GSA awards $33.6M for cybersecurity support to 3VESTA, LLC over five years

Contract Overview

Contract Amount: $33,644,018 ($33.6M)

Contractor: 3vesta, LLC

Awarding Agency: General Services Administration

Start Date: 2016-07-01

End Date: 2021-06-30

Contract Duration: 1,825 days

Daily Burn Rate: $18.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF ECBC TECHNICAL STAFF CYBER SECURITY SUPPORT

Place of Performance

Location: GUNPOWDER, HARFORD County, MARYLAND, 21010

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $33.6 million to 3VESTA, LLC for work described as: IGF::OT::IGF ECBC TECHNICAL STAFF CYBER SECURITY SUPPORT Key points: 1. Contract value represents a significant investment in critical cybersecurity infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Contract duration of five years indicates a long-term need for these services. 4. The firm-fixed-price structure aims to control costs and provide budget certainty. 5. Focus on Computer Systems Design Services highlights the evolving nature of cyber threats. 6. Geographic concentration in Maryland may reflect proximity to federal agencies or data centers.

Value Assessment

Rating: good

The contract value of $33.6 million over five years, averaging approximately $6.7 million annually, appears reasonable for specialized cybersecurity support. Benchmarking against similar contracts for Computer Systems Design Services (NAICS 541512) would provide a more precise value-for-money assessment. The firm-fixed-price (FFP) contract type suggests that the government has a clear understanding of the scope and is seeking cost predictability. Without specific performance metrics or detailed cost breakdowns, a definitive assessment of cost efficiency is challenging, but the FFP structure is generally favorable for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which indicates that while the competition was intended to be broad, certain sources were excluded. This could be due to specific technical requirements, past performance, or other factors that narrowed the field. With four bidders, the competition level was moderate, suggesting that while multiple companies vied for the contract, it was not a wide-open competition with a large number of participants. This level of competition can still lead to price discovery but may not achieve the same level of aggressive pricing as a fully open bid.

Taxpayer Impact: The moderate competition level means taxpayers likely received a fair price, but potentially not the absolute lowest possible price that might have been achieved in a broader competition. The exclusion of sources warrants further investigation to ensure it was justified and did not unduly limit competition.

Public Impact

Federal agencies requiring advanced cybersecurity and computer systems design services benefit from this contract. The services delivered are crucial for protecting sensitive government data and critical infrastructure. The primary geographic impact is in Maryland, likely supporting federal installations or operations in the region. The contract supports specialized IT workforce roles within the cybersecurity domain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method requires scrutiny to ensure it was fully justified and did not unnecessarily restrict competition.
Lack of detailed performance metrics makes it difficult to fully assess the effectiveness and efficiency of the services provided.
The contract's duration of five years necessitates ongoing monitoring to ensure continued value and alignment with evolving cybersecurity needs.

Positive Signals

The firm-fixed-price contract type provides cost certainty and incentivizes the contractor to manage performance efficiently.
The award to a single contractor (3VESTA, LLC) suggests a potentially strong fit for the required specialized services.
The contract's focus on cybersecurity aligns with critical national security and data protection priorities.

Sector Analysis

This contract falls within the Computer Systems Design Services sector (NAICS 541512), a critical segment of the IT industry focused on providing expertise in designing, developing, and implementing complex IT systems. The market for cybersecurity services is substantial and growing rapidly due to increasing cyber threats. This contract represents a specific instance of federal spending within this sector, aimed at bolstering the government's cyber defenses. Comparable spending benchmarks would typically be found within IT services categories, with specific rates varying based on the complexity and specialization of the services.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements for small businesses. The award to 3VESTA, LLC, without explicit small business set-aside provisions, suggests that the primary focus was on meeting the specialized technical requirements of the cybersecurity support. This means the direct economic impact on the small business ecosystem through this specific contract may be limited unless 3VESTA, LLC voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the General Services Administration (GSA), specifically the Federal Acquisition Service. The firm-fixed-price nature of the contract provides a degree of cost oversight. Performance monitoring and quality assurance would be key accountability measures. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Cybersecurity Services
IT Professional Services
Computer Systems Design
Information Technology Support
Federal IT Procurement

Risk Flags

Competition level below 'full and open' requires justification.
Contract duration of five years necessitates robust performance monitoring.
Lack of detailed cost breakdown hinders granular value assessment.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $33.6 million to 3VESTA, LLC. IGF::OT::IGF ECBC TECHNICAL STAFF CYBER SECURITY SUPPORT

Who is the contractor on this award?

