DHS Awards $19.7M for Focused Operations Services to XOR Security LLC

Contract Overview

Contract Amount: $19,762,666 ($19.8M)

Contractor: XOR Security LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-04-01

End Date: 2027-03-31

Contract Duration: 1,460 days

Daily Burn Rate: $13.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FOCUSED OPERATIONS SERVICES

Place of Performance

Location: SPRINGFIELD, LOUDOUN County, DISTRICT OF COLUMBIA, 20598

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $19.8 million to XOR SECURITY LLC for work described as: FOCUSED OPERATIONS SERVICES Key points: 1. Contract awarded to XOR Security LLC for $19.7 million. 2. Services are for Computer Facilities Management. 3. Contract falls under the Transportation Security Administration. 4. Awarded via full and open competition.

Value Assessment

Rating: good

The contract's total value is $19.7 million over approximately 4 years. Benchmarking against similar IT services contracts suggests this pricing is within a reasonable range, though specific service-level details would refine this assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust process for price discovery and selection of the most advantageous offer. This method generally leads to competitive pricing.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary services.

Public Impact

Ensures continued operation of critical IT infrastructure for TSA. Supports national security by maintaining essential transportation security systems. Provides employment opportunities through XOR Security LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition
Firm fixed price contract

Sector Analysis

This contract falls within the IT services sector, specifically computer facilities management. Spending in this area is substantial across federal agencies, with benchmarks varying based on service scope and duration.

Small Business Impact

While this specific award went to XOR Security LLC, the use of full and open competition allows for broad participation, potentially including small businesses as subcontractors. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The award is subject to standard federal procurement oversight. The firm fixed price contract type provides cost certainty, and the duration allows for performance monitoring.

Related Government Programs

Computer Facilities Management Services
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Potential vendor lock-in
Reliance on single vendor for critical IT infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $19.8 million to XOR SECURITY LLC. FOCUSED OPERATIONS SERVICES

Who is the contractor on this award?

The obligated recipient is XOR SECURITY LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $19.8 million.

What is the period of performance?

Start: 2023-04-01. End: 2027-03-31.

What is the specific scope of 'Focused Operations Services' and how does it align with TSA's mission?

Focused Operations Services likely encompass the day-to-day management, maintenance, and support of TSA's computer facilities and related IT infrastructure. This includes ensuring the operational readiness of systems critical for passenger screening, baggage handling, and other security functions, directly supporting TSA's core mission of protecting transportation systems.

Are there any potential risks associated with relying on a single vendor for these critical IT services?

While XOR Security LLC was selected through full and open competition, reliance on a single vendor for critical IT operations presents inherent risks. These include potential vendor lock-in, reduced leverage in future negotiations, and the risk of service disruption if the vendor faces financial or operational challenges. Mitigation strategies may involve robust performance monitoring and contingency planning.

How does the firm fixed price contract structure impact the government's ability to ensure value for money?

A firm fixed price contract provides the government with cost certainty, as the price is set regardless of the contractor's actual costs. This structure incentivizes the contractor to manage costs efficiently. For value for money, the government relies on the initial competitive bidding process to establish a fair price and on strong contract management to ensure the contractor meets all performance requirements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1430 SPRING HILL RD STE 200, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $33,678,639

Exercised Options: $26,657,061

Current Obligation: $19,762,666

Actual Outlays: $14,554,080

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F525GA

IDV Type: FSS

Timeline