DHS awards $35.3M IT security contract to Global Tech Inc. for TSA systems

Contract Overview

Contract Amount: $35,303,063 ($35.3M)

Contractor: Global Tech Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2017-06-14

End Date: 2021-05-14

Contract Duration: 1,430 days

Daily Burn Rate: $24.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF INFORMATION TECHNOLOGY SECURITY SUPPORT SERVICES FOR THE OFFICE OF INFORMATION TECHNOLOGY

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $35.3 million to GLOBAL TECH INC. for work described as: IGF::OT::IGF INFORMATION TECHNOLOGY SECURITY SUPPORT SERVICES FOR THE OFFICE OF INFORMATION TECHNOLOGY Key points: 1. Contract value represents a significant investment in critical IT security infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. The contract duration of 1430 days indicates a long-term need for these services. 4. Fixed-price contract type may offer cost certainty but could limit flexibility. 5. The award to a single contractor warrants scrutiny of performance and pricing. 6. This contract supports essential cybersecurity functions for a major federal agency.

Value Assessment

Rating: good

The contract value of $35.3 million over approximately four years for IT security support appears reasonable given the scope and duration. Benchmarking against similar large-scale IT security contracts within federal agencies suggests this award falls within a typical range for comprehensive support services. The firm fixed-price structure provides cost predictability for the government, although it necessitates careful initial scope definition to ensure value. Without specific per-unit cost data, a definitive value-for-money assessment is challenging, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 6 bidders suggests a healthy level of interest and competition for this requirement. A competitive process like this generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award. The number of bidders provides a reasonable baseline for assessing whether market forces were effectively leveraged.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple companies to offer their best pricing and technical solutions, driving down costs and improving service quality.

Public Impact

The Transportation Security Administration (TSA) benefits from enhanced IT security, protecting sensitive passenger and operational data. Federal employees within the TSA will have access to robust cybersecurity support, ensuring system integrity. The contract supports IT security operations primarily within Virginia, where the TSA has a significant presence. The contract likely supports a workforce of cybersecurity professionals, potentially creating or sustaining jobs in the IT sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to long contract duration and specialized services.
Risk of cost overruns if the fixed-price scope does not adequately anticipate all necessary security measures.
Dependence on a single contractor for critical cybersecurity functions could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm fixed-price contract provides budget certainty for the government.
Long contract duration suggests a stable, ongoing need for these essential security services.

Sector Analysis

The IT security services sector is a critical and growing segment of the federal contracting market, driven by increasing cyber threats. This contract falls within the Computer Systems Design Services NAICS code (541512), which encompasses a broad range of IT support. Spending in this area is substantial across all federal agencies, with cybersecurity being a top priority. Comparable contracts often involve significant dollar values due to the complexity and criticality of protecting government systems.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false) and was awarded under full and open competition. This suggests that large businesses were likely the primary participants in the bidding process. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business IT ecosystem. Further investigation into subcontracting goals would be necessary to assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices, with potential involvement from the TSA's IT and security divisions. Inspector General audits could be initiated if performance issues or financial irregularities arise. Transparency is generally maintained through contract award databases like FPDS, but detailed performance metrics and oversight reports are often internal.

Related Government Programs

Homeland Security IT Services
Cybersecurity Support Contracts
Transportation Security Administration IT Modernization
Federal Information Security Management Act (FISMA) Compliance Support
IT Professional Services

Risk Flags

Long contract duration may increase risk of scope creep or obsolescence.
Firm fixed-price contracts can be inflexible if requirements change significantly.
Dependence on a single vendor for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $35.3 million to GLOBAL TECH INC.. IGF::OT::IGF INFORMATION TECHNOLOGY SECURITY SUPPORT SERVICES FOR THE OFFICE OF INFORMATION TECHNOLOGY

Who is the contractor on this award?

The obligated recipient is GLOBAL TECH 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 $35.3 million.

