DoD's $23.2M Cyber Security & Info Assurance Contract Awarded to MAG DS CORP Shows Mixed Value and Limited Competition

Contract Overview

Contract Amount: $23,213,179 ($23.2M)

Contractor: MAG DS Corp

Awarding Agency: Department of Defense

Start Date: 2015-09-21

End Date: 2018-10-22

Contract Duration: 1,127 days

Daily Burn Rate: $20.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF THE PURPOSE OF TASK ORDER 0011 IS TO PROVIDE EXPERTISE FOR CYBER SECURITY AND INFORMATION ASSURANCE FOR ENGINEERING, TECHNICAL SUPPORT, ASSISTANCE IN MARKET RESEARCH AND ACQUISITION MANAGEMENT, PREPARATION FOR FIELDING AND URGENT FIELDING REQUIREMENTS, RAPID RESPONSE PROCUREMENT, COMMUNICATIONS SECURITY, AND SYSTEMS INTEGRATION, TESTING, AND DOCUMENTATION. THESE SERVICES SHALL BE PROVIDED IN SUPPORT OF AT LEAST THE PROJECTS / PROGRAMS IDENTIFIED THROUGH ALL PHASES FROM DEVELOPMENT TO TESTING AND FIELDING.

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $23.2 million to MAG DS CORP for work described as: IGF::OT::IGF THE PURPOSE OF TASK ORDER 0011 IS TO PROVIDE EXPERTISE FOR CYBER SECURITY AND INFORMATION ASSURANCE FOR ENGINEERING, TECHNICAL SUPPORT, ASSISTANCE IN MARKET RESEARCH AND ACQUISITION MANAGEMENT, PREPARATION FOR FIELDING AND URGENT FIELDING REQUIREMENTS, RAPID RESPONSE… Key points: 1. Contract provides critical cyber security and information assurance expertise for Army engineering and technical support. 2. Services span development, testing, and fielding across multiple projects, indicating broad applicability. 3. The firm-fixed-price contract type suggests a defined scope, but potential for cost overruns exists if scope expands. 4. Limited competition raises concerns about optimal pricing and potential for reduced innovation. 5. The contract duration of over three years suggests a sustained need for these specialized services. 6. MAG DS CORP's performance on this contract will be a key indicator of their capability in a high-stakes sector.

Value Assessment

Rating: fair

Benchmarking the value for this specific contract is challenging without detailed cost breakdowns and comparisons to similar cybersecurity support services. The firm-fixed-price structure aims for cost certainty, but the total award amount of $23.2 million over approximately three years suggests a significant investment. Without more granular data on the specific tasks performed and their associated costs, it's difficult to definitively assess if this represents excellent value for money. However, the breadth of services required, from market research to rapid response procurement and systems integration, indicates a comprehensive need that MAG DS CORP is contracted to fulfill.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is a positive indicator for price discovery and potential for a competitive marketplace. However, the data indicates only two bids were received, which is on the lower end for a contract of this magnitude and complexity. While full and open competition was utilized, the limited number of bidders might suggest challenges in attracting a wider pool of qualified cybersecurity and information assurance providers, potentially impacting the final price and the range of innovative solutions considered.

Taxpayer Impact: A limited number of bidders, even under full and open competition, can mean taxpayers may not have benefited from the most competitive pricing possible. This could translate to higher costs than if more firms had vied for the contract.

Public Impact

The Department of the Army benefits from enhanced cybersecurity and information assurance capabilities, crucial for protecting sensitive data and systems. Engineering, technical support, market research, and acquisition management services are delivered, improving program efficiency. The contract supports projects from development through fielding, ensuring critical systems are secure at all stages. Workforce implications include the potential for specialized cybersecurity roles to be filled by MAG DS CORP personnel, augmenting government capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders may have reduced competitive pressure on pricing.
Firm-fixed-price contracts can sometimes lead to scope creep if not managed tightly, increasing overall costs.
The broad scope of services could lead to challenges in ensuring consistent quality across all task areas.

Positive Signals

Awarded under full and open competition, allowing for a broad range of potential offerors.
Firm-fixed-price contract type provides cost certainty for the government, assuming scope is well-defined.
The contract addresses critical cybersecurity and information assurance needs for the Department of Defense.

Sector Analysis

The cybersecurity and information assurance sector is a rapidly growing and critical area within the broader IT services market. Government spending in this sector has surged due to increasing cyber threats. This contract fits within the engineering services NAICS code (541330), but its core function is highly specialized within cybersecurity. Comparable spending benchmarks would likely be found within IT services, defense contracting, and specialized engineering support, where demand for expertise in protecting sensitive government systems is consistently high.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The focus was on full and open competition, suggesting that the primary goal was to secure the best solution regardless of business size, rather than prioritizing small business engagement through set-asides.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a Department of Defense contract, it is also subject to oversight from the DoD Inspector General, who investigates waste, fraud, and abuse. Transparency is facilitated through contract award databases like FPDS, where basic information is publicly available. However, detailed performance metrics and specific oversight activities are typically internal to the agency.

