT security services to the federal government?

Assessing the track record of ELECTROSOFT SERVICES, LLC requires a deeper dive into their past performance on federal contracts. This would involve reviewing contract databases for previous awards, examining performance evaluations (if publicly available), and looking for any reported issues or successes. Without specific historical data on this contractor's performance in IT security, it's difficult to definitively state their capabilities. However, the award of this contract by the Department of Commerce suggests they met the minimum qualifications and were deemed capable of performing the required services at the time of award. Further investigation into their contract history, including contract values, agencies served, and duration, would provide a more comprehensive understanding of their experience and reliability in the federal IT security landscape.

How does the daily rate of $12,247 for these IT security services compare to market benchmarks?

The daily rate of approximately $12,247 for IT security services needs careful benchmarking. This rate is derived from the total contract value ($4,078,397.38) divided by the contract duration in days (333). Market rates for IT security professionals can vary significantly based on skill set, experience level, geographic location, and the specific services provided (e.g., penetration testing, security architecture, incident response). To assess value, this rate should be compared against industry surveys, government-wide contract vehicles (like GSA schedules), and recent awards for similar services. If this rate is significantly higher than comparable contracts for equivalent services, it could indicate potential overpricing or a need for more competitive bidding. Conversely, if it aligns with or is below market rates for highly specialized skills, it may represent good value.

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

The primary risks associated with this contract include potential underperformance by the contractor, cost overruns (though mitigated by fixed-price), and cybersecurity vulnerabilities if services are not delivered effectively. The fixed-price nature of the contract mitigates financial risk for the government, as the total cost is predetermined. Mitigation for performance risk relies on the government's oversight, including monitoring deliverables and contractor performance against contract requirements. Cybersecurity risks are inherent to the service itself; the government must ensure the contractor adheres to strict security protocols and that the services provided genuinely enhance, rather than compromise, its security posture. The defined period of performance also limits the duration of exposure to these risks.

How effective is the 'full and open competition after exclusion of sources' method in ensuring competitive pricing for IT security services?

The 'full and open competition after exclusion of sources' method aims to balance broad competition with specific needs. It allows for an open bidding process but permits the exclusion of certain sources based on defined criteria, such as specialized capabilities or past performance issues. While this can lead to a more focused competition among qualified vendors, it inherently limits the pool of potential bidders compared to a truly unrestricted open competition. This limitation could potentially reduce competitive pressure on pricing. The effectiveness in ensuring competitive pricing depends heavily on the justification for excluding sources and the number of remaining qualified bidders. If the exclusion was necessary and a sufficient number of capable vendors still competed, pricing could be competitive; however, if it significantly narrowed the field, taxpayers might not receive the most advantageous pricing possible.

What is the historical spending pattern for IT security services within the Department of Commerce?

Analyzing historical spending patterns for IT security services within the Department of Commerce is crucial for context. This involves examining previous contract awards for similar services over several fiscal years. Key metrics to review would include the total amount spent annually on IT security, the number of contracts awarded, the types of services procured (e.g., hardware, software, consulting, managed services), and the primary contractors. Understanding these patterns helps identify trends, potential increases or decreases in spending, and whether this $4.08 million contract represents a significant deviation or aligns with established spending levels. It also informs whether the Department relies heavily on external contractors for these services or has substantial in-house capabilities.

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 › IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Electrosoft Services LLC

Address: 1893 METRO CENTER DR STE 228, RESTON, VA, 20190

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small 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, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $4,078,397

Exercised Options: $4,078,397

Current Obligation: $4,078,397

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCB22D0138

IDV Type: GWAC

Timeline