DHS awards $29.3M cloud migration contract to 24x7 Systems, Inc. over 4 years

Contract Overview

Contract Amount: $29,331,885 ($29.3M)

Contractor: 24x7systems, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2018-09-22

End Date: 2022-09-21

Contract Duration: 1,460 days

Daily Burn Rate: $20.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IGF::CL::IGF CLOUD MIGRATION EFFORT

Place of Performance

Location: SPRINGFIELD, ACCOMACK County, VIRGINIA, 20598

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $29.3 million to 24X7SYSTEMS, INC. for work described as: IGF::CL::IGF CLOUD MIGRATION EFFORT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 4 years indicates a significant, long-term commitment for cloud services. 3. The primary service is custom computer programming, aligning with IT modernization efforts. 4. The award was a delivery order, likely part of a larger indefinite delivery/indefinite quantity (IDIQ) contract. 5. The contract was awarded to a single vendor, 24x7 Systems, Inc. 6. The contract was issued by U.S. Customs and Border Protection within DHS.

Value Assessment

Rating: fair

The total award amount of $29.3 million over four years for custom computer programming services appears within a reasonable range for large-scale IT projects. However, without specific details on the scope of work, deliverables, and the labor mix (e.g., hours, skill levels), a precise value-for-money assessment is challenging. Benchmarking against similar cloud migration projects with comparable complexity and duration would be necessary for a more definitive evaluation of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a robust competitive environment was established for this requirement. The number of bidders is not specified, but the process itself implies that multiple companies had the opportunity to compete, which is generally favorable for price discovery and innovation.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it typically drives down costs through competitive bidding and encourages vendors to offer their best pricing and solutions.

Public Impact

U.S. Customs and Border Protection benefits from modernized IT infrastructure through cloud migration. Services delivered include custom computer programming to support cloud-based operations. The geographic impact is primarily within the operational areas of CBP, supporting their mission. Workforce implications may involve IT professionals skilled in cloud technologies and system integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness of the cloud migration.
The duration of the contract (4 years) could lead to vendor lock-in if not managed carefully.
Details on the specific cloud services and technologies used are not provided, hindering a full technical assessment.

Positive Signals

Awarded through full and open competition, indicating a fair and competitive process.
The contract addresses a critical need for IT modernization within a key federal agency.
The vendor, 24x7 Systems, Inc., was selected through a competitive process, suggesting they met the agency's requirements.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on custom computer programming and cloud migration services. The IT services market is vast and highly competitive, with significant government spending allocated to modernizing legacy systems and transitioning to cloud-based infrastructure. Comparable spending benchmarks for cloud migration projects of this scale often range from tens to hundreds of millions of dollars, depending on the complexity, scope, and duration.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As it was awarded under full and open competition, the primary focus was likely on the best overall value from all eligible bidders, rather than specifically targeting small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors.

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 contract award databases like FPDS. Accountability measures are tied to the contract's performance work statement and delivery schedules. The Inspector General for the Department of Homeland Security would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Cloud Computing Services
Custom Computer Programming Services
IT Modernization
Department of Homeland Security IT Contracts
U.S. Customs and Border Protection IT Spending

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of security vulnerabilities if cloud environment is not properly configured and monitored.
Dependency on a single vendor for critical IT infrastructure.
Challenges in measuring the return on investment for cloud migration without clear KPIs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $29.3 million to 24X7SYSTEMS, INC.. IGF::CL::IGF CLOUD MIGRATION EFFORT

Who is the contractor on this award?

The obligated recipient is 24X7SYSTEMS, INC..

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 $29.3 million.

What is the period of performance?

Start: 2018-09-22. End: 2022-09-21.

What specific cloud services and migration strategies were employed under this contract?

The provided data does not specify the exact cloud services (e.g., IaaS, PaaS, SaaS) or migration strategies (e.g., lift-and-shift, re-platforming, re-architecting) utilized by 24x7 Systems, Inc. for the U.S. Customs and Border Protection. Typically, such contracts would detail the scope of work, including the target cloud environment (e.g., AWS, Azure, GCP), the applications or data being migrated, and the methodologies for ensuring data security, continuity of operations, and performance optimization during and after the migration. Understanding these specifics is crucial for assessing the technical approach and potential risks associated with the project.

How does the $29.3 million award compare to other similar cloud migration contracts awarded by DHS or CBP?

Benchmarking this $29.3 million contract against similar cloud migration efforts by DHS or CBP requires access to detailed contract data for comparable projects. Factors such as the scope of services, duration, complexity of systems being migrated, and the specific cloud platforms used significantly influence contract value. Generally, large-scale cloud migrations for federal agencies can range from millions to hundreds of millions of dollars. Without specific comparable contract details, it's difficult to definitively state if this award represents a high, low, or average cost. However, the four-year duration suggests a substantial, multi-faceted migration effort.

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

The provided data does not include specific Key Performance Indicators (KPIs) for this contract. In a typical cloud migration contract, KPIs would be established to measure success across various dimensions, such as system uptime and availability, data migration completion rates, performance improvements (e.g., reduced latency, faster processing times), cost savings achieved through cloud adoption, security compliance adherence, and user satisfaction. The absence of defined KPIs in the summary data makes it challenging to objectively assess the contractor's performance and the overall effectiveness of the migration.

What is the track record of 24x7 Systems, Inc. in performing large-scale federal IT modernization and cloud migration projects?

Information regarding the specific track record of 24x7 Systems, Inc. in performing large-scale federal IT modernization and cloud migration projects is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar government contracts, including client feedback, past performance evaluations, and any history of contract disputes or challenges. Understanding their experience with complex IT transformations and cloud environments is essential for evaluating their capability to successfully execute this $29.3 million DHS contract.

What is the potential impact of this contract on the agency's operational efficiency and cybersecurity posture?

A successful cloud migration, as intended by this contract, has the potential to significantly enhance the operational efficiency of U.S. Customs and Border Protection by providing scalable, flexible, and potentially more cost-effective IT infrastructure. Modern cloud platforms often offer advanced capabilities for data analytics, collaboration, and disaster recovery. However, the transition also introduces cybersecurity considerations. The agency must ensure that robust security controls, compliance with federal standards (e.g., FedRAMP), and continuous monitoring are implemented to protect sensitive data and systems in the cloud environment. The effectiveness of the migration in improving efficiency and security hinges on the execution and ongoing management of the cloud infrastructure.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 100 BARTON PL, ALPHARETTA, GA, 30005

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,760,260

Exercised Options: $29,331,885

Current Obligation: $29,331,885

Actual Outlays: $559,056

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA18D005J

IDV Type: FSS

Timeline