The obligated recipient is 3VESTA, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $33.6 million.

What is the period of performance?

Start: 2016-07-01. End: 2021-06-30.

What is the track record of 3VESTA, LLC in performing similar cybersecurity support contracts for the federal government?

Assessing the track record of 3VESTA, LLC requires a review of their past performance on federal contracts, particularly those involving cybersecurity and computer systems design services. Information on contract databases (like FPDS) can reveal previous awards, contract values, performance ratings, and any past issues or disputes. A strong track record would typically include successful completion of similar scope and complexity, positive past performance reviews, and a history of meeting delivery schedules and quality standards. Conversely, a history of contract terminations, significant disputes, or poor performance ratings would raise concerns about their ability to successfully execute this current $33.6 million contract over its five-year duration.

How does the annual cost of this contract compare to similar cybersecurity support contracts awarded by GSA or other agencies?

The annual cost of this contract averages approximately $6.7 million ($33.6M / 5 years). To benchmark this value, one would compare it against contracts for similar Computer Systems Design Services (NAICS 541512) with comparable scope, duration, and complexity, particularly those awarded by the General Services Administration (GSA) or other agencies with significant IT needs. Factors influencing cost include the level of expertise required, the specific technologies involved, security clearance requirements, and geographic location. If comparable contracts show significantly lower annual costs for similar services, it could indicate that this contract's pricing is not optimal. Conversely, if it aligns with or is lower than benchmarks, it suggests reasonable value for money.

What are the primary risks associated with a five-year firm-fixed-price contract for cybersecurity support?

A primary risk with a five-year firm-fixed-price (FFP) contract for cybersecurity support is the potential for scope creep or evolving threat landscapes that may not be adequately captured in the initial fixed price. While FFP provides cost certainty, it can also incentivize the contractor to minimize effort, potentially impacting service quality if not rigorously monitored. For the government, the risk is paying a fixed price for services that may become outdated or insufficient due to rapid technological advancements or new threat vectors. Conversely, if the contractor underestimates the effort or faces unforeseen challenges, they bear the financial risk. Effective oversight and clear performance standards are crucial to mitigate these risks.

How effective are the 'exclusion of sources' and 'limited competition' aspects in ensuring optimal value for taxpayers?

The 'exclusion of sources' and 'limited competition' aspects of this contract award warrant careful consideration regarding taxpayer value. While exclusions might be justified by highly specific technical requirements or security needs, they inherently reduce the pool of potential bidders. Limited competition, with four bidders, is better than a sole-source award but may not drive prices down as aggressively as a fully open competition with numerous participants. Taxpayers benefit most from robust competition, which typically leads to lower prices and higher quality through market pressure. If the exclusions were not strictly necessary or if the limited competition resulted in prices significantly above market rates, taxpayer value could be diminished. A thorough justification for the exclusion of sources is key to understanding the trade-off.

What is the historical spending trend for cybersecurity support services by the GSA or relevant agencies?

Analyzing historical spending trends for cybersecurity support services by the GSA and other relevant agencies is crucial for context. This involves examining aggregate spending data over several fiscal years to identify patterns, growth rates, and major contract vehicles. Understanding this trend helps determine if the $33.6 million awarded to 3VESTA, LLC is consistent with, higher than, or lower than previous investments in similar services. A rising trend in spending might indicate increasing threats or expanding government needs, while a stable or declining trend could suggest efficiency gains or shifting priorities. Benchmarking this contract's value against historical averages provides insight into whether current spending is reasonable or potentially excessive.

What are the implications of the contract being awarded in Maryland for federal cybersecurity operations?

The contract's award with a performance location noted as Maryland (ST: MD) has several implications. Maryland is a hub for federal agencies, including significant defense and intelligence operations, as well as major data centers. Awarding cybersecurity support services to a contractor operating in this region can offer advantages such as reduced travel costs, faster response times, and closer collaboration between the contractor and government personnel. It suggests the services are likely intended to support federal entities located within or operating from Maryland. This geographic concentration may also reflect the availability of a skilled cybersecurity workforce in the area, potentially benefiting the contractor's ability to staff the contract effectively.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID03160010

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7389 LEE HWY, STE 202, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Economically Disadvantaged Women Owned Small Business, 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, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $53,595,877

Exercised Options: $40,650,528

Current Obligation: $33,644,018

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS06F0606Z

IDV Type: GWAC

Timeline