TSA's $37.3M Cybersecurity Contract Awarded to Dynamic Security Concepts Inc. for Vulnerability Management

Contract Overview

Contract Amount: $37,344,063 ($37.3M)

Contractor: Dynamic Security Concepts Inc

Awarding Agency: Department of Homeland Security

Start Date: 2017-09-20

End Date: 2021-03-19

Contract Duration: 1,276 days

Daily Burn Rate: $29.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF THIS PROCUREMENT IS TO PROVIDE SECURE INFRASTRUCTURE AND VULNERABILITY MANAGEMENT (SIVM) SERVICES TO TSA INFORMATION ASSURANCE AND CYBERSECURITY DIVISION (IAD) AND OTHER TSA PROGRAM OFFICES OPERATING IN THE AREA OF INFORMATION TECHNOLOGY SECURITY. IAD HAD A CONTRACT IN PLACE FOR INFORMATION ASSURANCE AND CYBER SECURITY RELATED TESTING SERVICES. THESE SERVICES ENSURED OIT SUPPORTED THE TSA MISSION MANDATED BY THE AVIATION AND TRANSPORTATION SECURITY ACT AND THE HOMELAND SECURITY ACT. THE SERVICES ALSO ENSURED TSA'S IT NETWORK COMPLIES WITH THE REQUIREMENTS OF THE FEDERAL INFORMATION SECURITY MANAGEMENT ACT.

Place of Performance

Location: ARLINGTON, LOUDOUN County, VIRGINIA, 20598

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $37.3 million to DYNAMIC SECURITY CONCEPTS INC for work described as: IGF::OT::IGF THIS PROCUREMENT IS TO PROVIDE SECURE INFRASTRUCTURE AND VULNERABILITY MANAGEMENT (SIVM) SERVICES TO TSA INFORMATION ASSURANCE AND CYBERSECURITY DIVISION (IAD) AND OTHER TSA PROGRAM OFFICES OPERATING IN THE AREA OF INFORMATION TECHNOLOGY SECURITY. IAD HAD A CONTRACT … Key points: 1. Contract focused on enhancing TSA's IT security posture through secure infrastructure and vulnerability management. 2. Services align with federal mandates like FISMA, ensuring compliance and supporting the TSA mission. 3. Dynamic Security Concepts Inc. secured this contract via full and open competition. 4. The contract duration spans over three years, indicating a significant commitment to these cybersecurity services. 5. This procurement addresses critical needs in information assurance and cybersecurity testing. 6. The award value suggests a substantial investment in protecting sensitive transportation data and systems.

Value Assessment

Rating: good

The contract value of approximately $37.3 million over its period of performance appears reasonable for comprehensive cybersecurity services supporting a major federal agency like the TSA. Benchmarking against similar large-scale IT security contracts within the federal government would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract suggests that the contractor bears some of the financial risk, which can be favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of four bids suggests a healthy level of competition for this cybersecurity services requirement. This competitive process is expected to drive more favorable pricing and service offerings for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, ensuring federal funds are used efficiently.

Public Impact

The Transportation Security Administration (TSA) and its associated program offices are the primary beneficiaries, receiving enhanced cybersecurity. Services delivered include secure infrastructure and vulnerability management, crucial for protecting national transportation systems. The geographic impact is national, as TSA operates across all airports and transportation hubs in the United States. Workforce implications include the potential for specialized cybersecurity jobs within Dynamic Security Concepts Inc. and indirectly within TSA's IT security divisions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Reliance on a single contractor for critical cybersecurity functions could pose a risk if performance degrades.
Ensuring continuous adaptation to evolving cyber threats within the contract's scope.

Positive Signals

Awarded through full and open competition, suggesting a competitive market for these services.
The contract's focus on essential cybersecurity functions directly supports national security and public safety.
Fixed-price contract type can provide cost certainty for the government.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on cybersecurity services. The market for federal IT security is substantial, driven by increasing cyber threats and regulatory requirements like FISMA. This procurement represents a significant investment by the TSA in safeguarding its critical infrastructure, aligning with broader government efforts to enhance national cybersecurity. Comparable spending benchmarks would involve looking at other large federal cybersecurity service contracts awarded to system integrators or specialized security firms.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited unless Dynamic Security Concepts Inc. voluntarily engages small businesses as subcontractors. Further analysis would be needed to determine if small business participation was encouraged or mandated.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the TSA. Accountability measures are inherent in the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

