Agriculture's $78.6M IT Security Contract Awarded to Dynamo Technologies, LLC

Contract Overview

Contract Amount: $78,644,665 ($78.6M)

Contractor: Dynamo Technologies, LLC

Awarding Agency: Department of Agriculture

Start Date: 2022-06-01

End Date: 2026-11-30

Contract Duration: 1,643 days

Daily Burn Rate: $47.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OCIO/ISC SECURITY OPERATIONS SUPPORT SERVICES.

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $78.6 million to DYNAMO TECHNOLOGIES, LLC for work described as: OCIO/ISC SECURITY OPERATIONS SUPPORT SERVICES. Key points: 1. Contract aims to bolster cybersecurity posture for the Office of the Chief Financial Officer. 2. Awarded via a BPA Call, indicating a streamlined procurement process for established agreements. 3. The contract duration of 1643 days suggests a long-term need for sustained security operations. 4. Pricing structure is Firm Fixed Price, providing cost certainty for the agency. 5. The contract is not set aside for small businesses, suggesting a focus on specialized capabilities. 6. Virginia is the primary state for contract performance, potentially impacting local IT workforce.

Value Assessment

Rating: good

The contract value of $78.6 million over approximately 4.5 years represents a significant investment in IT security. Benchmarking this against similar cybersecurity support contracts is challenging without more specific service details. However, the award to a single contractor via a BPA Call suggests a potentially competitive initial award process. The Firm Fixed Price structure helps manage cost risks for the agency, but the overall value-for-money will depend on the effectiveness and efficiency of the services delivered by Dynamo Technologies, LLC.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bidders suggests a moderate level of competition for this specific BPA Call. While full and open competition is generally preferred, the actual level of competition can be influenced by the specific requirements and the existing BPA framework. A higher number of bidders typically leads to better price discovery and potentially lower costs.

Taxpayer Impact: Taxpayers benefit from the assurance that the agency sought the best possible solution through a competitive process. This approach helps prevent overpayment and encourages vendors to offer competitive pricing.

Public Impact

The primary beneficiaries are the Department of Agriculture's Office of the Chief Financial Officer, receiving enhanced cybersecurity operations. Services delivered include critical IT security operations support, safeguarding sensitive financial data and systems. Geographic impact is concentrated in Virginia, where the contractor is based and services are likely performed. The contract supports the IT workforce by providing specialized cybersecurity roles and services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Reliance on a single contractor for critical security operations could pose a risk if performance degrades.
The long contract duration may limit the agency's ability to adopt newer technologies if not managed proactively.

Positive Signals

Awarded through full and open competition, suggesting a competitive initial selection process.
Firm Fixed Price contract type provides cost predictability for the agency.
The BPA Call mechanism implies a pre-vetted vendor pool, potentially leading to efficient service delivery.
The contract duration indicates a stable, long-term commitment to cybersecurity, which is positive for consistent protection.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on cybersecurity services. The market for cybersecurity is rapidly growing, driven by increasing cyber threats and regulatory requirements. Comparable spending benchmarks for IT security operations support can vary widely based on the scope and complexity of services. The $78.6 million value over 4.5 years places this contract as a significant, but not exceptionally large, IT security investment for a federal agency.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific small business subcontracting requirements indicated in the provided data. This suggests that the primary focus was on securing specialized IT security expertise, potentially favoring larger or more established firms. The absence of small business considerations may limit opportunities for smaller companies to participate in this specific contract, though they may compete on other set-aside contracts.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Agriculture's contracting officers and program managers within the Office of the Chief Financial Officer. The Firm Fixed Price nature of the contract provides a degree of accountability by linking payment to deliverables. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office may conduct audits or investigations if performance issues or potential fraud are identified.

Related Government Programs

Department of Agriculture IT Modernization Initiatives
Federal Cybersecurity Enhancement Programs
Office of Management and Budget (OMB) Cybersecurity Directives
General Services Administration (GSA) IT Schedule Contracts

Risk Flags

Long-term contract duration may require proactive technology refresh management.
Reliance on a single vendor for critical security functions requires robust performance monitoring.
Potential for scope creep if not managed tightly within the Firm Fixed Price structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $78.6 million to DYNAMO TECHNOLOGIES, LLC. OCIO/ISC SECURITY OPERATIONS SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is DYNAMO TECHNOLOGIES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $78.6 million.

