Interior's $2.9M Cyber Services BPA Call Order to Punch Cyber Corp for IT Support

Contract Overview

Contract Amount: $2,903,479 ($2.9M)

Contractor: Punch Cyber Corp

Awarding Agency: Department of the Interior

Start Date: 2024-02-01

End Date: 2026-01-31

Contract Duration: 730 days

Daily Burn Rate: $4.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: BPA CALL ORDER FOR SOC SERVICES

Place of Performance

Location: LAKEWOOD, JEFFERSON County, COLORADO, 80235

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $2.9 million to PUNCH CYBER CORP for work described as: BPA CALL ORDER FOR SOC SERVICES Key points: 1. Contract awarded via a competitive process, suggesting potential for fair pricing. 2. Focus on IT services indicates a need for specialized technical expertise. 3. The contract duration of two years provides a stable period for service delivery. 4. Awarded under a Blanket Purchase Agreement (BPA), which can streamline procurement. 5. The specific NAICS code points to a niche within the broader IT services sector.

Value Assessment

Rating: good

The contract value of $2.9 million over two years for IT services appears reasonable, especially given the specialized nature of cybersecurity. Benchmarking against similar IT support contracts for federal agencies suggests this pricing is within expected ranges. The use of a BPA call order implies that some level of pre-negotiation and competition may have occurred at the BPA level, potentially leading to better value.

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 specific number of bidders is not provided, but the competitive nature suggests that the Department of the Interior sought the best value through a transparent process. This approach generally fosters price discovery and encourages contractors to offer competitive terms.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at competitive market rates, preventing potential overspending.

Public Impact

Federal agencies, specifically the Department of the Interior, benefit from enhanced cybersecurity posture. Services delivered include IT support, crucial for the operational continuity of agency functions. The geographic impact is likely focused on the locations where the Department of the Interior operates, primarily in Colorado. Workforce implications may involve skilled IT professionals employed by Punch Cyber Corp.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to assess service quality.
The reliance on a single BPA call order might limit flexibility if needs change significantly.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The contractor, Punch Cyber Corp, is likely vetted through the BPA process.
The contract duration provides stability for essential IT services.

Sector Analysis

The IT services sector is a vast and critical component of federal spending. This contract falls under the 'Other Computer Related Services' category (NAICS 541519), which encompasses a wide range of IT support functions beyond software development or data processing. Federal spending in this area is consistently high, driven by the increasing digitization of government operations and the growing need for cybersecurity. Comparable spending benchmarks for IT support services vary widely based on scope and duration, but contracts in the millions of dollars are common for agencies like the Department of the Interior.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this BPA call order. Therefore, there are no direct subcontracting implications mandated by small business set-asides for this particular award. The impact on the small business ecosystem would depend on whether Punch Cyber Corp utilizes small businesses as subcontractors, which is not specified here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Interior, ensuring adherence to the BPA call order terms and conditions. Accountability is established through performance monitoring and payment based on deliverables or labor hours. Transparency is facilitated by federal procurement databases where such awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of the Interior IT Support Contracts
Cybersecurity Services Contracts
Blanket Purchase Agreements (BPAs)
IT Services for Federal Agencies
NAICS 541519 Contracts

Risk Flags

Potential for scope creep if requirements are not clearly defined.
Dependence on a single contractor for critical IT functions.
Need for robust performance monitoring to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $2.9 million to PUNCH CYBER CORP. BPA CALL ORDER FOR SOC SERVICES

Who is the contractor on this award?

The obligated recipient is PUNCH CYBER CORP.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $2.9 million.

What is the period of performance?

Start: 2024-02-01. End: 2026-01-31.

What is the track record of Punch Cyber Corp in performing similar federal IT services contracts?

Assessing the track record of Punch Cyber Corp requires a deeper dive into federal procurement databases like SAM.gov or FPDS. Specifically, one would look for past performance evaluations on similar contracts, focusing on IT support, cybersecurity, and services delivered under BPAs or call orders. Key indicators include contract completion success, adherence to schedule and budget, and any reported disputes or negative past performance information. Without specific contract history data, it's difficult to definitively assess their reliability for this particular award. However, their ability to secure this BPA call order suggests they have met certain pre-qualification criteria.

How does the per-hour labor rate for this contract compare to market rates for similar IT services?

To compare the per-hour labor rate, we would need to know the specific labor categories and rates billed under this 'LABOR HOURS' contract. Assuming an average loaded labor rate can be derived from the total award amount and estimated hours, it could then be benchmarked against industry data from sources like the Bureau of Labor Statistics (BLS) for IT professionals in the relevant geographic area (Colorado) or specialized IT consulting rate surveys. Federal IT labor rates can sometimes be higher due to security clearance requirements, benefits, and overhead, but full and open competition aims to keep them competitive with the private sector. A detailed analysis would require breaking down the $2.9M award by labor category.

What are the specific cybersecurity risks addressed by this contract?

The contract specifies 'Other Computer Related Services' under NAICS 541519, and the contractor is 'PUNCH CYBER CORP', strongly implying a focus on cybersecurity. While the exact services aren't detailed, typical cybersecurity support under such contracts includes vulnerability assessments, penetration testing, security monitoring, incident response, security policy development, and IT system hardening. The Department of the Interior, like all federal agencies, faces significant cyber threats, making robust IT security services essential to protect sensitive data, critical infrastructure, and operational integrity. This contract likely aims to bolster these defenses.

What is the historical spending trend for similar IT services at the Department of the Interior?

Analyzing historical spending trends for IT services at the Department of the Interior would involve examining procurement data over several fiscal years. This would include identifying spending patterns for IT support, cybersecurity, and related services across different offices and bureaus within the Department. Key metrics to track would be the total annual IT spending, the proportion allocated to external contracts versus internal resources, the average contract value, and the prevalence of different contract types (e.g., FFP, T&M, Labor Hours) and competition levels. Such analysis helps understand the agency's reliance on contractors, budget allocation priorities, and potential areas for cost savings or efficiency improvements.

What is the potential impact of this contract on the overall IT budget of the Department of the Interior?

The $2.9 million award represents a specific allocation within the Department of the Interior's broader IT budget. To assess its overall impact, one would need to compare this amount to the total IT budget for the relevant fiscal years (2024-2026). This contract's value, while significant, is likely a fraction of the Department's total IT expenditure, which funds a wide array of initiatives including infrastructure, software development, personnel, and cybersecurity. The impact is more about how effectively these funds are utilized to meet specific IT service needs and support the agency's mission, rather than a drastic alteration of the overall budget size.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: 140D0424Q0011

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 11150 SUNSET HILLS RD, RESTON, VA, 20190

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,044,096

Exercised Options: $7,073,630

Current Obligation: $2,903,479

Actual Outlays: $2,903,479

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 140D0423A0041

IDV Type: BPA

Timeline