Federal Information Security Management Act (FISMA) Compliance
Homeland Security Act
Aviation and Transportation Security Act
Cybersecurity Services Contracts
Information Assurance and Cybersecurity Division (IAD) Support

Risk Flags

Potential for performance issues
Cyber threat landscape evolution
Contract duration and scope management

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $37.3 million to DYNAMIC SECURITY CONCEPTS INC. IGF::OT::IGF THIS PROCUREMENT IS TO PROVIDE SECURE INFRASTRUCTURE AND VULNERABILITY MANAGEMENT (SIVM) SERVICES TO TSA INFORMATION ASSURANCE AND CYBERSECURITY DIVISION (IAD) AND OTHER TSA PROGRAM OFFICES OPERATING IN THE AREA OF INFORMATION TECHNOLOGY SECURITY. IAD HAD A CONTRACT IN PLACE FOR INFORMATION ASSURANCE AND CYBER SECURITY RELATED TESTING SERVICES. THESE SERVICES ENSURED OIT SUPPORTED THE TSA MISSION MANDATED BY THE AVIATION AND TRANSPORTATION SECURITY ACT AND THE HOMELAND SECURITY ACT.

Who is the contractor on this award?

The obligated recipient is DYNAMIC SECURITY CONCEPTS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $37.3 million.

What is the period of performance?

Start: 2017-09-20. End: 2021-03-19.

What is the track record of Dynamic Security Concepts Inc. in performing similar cybersecurity contracts for federal agencies?

A thorough review of Dynamic Security Concepts Inc.'s past performance is crucial for assessing their capability to deliver on this TSA contract. This would involve examining their contract history, including previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past issues or disputes. Understanding their experience with similar services, such as vulnerability management, secure infrastructure, and IT security testing, particularly for agencies of TSA's size and complexity, would provide insight into their reliability and expertise. A positive track record with successful past performance on comparable contracts would increase confidence in their ability to meet TSA's requirements effectively and efficiently.

How does the pricing of this contract compare to similar cybersecurity service contracts awarded by other federal agencies?

To benchmark the value for money, the pricing structure and rates within this $37.3 million contract should be compared against similar cybersecurity service contracts awarded by agencies like DHS, DOT, or other large federal entities. This comparison would involve analyzing the per-hour rates for different labor categories, the cost of specific services or deliverables, and the overall contract value relative to the scope of work and duration. If this contract's pricing is significantly higher or lower than comparable contracts, it could indicate either an exceptional deal for the government or potential issues with pricing realism or scope definition. Access to historical contract data and market research reports would be essential for this analysis.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks for this contract include potential performance deficiencies by the contractor, evolving cyber threats that outpace the contracted services, and the possibility of cost overruns if the contract is not strictly managed. Mitigation strategies likely include robust oversight by the TSA contracting officer and technical team, clearly defined performance metrics and service level agreements (SLAs), and regular performance reviews. The fixed-price contract type itself acts as a risk mitigation tool by shifting some financial risk to the contractor. Furthermore, ensuring the contract allows for flexibility to adapt to new threats, possibly through change order processes, would be important.

How effective are the cybersecurity services provided under this contract in enhancing TSA's overall security posture?

The effectiveness of the cybersecurity services is directly tied to the TSA's ability to maintain a secure IT infrastructure and effectively manage vulnerabilities. This contract's success can be measured by metrics such as a reduction in identified vulnerabilities, successful penetration test results, improved compliance with security mandates (like FISMA), and the absence of significant security breaches impacting TSA operations. The TSA's internal assessments, audit reports from the IG, and feedback from cybersecurity professionals within the agency would provide the best indicators of the services' effectiveness in strengthening their security posture.

What are the historical spending patterns for cybersecurity services within the TSA or DHS, and how does this contract fit?

Analyzing historical spending on cybersecurity services within the TSA and the broader Department of Homeland Security (DHS) is vital to contextualize this $37.3 million award. Understanding the trend of cybersecurity investments over the past several years would reveal whether this contract represents a typical expenditure, an increase, or a decrease in spending for these types of services. This contract appears to be a significant, multi-year investment focused on core vulnerability management and infrastructure security, suggesting it aligns with a sustained commitment to cybersecurity within TSA's operational priorities. Comparing its value to previous contracts for similar services would highlight any shifts in strategy or budget allocation.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1037 MORNINGSIDE DRIVE, MAYS LANDING, NJ, 08330

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $37,344,063

Exercised Options: $37,344,063

Current Obligation: $37,344,063

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $4,253,381

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSHQDC13DE2002

IDV Type: IDC

Timeline