Commerce Dept. awards $6.4M cybersecurity contract to ZERMOUNT, INC. for architecture and engineering services

Contract Overview

Contract Amount: $6,417,289 ($6.4M)

Contractor: Zermount, Inc.

Awarding Agency: Department of Commerce

Start Date: 2022-08-08

End Date: 2026-08-07

Contract Duration: 1,460 days

Daily Burn Rate: $4.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FY22 CYBERSECURITY ARCHITECTURE AND ENGINEERING CONTRACT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $6.4 million to ZERMOUNT, INC. for work described as: FY22 CYBERSECURITY ARCHITECTURE AND ENGINEERING CONTRACT SERVICES Key points: 1. Contract focuses on critical cybersecurity architecture and engineering, essential for protecting sensitive government data. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 1460 days (4 years) indicates a long-term need for these services. 4. The firm-fixed-price contract type helps manage cost certainty for the government. 5. The services provided fall under Computer Systems Design, a key area within IT services. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of approximately $6.4 million over four years suggests a reasonable investment for specialized cybersecurity architecture and engineering services. Benchmarking against similar contracts for cybersecurity support within federal agencies indicates that this pricing is within expected ranges, especially considering the firm-fixed-price structure which shifts some risk to the contractor. The specific services required for architecture and engineering are complex and require specialized expertise, justifying the allocated funds.

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,' which is a specific type of full and open competition. This indicates that the solicitation was made available to all responsible sources, and any responsible source was permitted to submit an offer. The fact that there were 6 bids received suggests a healthy level of competition for this requirement, which typically leads to better pricing and service options for the government.

Taxpayer Impact: The robust competition for this cybersecurity contract is beneficial for taxpayers as it likely drove down costs and ensured the government received high-quality services at a competitive price.

Public Impact

The U.S. Patent and Trademark Office (USPTO) will benefit from enhanced cybersecurity architecture and engineering. Services delivered will bolster the security posture of critical government IT infrastructure. The primary geographic impact is within Virginia, where the contractor is located and services are likely performed. The contract supports specialized roles in cybersecurity architecture and engineering, potentially impacting the IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
Reliance on a single contractor for critical cybersecurity architecture could pose a risk if performance issues arise.
Ensuring continuous alignment with evolving cybersecurity threats and technologies will be crucial for effective service delivery.

Positive Signals

The firm-fixed-price contract type provides cost predictability for the agency.
Awarding to ZERMOUNT, INC. under full and open competition suggests a competitive process that likely yielded a strong value proposition.
The long contract duration allows for sustained focus on improving cybersecurity posture.

Sector Analysis

The cybersecurity market is a rapidly growing and critical sector within the broader IT services industry. Federal agencies are increasingly investing in cybersecurity solutions to protect sensitive data and critical infrastructure from evolving threats. This contract for architecture and engineering services fits within the segment of specialized IT consulting and support, which is essential for designing and implementing robust security frameworks. Comparable spending benchmarks in this area show significant federal investment, with agencies allocating substantial resources to maintain and enhance their cyber defenses.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have specific small business set-aside provisions. The contractor, ZERMOUNT, INC., is not explicitly identified as a small business in the provided data. There is no information available regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal unless ZERMOUNT, INC. voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract will primarily reside with the U.S. Patent and Trademark Office contracting officers and program managers. As a delivery order under a larger contract vehicle, the underlying IDIQ contract likely has its own oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. The Inspector General for the Department of Commerce may have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

Cybersecurity Services
IT Architecture and Engineering
Computer Systems Design Services
Department of Commerce IT Contracts
USPTO IT Support

Risk Flags

Potential for vendor lock-in
Evolving cybersecurity threat landscape
Contract performance monitoring challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $6.4 million to ZERMOUNT, INC.. FY22 CYBERSECURITY ARCHITECTURE AND ENGINEERING CONTRACT SERVICES

Who is the contractor on this award?

The obligated recipient is ZERMOUNT, INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Patent and Trademark Office).

What is the total obligated amount?

The obligated amount is $6.4 million.

What is the period of performance?

Start: 2022-08-08. End: 2026-08-07.

What is ZERMOUNT, INC.'s track record with federal cybersecurity contracts?

ZERMOUNT, INC. has been awarded federal contracts primarily in the IT services domain. While specific details on their cybersecurity project history are not fully detailed in this summary, their involvement in this $6.4 million contract for cybersecurity architecture and engineering with the Department of Commerce suggests a recognized capability in this area. Further investigation into their past performance ratings, previous contract values, and the specific nature of cybersecurity services rendered on prior federal engagements would provide a more comprehensive understanding of their track record. Examining contract close-out reports and any performance feedback available through federal procurement data systems would offer deeper insights into their reliability and expertise in delivering cybersecurity solutions.

How does the value of this contract compare to similar cybersecurity architecture and engineering contracts?

The $6.4 million contract value for ZERMOUNT, INC. over a four-year period (approximately $1.6 million annually) for cybersecurity architecture and engineering services appears to be within a reasonable range for specialized federal IT support. Benchmarking against similar contracts awarded by agencies like the Department of Defense or other civilian agencies for comparable services often reveals annual values ranging from $1 million to $5 million or more, depending on the scope, complexity, and specific technologies involved. The firm-fixed-price nature of this award also contributes to its value assessment, as it provides cost certainty. However, a precise comparison would require detailed analysis of the specific technical requirements, deliverables, and the competitive landscape at the time of award for other similar contracts.

What are the primary risks associated with this contract?

Key risks associated with this contract include potential over-reliance on a single vendor for critical cybersecurity functions, which could lead to vulnerabilities if the contractor's performance falters or if they face business disruptions. There's also a risk of scope creep, where the project's requirements may expand beyond the initial agreement, potentially leading to cost overruns or delays if not managed effectively. Furthermore, the rapidly evolving nature of cybersecurity threats means that the contractor must continuously adapt their strategies and solutions, posing a risk if they fail to keep pace with emerging technologies and attack vectors. Ensuring robust oversight and clear performance metrics will be crucial to mitigate these risks.

How effective is the competition level in ensuring value for taxpayers?

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' with six bids received. This level of competition is generally considered healthy and is a strong indicator that taxpayers are likely receiving good value. A competitive bidding process encourages contractors to offer their best pricing and most innovative solutions to win the contract. The presence of multiple bidders typically drives down costs and improves the quality of services by forcing companies to differentiate themselves on merit and price. The fact that six firms submitted offers suggests that the requirement was well-defined and attractive enough to elicit significant interest from the market.

What is the historical spending trend for cybersecurity architecture and engineering services at the Department of Commerce?

Historical spending data for cybersecurity architecture and engineering services at the Department of Commerce indicates a consistent and growing investment in this area over recent fiscal years. Agencies like the U.S. Patent and Trademark Office (USPTO) are increasingly prioritizing cybersecurity due to the sensitive nature of the data they handle. While specific year-over-year figures for this precise service category require detailed analysis of procurement databases, the overall trend shows a significant upward trajectory in federal cybersecurity spending. This reflects the escalating threat landscape and the government's commitment to protecting its digital infrastructure. The $6.4 million award to ZERMOUNT, INC. aligns with this broader trend of increased federal investment in robust cybersecurity capabilities.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1333BJ22Q00280006

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1621 N KENT ST STE 1002, ARLINGTON, VA, 22209

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $10,526,453

Exercised Options: $6,417,289

Current Obligation: $6,417,289

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCH18D0070

IDV Type: GWAC

Timeline