DHS awards $13.6M IT contract for cybersecurity services to Strategic Operational Solutions Inc

Contract Overview

Contract Amount: $13,586,504 ($13.6M)

Contractor: Strategic Operational Solutions Inc

Awarding Agency: Department of Homeland Security

Start Date: 2020-09-30

End Date: 2025-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THE DEPARTMENT OF HOMELAND SECURITY (DHS), CYBERSECURITY AND INFRASTRUCTURE SECURITY AGENCY ACQUISITIONS DIVISION (CISAAD) IS ISSUING THIS SINGLE TIME-AND-MATERIALS TASK ORDER TO STRATEGIC OPERATIONAL SOLUTIONS, INC. UNDER THE VETERANS TECHNOLOGY SER

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $13.6 million to STRATEGIC OPERATIONAL SOLUTIONS INC for work described as: THE DEPARTMENT OF HOMELAND SECURITY (DHS), CYBERSECURITY AND INFRASTRUCTURE SECURITY AGENCY ACQUISITIONS DIVISION (CISAAD) IS ISSUING THIS SINGLE TIME-AND-MATERIALS TASK ORDER TO STRATEGIC OPERATIONAL SOLUTIONS, INC. UNDER THE VETERANS TECHNOLOGY SER Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 5 years indicates a long-term need for these services. 3. Services are categorized under Computer Systems Design, a common IT support area. 4. The award to Strategic Operational Solutions Inc. represents a significant investment in cybersecurity infrastructure. 5. The use of Time and Materials pricing may pose a risk if not closely managed. 6. The contract is a Delivery Order under a larger contract vehicle, implying potential for further task orders.

Value Assessment

Rating: fair

The contract value of $13.6 million over five years averages to approximately $2.7 million annually. Benchmarking this against similar IT service contracts for cybersecurity is challenging without more specific service details. However, the Time and Materials (T&M) pricing model can sometimes lead to higher costs compared to fixed-price contracts if not managed diligently, potentially impacting overall value for money. Further analysis would require comparing the specific labor categories and rates to market standards.

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,' which is a specific type of competitive procurement. While it indicates competition, the 'exclusion of sources' part suggests that certain pre-qualified vendors might have been considered, or specific requirements limited the pool. The number of bidders is not specified, but the 'full and open' nature generally aims to maximize competition.

Taxpayer Impact: A competitive award process is generally favorable for taxpayers as it encourages multiple vendors to offer their best pricing and technical solutions, potentially leading to cost savings and better service quality.

Public Impact

The Department of Homeland Security (DHS) and its Cybersecurity and Infrastructure Security Agency (CISA) are the primary beneficiaries, receiving essential cybersecurity support. The contract delivers computer systems design services, crucial for maintaining and enhancing the agency's IT infrastructure and security posture. Services are primarily delivered in the District of Columbia, impacting the federal government's operational presence in the nation's capital. The contract supports the federal workforce by ensuring the availability of robust cybersecurity systems, indirectly benefiting national security.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not carefully monitored and controlled.
The duration of the contract (5 years) means potential for long-term reliance on a single vendor, which could reduce future competitive opportunities.
The specific nature of 'Computer Systems Design Services' is broad and may encompass a wide range of activities, making it difficult to assess efficiency without granular detail.

Positive Signals

Awarded through a competitive process, indicating potential for good value and quality.
The contract supports a critical mission area for DHS (cybersecurity), aligning with national priorities.
The vendor, Strategic Operational Solutions Inc., is likely vetted through the contracting vehicle used for this task order.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on cybersecurity and computer systems design. The IT services market is vast and highly competitive, with significant government spending dedicated to maintaining and securing federal networks and data. Cybersecurity services are a growing segment due to increasing cyber threats. This contract represents a portion of DHS's overall IT spending, aimed at bolstering its defenses against cyberattacks.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Strategic Operational Solutions Inc., is not explicitly identified as a small business in the provided snippet. Analysis of their size status would require further investigation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. The Cybersecurity and Infrastructure Security Agency (CISA) Acquisitions Division is responsible for the award. Inspector General oversight from DHS may also apply, particularly concerning performance, cost, and adherence to contract terms. Transparency is facilitated through contract databases like FPDS, where award details are reported.

Related Government Programs

DHS Cybersecurity Contracts
CISA IT Services
Federal Cybersecurity Modernization
Computer Systems Design Services
Strategic Operational Solutions Inc. Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited transparency on the number of bidders in the competitive process.
Lack of specific performance metrics in the provided data.
Broad categorization of 'Computer Systems Design Services' hinders detailed value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $13.6 million to STRATEGIC OPERATIONAL SOLUTIONS INC. THE DEPARTMENT OF HOMELAND SECURITY (DHS), CYBERSECURITY AND INFRASTRUCTURE SECURITY AGENCY ACQUISITIONS DIVISION (CISAAD) IS ISSUING THIS SINGLE TIME-AND-MATERIALS TASK ORDER TO STRATEGIC OPERATIONAL SOLUTIONS, INC. UNDER THE VETERANS TECHNOLOGY SER

Who is the contractor on this award?

