Commerce Dept Awards $42.3M IT Security Contract to ICES Corp for NOAA Support

Contract Overview

Contract Amount: $42,340,025 ($42.3M)

Contractor: Ices Corporation

Awarding Agency: Department of Commerce

Start Date: 2019-08-15

End Date: 2025-02-14

Contract Duration: 2,010 days

Daily Burn Rate: $21.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: OSPO IT SECURITY ORDER #1 FOR THE CONTRACTOR TO PROVIDE PROFESSIONAL SUPPORT SERVICES FOR CENTRALIZED PROGRAM SUPPORT, SECURITY COMPLIANCE, SECURITY OPERATIONS, AND SECURITY ARCHITECTURE AND ENGINEERING.

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $42.3 million to ICES CORPORATION for work described as: OSPO IT SECURITY ORDER #1 FOR THE CONTRACTOR TO PROVIDE PROFESSIONAL SUPPORT SERVICES FOR CENTRALIZED PROGRAM SUPPORT, SECURITY COMPLIANCE, SECURITY OPERATIONS, AND SECURITY ARCHITECTURE AND ENGINEERING. Key points: 1. ICES Corporation secured a significant contract for IT security services, indicating strong capabilities in this specialized area. 2. The contract's value suggests a substantial need for ongoing security support within NOAA. 3. Competition method is 'Full and Open', implying a robust bidding process and potential for competitive pricing. 4. The sector is IT services, a critical and growing area for government operations.

Value Assessment

Rating: good

The contract value of $42.3M over its period appears reasonable for comprehensive IT security support. Benchmarking against similar large-scale IT security contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple bidders participated. This method typically drives competitive pricing and ensures the government receives best value.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential IT security services.

Public Impact

Ensures critical IT security infrastructure and operations for NOAA are maintained. Supports national security and data protection through robust cybersecurity measures. Provides specialized professional services essential for government agency functioning.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in Time and Materials contracts if not closely managed.
Reliance on a single contractor for critical security functions could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a fair and competitive process.
Contract duration extends to February 2025, ensuring continuity of essential services.

Sector Analysis

This contract falls within the IT professional services sector, specifically focusing on cybersecurity. Government spending in this area is consistently high due to increasing cyber threats and the digitization of services.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought through subcontracting opportunities.

Oversight & Accountability

The contract is managed by NOAA under the Department of Commerce. Standard government oversight mechanisms for contract performance and financial management are expected to be in place.

Related Government Programs

Computer Systems Design Services
Department of Commerce Contracting
National Oceanic and Atmospheric Administration Programs

Risk Flags

Time and Materials contract type increases cost overrun risk.
No indication of small business subcontracting participation.
Potential for vendor lock-in due to specialized security services.
Contract duration extends over multiple fiscal years, requiring ongoing budget allocation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $42.3 million to ICES CORPORATION. OSPO IT SECURITY ORDER #1 FOR THE CONTRACTOR TO PROVIDE PROFESSIONAL SUPPORT SERVICES FOR CENTRALIZED PROGRAM SUPPORT, SECURITY COMPLIANCE, SECURITY OPERATIONS, AND SECURITY ARCHITECTURE AND ENGINEERING.

Who is the contractor on this award?

The obligated recipient is ICES CORPORATION.

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 $42.3 million.

What is the period of performance?

Start: 2019-08-15. End: 2025-02-14.

What is the estimated total cost per year for these services, and how does it compare to industry benchmarks for similar IT security support?

The total contract value is $42.3M over approximately 5.5 years. This averages to roughly $7.7M per year. Benchmarking this against industry rates for comprehensive IT security support, including program management, compliance, operations, and architecture, would be necessary. Factors like the specific technologies used and the complexity of NOAA's environment will influence the comparison.

What specific metrics are used to evaluate ICES Corporation's performance in security compliance and operations, and what are the penalties for failure to meet these metrics?

Performance metrics are typically detailed in the contract's Performance Work Statement (PWS). These often include Service Level Agreements (SLAs) for response times, uptime, vulnerability remediation rates, and successful audit outcomes. Penalties can range from service credits to contract termination, depending on the severity and frequency of non-compliance.

How does the 'Time and Materials' pricing structure mitigate or exacerbate the risk of cost overruns for this extensive IT security contract?

Time and Materials (T&M) contracts offer flexibility but carry a higher risk of cost overruns if not strictly managed. While it allows for adaptation to evolving security needs, the government must implement robust oversight, detailed task orders, and regular reviews to control labor hours and material costs. Without vigilant monitoring, T&M can become more expensive than fixed-price arrangements.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 8229 BOONE BLVD STE 800, VIENNA, VA, 22182

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Other Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $44,494,492

Exercised Options: $44,494,492

Current Obligation: $42,340,025

Actual Outlays: $13,853,445

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1332KQ19ANEEB0004

IDV Type: BPA

Timeline