HHS Enterprise Security Program Support Contract Awarded to Xator LLC for $45.9 Million

Contract Overview

Contract Amount: $45,922,461 ($45.9M)

Contractor: Xator LLC

Awarding Agency: Department of the Interior

Start Date: 2014-08-06

End Date: 2019-11-05

Contract Duration: 1,917 days

Daily Burn Rate: $24.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 15

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: HHS ENTERPRISE SECURITY PROGRAM SUPPORT IGF::CT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $45.9 million to XATOR LLC for work described as: HHS ENTERPRISE SECURITY PROGRAM SUPPORT IGF::CT::IGF Key points: 1. Contract value of $45.9M over 5 years. 2. Awarded under full and open competition. 3. Potential for cost overruns due to Time and Materials pricing. 4. Services fall under Custom Computer Programming, a key IT sector.

Value Assessment

Rating: fair

The contract's Time and Materials pricing structure presents a risk for cost escalation. Without fixed price components, it's challenging to benchmark against similar fixed-price contracts for IT security services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the Time and Materials (T&M) pricing model may limit the effectiveness of competitive pressures on final costs.

Taxpayer Impact: Taxpayer funds are utilized for IT security support. The T&M structure necessitates careful monitoring to ensure costs remain within reasonable bounds and deliver value.

Public Impact

Ensures critical cybersecurity for HHS systems. Supports the Departmental Offices' IT infrastructure. Contract duration of nearly 5 years indicates long-term reliance on these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Time and Materials pricing
  • Lack of small business participation noted

Positive Signals

  • Full and open competition
  • Supports critical HHS functions

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. Spending benchmarks for similar federal IT security contracts vary widely based on scope and complexity, but $45.9M over five years is a significant investment.

Small Business Impact

The data indicates that small businesses were not directly involved in this contract award (ss: false, sb: false). There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

Awarded by the Department of the Interior for HHS, this inter-agency agreement requires clear oversight to ensure performance and cost control. The T&M structure necessitates diligent monitoring by contracting officers.

Related Government Programs

  • Custom Computer Programming Services
  • Department of the Interior Contracting
  • Departmental Offices Programs

Risk Flags

  • Time and Materials pricing model
  • Lack of small business participation
  • Potential for cost overruns
  • Inter-agency award requires careful coordination

Tags

custom-computer-programming-services, department-of-the-interior, dc, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $45.9 million to XATOR LLC. HHS ENTERPRISE SECURITY PROGRAM SUPPORT IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is XATOR LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $45.9 million.

What is the period of performance?

Start: 2014-08-06. End: 2019-11-05.

What is the estimated total cost per hour or labor category, and how does it compare to industry benchmarks?

The provided data does not detail specific labor categories or hourly rates, making a direct comparison to industry benchmarks difficult. The Time and Materials (T&M) nature of the contract means costs are directly tied to hours worked and materials used, necessitating robust tracking and justification by the contractor and vigilant oversight by the agency to ensure fair pricing.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

Specific Key Performance Indicators (KPIs) are not detailed in the provided data. Effective oversight would require HHS to establish clear, measurable KPIs related to security incident response times, vulnerability remediation, and overall system security posture. Regular performance reviews against these KPIs are crucial for ensuring the contractor delivers value and meets the agency's security objectives.

What is the potential for scope creep or unmanaged changes given the T&M contract type?

The Time and Materials (T&M) contract type inherently carries a higher risk of scope creep and unmanaged changes compared to fixed-price contracts. Without clearly defined deliverables and strict change control processes, there's a potential for costs to escalate beyond initial estimates. Proactive management, detailed work authorizations, and regular reviews are essential to mitigate this risk.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesCustom Computer Programming Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: D12PS00285

Offers Received: 15

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1835 ALEXANDER BELL DR, RESTON, VA, 20191

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

Financial Breakdown

Contract Ceiling: $98,448,320

Exercised Options: $93,973,395

Current Obligation: $45,922,461

Actual Outlays: $1,357,482

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0628Y

IDV Type: FSS

Timeline

Start Date: 2014-08-06

Current End Date: 2019-11-05

Potential End Date: 2019-11-05 00:00:00

Last Modified: 2024-02-17

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