The obligated recipient is STRATEGIC OPERATIONAL SOLUTIONS INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $13.6 million.

What is the period of performance?

Start: 2020-09-30. End: 2025-09-29.

What is the track record of Strategic Operational Solutions Inc. with federal contracts, particularly within DHS?

A comprehensive review of Strategic Operational Solutions Inc.'s federal contract history would require accessing databases like the Federal Procurement Data System (FPDS) or SAM.gov. Based on the provided data, this is a Time and Materials (T&M) task order valued at $13.6 million over five years, issued by DHS CISA. Without further data, it's difficult to assess their overall track record. However, the fact that they were awarded this task order under a competitive process suggests they possess the necessary qualifications and capabilities to serve DHS. Further investigation would involve examining past performance evaluations, other contract awards (especially within DHS or for similar services), and any reported issues or successes.

How does the $13.6 million contract value compare to similar cybersecurity IT service contracts awarded by DHS or other agencies?

Benchmarking the $13.6 million contract value requires comparing it to similar IT service contracts for cybersecurity awarded by DHS or other federal agencies. The average annual value of this contract is approximately $2.7 million. Cybersecurity services can vary widely in scope and cost. Contracts for large-scale network security, threat intelligence platforms, or comprehensive managed security services can range from millions to hundreds of millions of dollars. Smaller contracts might focus on specific assessments, training, or system design. To provide a precise comparison, one would need to identify contracts with similar service descriptions (e.g., computer systems design for security), duration, and agency type. Given the T&M nature, the final cost could fluctuate based on actual hours worked and resources utilized.

What are the primary risks associated with the Time and Materials (T&M) pricing structure for this contract?

The primary risk associated with the Time and Materials (T&M) pricing structure for this contract is the potential for cost overruns and a lack of definitive cost control. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours expended and the cost of materials used. If not managed rigorously through detailed oversight, ceiling limits, and performance monitoring, the contractor may incur more hours or use more expensive materials than initially anticipated, leading to a final cost that significantly exceeds initial estimates. This can reduce the overall value for money and make budgeting more unpredictable for the agency. Effective management requires diligent tracking of all hours and costs, ensuring they are reasonable and allocable to the contract's objectives.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring competitive pricing for taxpayers?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance broad competition with specific requirements. While 'full and open' implies a wide solicitation, the 'exclusion of sources' suggests that certain vendors or types of vendors might have been excluded based on pre-defined criteria (e.g., existing contract vehicles, specific certifications, or past performance). This can limit the number of potential bidders compared to a truly unrestricted full and open competition. The effectiveness in ensuring competitive pricing for taxpayers depends on how narrowly the sources were excluded. If the exclusion was justified and still resulted in a sufficient number of qualified bidders, it can lead to competitive pricing. However, if it unduly restricts competition, it might lead to higher prices than a broader solicitation would have achieved.

What are the potential implications of this contract on the broader cybersecurity market and competition?

This contract, awarded to Strategic Operational Solutions Inc., contributes to the overall demand within the federal cybersecurity IT services market. By awarding a $13.6 million, 5-year contract, DHS CISA signals a significant commitment to enhancing its cybersecurity capabilities. This can benefit the awarded contractor by providing a substantial revenue stream and potentially enhancing their reputation and experience within the federal space. For the broader market, it signifies continued government investment in cybersecurity, which may encourage other companies to develop similar capabilities. However, the specific nature of the competition ('Full and Open Competition After Exclusion of Sources') might limit the number of direct competitors for this specific task order, potentially concentrating opportunities among a select group of qualified vendors.

Are there any specific performance metrics or Service Level Agreements (SLAs) associated with this contract that can be used to gauge success?

The provided data snippet does not include details on specific performance metrics or Service Level Agreements (SLAs) associated with this contract. Typically, such metrics are defined within the full contract document or its Statement of Work (SOW). For a contract focused on Computer Systems Design Services within cybersecurity, potential metrics could include system uptime, response times to security incidents, successful implementation of security patches, completion of vulnerability assessments, or adherence to project timelines for system upgrades. Without access to the full contract details, it is impossible to assess the specific measures used to gauge the contractor's performance and ensure the agency receives the intended value and security benefits.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 21580 BEAUMEADE CIR STE 180, ASHBURN, VA, 20147

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

Financial Breakdown

Contract Ceiling: $13,823,343

Exercised Options: $13,586,504

Current Obligation: $13,586,504

Actual Outlays: $8,544,667

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCH18D0059

IDV Type: GWAC

Timeline