DHS awards $27.6M for IT support, with a significant portion for 'Other Computer Related Services'

Contract Overview

Contract Amount: $27,622,774 ($27.6M)

Contractor: Fedbiz IT Solutions LLC

Awarding Agency: Department of Homeland Security

Start Date: 2018-05-11

End Date: 2023-12-14

Contract Duration: 2,043 days

Daily Burn Rate: $13.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: RIVERBED REFRESH TECHNOLOGY SUPPORT SERVICES

Place of Performance

Location: LORTON, FAIRFAX County, VIRGINIA, 22079

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $27.6 million to FEDBIZ IT SOLUTIONS LLC for work described as: RIVERBED REFRESH TECHNOLOGY SUPPORT SERVICES Key points: 1. Value for money appears fair given the contract duration and fixed-price nature. 2. Competition was full and open, suggesting a competitive pricing environment. 3. Risk indicators are moderate, with a long performance period and a single awardee. 4. Performance context shows a long-term engagement for essential IT services. 5. Sector positioning is within IT services, a common area for federal spending. 6. The contract's value is within the typical range for multi-year IT support.

Value Assessment

Rating: fair

The contract's total value of $27.6 million over approximately 5.6 years suggests a moderate annual spend. Benchmarking against similar IT support contracts is challenging without more granular service details. However, the firm-fixed-price structure provides cost certainty for the government. The awarded amount of $13.5 million in the base period indicates a substantial initial investment, with subsequent delivery orders likely covering the remaining value.

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 while the competition was open, specific sources may have been excluded prior to the solicitation. The presence of 3 bidders suggests a reasonable level of competition. This competitive environment likely contributed to price discovery and potentially more favorable pricing for the government compared to a sole-source award.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

U.S. Customs and Border Protection (CBP) benefits from enhanced IT infrastructure and support. Services delivered include 'Other Computer Related Services,' crucial for agency operations. The geographic impact is primarily within Virginia, where the contractor is located. Workforce implications include the potential for skilled IT professionals to be engaged in supporting federal technology needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 5 years) can lead to potential scope creep or evolving technology needs not fully addressed.
Reliance on a single awardee for a significant IT function could pose a risk if performance issues arise.
The 'Exclusion of Sources' clause warrants further investigation into why certain vendors were excluded from the outset.

Positive Signals

Firm-fixed-price contract type provides cost predictability for the government.
Full and open competition, even with exclusions, generally leads to better pricing.
The contract supports critical IT functions for a major federal agency.

Sector Analysis

This contract falls within the broader IT services sector, which is a significant area of federal procurement. The specific NAICS code (541519) covers 'Other Computer Related Services,' indicating a range of IT support beyond standard software development or hardware maintenance. The total award value of $27.6 million is substantial but not exceptionally large within the context of federal IT spending, which often runs into billions annually for similar services across various agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As such, there are no direct subcontracting implications for small businesses mandated by this specific award. The primary focus appears to be on larger, established IT service providers capable of meeting the agency's extensive requirements.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Customs and Border Protection contracting officers and program managers. Transparency is facilitated through public contract databases like FPDS. Accountability measures are inherent in the firm-fixed-price contract structure and performance requirements. The Inspector General for the Department of Homeland Security would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Homeland Security IT Modernization Efforts
Customs and Border Protection Technology Infrastructure
Federal Civilian IT Services Procurement
Other Computer Related Services Contracts

Risk Flags

Long-term contract duration may not align with rapidly evolving technology.
Single awardee increases risk if contractor performance degrades or financial issues arise.
Potential for 'vendor lock-in' with specialized technology support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $27.6 million to FEDBIZ IT SOLUTIONS LLC. RIVERBED REFRESH TECHNOLOGY SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is FEDBIZ IT SOLUTIONS 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 $27.6 million.

What is the period of performance?

Start: 2018-05-11. End: 2023-12-14.

What is the specific nature of the 'Other Computer Related Services' being provided under this contract?

The contract description 'RIVERBED REFRESH TECHNOLOGY SUPPORT SERVICES' and the NAICS code 541519 ('Other Computer Related Services') suggest services related to network performance management, optimization, and potentially support for specialized hardware or software solutions. Riverbed Technology is known for its application performance and network performance monitoring tools. Therefore, the services likely involve maintaining, upgrading, or supporting the systems that ensure the smooth operation and efficiency of CBP's IT networks and applications. This could include troubleshooting, configuration, software updates, and performance tuning for these critical systems.

How does the awarded price of $27.6 million compare to similar IT support contracts for agencies of similar size and scope?

Direct comparison is difficult without knowing the exact service level agreements and deliverables. However, $27.6 million over approximately 5.6 years equates to an average annual spend of roughly $4.9 million. This figure is moderate for a large federal agency like DHS, particularly for specialized IT support. Agencies like the General Services Administration (GSA) or the Department of Defense often award larger IT support contracts, sometimes in the hundreds of millions. The firm-fixed-price nature helps control costs, but the value proposition depends heavily on the criticality and complexity of the Riverbed systems being supported and the efficiency of the contractor's service delivery.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Specific KPIs are not detailed in the provided data. However, for 'Technology Support Services' contracts, common KPIs often include system uptime percentages, response times for issue resolution, successful implementation of upgrades or patches, user satisfaction ratings, and adherence to service level agreements (SLAs). For Riverbed-related services, KPIs might also focus on improvements in network latency, application response times, and bandwidth utilization. The contracting officer's representative (COR) at CBP would be responsible for monitoring these metrics and ensuring the contractor meets performance expectations.

What is the track record of FEDBIZ IT SOLUTIONS LLC in performing similar federal IT support contracts?

FEDBIZ IT SOLUTIONS LLC has been awarded this contract, valued at $27.6 million, indicating they possess the capability to handle significant federal IT projects. Further analysis of their contract history in public databases would reveal their performance on previous awards, including any past performance ratings, contract modifications, or disputes. A deeper dive would assess their experience with similar technologies (like Riverbed) and their ability to meet federal performance standards and delivery timelines across different agencies or departments.

What are the potential risks associated with the long duration and single awardee nature of this contract?

The contract's duration of over five years presents several risks. Firstly, technology evolves rapidly; by the end of the contract, the supported systems or services might be outdated, requiring significant reinvestment or modification. Secondly, a long-term, single-award contract can reduce the government's leverage over time, as switching vendors becomes more complex and costly. This can potentially lead to complacency from the contractor or less aggressive pricing in future renewals. Lastly, if FEDBIZ IT SOLUTIONS LLC experiences financial instability or performance issues, CBP has limited immediate alternatives, potentially disrupting critical IT operations.

How does this contract align with the Department of Homeland Security's broader IT modernization strategy?

This contract, focused on 'Riverbed Refresh Technology Support Services,' likely aligns with DHS's strategy to maintain and optimize its existing IT infrastructure while potentially preparing for future upgrades. Modernizing IT often involves ensuring the underlying network performance and application delivery are robust. By ensuring the effective functioning of Riverbed solutions, CBP can support its ongoing operations and potentially lay the groundwork for adopting newer technologies that rely on high-performance networks. It represents an investment in the foundational elements of their digital infrastructure.

Industry Classification

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

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 305 HARRISON ST SE STE 1C, LEESBURG, VA, 20175

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,622,774

Exercised Options: $27,622,774

Current Obligation: $27,622,774

Actual Outlays: $230,549

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD01B

IDV Type: GWAC

Timeline