DHS awards $124.8M contract for IT services to ALETHIX, LLC under full and open competition

Contract Overview

Contract Amount: $124,811,510 ($124.8M)

Contractor: Alethix, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2021-07-19

End Date: 2026-04-30

Contract Duration: 1,746 days

Daily Burn Rate: $71.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 35

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SERVICES FOR PRODUCT ENGINEERING AND ENTERPRISE DELIVERY (SPEED)

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $124.8 million to ALETHIX, LLC for work described as: SERVICES FOR PRODUCT ENGINEERING AND ENTERPRISE DELIVERY (SPEED) Key points: 1. Contract awarded to ALETHIX, LLC for IT services. 2. Significant value of $124.8 million over its period of performance. 3. Procured under full and open competition, indicating a competitive bidding process. 4. Services fall under Computer Systems Design, a key sector for government operations.

Value Assessment

Rating: good

The contract value of $124.8 million for a period of approximately 4.6 years suggests a reasonable annual spend. Benchmarking against similar large-scale IT service contracts would provide further insight into its pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, suggesting a robust process to ensure fair pricing and access to a wide range of potential contractors. This method typically leads to better price discovery.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition award.

Public Impact

Enhances critical IT infrastructure for U.S. Citizenship and Immigration Services. Supports the operational efficiency of a major government agency. Potential for improved service delivery to the public through technology upgrades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for cost overruns in Time and Materials contracts.

Positive Signals

Awarded through full and open competition.
Supports a vital government function.

Sector Analysis

This contract falls within the IT sector, specifically Computer Systems Design Services. Government spending in this area is substantial, supporting agency operations, cybersecurity, and digital transformation initiatives. Benchmarks for similar contracts can vary widely based on scope and complexity.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Further analysis would be needed to determine if small businesses had an opportunity to participate as subcontractors.

Oversight & Accountability

The contract's duration and value necessitate ongoing oversight to ensure performance, cost control, and adherence to contract terms. Regular reviews by DHS and USCIS are crucial for accountability.

Related Government Programs

Computer Systems Design Services
Department of Homeland Security Contracting
U.S. Citizenship and Immigration Services Programs

Risk Flags

Time and Materials contract type increases cost overrun risk.
Lack of specific performance metrics in summary data.
Potential for scope creep without strict oversight.
No clear indication of small business subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $124.8 million to ALETHIX, LLC. SERVICES FOR PRODUCT ENGINEERING AND ENTERPRISE DELIVERY (SPEED)

Who is the contractor on this award?

The obligated recipient is ALETHIX, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $124.8 million.

What is the period of performance?

Start: 2021-07-19. End: 2026-04-30.

What specific IT systems and services are covered under this contract, and how do they align with USCIS's strategic technology goals?

The contract, identified by NAICS code 541512 (Computer Systems Design Services), likely encompasses a broad range of IT support, including system design, integration, maintenance, and potentially software development. Its alignment with USCIS's strategic goals would depend on the specific tasks outlined in the Statement of Work, which are not detailed here. A review of the SOW would clarify the direct impact on agency objectives.

Given the Time and Materials (T&M) pricing structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure efficient resource utilization?

Time and Materials contracts inherently carry a higher risk of cost overruns due to their open-ended nature. Effective mitigation requires robust oversight, including detailed tracking of labor hours and material costs, clear task definitions, and potentially the establishment of not-to-exceed (NTE) limits for specific work packages. Regular performance reviews and audits are essential to ensure contractor efficiency and prevent scope creep.

How will the success of these IT services be measured, and what key performance indicators (KPIs) are being tracked to ensure value for taxpayer money?

The provided data does not specify the KPIs or performance metrics for this contract. Typically, successful IT service contracts are measured against metrics such as system uptime, response times for support requests, project completion rates, and user satisfaction. The agency's contracting officer and technical representatives are responsible for monitoring these aspects to ensure the contractor delivers the expected value and meets performance standards.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70SBUR21R00000007

Offers Received: 35

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 4114 LEGATO RD STE 440, FAIRFAX, VA, 22033

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Not Designated a Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $145,375,653

Exercised Options: $124,811,510

Current Obligation: $124,811,510

Actual Outlays: $86,339,943

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $6,769,561

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N98119D00009

IDV Type: GWAC

Timeline