VA awards $50.7M for IT security software and services to I3 Federal LLC over five years

Contract Overview

Contract Amount: $50,748,004 ($50.7M)

Contractor: I3 Federal LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-09-01

End Date: 2022-08-31

Contract Duration: 1,825 days

Daily Burn Rate: $27.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF FORESCOUT COUNTERACT APPLIANCES, SOFTWARE LICENSES, MAINTENANCE AND SUPPORT SERVICES

Place of Performance

Location: FAIRFAX STATION, FAIRFAX County, VIRGINIA, 22039

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $50.7 million to I3 FEDERAL LLC for work described as: IGF::OT::IGF FORESCOUT COUNTERACT APPLIANCES, SOFTWARE LICENSES, MAINTENANCE AND SUPPORT SERVICES Key points: 1. Contract provides essential cybersecurity capabilities to protect sensitive veteran data. 2. The award was made under full and open competition, suggesting a competitive market. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. Performance period of five years allows for sustained security posture. 5. The North American Industry Classification System (NAICS) code 541519 indicates a focus on IT services. 6. Contractor I3 Federal LLC has a track record with the VA, suggesting familiarity with agency needs.

Value Assessment

Rating: good

The total award amount of $50.7 million over five years averages to approximately $10.14 million annually. This appears reasonable for comprehensive cybersecurity software, licenses, maintenance, and support services, especially given the critical nature of protecting veteran data. Benchmarking against similar large-scale IT security contracts within the federal government would provide a more precise value assessment, but the fixed-price nature of the contract offers cost certainty.

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 that while initial sources may have been excluded, the final award was made through a broad competitive process. The presence of two bidders suggests a moderate level of competition. A higher number of bidders typically leads to more aggressive pricing and better value for the government.

Taxpayer Impact: The competitive nature of this award, even with two bidders, likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.

Public Impact

Veterans will benefit from enhanced security of their personal and health information. The Department of Veterans Affairs (VA) receives critical IT security infrastructure. Services are delivered across the VA's network, impacting all its facilities. The contract supports IT security professionals and potentially cybersecurity analysts within the VA and contractor workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is required for future procurements.
Reliance on a single vendor for critical cybersecurity infrastructure could pose a risk if performance degrades.

Positive Signals

Fixed-price contract provides cost predictability.
Long-term contract (5 years) allows for stable security operations and planning.
Awarded through full and open competition, indicating market availability of solutions.

Sector Analysis

The federal IT security market is a significant and growing sector, driven by increasing cyber threats and the digitization of government services. This contract for Forescout Counteract appliances, software, and support falls within the broader IT services and cybersecurity solutions segment. The VA's spending on such solutions is substantial, reflecting the agency's responsibility for vast amounts of sensitive data. Comparable spending benchmarks would likely show significant investment across agencies in network access control and security management tools.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to I3 Federal LLC, it is unlikely that small businesses will be directly involved as the prime contractor. However, there may be opportunities for small businesses to participate as subcontractors, depending on I3 Federal LLC's subcontracting plan and the specific nature of the services and products required.

Oversight & Accountability

The Department of Veterans Affairs (VA) has established oversight mechanisms for its contracts, including this one. The fixed-price nature of the contract provides a degree of financial oversight. Performance monitoring by the contracting officer and the use of contract clauses related to delivery and service levels are standard accountability measures. Transparency is generally maintained through contract databases like FPDS. Inspector General oversight would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

VA Cybersecurity Modernization Program
Federal Information Security Management Act (FISMA) Compliance
Network Security Appliances and Software
IT Services and Support Contracts

Risk Flags

Potential for performance issues
Vendor lock-in risk
Reliance on specific technology

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $50.7 million to I3 FEDERAL LLC. IGF::OT::IGF FORESCOUT COUNTERACT APPLIANCES, SOFTWARE LICENSES, MAINTENANCE AND SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is I3 FEDERAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $50.7 million.

