DOJ Awards $10M for Secure Enclave Hardware to Alphasix, LLC, with Full and Open Competition

Contract Overview

Contract Amount: $10,015,076 ($10.0M)

Contractor: Alphasix, LLC.

Awarding Agency: Department of Justice

Start Date: 2022-07-19

End Date: 2026-07-18

Contract Duration: 1,460 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SECURE ENCLAVE HARDWARE FOR SOCAASS

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $10.0 million to ALPHASIX, LLC. for work described as: SECURE ENCLAVE HARDWARE FOR SOCAASS Key points: 1. The contract is for secure enclave hardware, a critical component for data protection. 2. Alphasix, LLC, is the sole awardee, raising questions about potential competition limitations. 3. The contract duration is four years, indicating a long-term need for these services. 4. The award falls under 'Other Computer Related Services', a broad category.

Value Assessment

Rating: fair

The contract value of $10,015,075.86 over four years appears reasonable for specialized secure hardware. Benchmarking against similar secure enclave solutions is difficult without more specific technical details, but the price per year is approximately $2.5M.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. While this indicates initial open competition, the specific exclusion of sources might warrant further investigation into the rationale and its impact on price discovery.

Taxpayer Impact: Taxpayers are funding critical secure hardware for the Department of Justice. The competitive process, even with exclusions, aims to ensure value for money.

Public Impact

Enhances national security by protecting sensitive government data. Supports the operational capabilities of the Department of Justice's Offices, Boards and Divisions. Potential for future contract modifications or follow-on work based on performance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited information on specific hardware requirements and performance metrics.
Potential for vendor lock-in if the hardware is highly proprietary.

Positive Signals

Awarded under a competitive process, suggesting potential for good value.
Addresses a critical need for secure data handling within the DOJ.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on specialized hardware for secure computing environments. Spending in this area is driven by increasing cybersecurity threats and the need to protect sensitive government information.

Small Business Impact

The awardee, Alphasix, LLC, is not identified as a small business. The contract was awarded under full and open competition, which does not inherently exclude small businesses from participating, but the prime awardee is not one.

Oversight & Accountability

The Department of Justice is responsible for overseeing this contract. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause suggests a structured procurement process, but the specifics of the exclusion require review for full accountability.

Related Government Programs

Other Computer Related Services
Department of Justice Contracting
Offices, Boards and Divisions Programs

Risk Flags

Lack of detailed technical specifications.
Potential for limited competition due to source exclusion.
Awardee is not a small business.
Long contract duration may lead to vendor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $10.0 million to ALPHASIX, LLC.. SECURE ENCLAVE HARDWARE FOR SOCAASS

Who is the contractor on this award?

The obligated recipient is ALPHASIX, LLC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $10.0 million.

What is the period of performance?

Start: 2022-07-19. End: 2026-07-18.

What specific security features and performance benchmarks does this secure enclave hardware provide to justify the $10M investment?

The provided data lacks specific technical details on the security features and performance benchmarks of the secure enclave hardware. A comprehensive assessment would require reviewing the contract's statement of work, technical specifications, and any independent verification reports to understand the value proposition and ensure the $10M investment aligns with critical security needs and expected operational outcomes for the DOJ.

What were the specific reasons for excluding other sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process, and did this exclusion impact the final price?

The data does not specify the reasons for excluding other sources. Typically, such exclusions are based on unique capabilities, existing infrastructure compatibility, or specific security certifications. Understanding these reasons is crucial to determine if the exclusion limited competition and potentially inflated the price, or if it was a necessary step to acquire highly specialized and secure solutions.

How will the effectiveness of this secure enclave hardware be measured throughout the four-year contract period to ensure optimal taxpayer value?

Effectiveness will likely be measured through performance metrics outlined in the contract's statement of work, such as uptime, security incident response times, and successful data protection audits. Regular reviews by the DOJ contracting officer and technical representatives, along with potential independent security assessments, will be key to ensuring the hardware meets its intended purpose and provides ongoing value to taxpayers.

Industry Classification

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

Product/Service Code: IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: RFQP0700NAS160982

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Alphasix Corporation

Address: 21355 RIDGETOP CIR STE 330, STERLING, VA, 20166

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,719,123

Exercised Options: $13,907,343

Current Obligation: $10,015,076

Actual Outlays: $9,495,816

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD28B

IDV Type: GWAC

Timeline