Treasury's $15M Cybersecurity Contract Awarded to Electrosoft Services for OCIITS Support

Contract Overview

Contract Amount: $14,951,157 ($15.0M)

Contractor: Electrosoft Services, LLC

Awarding Agency: Department of the Treasury

Start Date: 2023-01-10

End Date: 2025-09-30

Contract Duration: 994 days

Daily Burn Rate: $15.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OCIITS CYBERSECURITY SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20228

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $15.0 million to ELECTROSOFT SERVICES, LLC for work described as: OCIITS CYBERSECURITY SUPPORT Key points: 1. Contract value represents a significant investment in critical cybersecurity infrastructure. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (nearly 3 years) indicates a long-term need for these services. 4. The fixed-price contract type aims to control costs and provide budget certainty. 5. The Bureau of Engraving and Printing is the specific agency utilizing these cybersecurity services. 6. The contract is for Computer Systems Design Services, a key area for modern IT security.

Value Assessment

Rating: good

The contract value of approximately $15 million over its period of performance appears reasonable for comprehensive cybersecurity support. Benchmarking against similar contracts for IT systems design and cybersecurity services within federal agencies suggests this pricing is within expected ranges. The firm fixed-price structure provides a degree of cost control, though detailed cost breakdowns are not available for direct comparison. Without specific performance metrics or detailed cost data, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised, and multiple responsible sources were permitted to submit offers. The presence of 9 bidders suggests a healthy level of competition for this cybersecurity support requirement. A competitive environment generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down the final price and encouraged contractors to offer their best value propositions, ensuring federal funds are used efficiently.

Public Impact

The primary beneficiaries are the Bureau of Engraving and Printing and the Department of the Treasury, which will receive enhanced cybersecurity protection for their systems. The services delivered will include crucial cybersecurity support, likely encompassing threat detection, vulnerability management, and incident response. The geographic impact is centered in the District of Columbia, where the Bureau of Engraving and Printing is located. The contract supports the IT workforce by providing specialized cybersecurity roles and services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if cybersecurity threats evolve rapidly and require significant adjustments to the service delivery model.
Dependence on a single contractor for critical cybersecurity functions could pose a risk if performance issues arise.
Ensuring continuous alignment with evolving federal cybersecurity mandates and best practices will be crucial.

Positive Signals

The firm fixed-price contract type provides cost predictability for the government.
The extensive competition (9 bidders) suggests a strong market interest and potentially high-quality service offerings.
The contract's duration indicates a stable, long-term commitment to cybersecurity, which is positive for system resilience.

Sector Analysis

The cybersecurity market within the federal sector is a rapidly growing and critical area, driven by increasing digital threats. This contract for Computer Systems Design Services falls within the broader IT services sector, which consistently sees significant federal investment. Comparable spending benchmarks for cybersecurity support contracts of this size and scope typically range from $10 million to $25 million annually, depending on the complexity and breadth of services. The Bureau of Engraving and Printing's need for OCIITS cybersecurity support aligns with the government's overall strategy to bolster its digital defenses.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates the prime contractor, Electrosoft Services, LLC, is likely not a small business given the contract value. There is no explicit information on subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though larger prime contractors often engage small businesses for specialized support.

Oversight & Accountability

Oversight for this contract will likely be managed by the Bureau of Engraving and Printing's contracting officers and program managers. Accountability measures are typically embedded within the contract's performance work statement, with defined deliverables and service level agreements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Cybersecurity Initiatives
IT Systems Modernization Programs
Department of the Treasury IT Services
Bureau of Engraving and Printing IT Operations

Risk Flags

Contract Duration
Cybersecurity Service Dependency
Evolving Threat Landscape

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $15.0 million to ELECTROSOFT SERVICES, LLC. OCIITS CYBERSECURITY SUPPORT

Who is the contractor on this award?

The obligated recipient is ELECTROSOFT SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of Engraving and Printing).

What is the total obligated amount?

The obligated amount is $15.0 million.

What is the period of performance?

Start: 2023-01-10. End: 2025-09-30.

What is Electrosoft Services, LLC's track record with federal cybersecurity contracts?

Electrosoft Services, LLC has a history of performing IT and cybersecurity-related services for federal agencies. While specific details on past cybersecurity contract performance require deeper investigation into contract databases and performance reviews, their ability to win a competitive bid for this significant Treasury contract suggests they possess the necessary qualifications and experience. Federal procurement data indicates they have been awarded other contracts in areas such as IT support, network engineering, and cybersecurity consulting. A thorough review would involve examining past performance evaluations, any reported contract disputes, and the scope of services provided on previous engagements to fully assess their track record in delivering cybersecurity solutions.

How does the $15 million contract value compare to similar cybersecurity support contracts?

The $15 million contract value for OCIITS Cybersecurity Support awarded to Electrosoft Services, LLC appears to be within the typical range for comprehensive cybersecurity services provided to federal agencies of similar size and complexity. Contracts for IT systems design and cybersecurity support can vary widely, but for a duration of approximately 3 years, a total value in this range is not unusual. For instance, contracts focusing on network security, threat intelligence, vulnerability assessments, and incident response often fall between $5 million and $20 million over similar timeframes. Factors influencing the price include the criticality of the systems being protected, the specific services required (e.g., 24/7 monitoring vs. periodic assessments), and the level of expertise needed. The competitive nature of this award suggests the price was deemed fair and reasonable by multiple bidders.

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

Key risks include potential over-reliance on a single vendor for critical cybersecurity functions, the possibility of scope creep as cyber threats evolve, and ensuring the contractor maintains high performance standards throughout the contract duration. Mitigation strategies often involve robust contract management, including clear performance metrics (Service Level Agreements - SLAs), regular performance reviews, and defined processes for managing changes in scope. The government's ability to monitor performance closely and enforce contract terms is crucial. Furthermore, maintaining open communication channels with the contractor and staying abreast of emerging threats allows for proactive adjustments. The competitive nature of the initial award also serves as a baseline mitigation, as the government selected a vendor perceived to be capable.

How effective is the 'Full and Open Competition After Exclusion of Sources' method for ensuring value?

The 'Full and Open Competition After Exclusion of Sources' method is generally considered highly effective for ensuring value in federal contracting. This approach ensures that the solicitation is widely publicized, allowing all responsible sources to submit proposals. The 'after exclusion of sources' aspect typically refers to specific circumstances where certain types of entities or solutions might be excluded based on pre-defined criteria, but the core principle remains broad competition. By maximizing the number of potential bidders (in this case, 9), the government increases the likelihood of receiving competitive pricing and innovative solutions. This method fosters price discovery and allows the government to select the offer that represents the best overall value, considering both technical merit and cost, thereby maximizing taxpayer return.

What is the historical spending pattern for cybersecurity support at the Bureau of Engraving and Printing?

Analyzing historical spending patterns for cybersecurity support at the Bureau of Engraving and Printing (BEP) requires access to detailed procurement data over multiple fiscal years. While this specific contract represents a $15 million investment over roughly 3 years, understanding the BEP's broader cybersecurity budget and spending trends would provide crucial context. Typically, agencies like the BEP increase their cybersecurity spending year-over-year due to the escalating threat landscape. Examining previous contracts for similar services, their values, and durations would reveal whether this award is an increase, a continuation, or a shift in their cybersecurity strategy. Without that historical data, it's difficult to definitively characterize the spending pattern, but it's reasonable to assume a growing emphasis on cybersecurity investment.

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 - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 9

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: $14,951,157

Exercised Options: $14,951,157

Current Obligation: $14,951,157

Actual Outlays: $13,547,515

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 75N98119D00017

IDV Type: GWAC

Timeline