DHS Awards $40.5M HSEN Network Support Contract to SOFITC3, LLC

Contract Overview

Contract Amount: $40,540,960 ($40.5M)

Contractor: Sofitc3, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-08-12

End Date: 2026-01-15

Contract Duration: 1,252 days

Daily Burn Rate: $32.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: HOMELAND SECURITY ENTERPRISE NETWORK (HSEN) TIER III ARCHITECTURE/ENGINEERING AND SECURITY ARCHITECTURE/ENGINEERING SUPPORT.

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 $40.5 million to SOFITC3, LLC for work described as: HOMELAND SECURITY ENTERPRISE NETWORK (HSEN) TIER III ARCHITECTURE/ENGINEERING AND SECURITY ARCHITECTURE/ENGINEERING SUPPORT. Key points: 1. Contract awarded to SOFITC3, LLC for Enterprise Network support. 2. The contract is for Architecture/Engineering and Security Architecture/Engineering. 3. This is a Time and Materials contract with a duration of 1252 days. 4. The award was made under full and open competition. 5. The contract is for Homeland Security, specifically within the DC area.

Value Assessment

Rating: fair

The contract value of $40.5M over approximately 3.5 years suggests a moderate annual spend. Benchmarking against similar IT network support contracts requires more granular data on specific services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at a reasonable cost for critical homeland security infrastructure.

Public Impact

Ensures continued operation and security of the Homeland Security Enterprise Network. Supports critical IT infrastructure for national security. Provides specialized architecture and engineering services. Contract duration extends into early 2026.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
Lack of specific performance metrics in provided data.
Potential for scope creep with T&M contracts.

Positive Signals

Awarded under full and open competition.
Supports a critical government function (Homeland Security).
Long-term contract provides stability for service delivery.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on network architecture, engineering, and security. Spending benchmarks for similar large-scale enterprise network support contracts can vary significantly based on scope and complexity.

Small Business Impact

The contract was awarded to SOFITC3, LLC, and the data indicates the small business set-aside flag is false. Therefore, this contract does not appear to be specifically set aside for small businesses.

Oversight & Accountability

Oversight will be crucial given the Time and Materials contract type to ensure costs remain within budget and services are delivered effectively. The Department of Homeland Security's Office of Procurement Operations managed the award.

Related Government Programs

Custom Computer Programming Services
Department of Homeland Security Contracting
Office of Procurement Operations Programs

Risk Flags

Time and Materials contract type.
Potential for cost overruns.
Lack of detailed performance metrics in public data.
Complexity of enterprise network security.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $40.5 million to SOFITC3, LLC. HOMELAND SECURITY ENTERPRISE NETWORK (HSEN) TIER III ARCHITECTURE/ENGINEERING AND SECURITY ARCHITECTURE/ENGINEERING SUPPORT.

Who is the contractor on this award?

The obligated recipient is SOFITC3, 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 $40.5 million.

What is the period of performance?

Start: 2022-08-12. End: 2026-01-15.

What specific performance metrics are in place to ensure the effectiveness of the HSEN Tier III support services?

The provided data does not detail specific performance metrics. Effective oversight would require clearly defined Service Level Agreements (SLAs) and Key Performance Indicators (KPIs) to measure the quality and timeliness of the architecture/engineering and security support provided by SOFITC3, LLC.

How will the Time and Materials contract structure be managed to mitigate potential cost overruns for this $40.5M award?

Mitigation strategies for Time and Materials contracts typically involve robust monitoring of labor hours, strict adherence to pre-approved rates, and clear definitions of billable tasks. Regular reviews and audits by DHS procurement officials are essential to control costs and prevent scope creep.

What is the anticipated impact of this contract on the overall cybersecurity posture of the Department of Homeland Security?

This contract is intended to enhance the cybersecurity posture by providing specialized architecture and engineering support for the HSEN. The effectiveness will depend on the quality of the services rendered by SOFITC3, LLC in identifying vulnerabilities, designing secure network solutions, and implementing robust security measures.

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 › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70RTAC22Q00000037

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 242 OLD NEW BRUNSWICK RD STE 320, PISCATAWAY, NJ, 08854

Business Categories: Category Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $42,181,169

Exercised Options: $40,540,960

Current Obligation: $40,540,960

Actual Outlays: $37,226,683

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA19D00AS

IDV Type: FSS

Timeline