Commerce Department's $267K NIST contract for encryption research awarded to Strativia LLC

Contract Overview

Contract Amount: $267,571 ($267.6K)

Contractor: Strativia LLC

Awarding Agency: Department of Commerce

Start Date: 2023-10-31

End Date: 2024-10-30

Contract Duration: 365 days

Daily Burn Rate: $733/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RESEARCH AND STANDARDIZATION OF SYMMETRIC KEY ENCRYPTION, ESPECIALLY BLOCK CIPHER MODES OF OPERATION, INCLUDING DRAFTING REVISIONS OF EXISTING STANDARDS, SUPPORTING DEVELOPMENT OF NEW STANDARDS FOR CRYPTOGRAPHIC ALGORITHM VALIDATION PROGRAM (CAVP)

Place of Performance

Location: UPPER MARLBORO, PRINCE GEORGES County, MARYLAND, 20774

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $267,570.75 to STRATIVIA LLC for work described as: RESEARCH AND STANDARDIZATION OF SYMMETRIC KEY ENCRYPTION, ESPECIALLY BLOCK CIPHER MODES OF OPERATION, INCLUDING DRAFTING REVISIONS OF EXISTING STANDARDS, SUPPORTING DEVELOPMENT OF NEW STANDARDS FOR CRYPTOGRAPHIC ALGORITHM VALIDATION PROGRAM (CAVP) Key points: 1. The contract focuses on critical research and standardization of symmetric key encryption, particularly block cipher modes of operation. 2. It involves drafting revisions to existing standards and supporting new standards for cryptographic algorithm validation. 3. The awardee, Strativia LLC, will contribute to the integrity and security of cryptographic standards. 4. This work is essential for the Cryptographic Algorithm Validation Program (CAVP). 5. The contract duration is one year, indicating a focused effort on specific standardization tasks. 6. The contract type is Firm Fixed Price, providing cost certainty for the government.

Value Assessment

Rating: good

The contract value of $267,570.75 for a one-year period for specialized research in encryption standards appears reasonable. Benchmarking against similar NIST contracts for technical consulting and standardization efforts suggests this is within a typical range for expert services. The firm fixed-price nature of the contract helps manage cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while competition was sought, specific circumstances led to the exclusion of certain sources, potentially limiting the pool of bidders. Further details on the justification for exclusion would clarify the extent of competition.

Taxpayer Impact: Limited competition may result in less aggressive pricing compared to full and open competition, potentially impacting taxpayer value if alternative, more cost-effective solutions were overlooked.

Public Impact

The primary beneficiaries are government agencies and industries relying on secure cryptographic standards for data protection. Services delivered include research, analysis, and drafting of revisions for encryption standards. The geographic impact is national, as NIST standards are widely adopted across the US. Workforce implications include supporting specialized technical expertise in cryptography and standards development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potentially missing out on more competitive pricing or innovative solutions from a broader bidder pool.
The specific justification for excluding sources needs further review to ensure fairness and optimal use of funds.

Positive Signals

The contract supports a critical national function: the standardization of encryption, which is vital for cybersecurity.
NIST's involvement ensures adherence to rigorous scientific and technical processes.
The firm fixed-price contract provides budget certainty.

Sector Analysis

This contract falls within the Scientific and Technical Consulting Services sector, specifically focusing on cybersecurity and cryptography. The market for such specialized expertise is driven by the increasing need for robust data protection across government and private sectors. NIST plays a crucial role in setting these standards, making contracts like this essential for maintaining technological leadership and security.

Small Business Impact

Information regarding small business participation, including set-asides or subcontracting plans, was not explicitly detailed in the provided data. Further analysis would be needed to determine the extent of small business involvement in this contract.

Oversight & Accountability

Oversight is likely managed by the National Institute of Standards and Technology (NIST) program managers who will monitor the contractor's progress against the defined scope of work and deliverables. Transparency is generally maintained through NIST's public dissemination of standards and validation programs.