What is the period of performance?

Start: 2017-06-14. End: 2021-05-14.

What is the track record of Global Tech Inc. in performing similar IT security contracts for federal agencies?

Assessing Global Tech Inc.'s track record requires examining their past performance on similar federal contracts, particularly those involving IT security support for agencies of similar size and complexity to the TSA. Key indicators include past performance reviews, any documented instances of contract disputes or terminations, and their history of meeting performance metrics and delivery schedules. A review of their contract history in the Federal Procurement Data System (FPDS) or other relevant databases would reveal the types of services rendered, contract values, and agencies served. Positive indicators would include a history of successful contract completions, positive past performance evaluations, and a demonstrated ability to manage complex IT security projects within budget and schedule. Conversely, a history of performance issues, contract modifications due to contractor fault, or negative past performance ratings would raise concerns about their suitability for this significant TSA contract.

How does the awarded price compare to market rates for similar IT security services?

To benchmark the awarded price of $35.3 million against market rates, one would typically compare it to similar contracts awarded by other federal agencies or even state and local governments for comparable IT security services. This involves analyzing the scope of work, the duration of the contract (1430 days), the specific security functions required (e.g., network security, threat detection, incident response), and the labor categories involved. Data from contract databases, industry reports, and commercial IT service providers can be used for comparison. If Global Tech Inc.'s pricing, when broken down by service component or labor hour, is significantly higher than comparable contracts or commercial offerings, it could indicate a potential lack of value. Conversely, if it aligns with or is lower than benchmarks, it suggests a competitive price was secured through the bidding process.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this IT security contract include potential performance failures by Global Tech Inc., leading to security vulnerabilities; cost overruns if the firm fixed-price contract doesn't adequately cover unforeseen technical challenges; and vendor lock-in due to the specialized nature of the services and the long contract duration. Mitigation strategies typically involve robust contract oversight by the TSA, including regular performance reviews, clear performance standards (e.g., Service Level Agreements), and defined remedies for non-performance. The firm fixed-price nature itself mitigates cost overrun risk for the government, provided the initial scope is well-defined. The competitive award process helps mitigate the risk of selecting an underqualified vendor. However, ongoing monitoring of the contractor's performance and financial stability remains crucial throughout the contract's life.

How effective is the Transportation Security Administration (TSA) in managing and overseeing its IT contracts?

The effectiveness of the TSA in managing and overseeing its IT contracts can be assessed through various indicators, including the agency's procurement policies, the experience level of its contracting officers and program managers, and its history of successful contract performance versus contract disputes or failures. Reports from the DHS Inspector General, Government Accountability Office (GAO) audits, and internal agency reviews can provide insights into the TSA's contract management capabilities. Factors such as timely payments, effective communication with contractors, proactive risk management, and adherence to federal acquisition regulations are crucial. A history of well-managed contracts with minimal issues suggests effective oversight, while frequent disputes, cost overruns, or performance failures may indicate areas needing improvement in the TSA's contract management processes.

What is the historical spending trend for IT security services at the TSA or DHS?

Analyzing historical spending trends for IT security services at the TSA or DHS provides context for the $35.3 million award. This involves examining annual IT security expenditures over the past 5-10 years, identifying major contracts, and noting any significant increases or decreases in spending. Trends might reveal shifts in priorities, the impact of evolving cyber threats, or the success of previous IT security initiatives. For instance, a consistent rise in spending could indicate a growing threat landscape or increased reliance on technology, while a sudden drop might suggest budget cuts or a shift towards different security approaches. Comparing this contract's value to historical averages helps determine if it represents a typical investment, an increase, or a decrease in resource allocation for IT security.

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: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc.

Address: 3865 WILSON BLVD STE 500, ARLINGTON, VA, 22203

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,303,063

Exercised Options: $35,303,063

Current Obligation: $35,303,063

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSHQDC13DE2018

IDV Type: IDC

Timeline