HHS Cybersecurity Support Contract Awarded to EMAGINE IT INC for $2.49M

Contract Overview

Contract Amount: $2,490,976 ($2.5M)

Contractor: Emagine IT Inc

Awarding Agency: Department of the Interior

Start Date: 2025-09-17

End Date: 2026-09-17

Contract Duration: 365 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: HHS OCIO OIS CYBERSECURITY STRATEGY AND ENGAGEMENT SUPPORT SERVICES (CSESS)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $2.5 million to EMAGINE IT INC for work described as: HHS OCIO OIS CYBERSECURITY STRATEGY AND ENGAGEMENT SUPPORT SERVICES (CSESS) Key points: 1. Contract aims to bolster cybersecurity strategy and engagement for HHS OCIO OIS. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Duration of one year with potential for extensions, typical for service contracts. 4. Time and Materials pricing structure allows flexibility but requires careful monitoring. 5. Contract value is modest within the broader federal IT services landscape. 6. Focus on cybersecurity is critical given increasing digital threats.

Value Assessment

Rating: good

The contract value of approximately $2.49 million for a one-year period appears reasonable for specialized cybersecurity strategy and engagement support. Benchmarking against similar contracts for IT consulting and cybersecurity services within the federal government suggests this is within a typical range for a task order of this scope. The Time and Materials (T&M) pricing, while offering flexibility, necessitates diligent oversight to ensure costs remain aligned with the value delivered and do not escalate beyond initial projections. Without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging, but the initial award seems fair.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 7 bidders suggests a healthy level of competition for this cybersecurity support requirement. A competitive process like this generally leads to better price discovery and encourages contractors to offer competitive rates and innovative solutions to win the award. The agency's decision to use full and open competition is a positive indicator for achieving best value.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process as it typically drives down costs and ensures the government receives services at a fair market price. The multiple bids received suggest that the government is not locked into a single provider, fostering a more cost-effective outcome.

Public Impact

The primary beneficiaries are the Department of Health and Human Services (HHS) Office of the Chief Information Officer (OCIO) and the Office of Information Security (OIS), who will receive enhanced cybersecurity strategy and engagement. Services delivered will focus on improving the overall cybersecurity posture and operational effectiveness of HHS's IT systems. The geographic impact is primarily within the District of Columbia, where the Department of the Interior is headquartered and where many federal IT services are managed. Workforce implications may include the need for specialized cybersecurity expertise, potentially involving both government personnel and contractor staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely managed and monitored for scope creep.
The specific deliverables and performance metrics are not detailed, making it difficult to assess the contractor's accountability and the true value received.
Reliance on external support for critical cybersecurity functions requires robust internal oversight and knowledge transfer mechanisms.

Positive Signals

Awarded through full and open competition with multiple bidders, indicating a competitive market for these services.
The contract duration of one year provides a defined period for service delivery and performance evaluation.
Focus on cybersecurity strategy and engagement is a critical and high-priority area for federal agencies.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on cybersecurity consulting and support. The federal IT services market is substantial, with significant spending allocated annually to cybersecurity solutions due to increasing threats. Comparable spending benchmarks for cybersecurity strategy and engagement support services can vary widely based on scope, duration, and contractor expertise. This contract's value of approximately $2.49 million for a one-year period is relatively modest within the context of large-scale federal IT procurements, but it addresses a critical niche.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, the primary contractor, EMAGINE IT INC, is likely a mid-to-large sized firm. There is no explicit information regarding subcontracting plans for small businesses. Without a small business set-aside or specific subcontracting goals, the direct impact on the small business ecosystem for this particular contract is likely minimal, though larger prime contractors often engage small businesses for specialized support.

Oversight & Accountability

Oversight for this contract will primarily reside with the contracting officer and the designated technical points of contact within the Department of the Interior's OCIO and OIS. The Time and Materials (T&M) pricing structure necessitates rigorous monitoring of labor hours and direct costs to ensure compliance with the contract terms and prevent overspending. Transparency is facilitated through contract reporting requirements, though specific details on reporting frequency and content are not provided. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

HHS Cybersecurity Strategy and Engagement Support
Federal IT Consulting Services
Cybersecurity Risk Management Services
IT Strategy and Planning Support

Risk Flags

Potential for cost overruns due to T&M pricing structure.
Need for robust oversight to ensure effective service delivery and value.
Dependence on contractor expertise requires careful knowledge transfer.
Cybersecurity threats are constantly evolving, requiring adaptive strategies.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $2.5 million to EMAGINE IT INC. HHS OCIO OIS CYBERSECURITY STRATEGY AND ENGAGEMENT SUPPORT SERVICES (CSESS)

Who is the contractor on this award?

