DHS awards $5.5M FFRDC PMO support contract to Digital Cloak, LLC, with Secretary approval

Contract Overview

Contract Amount: $2,582,564 ($2.6M)

Contractor: Digital Cloak, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2026-01-23

End Date: 2027-07-22

Contract Duration: 545 days

Daily Burn Rate: $4.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER (FFRDC) PROGRAM MANAGEMENT OFFICE (PMO) SUPPORT. THIS ACTION IS VALUED AT $5,468,392.00 AND SECRETARY APPROVAL WAS PROVIDED ON JANUARY 12,2026 (SEE ATTACHED). IN ADDITION, THE AA RESCINDED PREVIOUS AA

Place of Performance

Location: STAFFORD, STAFFORD County, VIRGINIA, 22554

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.6 million to DIGITAL CLOAK, LLC for work described as: FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER (FFRDC) PROGRAM MANAGEMENT OFFICE (PMO) SUPPORT. THIS ACTION IS VALUED AT $5,468,392.00 AND SECRETARY APPROVAL WAS PROVIDED ON JANUARY 12,2026 (SEE ATTACHED). IN ADDITION, THE AA RESCINDED PREVIOUS AA Key points: 1. Contract awarded for FFRDC Program Management Office (PMO) support services. 2. The contract value is approximately $5.5 million over its period of performance. 3. Digital Cloak, LLC is the prime contractor for this definitive contract. 4. The Department of Homeland Security (DHS) is the contracting agency. 5. The contract type is Time and Materials, indicating flexibility in scope. 6. This award was made with Secretary approval, suggesting strategic importance.

Value Assessment

Rating: fair

The contract value of $5.5 million for FFRDC PMO support over approximately 1.5 years appears within a reasonable range for specialized management consulting services. However, without specific benchmarks for FFRDC PMO support or comparable contracts for similar services, a precise value-for-money assessment is challenging. The Time and Materials (T&M) contract type can lead to cost overruns if not managed diligently, but it also allows for flexibility in addressing evolving program needs. Further analysis of the contractor's historical performance and the specific tasks outlined in the SOW would be necessary for a more definitive valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed and was awarded on a sole-source basis, indicated by 'NOT AVAILABLE FOR COMPETITION'. This suggests that either a specific justification for a sole-source award was made, or the procurement process did not involve soliciting offers from multiple bidders. The lack of competition means that price discovery through market forces was bypassed, potentially leading to higher costs than if multiple vendors had competed.

Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, as the government did not leverage multiple bids to secure the best possible value. The absence of competition limits transparency in pricing and could mean that the selected contractor's rates were not rigorously tested against market alternatives.

Public Impact

The primary beneficiaries are the Department of Homeland Security's FFRDC programs, which will receive enhanced management and oversight. Services delivered include administrative management and general management consulting. The geographic impact is primarily within the Department of Homeland Security's operational sphere, likely supporting national security initiatives. Workforce implications are indirect, focusing on improved program efficiency rather than direct job creation through this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Time and Materials contract type carries inherent risk of cost overruns if not closely monitored.
Lack of detailed performance metrics in the provided data makes assessing contractor effectiveness difficult.
Secretary approval suggests a non-standard procurement, requiring scrutiny for justification.

Positive Signals

Award to Digital Cloak, LLC, a known entity in government contracting.
Contract supports critical FFRDC PMO functions, indicating a need for specialized expertise.
Definitive contract structure provides a clear framework for service delivery over a defined period.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is crucial for government operations, providing expertise in areas like program management, strategic planning, and operational efficiency. The market for such services is competitive, but specialized support for Federally Funded Research and Development Centers (FFRDCs) often requires unique qualifications and clearances, sometimes leading to less open competition. Benchmarking spending in this niche requires comparing against similar FFRDC support contracts or high-level management consulting engagements within federal agencies.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary consideration for this specific award. There is no indication of a small business set-aside. Consequently, the contract is unlikely to directly benefit small businesses through prime contracting. Subcontracting opportunities for small businesses are not detailed in this summary, but given the sole-source nature and the focus on specialized PMO support, the extent of small business involvement through subcontracting may be limited.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Department of Homeland Security's Office of Procurement Operations. As a sole-source award with Secretary approval, there may be additional layers of review or reporting required. Transparency is limited due to the non-competitive nature of the award. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Federal IT Consulting Services
Program Management Support Contracts
Department of Homeland Security Contracts
FFRDC Management and Operations

