DHS awards $162M contract for IT services to DV United LLC, focusing on system development and cybersecurity

Contract Overview

Contract Amount: $162,138,536 ($162.1M)

Contractor: DV United 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: $118.5K/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 $162.1 million to DV UNITED LLC for work described as: OUTCOME-BASED DELIVERY AND DEVSECOPS SERVICES (ODOS) III Key points: 1. Contract value of $162M over its period of performance suggests a significant investment in IT modernization. 2. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a competitive process, though the exclusion of specific sources warrants further examination. 3. The contract's focus on 'OUTCOME-BASED DELIVERY AND DEVSECOPS SERVICES' aligns with modern IT procurement trends emphasizing measurable results. 4. The use of 'TIME AND MATERIALS' pricing could introduce cost variability if not closely managed. 5. The contract duration of 1368 days (approx. 3.75 years) provides a stable period for service delivery. 6. The primary service area is Computer Systems Design Services, a broad category encompassing various IT support functions.

Value Assessment

Rating: fair

Benchmarking the $162M contract value against similar IT service contracts for federal agencies is challenging without more specific service details. However, the total value over nearly four years suggests a substantial commitment. The 'TIME AND MATERIALS' pricing structure, while flexible, carries inherent risks of cost overruns if not meticulously monitored and controlled by the agency. Without detailed performance metrics and cost breakdowns, a definitive value-for-money assessment is difficult, but the potential for cost escalation is a notable concern.

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'. This suggests that while the competition was generally open, certain sources were excluded prior to the solicitation. The number of bids received (22) indicates a healthy level of interest from the market. The exclusion of sources, however, could potentially limit the breadth of competition and may warrant further investigation into the rationale behind those exclusions.

Taxpayer Impact: A competitive process with 22 bidders generally benefits taxpayers by driving down prices and encouraging innovation. However, the exclusion of specific sources could mean that taxpayers did not benefit from the most competitive offers available across the entire market.

Public Impact

U.S. Citizenship and Immigration Services (USCIS) will benefit from enhanced IT systems and development services. The contract aims to deliver outcome-based development, security, and operations (DevSecOps) services. Geographic impact is likely concentrated around USCIS facilities and personnel, with potential for remote work arrangements. The contract supports the IT workforce by engaging a contractor for specialized systems design and development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure.
The exclusion of specific sources in a 'full and open' competition raises questions about the extent of market engagement.
Lack of detailed performance metrics in the provided data makes it difficult to assess the effectiveness of the outcome-based delivery model.
The broad nature of 'Computer Systems Design Services' could lead to scope creep if not precisely managed.

Positive Signals

Awarded under a full and open competition, indicating a broad market approach.
A significant number of bidders (22) suggests strong market interest and potential for competitive pricing.
Focus on DevSecOps and outcome-based delivery aligns with modern, efficient IT service models.
The contract duration provides stability for service delivery and long-term IT planning.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Systems Design Services. The federal IT services market is vast, with agencies consistently investing in system modernization, cybersecurity, and cloud migration. Contracts like this are crucial for maintaining and upgrading the complex technological infrastructure that supports government operations. Comparable spending benchmarks would typically be found within IT services categories for agencies of similar size and mission scope, focusing on system development, integration, and operational support.

Small Business Impact

The contract data indicates that this was not a small business set-aside (SS=false, SB=false). Therefore, the primary contractor, DV United LLC, is likely a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contractors often utilize small businesses for specialized support.

Oversight & Accountability

Oversight for this contract will primarily reside with the U.S. Citizenship and Immigration Services (USCIS) contracting officers and program managers. The 'OUTCOME-BASED DELIVERY' aspect suggests performance will be measured against defined outcomes, providing a basis for oversight. Transparency is facilitated by the contract's public award notice. However, specific details on internal oversight mechanisms, accountability measures, or the jurisdiction of an Inspector General for this particular contract are not provided in the summary data.

Related Government Programs

IT Modernization Programs
DevSecOps Initiatives
Computer Systems Design Services
Department of Homeland Security IT Contracts
U.S. Citizenship and Immigration Services Systems

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited transparency on specific performance metrics and outcome definitions.
Rationale for exclusion of sources in competition needs clarification.
Contractor's past performance on similar outcome-based contracts requires verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $162.1 million to DV UNITED LLC. OUTCOME-BASED DELIVERY AND DEVSECOPS SERVICES (ODOS) III

Who is the contractor on this award?

The obligated recipient is DV UNITED 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 $162.1 million.

What is the period of performance?

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

What is the track record of DV United LLC in performing similar federal IT contracts, particularly those involving outcome-based delivery and DevSecOps?

Assessing DV United LLC's track record requires a deeper dive into their past performance on federal contracts. Specifically, one would look for contracts with similar scope, such as system development, cybersecurity integration, and operational support, especially those utilizing outcome-based or DevSecOps methodologies. Analyzing past performance evaluations, contract modifications, and any reported issues or successes on previous engagements would provide insight into their capability to meet the demands of this $162M contract. Without access to detailed performance data or a contractor performance assessment reporting tool (CPARS) summary, it's difficult to definitively gauge their reliability and expertise in this specialized area.

How does the $162M contract value compare to the average cost of similar IT service contracts awarded by DHS or USCIS?

Comparing the $162M contract value requires context regarding the specific services rendered and the duration of the contract. For a contract spanning nearly four years (1368 days) focused on 'OUTCOME-BASED DELIVERY AND DEVSECOPS SERVICES', this figure represents a significant investment. To benchmark effectively, one would analyze the average contract values for similar IT modernization, system development, and cybersecurity services awarded by USCIS or other DHS components over comparable periods. Factors such as the number of systems involved, the complexity of the required services, and the specific technologies employed would influence this comparison. A preliminary assessment suggests this is a substantial contract, indicative of a major IT initiative.

What are the primary risks associated with the 'TIME AND MATERIALS' pricing structure for this contract, and how are they being mitigated?

The primary risk of a 'TIME AND MATERIALS' (T&M) contract is the potential for cost overruns, as the government pays for the actual labor hours and material costs incurred by the contractor, plus a fixed fee or percentage. This structure can incentivize longer project durations or inefficient work if not strictly managed. Mitigation strategies typically involve robust oversight, clearly defined task orders with estimated labor hours, strict ceilings on total expenditure, and regular reviews of timesheets and material invoices. The success of T&M hinges on the government's ability to closely monitor contractor effort and control scope. The 'OUTCOME-BASED DELIVERY' aspect may provide some control by focusing on results, but the underlying T&M pricing still requires diligent management.

What specific outcomes or performance metrics are being used to evaluate the success of this 'OUTCOME-BASED DELIVERY AND DEVSECOPS SERVICES (ODOS) III' contract?

The provided data summary does not detail the specific outcomes or performance metrics for the ODOS III contract. 'Outcome-based delivery' implies that the contractor's payment and performance evaluation are tied to achieving predefined results, such as system uptime, successful deployment of new features, reduction in security vulnerabilities, or improved processing times. To assess the contract's effectiveness, one would need to examine the Performance Work Statement (PWS) or the contract's statement of objectives (SOO) to identify the Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) established. Without these specifics, evaluating the 'value-for-money' and actual success is speculative.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' differ from standard full and open competition, and what are the implications?

Standard 'full and open competition' means that all responsible sources are permitted to submit offers, and the contract is awarded to the responsible source submitting the lowest price, highest evaluated price, or best value, depending on the evaluation criteria. 'Full and open competition after exclusion of sources' indicates that while the competition was intended to be open, specific potential offerors were excluded from the process prior to the solicitation. The reasons for exclusion must be documented and justified, often due to factors like security concerns, past performance issues, or specific technical requirements that only a subset of vendors could meet. This exclusion can limit the pool of bidders and potentially reduce the level of competition, which could impact price discovery and the ultimate value achieved for taxpayers.

What is the historical spending pattern for similar IT services at U.S. Citizenship and Immigration Services (USCIS)?

Analyzing historical spending patterns for USCIS IT services requires accessing historical contract databases and reports. Typically, agencies like USCIS have ongoing needs for system development, maintenance, cybersecurity, and infrastructure support. Spending in these areas can fluctuate based on modernization initiatives, security threats, and budget allocations. To understand the pattern for USCIS, one would examine the total IT spending over the past 5-10 years, identify major contract awards in areas like system design, software development, and IT support, and note any significant increases or decreases in spending that correlate with specific agency priorities or technological shifts. This contract's $162M value should be viewed within the context of USCIS's overall IT budget and historical investment trends.

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: 7343 WAVERLY DR, WARRENTON, VA, 20186

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $162,138,536

Exercised Options: $162,138,536

Current Obligation: $162,138,536

Actual Outlays: $113,623,298

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200193W

IDV Type: GWAC

Timeline