The obligated recipient is EMAGINE IT INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $2.5 million.

What is the period of performance?

Start: 2025-09-17. End: 2026-09-17.

What is EMAGINE IT INC's track record with federal cybersecurity contracts?

EMAGINE IT INC has a history of performing IT services for federal agencies. While specific details on their cybersecurity contract performance are not provided in this data snippet, their ability to win this contract suggests they meet the qualifications outlined in the solicitation. A deeper dive into their past performance evaluations, contract awards, and any reported issues or successes on similar cybersecurity-related federal contracts would provide a more comprehensive understanding of their track record. Reviewing contract databases and agency performance reports would be necessary to assess their reliability and expertise in delivering cybersecurity strategy and engagement support.

How does the $2.49 million contract value compare to similar cybersecurity support services awarded by the federal government?

The $2.49 million contract value for a one-year cybersecurity strategy and engagement support service is within a reasonable range for federal procurements of this nature. Federal agencies often award contracts for similar services that can range from hundreds of thousands to several million dollars, depending on the scope, duration, complexity, and specific requirements. For instance, larger, multi-year contracts for comprehensive cybersecurity modernization or large-scale threat intelligence platforms can easily exceed tens or hundreds of millions. Conversely, smaller, more focused task orders for specific advisory services might be in the low hundreds of thousands. This contract appears to be a mid-tier award for specialized support, suggesting it is competitive within its niche.

What are the primary risks associated with a Time and Materials (T&M) contract for cybersecurity services?

The primary risk with a Time and Materials (T&M) contract for cybersecurity services is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and materials used, plus a fixed fee or percentage for profit. If the scope of work is not clearly defined, or if there are inefficiencies in the contractor's performance, the costs can escalate beyond the government's initial budget. For cybersecurity, this could mean extended research, unforeseen technical challenges, or scope creep if requirements are not tightly managed. Effective oversight, detailed work breakdown structures, and clear performance metrics are crucial to mitigate these risks and ensure the government receives value for its investment.

How effective is full and open competition in ensuring value for taxpayer money in IT service contracts?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in IT service contracts. By allowing all responsible sources to compete, the government benefits from a wider range of potential solutions and pricing. This competitive pressure incentivizes contractors to offer their best prices and most innovative approaches to win the contract. The presence of multiple bidders, as seen with the 7 bidders for this contract, further strengthens this effect, leading to better price discovery and reducing the likelihood of paying inflated prices. While effective oversight is still necessary, full and open competition lays a strong foundation for achieving cost savings and superior service delivery.

What are the potential implications of this contract on the Department of the Interior's overall cybersecurity posture?

This contract is awarded to support HHS OCIO OIS cybersecurity, not the Department of the Interior directly, though the agency listed is DOI. Assuming this is a typo and it pertains to HHS, the contract's implications for HHS's cybersecurity posture are intended to be positive. By engaging EMAGINE IT INC for strategy and engagement support, HHS aims to enhance its defenses against evolving cyber threats, improve its incident response capabilities, and ensure compliance with federal cybersecurity mandates. The success of this contract will depend on the quality of the strategic guidance provided and the effectiveness of the engagement efforts in translating that strategy into actionable improvements within HHS's IT environment. A well-executed contract should lead to a more resilient and secure information infrastructure.

What is the significance of the contract's end date (September 17, 2026) and duration (365 days)?

The contract has a stated period of performance from September 17, 2025, to September 17, 2026, indicating a one-year duration. The 'dur': 365 value confirms this. This one-year term is common for service contracts, allowing the agency to assess the contractor's performance before considering any potential option periods or renewals. It provides a defined timeframe for achieving specific objectives related to cybersecurity strategy and engagement. The end date also signifies when the current funding and services under this specific award are scheduled to conclude, prompting the agency to either re-compete the requirement, extend the contract if options exist and are exercised, or transition to a new solution.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140D0425Q0446

Offers Received: 7

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 909 ROSE AVE, NORTH BETHESDA, MD, 20852

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Subchapter S Corporation, Indian (Subcontinent) American Owned Business

Financial Breakdown

Contract Ceiling: $19,495,793

Exercised Options: $4,443,928

Current Obligation: $2,490,976

Actual Outlays: $200,276

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0217T

IDV Type: FSS

Timeline