DHS awards $1.97M for Advanced Electronic Device Exploitation Services to Valence Vector Labs

Contract Overview

Contract Amount: $1,972,087 ($2.0M)

Contractor: Valence Vector Labs LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-09-07

End Date: 2023-09-06

Contract Duration: 364 days

Daily Burn Rate: $5.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ADVANCED ELECTRONIC DEVICE EXPLOITATION SERVICES

Place of Performance

Location: ABERDEEN, HARFORD County, MARYLAND, 21001

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.0 million to VALENCE VECTOR LABS LLC for work described as: ADVANCED ELECTRONIC DEVICE EXPLOITATION SERVICES Key points: 1. The contract focuses on specialized electronic device analysis, a critical area for national security. 2. Valence Vector Labs is the sole provider for this specific service, raising questions about competition. 3. The fixed-price contract structure aims to control costs, but the lack of competition is a risk. 4. This service falls under 'Other Computer Related Services,' a broad category with varying cost benchmarks.

Value Assessment

Rating: questionable

The contract's value of $1.97M for a 364-day duration appears high given the 'Other Computer Related Services' NAICS code. Benchmarking against similar specialized exploitation services is difficult without more specific data, but the lack of competition suggests potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive pressure to drive down the price.

Taxpayer Impact: The lack of competition for this significant contract value means taxpayers may not be receiving the best possible price for these specialized services.

Public Impact

Enhances border security through advanced analysis of electronic devices. Supports law enforcement and intelligence gathering efforts. Potential for misuse or overreach in data exploitation. Reliance on a single vendor could impact service continuity if issues arise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for cost overruns due to no competitive bidding

Positive Signals

Firms Fixed Price contract
Addresses critical national security need

Sector Analysis

The 'Other Computer Related Services' sector is diverse, ranging from basic IT support to highly specialized analysis like this. Benchmarks vary widely, but specialized, high-security services often command premium pricing. The $1.97M award for a year of service is substantial within this category.

Small Business Impact

This contract was awarded to Valence Vector Labs LLC, which is not identified as a small business. There is no indication that small businesses were considered or subcontracted for this specific award.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the services provided are necessary, effective, and priced reasonably. Transparency in the justification for the sole-source award is crucial for accountability.

Related Government Programs

Other Computer Related Services
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Sole-source award limits competition and price discovery.
Potential for higher costs due to lack of competitive bidding.
Reliance on a single vendor could pose risks to service continuity.
Lack of transparency regarding the justification for sole-sourcing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.0 million to VALENCE VECTOR LABS LLC. ADVANCED ELECTRONIC DEVICE EXPLOITATION SERVICES

Who is the contractor on this award?

The obligated recipient is VALENCE VECTOR LABS LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $2.0 million.

What is the period of performance?

Start: 2022-09-07. End: 2023-09-06.

What is the specific justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing without competition?

The justification for a sole-source award typically involves unique capabilities, critical urgency, or lack of available alternatives. Without access to the specific justification documentation, it's impossible to detail the steps taken to ensure fair pricing. However, agencies often rely on historical pricing, independent cost estimates, or market research to validate prices in sole-source situations.

How does the cost of these 'Advanced Electronic Device Exploitation Services' compare to similar services procured competitively by other agencies?

Direct comparison is challenging due to the specialized nature of the service and the sole-source award. However, competitive procurements in related IT and cybersecurity services often yield lower per-unit costs. The $1.97M for a year suggests a high per-diem or per-service rate that would need rigorous justification against market alternatives.

What measures are in place to ensure the effectiveness and efficiency of Valence Vector Labs' services, given the lack of competitive pressure?

Effectiveness and efficiency are typically monitored through contract performance metrics, deliverables, and regular reporting requirements outlined in the purchase order. The government agency (CBP) would be responsible for actively managing the contract, ensuring milestones are met, and that the services align with stated objectives. Performance reviews and potential for contract termination for non-performance serve as indirect pressures.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70B02C22R00000151

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 518 DARK STAR CIR, HAVRE DE GRACE, MD, 21078

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $1,972,087

Exercised Options: $1,972,087

Current Obligation: $1,972,087

Actual Outlays: $1,722,087

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline