FBI awards $7.46M contract for advanced threat analytics and engineering services to H2L Solutions, Inc

Contract Overview

Contract Amount: $7,455,120 ($7.5M)

Contractor: H2L Solutions, Inc.

Awarding Agency: Department of Justice

Start Date: 2022-09-14

End Date: 2026-09-14

Contract Duration: 1,461 days

Daily Burn Rate: $5.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: IT

Official Description: ADVANCED THREAT ANALYTICS AND ENGINEERING SERVICES TO ENHANCE THE INTELLIGENCE, OPERATIONS, AND PARTNER ENGAGEMENT CAPABILITY OF THE FBI

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35805

State: Alabama Government Spending

Plain-Language Summary

Department of Justice obligated $7.5 million to H2L SOLUTIONS, INC. for work described as: ADVANCED THREAT ANALYTICS AND ENGINEERING SERVICES TO ENHANCE THE INTELLIGENCE, OPERATIONS, AND PARTNER ENGAGEMENT CAPABILITY OF THE FBI Key points: 1. Contract focuses on enhancing intelligence, operations, and partner engagement capabilities. 2. Services include advanced analytics and engineering, crucial for modern cybersecurity. 3. The contract duration of approximately four years suggests a need for sustained support. 4. Delivery order under a larger contract indicates potential for future task orders. 5. The specific NAICS code (541519) covers a broad range of IT services. 6. The contract is a labor hour type, which can be subject to cost overruns if not managed carefully.

Value Assessment

Rating: good

The contract value of $7.46 million over approximately four years for specialized IT services appears reasonable. Benchmarking against similar contracts for advanced threat analytics and engineering services is challenging due to the specialized nature of the work. However, the labor hour pricing model suggests that the value will be directly tied to the effort expended, requiring diligent oversight to ensure efficiency. The award to H2L Solutions, Inc. indicates they were selected based on their technical capabilities and potentially competitive pricing for this specific task.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that it is a delivery order suggests it was likely placed against an existing indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle that itself was competed. The presence of 3 bids (no) suggests a moderate level of competition for this specific task order, which is generally positive for price discovery.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by encouraging a wider range of vendors to offer their best prices and innovative solutions.

Public Impact

The FBI will benefit from enhanced capabilities in analyzing threats and managing intelligence operations. Improved operational effectiveness and partner engagement will strengthen national security. The services delivered are critical for staying ahead of evolving cyber threats. The contract is being performed in Alabama (AL), potentially creating or sustaining jobs in that region. The focus on intelligence and operations directly supports the FBI's core mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hour contracts can lead to cost overruns if not closely monitored for efficiency and scope creep.
The broad nature of 'Other Computer Related Services' could lead to ambiguity in service delivery if not clearly defined.
Reliance on a single vendor for critical threat analytics may pose a risk if the vendor's capabilities degrade or if they face business challenges.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
The contract aims to enhance critical national security functions for the FBI.
The duration of the contract implies a stable and predictable need for these services.

Sector Analysis

The contract falls within the Information Technology and Professional Services sector, specifically focusing on advanced analytics and engineering. This is a rapidly growing area driven by increasing cyber threats and the need for sophisticated data analysis. The market for these services is competitive, with numerous firms offering specialized expertise. The FBI's spending in this area is consistent with the broader government trend towards leveraging technology to improve intelligence gathering and operational effectiveness.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor, H2L Solutions, Inc., may choose to subcontract portions of the work to small businesses as part of their overall business strategy, though this is not mandated by the contract terms.

Oversight & Accountability

Oversight for this contract would primarily reside with the FBI's contracting officers and program managers. As a delivery order, it likely falls under a larger IDIQ contract which may have its own oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. The FBI's Office of the Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

FBI Intelligence Operations Support
Cybersecurity Services Contracts
Advanced Data Analytics Contracts
IT Engineering Services
National Security IT Modernization

Risk Flags

Potential for cost overruns due to labor hour contract type.
Scope creep if requirements are not clearly defined and managed.
Dependence on contractor for critical national security functions.
Ensuring data security and confidentiality of sensitive intelligence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $7.5 million to H2L SOLUTIONS, INC.. ADVANCED THREAT ANALYTICS AND ENGINEERING SERVICES TO ENHANCE THE INTELLIGENCE, OPERATIONS, AND PARTNER ENGAGEMENT CAPABILITY OF THE FBI

Who is the contractor on this award?

The obligated recipient is H2L SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $7.5 million.

What is the period of performance?

Start: 2022-09-14. End: 2026-09-14.

What is the track record of H2L Solutions, Inc. in performing similar advanced analytics and engineering services for federal agencies?

H2L Solutions, Inc. has a history of providing IT and engineering services to federal agencies. While specific details on their performance for advanced threat analytics and engineering are not fully detailed in this summary, their award by the FBI suggests they possess the necessary qualifications and experience. Further analysis would involve reviewing past performance evaluations, contract history, and any reported issues or successes on previous government contracts. Their ability to secure this contract, especially under full and open competition, indicates a positive assessment of their capabilities by the FBI.

How does the pricing structure (labor hours) compare to fixed-price contracts for similar services, and what are the associated risks?

Labor hour contracts, like this one, offer flexibility as the scope of work may evolve. The cost is directly tied to the hours worked by personnel at agreed-upon rates. This contrasts with fixed-price contracts, which offer cost certainty but less flexibility. The primary risk with labor hour contracts is potential cost overruns if work is inefficiently performed or if the scope expands without proper change control. To mitigate this, the FBI will need robust oversight to monitor hours, ensure productivity, and manage the scope of work effectively. Benchmarking specific labor rates against market data for similar skill sets is crucial for value assessment.

What are the key performance indicators (KPIs) used to measure the success of these advanced threat analytics and engineering services?

While specific KPIs are not detailed in the provided data, typical performance indicators for advanced threat analytics and engineering services would likely include metrics related to the accuracy and timeliness of threat detection, the effectiveness of implemented engineering solutions in enhancing system performance, the reduction in successful cyber intrusions, the speed of response to identified threats, and the successful integration of new capabilities with existing FBI systems. Partner engagement metrics might also be tracked, such as the number of successful collaborations facilitated by the enhanced capabilities. The FBI's program managers would be responsible for defining and monitoring these KPIs.

What is the historical spending pattern for similar advanced threat analytics and engineering services by the FBI or other intelligence agencies?

Historical spending on advanced threat analytics and engineering services by the FBI and other intelligence agencies has been on a significant upward trend over the past decade. This is driven by the escalating sophistication of cyber threats and the increasing reliance on data-driven intelligence. Agencies are investing heavily in capabilities that can process vast amounts of data, identify complex patterns, and provide actionable insights. While the specific $7.46 million for this contract is a discrete amount, it represents a portion of a larger, ongoing investment in cybersecurity and intelligence modernization across the federal government. Comparable contracts often range from millions to tens of millions of dollars annually for comprehensive solutions.

What are the potential risks associated with relying on H2L Solutions, Inc. for critical intelligence and operational capabilities?

Potential risks associated with relying on H2L Solutions, Inc. include vendor lock-in, where the FBI becomes heavily dependent on the contractor's proprietary systems or expertise, making transitions difficult. There's also the risk of key personnel turnover within H2L, potentially disrupting service continuity. Financial instability of the contractor, though less likely for awarded contracts, is always a background concern. Furthermore, ensuring data security and confidentiality of sensitive intelligence information handled by the contractor is paramount. Robust contract management, clear performance expectations, and contingency planning are essential to mitigate these risks.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 2227 DRAKE AVE SW STE 5, HUNTSVILLE, AL, 35805

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $11,814,041

Exercised Options: $7,455,120

Current Obligation: $7,455,120

Actual Outlays: $6,293,316

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA19D00E4

IDV Type: FSS

Timeline