Leidos Inc. awarded $109.7M for NOAA/Commerce cybersecurity support, a significant investment in federal IT infrastructure
Contract Overview
Contract Amount: $109,738,156 ($109.7M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Commerce
Start Date: 2018-07-12
End Date: 2024-05-08
Contract Duration: 2,127 days
Daily Burn Rate: $51.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NOAA CYBER SECURITY CENTER (NCSC), AND DEPARTMENT OF COMMERCE (DOC) ENTERPRISE SECURITY OPERATIONS CENTER (ESOC) INTEGRATED SUPPORT SERVICES
Place of Performance
Location: FAIRMONT, MARION County, WEST VIRGINIA, 26554
Plain-Language Summary
Department of Commerce obligated $109.7 million to LEIDOS, INC. for work described as: NOAA CYBER SECURITY CENTER (NCSC), AND DEPARTMENT OF COMMERCE (DOC) ENTERPRISE SECURITY OPERATIONS CENTER (ESOC) INTEGRATED SUPPORT SERVICES Key points: 1. The contract value represents a substantial commitment to maintaining robust cybersecurity for critical NOAA and Commerce Department operations. 2. Competition dynamics for this contract are crucial for ensuring cost-effectiveness and access to advanced security solutions. 3. Performance risk is moderate, given the complexity of integrated security operations and the need for continuous adaptation to evolving threats. 4. This award positions Leidos as a key provider of enterprise security services within the federal government. 5. The fixed-price contract type aims to control costs and provide predictable spending for the agencies involved. 6. The duration of the contract suggests a long-term need for sustained cybersecurity vigilance.
Value Assessment
Rating: good
The $109.7 million award for integrated cybersecurity support appears reasonable given the scope and duration. While direct comparisons to identical contracts are difficult due to the specialized nature of integrated security operations, the firm fixed-price structure suggests an effort to manage costs effectively. Benchmarking against similar large-scale IT security service contracts indicates that the overall value is within expected ranges for comprehensive enterprise-level support. The number of bids received (7) also suggests a competitive environment that likely contributed to a fair price.
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 receipt of seven bids suggests a healthy level of competition for this significant cybersecurity support requirement. A competitive process like this generally leads to better price discovery and encourages contractors to offer their most competitive solutions and pricing to win the award.
Taxpayer Impact: For taxpayers, full and open competition increases the likelihood that the government is obtaining services at a fair market price, maximizing the value of federal dollars spent on essential cybersecurity.
Public Impact
The primary beneficiaries are the National Oceanic and Atmospheric Administration (NOAA) and the Department of Commerce (DOC), which will receive enhanced cybersecurity protection for their critical data and systems. Services delivered include integrated support for enterprise security operations, aiming to detect, prevent, and respond to cyber threats. The geographic impact is primarily national, supporting federal agencies operating across the United States and potentially globally through their digital infrastructure. Workforce implications include the potential for skilled cybersecurity professionals to be employed by Leidos to fulfill the contract requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if integration becomes overly complex.
- Reliance on a single contractor for critical security operations could pose a risk if performance degrades.
- Evolving cyber threats may outpace the contractor's ability to adapt without significant change orders.
Positive Signals
- Firm fixed-price contract provides cost certainty.
- Full and open competition suggests a robust selection process.
- Long contract duration indicates a stable, ongoing need for these services.
- Multiple bidders (7) indicate market interest and potential for strong performance.
Sector Analysis
This contract falls within the broader IT services sector, specifically focusing on cybersecurity and computer systems design. The federal cybersecurity market is substantial and growing, driven by increasing digital threats and the critical nature of government data. This award represents a significant portion of spending dedicated to securing federal networks and operations, aligning with national priorities for cyber defense. Comparable spending benchmarks in this area often involve multi-year, high-value contracts for managed security services and system integration.
Small Business Impact
The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While Leidos, Inc. is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on Leidos's strategy and the specific requirements of the contract, but it is not a primary focus based on the provided data.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officers and program managers within NOAA and the Department of Commerce. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases and public reporting, though specific operational details of the cybersecurity services are likely sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Homeland Security Cybersecurity Initiatives
- Federal Information Security Management Act (FISMA) Compliance
- General Services Administration (GSA) IT Schedule Contracts
- National Cybersecurity Strategy Implementation
Risk Flags
- Cybersecurity Threat Evolution
- System Integration Complexity
- Contractor Performance Dependency
- Data Sensitivity and Protection
Tags
it-services, cybersecurity, national-oceanic-and-atmospheric-administration, department-of-commerce, leidos-inc, firm-fixed-price, full-and-open-competition, enterprise-security-operations, computer-systems-design, federal-government, west-virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $109.7 million to LEIDOS, INC.. NOAA CYBER SECURITY CENTER (NCSC), AND DEPARTMENT OF COMMERCE (DOC) ENTERPRISE SECURITY OPERATIONS CENTER (ESOC) INTEGRATED SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).
