DHS awards $97M contract for IT services to ADG-REI TECHNOLOGY VENTURES, LLC, with 22 orders issued

Contract Overview

Contract Amount: $97,086,696 ($97.1M)

Contractor: Adg-Rei Technology Ventures, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-09-25

End Date: 2026-06-24

Contract Duration: 1,368 days

Daily Burn Rate: $71.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 22

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: OUTCOME-BASED DELIVERY AND DEVSECOPS SERVICES (ODOS) III

Place of Performance

Location: CAMP SPRINGS, HOWARD County, MARYLAND, 20588

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $97.1 million to ADG-REI TECHNOLOGY VENTURES, LLC for work described as: OUTCOME-BASED DELIVERY AND DEVSECOPS SERVICES (ODOS) III Key points: 1. Contract focuses on IT services, specifically computer systems design. 2. Awarded under full and open competition. 3. Contract duration extends through June 2026. 4. Delivery Order type indicates a specific task within a larger contract vehicle. 5. The contract is a Time and Materials type, which can pose cost control challenges. 6. The base contract value is $70.97M, with a total award of $97.09M. 7. The contractor, ADG-REI TECHNOLOGY VENTURES, LLC, is based in Maryland.

Value Assessment

Rating: fair

The contract's value of $97.09M over its period of performance appears to be within a reasonable range for complex IT development and DevSecOps services. However, the Time and Materials pricing structure warrants close monitoring to ensure cost efficiency and prevent scope creep. Benchmarking against similar large-scale IT service contracts for federal agencies would provide a clearer picture of value for money, but initial indications suggest a standard market rate for this type of work.

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,' indicating a competitive process was initiated, but specific sources may have been excluded prior to the final award. With 22 delivery orders issued, it suggests a robust need for the services. The level of competition, while initially broad, might have narrowed during the process. Further details on the number of initial bidders and the rationale for any exclusions would be needed for a complete assessment.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality. However, the 'after exclusion of sources' clause introduces a slight uncertainty regarding the full extent of potential cost savings.

Public Impact

Citizens and immigrants benefit from improved IT systems supporting USCIS operations. Services delivered include computer systems design and development, likely enhancing the efficiency and effectiveness of immigration services. The geographic impact is primarily national, supporting federal operations. Workforce implications include potential job creation within ADG-REI TECHNOLOGY VENTURES, LLC and its subcontractors, as well as impact on federal IT personnel managing the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not managed diligently.
The 'after exclusion of sources' clause in the competition type warrants further investigation into potential limitations on competitive pricing.
Lack of specific performance metrics in the provided data makes it difficult to assess the true value and effectiveness of the services delivered.
The base contract value is significantly lower than the total award, suggesting potential for substantial growth in task orders, which requires careful oversight.

Positive Signals

Awarded under full and open competition, indicating a structured procurement process.
The contract has a defined period of performance, providing a clear timeline for service delivery.
Multiple delivery orders have been issued, suggesting ongoing need and successful task execution.
The contractor is an established entity, likely possessing the necessary expertise for the services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and related services. The federal IT services market is substantial, with agencies continually investing in modernizing systems, enhancing cybersecurity, and improving data management. This contract likely supports the U.S. Citizenship and Immigration Services' (USCIS) broader IT modernization efforts, aiming to improve operational efficiency and service delivery. Comparable spending benchmarks for large-scale IT development and support contracts within federal agencies often run into tens or hundreds of millions of dollars.

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 arising from a small business set-aside. However, the prime contractor, ADG-REI TECHNOLOGY VENTURES, LLC, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Citizenship and Immigration Services (USCIS) contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and managing the Time and Materials aspects to control costs. Transparency is facilitated through contract award databases like FPDS. 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

IT Services
Computer Systems Design
DevSecOps
Department of Homeland Security Contracts
USCIS IT Modernization

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited competition due to 'exclusion of sources' clause.
Lack of detailed performance metrics in summary data.
Contract duration extends over multiple fiscal years, requiring sustained budget allocation.
Complexity of DevSecOps services requires specialized oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $97.1 million to ADG-REI TECHNOLOGY VENTURES, LLC. OUTCOME-BASED DELIVERY AND DEVSECOPS SERVICES (ODOS) III

Who is the contractor on this award?

The obligated recipient is ADG-REI TECHNOLOGY VENTURES, 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 $97.1 million.

What is the period of performance?

Start: 2022-09-25. End: 2026-06-24.

What is the track record of ADG-REI TECHNOLOGY VENTURES, LLC with federal contracts, particularly within DHS or USCIS?

