HHS Enterprise Security Program Support IGF contract awarded to Global Tech Inc. for over $32.1M

Contract Overview

Contract Amount: $32,113,060 ($32.1M)

Contractor: Global Tech Inc.

Awarding Agency: Department of the Interior

Start Date: 2014-08-06

End Date: 2019-11-05

Contract Duration: 1,917 days

Daily Burn Rate: $16.8K/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 $32.1 million to GLOBAL TECH INC. for work described as: HHS ENTERPRISE SECURITY PROGRAM SUPPORT IGF::CT::IGF Key points: 1. Value for money appears fair given the 5-year duration and the nature of IT security services. 2. Competition dynamics indicate a full and open competition, suggesting a potentially competitive pricing environment. 3. Risk indicators are moderate, with the contract type (Time and Materials) posing potential cost escalation risks. 4. Performance context is within IT security services, a critical area for government operations. 5. Sector positioning is within IT services, specifically cybersecurity support for a major federal agency.

Value Assessment

Rating: fair

The contract's total value of over $32.1 million across approximately five years suggests a significant investment in IT security. Benchmarking against similar large-scale IT security support contracts is challenging without more granular data on specific services rendered. However, the Time and Materials pricing structure, while common for evolving IT needs, inherently carries a higher risk of cost overruns compared to fixed-price contracts. The value proposition hinges on the effective delivery of essential security services to protect sensitive government data.

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 bids. The presence of 15 bidders suggests a robust level of competition, which typically drives down prices and encourages innovation. This broad competition is a positive sign for price discovery and ensures the government has access to a wide range of potential service providers.

Taxpayer Impact: The extensive competition for this contract likely resulted in more favorable pricing for taxpayers by forcing bidders to offer competitive rates to secure the award.

Public Impact

The primary beneficiary is the Department of Health and Human Services (HHS), which receives enhanced cybersecurity capabilities. Services delivered include enterprise security program support, crucial for protecting sensitive health and citizen data. The geographic impact is primarily within the District of Columbia, where the agency's operations are concentrated. Workforce implications include the potential for skilled IT security professionals to be employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
The duration of the contract (nearly 5 years) means potential for scope creep or evolving requirements not fully captured in initial pricing.
Reliance on a single contractor for critical security functions necessitates strong oversight to prevent vendor lock-in or performance degradation.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
The contract supports essential cybersecurity functions for a major federal agency.
The contractor, Global Tech Inc., is likely experienced in providing IT services to the federal government.

Sector Analysis

The IT services sector, particularly cybersecurity, is a rapidly growing and critical area for government operations. Federal spending in this sector is substantial, driven by increasing cyber threats and the need to protect sensitive data. This contract fits within the broader category of IT support services, focusing on specialized security functions. Comparable spending benchmarks for enterprise-wide security program support can vary widely based on agency size and complexity, but contracts in the tens of millions over several years are common for large federal departments.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business. The impact on the small business ecosystem is neutral to potentially negative if significant subcontracting opportunities were not mandated, as larger contracts often go to prime contractors who may not prioritize small business partners.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) and the agency's procurement office. Accountability measures are tied to the performance work statement and the terms of the Time and Materials contract. Transparency is generally maintained through federal procurement databases like FPDS-NG, where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

HHS Cybersecurity Initiatives
Federal Information Security Management Act (FISMA) Compliance
IT Services for Federal Agencies
Department of the Interior IT Support Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Need for strong oversight to manage evolving IT security requirements.
Reliance on a single contractor for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $32.1 million to GLOBAL TECH INC.. HHS ENTERPRISE SECURITY PROGRAM SUPPORT IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is GLOBAL TECH INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $32.1 million.

What is the period of performance?

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

What is the track record of Global Tech Inc. in delivering similar IT security services to the federal government?

Assessing Global Tech Inc.'s track record requires a deeper dive into their past performance on federal contracts, particularly those involving enterprise security program support. Information on past performance evaluations, any contract disputes, or awards for exceptional service would be crucial. Without specific data on their history with HHS or similar agencies, it's difficult to definitively gauge their reliability and expertise in this domain. Federal procurement databases and past performance questionnaires are key resources for this analysis.

How does the total contract value of $32.1 million compare to other federal IT security contracts of similar scope and duration?

The total contract value of over $32.1 million for approximately five years of enterprise security program support places this contract in the mid-to-large tier for federal IT services. Comparing it directly requires identifying contracts with similar service descriptions (e.g., CISO support, security operations, vulnerability management) and durations. However, given the critical nature of cybersecurity and the size of HHS, this value is not inherently excessive. Benchmarking would involve looking at contracts awarded by agencies like DoD, DHS, or GSA for comparable services, considering factors like the number of users supported and the complexity of the IT environment.

What are the primary risks associated with the Time and Materials (T&M) contract type for this specific security program?

The primary risk with a Time and Materials (T&M) contract type for an enterprise security program is the potential for cost escalation. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. If project scope is not tightly controlled, or if labor hours are inefficiently utilized, costs can significantly exceed initial estimates. For a security program, this could mean higher-than-anticipated spending on personnel and tools, potentially impacting the overall budget allocated for cybersecurity initiatives. Robust oversight and clear task definitions are essential to mitigate these risks.

How effective has the competition level (15 bidders) been in ensuring competitive pricing for this contract?

A high number of bidders, such as the 15 involved in this full and open competition, generally indicates a healthy market and a strong likelihood of competitive pricing. This level of competition suggests that multiple firms found the opportunity attractive and believed they could offer a compelling solution at a viable price point. While the specific pricing details are not provided, the sheer number of bids implies that the government likely received a range of proposals, allowing for effective price discovery and selection of a cost-effective offer. It reduces the risk of a contractor having undue pricing power.

What is the historical spending trend for enterprise security program support within HHS or similar agencies?

Analyzing historical spending trends for enterprise security program support within HHS and comparable agencies is crucial for context. This involves examining annual expenditures on cybersecurity services over several years to identify patterns of increase or decrease, major shifts in strategy, or significant investments. Understanding these trends helps determine if the current contract's value aligns with historical spending patterns or represents a notable deviation. For instance, a consistent rise in spending might indicate growing threats or expanding security needs, while a sudden drop could signal efficiency gains or budget reallocations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: D14PS00285

Offers Received: 15

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc.

Address: 1900 GALLOWS RD FL 8, VIENNA, VA, 22182

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $104,109,504

Exercised Options: $98,767,467

Current Obligation: $32,113,060

Actual Outlays: $3,196,066

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0183T

IDV Type: FSS

Timeline