What is the total obligated amount?
The obligated amount is $109.7 million.
What is the period of performance?
Start: 2018-07-12. End: 2024-05-08.
What is Leidos's track record in providing similar cybersecurity services to federal agencies?
Leidos has a significant track record in providing IT and cybersecurity services to various federal agencies, including defense, intelligence, and civilian sectors. They have experience in areas such as network security, threat intelligence, incident response, and secure system design. Their past performance on contracts with agencies like the Department of Defense and NASA demonstrates their capability to handle complex, large-scale security operations. This experience suggests a strong foundation for fulfilling the requirements of the NOAA and DOC cybersecurity contract, although specific performance metrics on this particular contract would require further analysis of past performance evaluations.
How does the value of this contract compare to other federal cybersecurity procurements of similar scope?
The $109.7 million award for integrated cybersecurity support over its duration is substantial, reflecting the critical nature of protecting NOAA and DOC systems. When compared to other large federal cybersecurity contracts, such as those for enterprise-wide security operations centers or comprehensive network defense, this award appears to be within the expected range. For instance, similar multi-year contracts for managed security services or advanced threat detection for large federal departments can often reach tens or hundreds of millions of dollars. The firm fixed-price nature and the number of bidders (7) suggest that the pricing was competitive within this market segment.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks include the potential for evolving cyber threats to outpace the contractor's capabilities, the complexity of integrating diverse security systems, and the reliance on a single vendor for critical functions. Mitigation strategies likely involve robust performance standards within the contract, regular performance reviews, and clear requirements for threat intelligence sharing and adaptation. The firm fixed-price structure incentivizes Leidos to manage costs efficiently while meeting performance objectives. Furthermore, the full and open competition process suggests that multiple capable vendors were evaluated, reducing the risk associated with selecting a less qualified provider.
How effective is the current cybersecurity posture of NOAA and DOC, and how does this contract contribute to its improvement?
This contract is specifically designed to enhance and support the existing cybersecurity posture of NOAA and DOC by providing integrated enterprise security operations. The need for such a contract indicates that the agencies recognize the importance of continuous improvement and dedicated resources to combat sophisticated cyber threats. The services procured aim to bolster detection, response, and preventative measures, thereby strengthening the overall resilience of their IT infrastructure. While the 'effectiveness' of the posture is a dynamic measure, this award signifies a proactive investment in maintaining and improving that posture against an ever-changing threat landscape.
What are the historical spending patterns for cybersecurity services within NOAA and the Department of Commerce?
Historical spending patterns for cybersecurity within NOAA and the Department of Commerce have likely shown a consistent and increasing trend over the years, mirroring the broader federal government's focus on cyber defense. Agencies typically allocate significant portions of their IT budgets to cybersecurity, covering areas like network security, data protection, threat monitoring, and incident response. This $109.7 million award represents a substantial, but not necessarily unprecedented, investment for integrated support services. Analyzing past contract awards and budget allocations for these agencies would reveal a pattern of sustained commitment to cybersecurity, often involving multiple contracts for specialized services.
What is the potential impact of this contract on the broader federal cybersecurity market?
This contract award to Leidos signifies a significant commitment by NOAA and DOC to bolster their cybersecurity infrastructure, potentially influencing the broader federal cybersecurity market. Such large-scale awards can validate specific technological approaches or service delivery models, encouraging other agencies to consider similar solutions. It also reinforces Leidos's position as a major player in the federal cybersecurity space, potentially leading to increased competition or collaboration among other contractors. The focus on integrated support services highlights a trend towards more comprehensive, end-to-end cybersecurity solutions rather than fragmented point solutions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
Address: 700 N FREDERICK AVE, GAITHERSBURG, MD, 20879
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $109,805,084
Exercised Options: $109,805,084
Current Obligation: $109,738,156
Actual Outlays: $15,246,525
Subaward Activity
Number of Subawards: 196
Total Subaward Amount: $42,938,071
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200034W
IDV Type: GWAC
Timeline
Start Date: 2018-07-12
Current End Date: 2024-05-08
Potential End Date: 2024-07-29 00:00:00
Last Modified: 2024-08-08
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