Related Government Programs

Cybersecurity Services
Information Assurance
Engineering Services
IT Support Services
Defense IT Contracting
Acquisition Management Support

Risk Flags

Limited competition (2 bidders)
Potential for cost overruns if scope is not tightly managed
Need for robust performance monitoring due to broad service scope

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.2 million to MAG DS CORP. IGF::OT::IGF THE PURPOSE OF TASK ORDER 0011 IS TO PROVIDE EXPERTISE FOR CYBER SECURITY AND INFORMATION ASSURANCE FOR ENGINEERING, TECHNICAL SUPPORT, ASSISTANCE IN MARKET RESEARCH AND ACQUISITION MANAGEMENT, PREPARATION FOR FIELDING AND URGENT FIELDING REQUIREMENTS, RAPID RESPONSE PROCUREMENT, COMMUNICATIONS SECURITY, AND SYSTEMS INTEGRATION, TESTING, AND DOCUMENTATION. THESE SERVICES SHALL BE PROVIDED IN SUPPORT OF AT LEAST THE PROJECTS / PROGRAMS IDENTIFIED THROUGH ALL PHASES FROM DEVELOPMENT

Who is the contractor on this award?

The obligated recipient is MAG DS CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $23.2 million.

What is the period of performance?

Start: 2015-09-21. End: 2018-10-22.

What is the specific breakdown of services provided under Task Order 0011 and how do these align with the Army's cybersecurity priorities?

Task Order 0011 encompasses a wide array of cybersecurity and information assurance services. These include providing expertise for engineering, technical support, market research, acquisition management, preparation for fielding, urgent fielding requirements, rapid response procurement, communications security, and systems integration, testing, and documentation. These services are crucial for the Army's ongoing efforts to maintain the security and integrity of its complex IT infrastructure and weapon systems. The broad scope suggests a need for comprehensive support across the entire system lifecycle, from initial development through deployment and ongoing operations, directly addressing the Army's critical need to defend against evolving cyber threats.

How does the pricing of this contract compare to similar cybersecurity support contracts awarded by the Department of Defense?

Directly comparing the pricing of this $23.2 million contract to similar cybersecurity support contracts is challenging without access to detailed cost breakdowns and specific performance metrics for comparable awards. However, the fact that it was awarded under full and open competition, yet only received two bids, suggests that the market for such specialized services might be concentrated or that the requirements were highly specific. Generally, cybersecurity services are in high demand, which can drive up costs. A firm-fixed-price contract aims for cost control, but the ultimate value depends on the efficiency and effectiveness of MAG DS CORP's service delivery relative to the agreed-upon price and the complexity of the tasks undertaken.

What are the key performance indicators (KPIs) used to evaluate MAG DS CORP's performance on this contract?

The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate MAG DS CORP's performance. Typically, for contracts involving cybersecurity and information assurance, KPIs might include metrics related to incident response times, vulnerability remediation rates, system uptime, successful security audits, compliance adherence, and the quality of technical documentation and support provided. The Department of the Army would have established specific measurable objectives within the contract's statement of work or performance work statement to track the contractor's effectiveness in delivering the required cybersecurity and information assurance expertise.

What is the historical spending pattern for cybersecurity and information assurance support services within the Department of the Army?

Historical spending patterns for cybersecurity and information assurance support services within the Department of the Army have shown a consistent and increasing trend over the past decade. Driven by the escalating sophistication of cyber threats and the increasing reliance on digital systems for military operations, the Army has significantly invested in securing its networks, data, and weapon systems. This includes substantial expenditures on external expertise, technology, and personnel dedicated to cyber defense. While the specific amount for Task Order 0011 is $23.2 million, the overall annual spending across the DoD for such services runs into billions of dollars, reflecting the paramount importance placed on maintaining cyber superiority and resilience.

What are the potential risks associated with awarding a cybersecurity contract with limited competition?

Awarding a cybersecurity contract with limited competition, even if conducted under full and open procedures, presents several potential risks. Firstly, it can lead to suboptimal pricing, as the lack of robust competition may reduce the incentive for contractors to offer their most competitive rates. Secondly, it might limit the range of innovative solutions available, as fewer bidders mean fewer unique approaches to problem-solving are presented. Thirdly, there's a risk of vendor lock-in or over-reliance on a single provider if the limited pool of qualified contractors is small. Finally, it could indicate potential barriers to entry in the market or a lack of awareness among potential bidders, which warrants further investigation into market dynamics.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 RADAR WAY, TINTON FALLS, NJ, 07724

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

Financial Breakdown

Contract Ceiling: $139,086,706

Exercised Options: $43,806,253

Current Obligation: $23,213,179

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T10DD421

IDV Type: IDC

Timeline