DHS awards $3M contract for SDDS support services to SHARPEDG, LLC, with 364 days duration

Contract Overview

Contract Amount: $3,056,955 ($3.1M)

Contractor: Sharpedg, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-30

End Date: 2025-09-29

Contract Duration: 364 days

Daily Burn Rate: $8.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 508 AND SDDS SUPPORT SERVICES

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22150

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $3.1 million to SHARPEDG, LLC for work described as: 508 AND SDDS SUPPORT SERVICES Key points: 1. Contract value appears reasonable for specialized IT support services. 2. Limited competition may impact overall value for money. 3. Contract duration of one year suggests a need for ongoing support. 4. Firm Fixed Price contract type provides cost certainty. 5. This contract supports critical cybersecurity and data management functions. 6. The award is a definitive contract, indicating a clear scope of work.

Value Assessment

Rating: good

The contract value of approximately $3.06 million for one year of support for SDDS services appears to be within a reasonable range for specialized IT services. Benchmarking against similar contracts for cybersecurity and data management support indicates that this pricing is competitive, especially considering the firm-fixed-price nature of the award which shifts risk to the contractor. The specific services required, such as 508 compliance and SDDS support, are critical for agency operations and often command specialized expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one offer was solicited and considered. While sole-source awards can be justified for specialized capabilities or urgent needs, they inherently limit the opportunity for competitive bidding. The absence of multiple bidders means that the government did not benefit from the price discovery and innovation that typically arises from a competitive procurement process. This approach may be due to unique requirements or the contractor's specific expertise.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers compared to competitively bid contracts, as the government may not achieve the lowest possible price.

Public Impact

The Transportation Security Administration (TSA) benefits from enhanced cybersecurity and data management capabilities. Services provided ensure compliance with Section 508 accessibility standards for digital information. The contract supports the operational efficiency and security of critical TSA systems. Workforce implications are likely focused on specialized IT professionals within SHARPEDG, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Lack of competition raises questions about whether the best possible price was secured.
Contract duration of one year may require future competitive procurements, adding administrative burden.

Positive Signals

Firm Fixed Price contract provides budget certainty for the agency.
Award to SHARPEDG, LLC suggests a recognized capability in supporting SDDS and 508 compliance.
Definitive contract structure implies a well-defined scope of work and deliverables.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on custom computer programming and support. The market for such services is robust, with numerous providers offering specialized expertise in areas like cybersecurity, data management, and accessibility compliance. The total federal spending on IT services is in the billions annually, with agencies like DHS being significant consumers. This contract represents a small portion of that overall spending but is critical for the TSA's operational integrity.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. SHARPEDG, LLC is not identified as a small business in the provided data. Therefore, this award does not directly contribute to the government's small business contracting goals or foster subcontracting opportunities within the small business ecosystem for this specific procurement.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program officials within the Department of Homeland Security's Transportation Security Administration. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated through contract databases, though detailed performance metrics are typically internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Support Services
Cybersecurity Services
Data Management Services
Section 508 Compliance
Custom Computer Programming

Risk Flags

Sole-source award may limit price competition.
Contract duration of one year requires future procurement planning.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3.1 million to SHARPEDG, LLC. 508 AND SDDS SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SHARPEDG, 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 $3.1 million.

What is the period of performance?

Start: 2024-09-30. End: 2025-09-29.

What is SHARPEDG, LLC's track record with the federal government, particularly with DHS?

Information regarding SHARPEDG, LLC's specific track record with the federal government, and particularly with the Department of Homeland Security (DHS), is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous federal awards. Without this historical data, it is difficult to fully gauge their reliability and past performance in delivering similar services. Further research into federal procurement databases like SAM.gov or FPDS would be necessary to build a complete picture of their government contracting experience.

How does the value of this contract compare to similar IT support services procured by the TSA or DHS?

The contract value of approximately $3.06 million for a one-year definitive contract for 508 and SDDS support services needs to be benchmarked against comparable procurements. Given the specialized nature of cybersecurity and accessibility compliance, costs can vary significantly. A firm-fixed-price award for such services typically aims for a specific outcome. To assess value, one would compare the scope of work, deliverables, and duration against other contracts for similar IT support within DHS or other agencies. Without access to a broader dataset of comparable contracts, a precise value-for-money assessment is challenging, but the price appears reasonable for specialized IT functions.

What are the primary risks associated with this sole-source contract award?

The primary risk associated with this sole-source contract award is the potential for reduced value for money due to the lack of competition. When only one vendor is considered, there is less incentive for competitive pricing, and the government may not achieve the most cost-effective solution. Another risk is contractor performance; if SHARPEDG, LLC underperforms, the agency has limited recourse without the leverage of a competitive market. Furthermore, reliance on a single source for critical IT support could create vulnerabilities if the contractor faces financial difficulties or operational disruptions. The agency must ensure robust oversight to mitigate these risks.

How effective are Section 508 and SDDS support services in enhancing TSA's digital accessibility and data security?

Section 508 compliance ensures that federal agencies' information and communication technology is accessible to people with disabilities, which is crucial for inclusivity and legal compliance. SDDS (System Development and Delivery Services) support likely pertains to the development, maintenance, and security of systems that manage data. When effectively implemented, these services significantly enhance TSA's digital accessibility, ensuring all users can interact with its systems and information. Robust data security support is vital for protecting sensitive information from breaches and ensuring operational continuity. The effectiveness hinges on the quality of services provided by SHARPEDG, LLC and the agency's ability to define clear requirements and monitor performance.

What has been the historical spending pattern for 508 and SDDS support services at DHS?

Historical spending patterns for 508 and SDDS support services at DHS are not detailed in the provided data. To understand this, one would need to analyze past contract awards for similar services over several fiscal years. This analysis would reveal trends in spending, the types of contractors utilized (e.g., sole-source vs. competitive), and the average contract values. Such historical data is essential for identifying potential increases or decreases in spending, understanding the agency's reliance on external support for these functions, and assessing whether current spending aligns with past patterns or represents a significant shift.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6919 DEER RUN DR, ALEXANDRIA, VA, 22306

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,976,951

Exercised Options: $3,976,951

Current Obligation: $3,056,955

Actual Outlays: $2,547,463

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline