DHS awards $4.45M sole-source contract for computing infrastructure to Stealth Solutions Inc

Contract Overview

Contract Amount: $4,451,992 ($4.5M)

Contractor: Stealth Solutions Inc

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-15

End Date: 2026-09-14

Contract Duration: 364 days

Daily Burn Rate: $12.2K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CALL # 1: NAVITA (TM) MVCR

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20165

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $4.5 million to STEALTH SOLUTIONS INC for work described as: CALL # 1: NAVITA (TM) MVCR Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price competition. 2. The fixed-price contract structure aims to control costs, but the lack of competition may limit savings. 3. Performance period of one year with a potential for extension warrants monitoring. 4. The award falls within the 'Computing Infrastructure Providers' category, a common area for federal IT spending. 5. The contractor, Stealth Solutions Inc., has secured this award without prior competitive bidding. 6. The value of the contract is moderate within the context of federal IT procurements.

Value Assessment

Rating: questionable

The contract value of $4.45 million for one year of computing infrastructure services is within a typical range for federal IT. However, without competitive bidding, it is difficult to benchmark the pricing against market rates or similar contracts. The sole-source nature prevents a direct comparison of value-for-money achieved through competition. Further analysis would require understanding the specific services provided and the necessity of a sole-source award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The data indicates it was 'NOT COMPETED UNDER SAP' and is a 'BPA CALL' (Blanket Purchase Agreement Call). This suggests that either only one vendor was capable of providing the required services, or there was a specific justification for not opening it to broader competition. The lack of multiple bidders means there was no price discovery through a competitive process.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive pressure. Sole-source awards can sometimes lead to higher costs compared to fully competed contracts.

Public Impact

The U.S. Coast Guard benefits from the provision of essential computing infrastructure. This contract supports the operational needs of the Department of Homeland Security. The services delivered are critical for data processing, web hosting, and related IT functions. The primary beneficiary is the agency requiring these specific computing resources. The contract ensures the continuity of IT services for a federal agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Sole-source awards can indicate potential vendor lock-in or limited market options.
The specific technical requirements might be highly specialized, necessitating a single vendor.

Positive Signals

The contract is firm fixed price, providing cost certainty for the government.
The award is for a defined period, allowing for re-evaluation of needs.
The agency has identified a need for specific computing infrastructure services.

Sector Analysis

The federal IT services market, particularly for computing infrastructure, is substantial and highly competitive. This contract falls under the North American Industry Classification System (NAICS) code 518210, which covers data processing, hosting, and related services. While many companies operate in this space, specialized or mission-critical requirements can sometimes lead to sole-source awards. Benchmarking would typically involve comparing pricing for similar cloud hosting or data processing services across various federal agencies and commercial providers.

Small Business Impact

The contract data indicates that small business participation (sb) is false, and it was not set aside for small businesses (ss is false). This suggests that the award was not specifically targeted towards small businesses. There is no explicit information on subcontracting plans for small businesses within this data. The lack of a small business set-aside means opportunities for small businesses to participate in this specific contract are limited unless they are part of a larger prime contractor's supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. As a BPA Call, it is a task order against an existing BPA, which itself should have oversight. Transparency is limited by the sole-source nature, but contract award data is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Infrastructure Services
Cloud Computing Services
Data Processing and Hosting
Department of Homeland Security IT Contracts
U.S. Coast Guard IT Procurement

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency in procurement process

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $4.5 million to STEALTH SOLUTIONS INC. CALL # 1: NAVITA (TM) MVCR

Who is the contractor on this award?

The obligated recipient is STEALTH SOLUTIONS INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $4.5 million.

What is the period of performance?

Start: 2025-09-15. End: 2026-09-14.

What specific computing infrastructure services are being procured under this contract?

The contract falls under NAICS code 518210, which encompasses Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services. While the specific details are not provided in the abbreviated data, this typically includes services such as server hosting, data storage, network infrastructure, cloud computing resources (IaaS, PaaS), and potentially related managed IT services. The U.S. Coast Guard likely requires these services to support its operational systems, data management, and communication needs. Further details would be found in the full contract statement of work.

Why was this contract awarded on a sole-source basis instead of being competed?

Sole-source awards are typically justified when only one responsible source can provide the required supplies or services. This can occur due to unique capabilities, proprietary technology, urgent and compelling needs where competition is not feasible, or when a follow-on contract is required for compatibility with existing systems. The data indicates it was 'NOT COMPETED UNDER SAP' and is a 'BPA CALL'. Without further justification documents (e.g., Justification and Approval - J&A), the precise reason remains unknown, but it implies a specific rationale was accepted by the contracting officer for not seeking competitive bids.

What is the track record of Stealth Solutions Inc. with federal contracts, particularly with DHS or the USCG?

The provided data identifies Stealth Solutions Inc. as the contractor for this $4.45 million award. To assess their track record, one would need to consult federal procurement databases like SAM.gov or FPDS. This would reveal past contract awards, performance history, and any reported issues. Without access to that detailed history, it's impossible to comment on their specific performance, past performance ratings, or experience with similar sole-source awards or with the Department of Homeland Security and the U.S. Coast Guard. A thorough review would be necessary to understand their reliability and past performance.

How does the $4.45 million contract value compare to similar federal IT infrastructure procurements?

The $4.45 million contract value for a one-year term for computing infrastructure is a moderate-sized award within the federal IT landscape. Many federal agencies procure similar services, ranging from smaller task orders to multi-billion dollar enterprise-wide agreements. For instance, agencies like GSA, DoD, and other DHS components often award contracts in the millions for cloud hosting, data centers, and IT infrastructure. The 'value' is highly dependent on the scope and scale of services. Without a detailed statement of work, direct comparison is difficult, but it's not an exceptionally large or small award in the context of federal IT spending.

What are the potential risks associated with a sole-source award for IT infrastructure?

The primary risk of a sole-source award for IT infrastructure is the potential for paying a higher price than would be achieved through competition. Without competing bids, the government loses the leverage to negotiate the best possible terms and pricing. Another risk is vendor lock-in, where the agency becomes dependent on a single provider, making it difficult or costly to switch vendors later. There's also a risk that the chosen vendor may not be the most innovative or efficient provider available in the market. Finally, sole-source awards can sometimes raise concerns about fairness and equal opportunity for other capable vendors.

What is the historical spending pattern for similar computing infrastructure services by the U.S. Coast Guard?

To determine historical spending patterns for similar computing infrastructure services by the U.S. Coast Guard, one would need to analyze past contract awards using data from sources like FPDS or SAM.gov. This analysis would involve filtering contracts by the U.S. Coast Guard, relevant NAICS codes (like 518210), and contract types (e.g., IT services, cloud hosting). Examining spending trends over several fiscal years would reveal the typical contract values, the number of competitive versus sole-source awards, and the primary contractors utilized. This context is crucial for understanding if this $4.45 million sole-source award is an anomaly or part of a pattern.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 70Z0G325QOIPL0001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 46191 WESTLAKE DR, STERLING, VA, 20165

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,600,137

Exercised Options: $4,451,992

Current Obligation: $4,451,992

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Parent Contract

Parent Award PIID: 70Z0G325AOIPL0001

IDV Type: BPA

Timeline