DHS awards $24.2M contract for IT systems design to SOFTRAMS LLC, with 22 bids received

Contract Overview

Contract Amount: $24,198,279 ($24.2M)

Contractor: Softrams LLC

Awarding Agency: Department of Homeland Security

Start Date: 2022-12-13

End Date: 2026-06-12

Contract Duration: 1,277 days

Daily Burn Rate: $18.9K/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 $24.2 million to SOFTRAMS LLC for work described as: OUTCOME-BASED DELIVERY AND DEVSECOPS SERVICES (ODOS) III Key points: 1. Contract value represents a significant investment in IT modernization for USCIS. 2. The procurement utilized full and open competition, suggesting a competitive bidding process. 3. Performance period extends over three years, indicating a need for sustained support. 4. The contract type is Time and Materials, which can pose cost control challenges. 5. SOFTRAMS LLC is the awardee, with their track record needing further examination. 6. The NAICS code 541512 points to a focus on computer systems design services. 7. The contract is a delivery order under a larger IDIQ, suggesting a phased approach. 8. The award amount is substantial within the context of IT services for federal agencies.

Value Assessment

Rating: fair

The contract value of $24.2 million for IT systems design services over approximately three years appears within a reasonable range for federal IT procurements of this scope. However, without specific benchmarks for similar 'OUTCOME-BASED DELIVERY AND DEVSECOPS SERVICES (ODOS) III' contracts or detailed service breakdowns, a precise value-for-money assessment is challenging. The Time and Materials (T&M) pricing model, while flexible, carries inherent risks of cost overruns if not managed diligently through robust oversight and clear task definitions. Benchmarking against industry standards for similar system design and development services would provide a clearer picture of whether the pricing is competitive.

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 that the agency initially considered excluding certain sources but ultimately opened the competition. With 22 bids received, the level of competition appears robust, which generally favors price discovery and can lead to more favorable pricing for the government. A high number of bidders suggests that the contract requirements were well-defined and accessible to a broad range of qualified vendors, mitigating concerns about artificial price inflation.

Taxpayer Impact: The strong competition among 22 bidders is beneficial for taxpayers, as it likely drove down prices and encouraged vendors to offer their best value propositions. This competitive environment reduces the risk of overpaying for the services rendered.

Public Impact

Citizens and immigrants will benefit from improved IT systems supporting immigration services. The contract will facilitate the delivery of modernized DevSecOps and outcome-based delivery services. The primary geographic impact is within the Department of Homeland Security's operational areas. The contract is expected to support a workforce skilled in computer systems design and development. Enhanced IT infrastructure could lead to more efficient processing of immigration applications and related services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored and managed.
Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness of 'outcome-based delivery'.
The 'exclusion of sources' clause, even if followed by full and open competition, warrants scrutiny to ensure fairness.
The contractor's specific track record on similar large-scale DevSecOps projects is not detailed here.

Positive Signals

The award was made under full and open competition, indicating a broad and competitive bidding process.
Receiving 22 bids suggests significant market interest and a healthy vendor pool for these services.
The contract duration of over three years allows for sustained development and integration of IT solutions.
The focus on DevSecOps aligns with modern, secure, and efficient software development practices.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design and related services. The federal IT services market is substantial, with agencies continually investing in modernizing infrastructure, enhancing cybersecurity, and improving citizen-facing digital services. Contracts like this are crucial for agencies like DHS to maintain and upgrade complex systems that underpin national security and immigration processes. Benchmarks for similar system design and development contracts often range from tens to hundreds of millions of dollars, depending on scope and duration.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the direct impact on small business set-asides is none. However, the prime contractor, SOFTRAMS LLC, may engage small businesses as subcontractors. The extent of subcontracting opportunities for small businesses would depend on the contractor's subcontracting plan and the specific nature of the work required for DevSecOps and system design services.

Oversight & Accountability

Oversight for this contract will primarily reside with the U.S. Citizenship and Immigration Services (USCIS) within the Department of Homeland Security. Mechanisms likely include contract officer representatives (CORs), regular performance reviews, and adherence to the terms and conditions of the Time and Materials contract, which necessitates careful monitoring of hours and materials. Transparency is typically managed through contract reporting requirements. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

IT Modernization
DevSecOps Services
Computer Systems Design
Cloud Computing Services
Software Development Lifecycle Support
Cybersecurity Services

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Need for robust oversight to manage scope and ensure value.
Contractor's specific performance history on similar DevSecOps projects requires verification.
Clarity on 'outcome-based delivery' metrics and their measurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $24.2 million to SOFTRAMS LLC. OUTCOME-BASED DELIVERY AND DEVSECOPS SERVICES (ODOS) III

Who is the contractor on this award?