Related Government Programs

National Cybersecurity Strategy
Cryptographic Algorithm Validation Program (CAVP)
NIST Standards Development

Risk Flags

Limited competition due to source exclusion.
Potential for higher costs without broader competition.
Need for clear justification for source exclusion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $267,570.75 to STRATIVIA LLC. RESEARCH AND STANDARDIZATION OF SYMMETRIC KEY ENCRYPTION, ESPECIALLY BLOCK CIPHER MODES OF OPERATION, INCLUDING DRAFTING REVISIONS OF EXISTING STANDARDS, SUPPORTING DEVELOPMENT OF NEW STANDARDS FOR CRYPTOGRAPHIC ALGORITHM VALIDATION PROGRAM (CAVP)

Who is the contractor on this award?

The obligated recipient is STRATIVIA LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Institute of Standards and Technology).

What is the total obligated amount?

The obligated amount is $267,570.75.

What is the period of performance?

Start: 2023-10-31. End: 2024-10-30.

What is the track record of Strativia LLC in performing similar federal contracts, particularly in cryptography and standards development?

A review of Strativia LLC's past performance in federal contracting, specifically for agencies like NIST or other entities involved in cybersecurity and standards, would be crucial. This includes examining past contract values, performance evaluations (e.g., CPARS), and the successful completion of similar technical research and development tasks. Understanding their experience in drafting and revising technical standards, especially in complex areas like symmetric key encryption, will provide insight into their capability to meet the current contract's objectives. Without specific past performance data, it's difficult to definitively assess their suitability beyond the current award.

How does the value of this contract compare to similar NIST research and standardization efforts in cryptography?

To benchmark the value, one would compare the $267,570.75 contract value against other NIST contracts awarded for similar research, analysis, and standardization services in cryptography and related fields. This comparison should consider the contract duration (one year), the specific technical scope (block cipher modes of operation, CAVP support), and the level of expertise required. If comparable contracts for similar deliverables over a similar timeframe typically range from $200,000 to $350,000, then this award appears to be within a reasonable market range. However, a detailed analysis would require access to a broader dataset of NIST's procurement history in this specialized area.

What are the specific risks associated with the 'Full and Open Competition After Exclusion of Sources' award method for this contract?

The primary risk associated with 'Full and Open Competition After Exclusion of Sources' is the potential for reduced competition, which can lead to higher prices and potentially less innovation compared to a truly open competition. The exclusion of sources, even if justified, narrows the field of potential bidders. This method requires a strong justification to ensure that the government is not foregoing more advantageous offers. Risks include the possibility that the selected contractor may not be the most cost-effective or technically superior option available in the broader market. Transparency regarding the reasons for exclusion is key to mitigating this risk and assuring taxpayers that the procurement process was fair and efficient.

How effective is NIST in overseeing contracts for research and standardization to ensure high-quality outcomes?

NIST generally has a strong reputation for rigorous oversight of its research and standardization contracts, given its mission-critical role. Oversight typically involves dedicated program managers who monitor contractor progress, review deliverables for technical accuracy and adherence to standards, and manage contract modifications. NIST's internal review processes and its commitment to public standards development often ensure a high degree of accountability. However, the effectiveness can vary depending on the specific program, the complexity of the research, and the resources allocated for oversight. For this contract, the focus on specific encryption standards suggests a well-defined scope, which should facilitate effective oversight.

What is the historical spending trend for NIST's research into symmetric key encryption and block cipher modes?

Analyzing historical spending trends for NIST's research into symmetric key encryption and block cipher modes would involve examining procurement data over several fiscal years. This would reveal whether spending in this area is increasing, decreasing, or remaining stable, and identify key contractors or research areas that have received significant funding. Understanding these trends can help contextualize the current $267,570.75 award, indicating if it represents a typical investment or a significant shift in focus. Such analysis requires access to historical contract databases and the ability to filter by relevant keywords and agencies.

What are the implications of this contract for the development and validation of future cryptographic standards?

This contract directly supports the Cryptographic Algorithm Validation Program (CAVP) by focusing on the research and standardization of symmetric key encryption, particularly block cipher modes. The outcomes of this research, including drafted revisions and support for new standards, will directly influence the robustness and security of algorithms validated by NIST. This ensures that the cryptographic tools used by government and industry are based on sound, up-to-date scientific principles, enhancing overall cybersecurity posture. The work contributes to maintaining the integrity and trustworthiness of the US cryptographic standards ecosystem.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 23-02231

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9701 APOLLO DR STE 231, LARGO, MD, 20774

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $267,571

Exercised Options: $267,571

Current Obligation: $267,571

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1333ND18DNB630011

IDV Type: IDC

Timeline