State Department Awards $4.47M for Tempest VTC Equipment to CIS Secure Computing, Inc

Contract Overview

Contract Amount: $4,471,476 ($4.5M)

Contractor: CIS Secure Computing, Inc.

Awarding Agency: Department of State

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $12.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TEMPEST VTC EQUIPMENT.

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22153

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $4.5 million to CIS SECURE COMPUTING, INC. for work described as: TEMPEST VTC EQUIPMENT. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a purchase order with a firm fixed price, indicating cost certainty. 3. Duration of 364 days suggests a short-term need for the equipment. 4. The awardee, CIS SECURE COMPUTING, INC., is in the Electronic Computer Manufacturing industry. 5. The North American Industry Classification System (NAICS) code 334111 points to computer and peripheral equipment manufacturing. 6. The contract is not set aside for small businesses, nor does it indicate subcontracting requirements. 7. The contract is managed by the Department of State, indicating its use within this agency. 8. The base award amount is $4,471,476.

Value Assessment

Rating: fair

The base award amount of $4,471,476 for TEMPEST VTC equipment appears to be a significant investment. Without specific details on the quantity and technical specifications of the VTC equipment, a direct comparison to similar contracts or market rates is challenging. However, the firm fixed-price nature of the contract provides cost predictability for the Department of State. The number of bids received (2) is on the lower side for a full and open competition, which might suggest limited market interest or specialized requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The data indicates two bids were received. While two bidders participated, the level of competition could be considered moderate. A higher number of bidders typically leads to more competitive pricing and a wider selection of solutions, but two bids can still result in a fair price if the bidders are well-qualified and the requirements are clearly defined.

Taxpayer Impact: The full and open competition, despite receiving only two bids, aims to ensure that taxpayer funds are used efficiently by seeking the best value from the available market. This process helps prevent overpayment by allowing multiple companies to vie for the contract.

Public Impact

The Department of State is the primary beneficiary, receiving TEMPEST VTC equipment. This equipment is crucial for secure video teleconferencing, likely supporting diplomatic communications and operations. The contract's geographic impact is primarily within Virginia, where the awardee is located. The contract supports jobs within the electronic computer manufacturing sector, specifically at CIS SECURE COMPUTING, INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bids) could potentially lead to higher prices than a more robustly competed contract.
Lack of small business set-aside or subcontracting requirements may limit opportunities for smaller businesses in this procurement.
The specific TEMPEST requirements for VTC equipment are highly specialized, potentially limiting the pool of qualified bidders.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Awarded through full and open competition, adhering to standard procurement practices.
The awardee is in the relevant industry (Electronic Computer Manufacturing).

Sector Analysis

The contract falls within the Information Technology and Defense/Security sectors, specifically related to secure communication equipment. TEMPEST (Telecommunications Electronics Material Protected from Emanating Spurious Transmissions) equipment is designed to prevent the interception of sensitive information through electromagnetic emissions. The market for such specialized equipment is niche, often dominated by a few manufacturers with the expertise to meet stringent security standards. Spending in this area is critical for government agencies handling classified or sensitive data.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this specific procurement are limited to potentially supplying components or services to the primary contractor, CIS SECURE COMPUTING, INC., if they choose to do so. The overall impact on the small business ecosystem for this particular contract is minimal.

Oversight & Accountability

The contract is a purchase order awarded by the Department of State, which has its own internal oversight mechanisms for procurement. The firm fixed-price nature of the contract helps in managing costs. Transparency is generally maintained through the Federal Procurement Data System (FPDS), where contract awards are reported. Further oversight would typically come from the Department of State's Inspector General if any performance or financial irregularities were suspected.

Related Government Programs

Secure Communications Equipment Procurement
Information Technology Services
Department of State IT Contracts
TEMPEST Equipment Acquisition

Risk Flags

Limited competition
Potential for cost overruns if contractor underestimated specialized requirements
Lack of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $4.5 million to CIS SECURE COMPUTING, INC.. TEMPEST VTC EQUIPMENT.

Who is the contractor on this award?

The obligated recipient is CIS SECURE COMPUTING, INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $4.5 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What are the specific technical specifications and quantities of the TEMPEST VTC equipment being procured?

The provided data does not include the specific technical specifications or quantities of the TEMPEST VTC equipment. This level of detail is typically found in the contract's statement of work or technical exhibits, which are not publicly available in this summary. Understanding these specifications is crucial for assessing the value and appropriateness of the $4.47 million award. For instance, the number of units, required encryption levels, and specific TEMPEST certifications would significantly influence the cost and the number of potential bidders.

How does the $4.47 million award compare to historical spending on similar TEMPEST VTC equipment by the Department of State or other agencies?

Without specific details on the quantity and technical requirements of the equipment, a direct historical spending comparison is difficult. However, TEMPEST-certified equipment is inherently more expensive due to the rigorous testing and shielding required to prevent electromagnetic eavesdropping. If this award covers a substantial number of high-end VTC systems, the $4.47 million might be within a reasonable range for specialized government procurements. A deeper analysis would require accessing historical contract data for similar items, factoring in inflation, and adjusting for differences in specifications and quantities.

What is the track record of CIS SECURE COMPUTING, INC. in delivering TEMPEST-certified equipment or similar secure communication solutions?

The provided data indicates that CIS SECURE COMPUTING, INC. is in the Electronic Computer Manufacturing industry (NAICS 334111). While this suggests they operate within the relevant sector, it does not specifically confirm their expertise or past performance with TEMPEST-certified VTC equipment. A thorough assessment would involve reviewing their contract history, past performance evaluations, and any certifications they hold related to TEMPEST compliance. Agencies typically rely on past performance information when making award decisions, especially for specialized equipment.

What are the potential risks associated with a firm fixed-price contract for specialized equipment like TEMPEST VTC systems?

The primary risk with a firm fixed-price (FFP) contract for specialized equipment like TEMPEST VTC systems is that the contractor may face unforeseen cost increases during performance. If the contractor underestimated material costs, labor, or encountered unexpected technical challenges in meeting the stringent TEMPEST requirements, they might absorb losses or seek modifications. Conversely, if the contractor significantly overestimated costs, the government might end up paying a premium. For the government, the risk is ensuring the contractor can deliver the highly specialized, compliant equipment within the agreed price, as scope creep or contractor failure could lead to delays and potential re-competition.

Given only two bids were received, what is the likelihood that the Department of State achieved the best possible value for this procurement?

Receiving only two bids in a full and open competition presents a moderate risk that the best possible value may not have been achieved. While two bidders can still lead to competitive pricing, a larger pool of bidders typically increases the probability of receiving more aggressive pricing and innovative solutions. The Department of State likely assessed the bids based on a combination of price and technical factors. If the two bidders were highly qualified and their proposals were competitive, a good value might have been secured. However, the limited number of offers suggests that either the market for this specific equipment is small, or the requirements were highly specialized, potentially deterring other potential bidders.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: IT AND TELECOM - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 21050 ASHBURN CROSSING DR STE 145, ASHBURN, VA, 20147

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,471,476

Exercised Options: $4,471,476

Current Obligation: $4,471,476

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline