Interior Department awards $2.09M for risk management support to Punch Cyber Corp

Contract Overview

Contract Amount: $2,093,341 ($2.1M)

Contractor: Punch Cyber Corp

Awarding Agency: Department of the Interior

Start Date: 2024-05-13

End Date: 2026-05-12

Contract Duration: 729 days

Daily Burn Rate: $2.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: RISK MANAGEMENT SUPPORT AWARD

Place of Performance

Location: LAKEWOOD, JEFFERSON County, COLORADO, 80235

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $2.1 million to PUNCH CYBER CORP for work described as: RISK MANAGEMENT SUPPORT AWARD Key points: 1. Contract awarded via a Blanket Purchase Agreement (BPA) Call, indicating a pre-negotiated framework. 2. The contract is for 'Other Computer Related Services', a broad category. 3. Awarded on a full and open competition basis, suggesting a competitive process. 4. The duration of 729 days (approximately 2 years) provides a moderate timeframe for service delivery. 5. The contract type is 'Labor Hours', which can offer flexibility but requires careful monitoring of effort. 6. The contractor, Punch Cyber Corp, is the sole awardee under this specific BPA Call.

Value Assessment

Rating: fair

The total award amount of $2.09 million for approximately two years of risk management support services appears within a reasonable range for specialized IT services. However, without specific details on the scope of work, deliverables, and the labor categories involved, a precise value-for-money assessment is challenging. Benchmarking against similar risk management support contracts would be necessary to determine if the pricing is competitive. The 'Labor Hours' contract type necessitates close oversight to ensure efficient use of resources and prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, likely through a pre-existing Blanket Purchase Agreement (BPA) Call. While the specific number of bidders for this BPA Call is not provided, the 'full and open' designation implies that all responsible sources were permitted to submit offers. This competitive approach is generally expected to yield fair market prices and encourage a range of solutions.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it promotes a competitive environment, which typically leads to better pricing and a wider selection of qualified contractors, maximizing the value of federal dollars.

Public Impact

The Department of the Interior benefits from enhanced risk management capabilities, crucial for safeguarding its operations and assets. Services delivered likely include risk assessments, vulnerability analysis, and the development of mitigation strategies. The geographic impact is primarily national, supporting the Department of the Interior's widespread operations. Workforce implications may involve specialized cybersecurity and risk analysis professionals employed by Punch Cyber Corp.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to gauge the effectiveness of the risk management support.
The 'Labor Hours' contract type can lead to cost increases if not managed diligently.
Limited insight into the specific deliverables and outcomes of the risk management services.
The broad 'Other Computer Related Services' NAICS code might obscure the precise nature of the work performed.

Positive Signals

Awarded through a full and open competition, suggesting a robust selection process.
The contractor, Punch Cyber Corp, is likely experienced in providing cybersecurity and risk management services.
The BPA Call mechanism indicates a pre-vetted framework, potentially streamlining service delivery.
The contract duration of nearly two years allows for sustained support in risk management.

Sector Analysis

This contract falls within the broader Information Technology and Professional Services sector, specifically focusing on cybersecurity and risk management. The market for these services is substantial and growing, driven by increasing cyber threats and regulatory requirements. Comparable spending benchmarks for risk management support services vary widely based on scope, duration, and contractor expertise. The Department of the Interior's spending in this area is part of a larger government-wide effort to bolster cybersecurity defenses.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. Therefore, this award does not directly benefit the small business ecosystem through set-asides. However, Punch Cyber Corp may engage small businesses as subcontractors, though this is not explicitly mandated by the contract details provided.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Interior responsible for risk management. Accountability measures would be tied to the performance standards and deliverables outlined in the BPA Call and the subsequent task order. Transparency is facilitated by public contract databases, but detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Cybersecurity Services
IT Professional Services
Risk Management Consulting
Department of the Interior IT Contracts
BPA Call Awards

Risk Flags

Potential for cost overruns due to 'Labor Hours' contract type.
Broad NAICS code may obscure specific service details.
Lack of defined performance metrics hinders objective evaluation.
Limited information on contractor's past performance in this specific service area.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $2.1 million to PUNCH CYBER CORP. RISK MANAGEMENT SUPPORT AWARD

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 $2.1 million.

What is the period of performance?

Start: 2024-05-13. End: 2026-05-12.

What is the specific scope of 'Other Computer Related Services' covered under this contract?

The NAICS code 541519, 'Other Computer Related Services,' is a broad category that can encompass a wide range of IT services not classified elsewhere. For this specific contract, 'RISK MANAGEMENT SUPPORT AWARD' suggests the services likely include, but are not limited to, cybersecurity assessments, vulnerability testing, threat analysis, risk mitigation strategy development, policy review, and potentially incident response planning. The exact scope would be detailed in the task order issued under the Blanket Purchase Agreement (BPA) Call. Without access to the task order, the precise nature of the services remains generalized under this broad classification.

How does the pricing structure for 'Labor Hours' impact value for money compared to fixed-price contracts for similar services?

A 'Labor Hours' contract type, like the one awarded to Punch Cyber Corp, pays the contractor for the actual hours worked by their personnel at pre-negotiated hourly rates. This offers flexibility, allowing the government to adjust the level of effort as needed without formal contract modifications. However, it places a greater emphasis on diligent oversight to ensure efficient work and prevent scope creep or inflated hours. Compared to fixed-price contracts, 'Labor Hours' can be more expensive if the work takes longer than anticipated or if oversight is lax. Conversely, if the scope is uncertain or likely to change, it can prevent the government from overpaying for unused fixed-price capacity. The value for money hinges on effective monitoring of labor hours and ensuring the rates are competitive.

What is Punch Cyber Corp's track record in providing risk management support to federal agencies?

Information regarding Punch Cyber Corp's specific track record in providing risk management support to federal agencies is not detailed in the provided data. As a contractor awarded under a BPA Call, it is presumed they have met certain pre-qualification criteria. To assess their track record thoroughly, one would need to examine past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), other federal contracts awarded to them for similar services, and their overall business history. A review of their past performance would reveal their reliability, quality of service, and ability to meet deadlines and budget constraints in previous engagements.

Are there any specific performance metrics or KPIs associated with this contract to measure success?

The provided data does not specify any Key Performance Indicators (KPIs) or explicit performance metrics for this contract. Typically, performance metrics are defined within the task order or statement of work that accompanies a BPA Call award. These metrics would outline measurable objectives related to the risk management support, such as the number of vulnerabilities identified and remediated, the timeliness of risk assessment reports, or the effectiveness of implemented mitigation strategies. Without these specific metrics, assessing the contractor's success and the overall effectiveness of the risk management support is challenging and relies more on qualitative assessments and adherence to contractual obligations.

How does this $2.09 million award compare to historical federal spending on risk management support services?

Comparing this $2.09 million award to historical federal spending on risk management support requires access to broader government spending databases. Risk management and cybersecurity services represent a significant and growing segment of federal IT spending. The total federal expenditure on such services can range from billions to tens of billions annually, depending on the scope and definition. This specific award to Punch Cyber Corp is a moderate-sized contract within that larger landscape. Its significance is best understood in the context of the Department of the Interior's specific needs and budget allocation for risk management, rather than as a standalone benchmark against all historical federal spending.

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: 140D0424Q0283

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: $15,049,792

Exercised Options: $2,093,341

Current Obligation: $2,093,341

Actual Outlays: $1,682,760

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 140D0423A0041

IDV Type: BPA

Timeline