The obligated recipient is SOFTRAMS 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 $24.2 million.

What is the period of performance?

Start: 2022-12-13. End: 2026-06-12.

What is the track record of SOFTRAMS LLC in delivering large-scale DevSecOps and outcome-based IT services to federal agencies?

Assessing the track record of SOFTRAMS LLC requires a deeper dive into their past performance on federal contracts, particularly those involving complex IT systems design, development, and DevSecOps implementation. Information from sources like the Federal Procurement Data System (FPDS) or contractor performance databases (e.g., CPARS) would be crucial. Key indicators to examine include their history of meeting deadlines, staying within budget, delivering quality services, and managing risks effectively on similar projects. Understanding their experience with outcome-based delivery models is also important, as this approach emphasizes measurable results over traditional service delivery metrics. Without specific past performance data, it is difficult to definitively gauge their capability for this $24.2 million contract.

How does the awarded amount of $24.2 million compare to similar federal IT systems design contracts awarded over the past three years?

The $24.2 million award for IT systems design and DevSecOps services over approximately three years is a significant sum, but its competitiveness needs to be benchmarked against similar federal procurements. To perform this comparison, one would analyze contracts with comparable NAICS codes (e.g., 541512), contract types (Time and Materials, IDIQ delivery orders), and agencies (especially those within DHS or other large civilian departments). Factors like the specific services required (e.g., cloud migration, application modernization, cybersecurity integration) and the level of complexity will influence pricing. A preliminary assessment suggests this amount is within the expected range for a multi-year, comprehensive IT support contract, but detailed benchmarking against peer contracts is necessary for a definitive value-for-money conclusion.

What are the primary risks associated with the Time and Materials (T&M) contract type for this DevSecOps project, and how are they mitigated?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns, as the government pays for the actual labor hours and materials used, rather than a fixed price. This can be exacerbated in complex IT projects like DevSecOps where scope can evolve or unforeseen technical challenges arise. Mitigation strategies typically include robust government oversight, strict monitoring of labor hours and material costs, clearly defined task orders, and strong contract management by the Contracting Officer's Representative (COR). Setting not-to-exceed (NTE) limits on task orders and the overall contract value is also a critical control. The agency's ability to effectively manage and oversee the T&M aspects will be key to controlling costs and ensuring value.

Given the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation, what does this imply about the procurement process and potential fairness?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a nuanced procurement approach. Initially, the agency may have identified specific sources or types of sources they intended to exclude, perhaps due to specialized requirements or prior relationships. However, they ultimately decided to open the competition broadly, allowing all responsible sources to submit offers. This implies that while there might have been an initial consideration for a more restricted process, the agency opted for wider competition, likely to maximize the pool of potential offerors and ensure the best value. The fact that 22 bids were received supports the notion that the competition was indeed broad and fair, despite the initial 'exclusion' language.

How does this $24.2 million contract fit into the broader IT spending landscape of the Department of Homeland Security (DHS)?

This $24.2 million contract represents a component of DHS's overall IT spending, which is substantial given the agency's vast mission set encompassing national security, border control, and emergency management. DHS consistently ranks among the top federal agencies for IT expenditures. Contracts for IT systems design, development, and modernization are critical for agencies like DHS to maintain legacy systems while adopting new technologies, enhancing cybersecurity, and improving data analytics capabilities. This specific award for USCIS likely supports efforts to streamline immigration processes and improve internal operational efficiencies through modern DevSecOps practices. Its size is significant but should be viewed within the context of DHS's multi-billion dollar annual IT budget.

What are the potential implications for workforce development and the IT labor market resulting from this contract award?

This contract award to SOFTRAMS LLC for DevSecOps and IT systems design services will likely stimulate demand for skilled IT professionals. This includes roles such as software developers, cybersecurity analysts, system architects, DevOps engineers, and project managers. The duration of the contract (over three years) suggests sustained employment opportunities. Depending on the geographic location of the work and the contractor's hiring practices, it could lead to job creation or the reallocation of talent within the IT sector. Furthermore, the emphasis on DevSecOps may encourage the development and adoption of advanced skill sets within the workforce, potentially influencing training programs and educational curricula in related fields.

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: 161 FORT EVANS RD NE STE 205, LEESBURG, VA, 20176

Business Categories: 8(a) Program Participant, Category Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,198,279

Exercised Options: $24,198,279

Current Obligation: $24,198,279

Actual Outlays: $18,852,898

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 75N98122D00001

IDV Type: GWAC

Timeline