What is the period of performance?

Start: 2017-09-01. End: 2022-08-31.

What is the track record of I3 Federal LLC with the Department of Veterans Affairs?

I3 Federal LLC has a history of receiving contracts from the Department of Veterans Affairs. The provided data indicates this specific contract (Delivery Order) was awarded under a larger IDIQ or similar vehicle, suggesting prior engagement. Analyzing past performance on similar VA contracts would reveal their reliability, quality of service, and adherence to schedules and budgets. A review of past performance evaluations, if publicly available, would offer deeper insights into their capabilities and client satisfaction within the VA ecosystem. Their sustained presence suggests a level of competence and familiarity with VA requirements.

How does the annual cost of this contract compare to similar cybersecurity solutions for large federal agencies?

The annual cost for this contract averages approximately $10.14 million ($50.7M / 5 years). This figure needs to be benchmarked against similar comprehensive cybersecurity solutions procured by large federal agencies. Factors such as the specific functionalities of Forescout Counteract (network access control, threat detection, endpoint visibility), the number of users/devices protected, and the level of support services included are crucial for a fair comparison. Without detailed feature comparisons and volume metrics, it's difficult to definitively state if this is high or low. However, for a large agency like the VA, investing in robust, multi-faceted cybersecurity is expected, and this annual spend is likely within the typical range for such critical infrastructure.

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

Primary risks include potential performance issues with the cybersecurity software/services, vendor lock-in, and the possibility of unforeseen security vulnerabilities emerging. Mitigation strategies are embedded within the contract structure. The fixed-price nature helps control costs, while the five-year performance period allows for sustained security. The 'full and open competition' award suggests that alternative solutions exist, reducing vendor lock-in risk. The VA's standard contract management processes, including performance monitoring and defined service level agreements, are crucial for ensuring the contractor meets obligations and addressing any performance deficiencies promptly.

How effective is the Forescout Counteract solution in addressing the VA's specific cybersecurity challenges?

The effectiveness of Forescout Counteract hinges on its ability to provide comprehensive network visibility, control access, and detect threats across the VA's complex IT environment. Its known capabilities include identifying and assessing devices on the network, enforcing security policies, and integrating with other security tools. For the VA, which manages a vast network with diverse endpoints (medical devices, workstations, mobile devices), effective implementation is key. Success would be measured by reduced security incidents, improved compliance with federal mandates like FISMA, and enhanced ability to respond to threats. The VA's continued reliance on this solution, as indicated by this award, suggests perceived effectiveness, though specific metrics on incident reduction would provide stronger evidence.

What are the historical spending patterns for cybersecurity solutions at the VA?

The VA historically spends significant amounts on IT infrastructure and cybersecurity solutions due to the sensitive nature of veteran health and personal data. Annual spending on cybersecurity can fluctuate based on modernization efforts, emerging threats, and specific technology procurements. This $50.7 million award over five years represents a substantial, but likely consistent, investment in network security management. Analyzing broader VA IT spending trends and specific cybersecurity budget allocations over the past decade would reveal patterns of investment in areas like endpoint security, network monitoring, data protection, and incident response capabilities.

What is the potential impact of this contract on the broader cybersecurity market?

This contract award to I3 Federal LLC for Forescout technology signifies continued federal adoption of network access control and security management solutions. For Forescout, it represents a significant government client and validates their product's capabilities in a large, demanding environment. For the cybersecurity market, it highlights the ongoing need for robust solutions that can manage diverse networks and enforce security policies. It may also influence competitors by setting a benchmark for features and pricing within the federal sector, potentially driving innovation and competitive bidding on future similar contracts.

Industry Classification

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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12030 HENDERSON RD, CLIFTON, VA, 20124

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $56,953,921

Exercised Options: $50,748,004

Current Obligation: $50,748,004

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: NNG15SD31B

IDV Type: GWAC

Timeline