Treasury's $4.6M security system O&M contract awarded to LBO Technology LLC via full and open competition

Contract Overview

Contract Amount: $4,613,999 ($4.6M)

Contractor: LBO Technology LLC

Awarding Agency: Department of the Treasury

Start Date: 2026-01-25

End Date: 2027-01-24

Contract Duration: 364 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: [MAJOR ACQUISITION CONTRACT] OPERATIONS & MAINTENANCE - INTEGRATED SECURITY SYSTEMS: CONTRACTOR SHALL PROVIDE NORMAL, PREVENTATIVE, & CORRECTIVE MAINTENANCE ON THE AGENCY'S SECURITY SYSTEMS. CONTRACTOR SHALL ALSO PROVIDE LICENSING 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 $4.6 million to LBO TECHNOLOGY LLC for work described as: [MAJOR ACQUISITION CONTRACT] OPERATIONS & MAINTENANCE - INTEGRATED SECURITY SYSTEMS: CONTRACTOR SHALL PROVIDE NORMAL, PREVENTATIVE, & CORRECTIVE MAINTENANCE ON THE AGENCY'S SECURITY SYSTEMS. CONTRACTOR SHALL ALSO PROVIDE LICENSING SUPPORT. Key points: 1. The contract focuses on essential operations and maintenance for integrated security systems, including licensing support. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The contract duration is one year, with a firm-fixed-price structure. 4. The primary service area is Washington D.C. 5. The North American Industry Classification System (NAICS) code 541512 indicates computer systems design services. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of approximately $4.6 million for one year of integrated security system operations and maintenance appears reasonable given the scope. Benchmarking against similar contracts for security system maintenance and IT support services suggests this pricing is within expected ranges. The firm-fixed-price structure provides cost certainty for the agency, although it places the risk of cost overruns on the contractor.

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 a bid. The presence of 3 bidders suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred, the exact number of bidders can influence price discovery.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards.

Public Impact

The Bureau of Engraving and Printing benefits from reliable and maintained security systems, crucial for its operations. Services delivered include preventative and corrective maintenance, ensuring the continuous functioning of security infrastructure. The geographic impact is localized to Washington D.C., where the agency's facilities are located. The contract supports the IT and security workforce through the contractor's personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the incumbent contractor's systems become deeply integrated and difficult to replace.
Reliance on a single delivery order may not fully reflect the long-term cost or performance trends of the underlying IDIQ contract.
Firm-fixed-price contracts can sometimes lead to reduced flexibility for scope changes if not managed carefully.

Positive Signals

Awarded through full and open competition, promoting a competitive marketplace.
The firm-fixed-price contract provides budget certainty for the agency.
The contract specifies clear deliverables for operations and maintenance, aiding performance monitoring.

Sector Analysis

The contract falls within the IT services sector, specifically focusing on computer systems design and related services. The market for security system maintenance and IT support is robust, with numerous providers. This contract represents a small portion of overall federal IT spending, which is substantial and diverse, encompassing everything from software development to hardware maintenance and cybersecurity.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements for small businesses. The prime contractor, LBO TECHNOLOGY LLC, is not explicitly identified as a small business in the provided data. Therefore, this award does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Bureau of Engraving and Printing. Performance monitoring against the firm-fixed-price deliverables and service level agreements would be key accountability measures. Transparency is generally maintained through contract award databases, though specific performance details may not be publicly disclosed.

Related Government Programs

Federal IT Operations and Maintenance Contracts
Government Security System Services
Bureau of Engraving and Printing IT Procurement
Department of the Treasury IT Services

Risk Flags

Potential for performance issues impacting security system reliability.
Risk of cost overruns if unforeseen maintenance needs arise.
Dependency on contractor expertise could lead to vendor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $4.6 million to LBO TECHNOLOGY LLC. [MAJOR ACQUISITION CONTRACT] OPERATIONS & MAINTENANCE - INTEGRATED SECURITY SYSTEMS: CONTRACTOR SHALL PROVIDE NORMAL, PREVENTATIVE, & CORRECTIVE MAINTENANCE ON THE AGENCY'S SECURITY SYSTEMS. CONTRACTOR SHALL ALSO PROVIDE LICENSING SUPPORT.

Who is the contractor on this award?

The obligated recipient is LBO TECHNOLOGY 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 $4.6 million.

What is the period of performance?

Start: 2026-01-25. End: 2027-01-24.

What is the track record of LBO TECHNOLOGY LLC in performing similar government contracts?

Information regarding LBO TECHNOLOGY LLC's specific track record on government contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on similar service contracts. Federal procurement databases and past performance questionnaires (PPQs) are typically used to evaluate a contractor's reliability and capability. Without this specific data, it's difficult to definitively assess their experience in providing integrated security system operations and maintenance.

How does the pricing of this contract compare to similar security system maintenance contracts awarded by the government?

The contract value of approximately $4.6 million for a one-year period of operations and maintenance for integrated security systems is considered within a reasonable range when benchmarked against similar federal contracts. Pricing for such services can vary significantly based on the complexity of the systems, the scope of maintenance (preventative vs. corrective), geographic location, and the specific technologies involved. A detailed comparison would involve analyzing the per-unit costs for specific services (e.g., hourly rates for technicians, cost per system component maintained) against market data and other government awards for comparable services.

What are the primary risks associated with this contract for the Bureau of Engraving and Printing?

Key risks for the Bureau of Engraving and Printing include potential underperformance by the contractor, leading to security system disruptions or failures. Given the firm-fixed-price nature, there's also a risk that the contractor might cut corners to maintain profitability, impacting service quality. Another risk is the potential for cost increases if unforeseen issues arise that require significant corrective maintenance beyond the contract's standard scope, potentially necessitating contract modifications or new procurements. Vendor lock-in, where the agency becomes overly reliant on LBO Technology's specific solutions, could also pose a long-term risk.

How effective is the 'full and open competition' approach in ensuring value for money for this specific contract?

Full and open competition is generally considered the most effective method for ensuring value for money as it allows the widest possible pool of qualified contractors to bid, fostering price competition. In this case, with 3 bidders, there was a moderate level of competition. The effectiveness in ensuring value depends on the rigor of the evaluation process and whether the lowest price technically acceptable (LPTA) or best value tradeoff approach was used. If the evaluation focused solely on price, there's a risk of sacrificing quality. If a best value approach was used, the agency weighed technical factors alongside price, which should lead to better overall value.

What is the historical spending trend for integrated security system maintenance at the Bureau of Engraving and Printing?

The provided data does not include historical spending trends for integrated security system maintenance at the Bureau of Engraving and Printing. To analyze this, one would need to examine contract awards for similar services over previous fiscal years. This would involve searching federal procurement databases for contracts with the same agency, service type (security system O&M), and potentially similar contractors. Understanding historical spending can reveal patterns of cost escalation, changes in procurement strategies, or shifts in the reliance on external vendors for these critical services.

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 - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 2031ZB24Q00010

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 222 CATOCTIN CIR SE STE 132, LEESBURG, VA, 20175

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,881,163

Exercised Options: $4,613,999

Current Obligation: $4,613,999

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA21D000G

IDV Type: FSS

Timeline