A review of federal procurement data indicates that ADG-REI TECHNOLOGY VENTURES, LLC has secured multiple federal contracts. While specific details on past performance metrics for this contractor are not fully detailed in the provided summary, their ability to win and execute contracts, including this significant award from USCIS, suggests a level of established capability. Further analysis would involve examining past contract performance evaluations (e.g., CPARS reports) if publicly available, to assess their history of meeting deadlines, quality standards, and budget constraints on previous engagements. Understanding their prior experience with similar IT development and DevSecOps services would be crucial for a comprehensive risk assessment.

How does the awarded amount of $97.09M compare to similar IT service contracts for federal agencies of USCIS's size and mission?

The $97.09M award for IT services, specifically computer systems design and DevSecOps, is substantial but falls within the expected range for large federal IT procurements. Agencies like USCIS often require complex, mission-critical systems that necessitate significant investment. Comparing this to other contracts for similar services within DHS or other large civilian agencies (e.g., SSA, IRS) would provide context. For instance, contracts for enterprise resource planning (ERP) systems, cloud migration, or large-scale software development can easily reach or exceed this value. The Time and Materials (T&M) nature of this contract, however, means the final cost is dependent on actual labor hours and material costs, making direct comparisons to fixed-price contracts less precise without understanding the scope of work delivered.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude?

The primary risk with a T&M contract of this magnitude ($97.09M) is the potential for cost overruns due to a lack of a fixed ceiling on labor hours and material costs. Unlike fixed-price contracts, T&M agreements incentivize the contractor to bill for more hours worked, increasing the risk of exceeding the estimated budget if not rigorously managed. Scope creep is another significant risk, as changes or additions to the work can easily inflate costs. Effective oversight, detailed tracking of hours, robust change control processes, and clear performance metrics are essential to mitigate these risks and ensure the government receives good value for money. The 'after exclusion of sources' aspect of the competition also introduces a potential risk if it limited the number of competitive bids, potentially impacting price discovery.

What specific IT systems or services are likely being supported or developed under this 'OUTCOME-BASED DELIVERY AND DEVSECOPS SERVICES (ODOS) III' contract?

Given the contract title 'OUTCOME-BASED DELIVERY AND DEVSECOPS SERVICES (ODOS) III' and the awarding agency (USCIS), it is highly probable that this contract supports the modernization and enhancement of systems critical to immigration services. This could include case management systems, applicant portals, data analytics platforms, identity management solutions, and backend infrastructure supporting these functions. DevSecOps implies an integration of development, security, and operations, suggesting a focus on agile methodologies, continuous integration/continuous delivery (CI/CD) pipelines, automated testing, and robust security practices throughout the software development lifecycle. The 'outcome-based' aspect suggests that performance will be measured against specific, desired results rather than just effort expended.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method impact potential cost savings for taxpayers?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method aims to balance broad competition with specific agency needs. Initially, the solicitation is open to all responsible sources. However, the agency may exclude certain sources based on predefined criteria (e.g., past performance issues, specific technical requirements not met, or national security concerns). While this can streamline the process and ensure the most suitable vendors are considered, it inherently limits the pool of potential bidders compared to a truly unrestricted full and open competition. If the exclusions were too broad or not well-justified, it could reduce competitive pressure, potentially leading to higher prices than might be achieved in a completely open market. Taxpayers benefit most when competition is maximized, so the justification for any source exclusions is key to assessing the impact on cost savings.

What is the significance of 22 delivery orders being issued under this contract vehicle?

The issuance of 22 delivery orders under the 'OUTCOME-BASED DELIVERY AND DEVSECOPS SERVICES (ODOS) III' contract signifies active utilization and a clear demand for the services it provides. This suggests that USCIS is breaking down its IT needs into specific tasks or projects, each managed via a delivery order. It indicates that the contract vehicle is functioning as intended, allowing the agency to procure services incrementally as needed. From a taxpayer perspective, this can be efficient if each order is well-defined and competitively priced (if applicable within the T&M structure). However, the cumulative cost of these 22 orders, totaling $97.09M, underscores the importance of ongoing oversight to ensure each task order represents good value and contributes effectively to USCIS's mission objectives.

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 - DELIVERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70SBUR22R00000005

Offers Received: 22

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 6708 ROCKLEDGE PL, CENTREVILLE, VA, 20121

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $97,086,696

Exercised Options: $97,086,696

Current Obligation: $97,086,696

Actual Outlays: $71,415,126

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 75N98120D00031

IDV Type: GWAC

Timeline