What is the period of performance?

Start: 2022-06-01. End: 2026-11-30.

What is the specific scope of 'IT Security Operations Support Services' covered under this contract?

The provided data indicates the contract is for 'OCIO/ISC SECURITY OPERATIONS SUPPORT SERVICES' under NAICS code 541511 (Custom Computer Programming Services). While the specific details of the services are not fully elaborated in the summary data, typical IT security operations support includes functions such as security monitoring, incident response, vulnerability management, security control implementation and maintenance, threat intelligence analysis, and security awareness training. For the Department of Agriculture's Office of the Chief Financial Officer (OCFO), these services would likely focus on protecting financial systems, data, and infrastructure from cyber threats, ensuring compliance with relevant regulations, and maintaining the integrity and availability of critical financial operations.

How does the $78.6 million contract value compare to historical spending on similar services by the Department of Agriculture?

Without access to historical spending data specifically for OCIO/ISC Security Operations Support Services at the Department of Agriculture, a direct comparison is difficult. However, the $78.6 million awarded over approximately 4.5 years (from June 2022 to November 2026) averages around $17.5 million per year. This figure can be considered a substantial investment in cybersecurity. To provide a more precise comparison, one would need to analyze previous contracts for similar security operations support within the OCFO or other relevant USDA components, looking at both the annual spend and the scope of services provided to determine if this represents an increase, decrease, or stable level of investment.

What are the key performance indicators (KPIs) used to measure the success of Dynamo Technologies, LLC under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for IT security operations support services, common KPIs often include metrics related to incident response times (e.g., mean time to detect, mean time to respond), vulnerability remediation rates, system uptime and availability, the number of security incidents successfully prevented or mitigated, compliance audit results, and user satisfaction surveys. The contract's performance work statement (PWS) would detail these specific metrics, along with associated service level agreements (SLAs) and potential penalties or incentives tied to performance.

What is Dynamo Technologies, LLC's track record with federal cybersecurity contracts?

Dynamo Technologies, LLC has been awarded this $78.6 million contract for IT Security Operations Support Services by the Department of Agriculture. While this is a significant award, further investigation into their contract history would be necessary to fully assess their track record. This would involve reviewing past performance on similar cybersecurity contracts with federal agencies, looking at contract values, durations, agencies served, and any available past performance evaluations or CPARS (Contractor Performance Assessment Reporting System) ratings. A review of their portfolio would indicate their experience level and demonstrated capability in delivering cybersecurity solutions.

Are there any identified risks associated with Dynamo Technologies, LLC performing these critical security operations?

Potential risks associated with any contractor performing critical security operations include performance degradation, failure to adapt to evolving threats, or security breaches originating from the contractor's own systems or personnel. For Dynamo Technologies, LLC, specific risks would depend on their internal processes, staffing expertise, and adherence to security protocols. The long-term nature of the contract (over 4 years) also introduces a risk of technological obsolescence if the contractor does not proactively update their methodologies and tools. The Firm Fixed Price structure mitigates financial risk for the government but places performance risk squarely on the contractor.

What is the estimated annual cost per employee or per service unit for the security operations support provided?

Calculating a precise annual cost per employee or per service unit is not feasible with the provided data alone. The total contract value is $78.6 million over approximately 1643 days (roughly 4.5 years), averaging about $17.5 million annually. To estimate cost per employee, one would need to know the number of personnel Dynamo Technologies, LLC is expected to deploy for this contract. Similarly, to estimate cost per service unit, the specific units of service (e.g., number of systems monitored, incidents handled, vulnerabilities assessed) would need to be defined in the contract's PWS. Without these details, only a broad annual average can be stated.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12314422Q0018

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1951 KIDWELL DR STE 550, VIENNA, VA, 22182

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $87,609,713

Exercised Options: $78,644,665

Current Obligation: $78,644,665

Actual Outlays: $63,657,564

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 12760420A0008

IDV Type: BPA

Timeline