DHS awards $24.1M for IT security operations, with 7 bidders vying for the contract

Contract Overview

Contract Amount: $24,098,275 ($24.1M)

Contractor: Estrela Tech, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2013-09-30

End Date: 2018-12-15

Contract Duration: 1,902 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::CT::IGF SECURITY OPERATIONS CENTER SUPPORT SERVICES

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $24.1 million to ESTRELA TECH, LLC for work described as: IGF::CT::IGF SECURITY OPERATIONS CENTER SUPPORT SERVICES Key points: 1. The contract value of $24.1 million over five years represents a significant investment in cybersecurity infrastructure. 2. Competition was robust with seven bidders, suggesting a healthy market for these specialized IT services. 3. The use of a Time and Materials pricing model introduces potential cost variability, requiring close monitoring. 4. This contract supports critical IT security operations for U.S. Citizenship and Immigration Services. 5. The duration of the contract (1902 days) indicates a long-term need for these services. 6. The contractor, Estrela Tech, LLC, was awarded this delivery order under a larger IDIQ contract.

Value Assessment

Rating: good

The contract value of $24.1 million over approximately five years averages to about $4.8 million annually. Benchmarking against similar IT security operations support contracts is challenging without more specific service details. However, the presence of seven bidders suggests competitive pricing was likely achieved. The Time and Materials (T&M) pricing structure, while common for evolving IT needs, can lead to cost overruns if not managed diligently. Further analysis would require comparing the labor rates and material markups to industry standards.

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 a broad solicitation. Seven bidders participated, demonstrating a competitive landscape for these IT security operations services. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The specific details of the 'exclusion of sources' clause would need further investigation to understand any limitations.

Taxpayer Impact: The robust competition among seven bidders is beneficial for taxpayers, as it likely drove down prices and ensured the government received competitive offers for essential cybersecurity services.

Public Impact

Immigrants and asylum seekers benefit from secure and reliable IT systems that process their applications and data. The contract delivers essential cybersecurity operations support, protecting sensitive government and personal information. The geographic impact is primarily within the U.S. Citizenship and Immigration Services infrastructure, supporting national immigration functions. The contract supports a workforce skilled in cybersecurity and IT systems management, likely within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials pricing model if not closely managed.
Dependence on a single contractor for critical IT security operations.
The 'exclusion of sources' clause in the competition type warrants further review for potential limitations.

Positive Signals

Awarded under full and open competition, indicating a wide range of potential providers were considered.
Seven bidders participated, suggesting a healthy and competitive market for these services.
The contract duration of nearly five years provides stability for essential IT security operations.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT security operations and computer systems design services. The federal IT market is vast, with significant spending allocated to cybersecurity solutions to protect government networks and data. Comparable spending benchmarks for IT security operations support can vary widely based on the scope and complexity of services, but contracts in the multi-million dollar range are common for agencies like DHS.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside for this contract. Therefore, the direct impact on small businesses through set-asides is nil. However, the prime contractor, Estrela Tech, LLC, may engage small businesses as subcontractors, which would be detailed in subcontracting plans if applicable. Without further information on subcontracting goals, the direct ecosystem impact on small businesses is unclear.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Citizenship and Immigration Services (USCIS) contracting officers and program managers. The Department of Homeland Security's Office of Inspector General (OIG) also has jurisdiction to investigate potential fraud, waste, and abuse. Transparency is facilitated through contract databases like FPDS, which provide public access to contract awards and details. Performance reviews and regular reporting by the contractor are standard accountability measures.

Related Government Programs

Homeland Security IT Services
Cybersecurity Support Contracts
Computer Systems Design Services
IT Operations and Maintenance
Federal Cybersecurity Modernization

Risk Flags

Potential cost growth due to T&M pricing
Limited transparency on source exclusion criteria
Dependence on contractor performance for critical security functions

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $24.1 million to ESTRELA TECH, LLC. IGF::CT::IGF SECURITY OPERATIONS CENTER SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ESTRELA TECH, 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 $24.1 million.

What is the period of performance?

Start: 2013-09-30. End: 2018-12-15.

What is the specific nature of the 'IT Security Operations Support Services' being provided under this contract?

The contract, identified by the NAICS code 541512 (Computer Systems Design Services), focuses on IT Security Operations Support. While the exact deliverables are not fully detailed in the provided summary, such services typically encompass a range of activities crucial for maintaining the security posture of an agency's IT infrastructure. This can include 24/7 monitoring of networks and systems for threats, incident response and management, vulnerability assessments, security control implementation and management, security awareness training, and potentially security architecture design and support. The goal is to protect sensitive government data and systems from cyber threats, ensuring operational continuity and compliance with federal security mandates.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar IT security services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to evolve, which is common in dynamic IT environments like cybersecurity. Unlike fixed-price contracts, T&M pays the contractor for direct labor hours at specified hourly rates and for the actual cost of materials and subcontracts, plus a fee or profit. While T&M offers flexibility, it carries a higher risk of cost overruns for the government compared to firm-fixed-price contracts, as the final cost is not predetermined. For IT security, fixed-price contracts might be used for well-defined projects like a specific system upgrade, whereas T&M is more suitable for ongoing support, monitoring, and incident response where the volume and nature of work can fluctuate significantly.

What is Estrela Tech, LLC's track record with federal IT security contracts?

Estrela Tech, LLC, as the awardee of this $24.1 million contract, has demonstrated capability in providing IT security operations support to the Department of Homeland Security (DHS). Further investigation into their contract history would reveal the extent and success of their previous federal engagements. Analyzing past performance evaluations, contract modifications, and any past performance issues or commendations would provide a clearer picture of their reliability and expertise in delivering similar services. Their ability to win a competitive bid for a significant contract like this suggests a positive track record, but a deeper dive into their portfolio is necessary for a comprehensive assessment.

What are the potential risks associated with the 'full and open competition after exclusion of sources' contract type?

The contract type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the competition was intended to be broad, certain sources were excluded from consideration. The specific reasons for these exclusions are critical to understanding potential risks. If the exclusions were based on legitimate, well-documented criteria (e.g., specific security clearances, unique capabilities), the risk might be minimal. However, if the exclusions were arbitrary or overly restrictive, it could limit competition, potentially leading to higher prices or reduced innovation. It's essential to review the justification for excluding sources to ensure it served the government's best interest and did not unduly restrict the competitive field.

How does this $24.1 million contract fit into the broader DHS cybersecurity spending landscape?

This $24.1 million contract represents a specific investment within the Department of Homeland Security's (DHS) overall cybersecurity budget, which is substantial given DHS's mission to protect the nation's infrastructure. DHS manages a complex array of IT systems and faces continuous cyber threats, necessitating significant spending on security operations, threat detection, incident response, and system hardening. This contract for USCIS IT security operations support is one component of that larger strategy. To contextualize its significance, one would compare its value to DHS's total IT budget, its cybersecurity-specific allocations, and other similar contracts awarded across different components of DHS for comparable services.

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: HSSCCG-13-R-00006

Offers Received: 7

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1953 GALLOWS RD STE 650, VIENNA, VA, 22182

Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $24,098,275

Exercised Options: $24,098,275

Current Obligation: $24,098,275

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS06F1232Z

IDV Type: GWAC

Timeline