Risk Flags

Sole-source award
Time and Materials contract type
Lack of detailed performance metrics
Secretary approval required

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.6 million to DIGITAL CLOAK, LLC. FEDERALLY FUNDED RESEARCH AND DEVELOPMENT CENTER (FFRDC) PROGRAM MANAGEMENT OFFICE (PMO) SUPPORT. THIS ACTION IS VALUED AT $5,468,392.00 AND SECRETARY APPROVAL WAS PROVIDED ON JANUARY 12,2026 (SEE ATTACHED). IN ADDITION, THE AA RESCINDED PREVIOUS AA

Who is the contractor on this award?

The obligated recipient is DIGITAL CLOAK, LLC.

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 $2.6 million.

What is the period of performance?

Start: 2026-01-23. End: 2027-07-22.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified under circumstances such as the existence of only one responsible source capable of providing the required services, urgent and compelling needs where competition is not feasible, or when a specific technology or capability is uniquely held by one contractor. For FFRDC support, justifications might relate to the unique relationship between the FFRDC and its managing entity, or specialized knowledge required that only one firm possesses. A formal Justification for Other Than Full and Open Competition (JOFOC) would normally be required and publicly accessible for such awards, detailing the rationale and supporting evidence.

How does the $5.5 million contract value compare to similar FFRDC PMO support contracts?

Direct comparison of this $5.5 million contract value to similar FFRDC PMO support contracts is challenging without access to a comprehensive database of such awards. FFRDC support contracts can vary significantly in scope, duration, and the specific services required, influencing their total value. Factors like the size and complexity of the FFRDC being supported, the level of management oversight needed, and the duration of the contract (this one is approximately 1.5 years) all play a role. While $5.5 million over 18 months suggests an average monthly burn rate of around $305,000, which is substantial, its reasonableness is best assessed against contracts for comparable FFRDC PMO functions or high-level strategic consulting for federal agencies with similar missions.

What are the potential risks associated with a Time and Materials (T&M) contract for this service?

Time and Materials (T&M) contracts, like the one awarded to Digital Cloak, LLC, carry inherent risks, primarily related to cost control. Since payment is based on the hours worked by contractor personnel and the cost of materials used, there is a risk of cost overruns if the scope of work is not well-defined or if contractor effort is inefficient. Without strong oversight and clear performance metrics, the government may end up paying more than anticipated. To mitigate these risks, the contracting agency must diligently monitor labor hours, material costs, and the overall progress towards contract objectives. Task orders under T&M contracts should have defined ceilings and require contractor efficiency to ensure value for money.

What is Digital Cloak, LLC's track record with federal contracts, particularly in PMO support?

Assessing Digital Cloak, LLC's track record requires a review of their past performance on federal contracts. Information such as contract history, past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes would be crucial. Without access to this specific data, it's difficult to definitively state their expertise in FFRDC PMO support. However, their selection for this contract, especially one requiring Secretary approval, suggests they likely possess relevant experience and a satisfactory performance history with the Department of Homeland Security or other federal agencies. Further investigation into their contract portfolio would provide a clearer picture of their capabilities and reliability.

How does the administrative management and general management consulting services category (NAICS 541611) typically perform in terms of cost and competition?

The Administrative Management and General Management Consulting Services category (NAICS 541611) is a broad sector within federal procurement. Historically, this sector sees a mix of competitive and non-competitive awards. When competed openly, it can yield significant cost savings for the government due to market competition. However, specialized consulting needs, particularly those requiring deep domain expertise or access to sensitive information (like FFRDC operations), may lead to sole-source or limited competition awards. The average contract values can range widely, from small task orders to multi-million dollar programs. The performance of contracts within this NAICS code is highly dependent on the specific services required, the clarity of the Statement of Work, and the effectiveness of the government's oversight.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 70RSAT26Q00000002

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 800 CORPORATE DR, STAFFORD, VA, 22554

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $4,025,478

Exercised Options: $2,582,564

Current Obligation: $2,582,564

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline