FSA Cybersecurity Support Contract Awarded to Obsidian Global for $50.9M
Contract Overview
Contract Amount: $50,926,571 ($50.9M)
Contractor: Obsidian Global, LLC
Awarding Agency: Department of Education
Start Date: 2021-09-13
End Date: 2026-09-15
Contract Duration: 1,828 days
Daily Burn Rate: $27.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 13
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THE PURPOSE OF THIS CALL ORDER IS TO PROVIDE CYBERSECURITY SUPPORT SERVICES TO THE OPERATIONS OF FSA'S ENTERPRISE CYBERSECURITY GROUP (ECG).
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20007
Plain-Language Summary
Department of Education obligated $50.9 million to OBSIDIAN GLOBAL, LLC for work described as: THE PURPOSE OF THIS CALL ORDER IS TO PROVIDE CYBERSECURITY SUPPORT SERVICES TO THE OPERATIONS OF FSA'S ENTERPRISE CYBERSECURITY GROUP (ECG). Key points: 1. Contract aims to bolster FSA's Enterprise Cybersecurity Group operations. 2. Obsidian Global, LLC secured the award. 3. Significant investment in cybersecurity services highlights agency priorities. 4. Potential for increased cyber resilience within the Department of Education.
Value Assessment
Rating: good
The contract value of $50.9M over approximately 5 years appears reasonable for comprehensive cybersecurity support. Benchmarking against similar large-scale cybersecurity service contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing.
Taxpayer Impact: Taxpayer funds are being utilized for essential cybersecurity infrastructure, aiming to protect sensitive data and ensure operational continuity.
Public Impact
Enhanced protection of federal data and systems against cyber threats. Improved operational resilience for the Department of Education's Enterprise Cybersecurity Group. Potential for job creation in the cybersecurity sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration extends to 2026, requiring ongoing monitoring.
- Reliance on a single vendor for critical cybersecurity functions.
Positive Signals
- Awarded through full and open competition.
- Addresses a critical need for cybersecurity support.
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Cybersecurity spending is a growing area within federal IT budgets, driven by increasing cyber threats.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
The contract is managed by the Department of Education. Standard oversight mechanisms for federal contracts should be in place to ensure performance and financial accountability.
Related Government Programs
- Other Computer Related Services
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Long contract duration requires sustained oversight.
- Potential for vendor lock-in.
- No indication of small business subcontracting.
Tags
other-computer-related-services, department-of-education, dc, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $50.9 million to OBSIDIAN GLOBAL, LLC. THE PURPOSE OF THIS CALL ORDER IS TO PROVIDE CYBERSECURITY SUPPORT SERVICES TO THE OPERATIONS OF FSA'S ENTERPRISE CYBERSECURITY GROUP (ECG).
Who is the contractor on this award?
The obligated recipient is OBSIDIAN GLOBAL, LLC.
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $50.9 million.
What is the period of performance?
Start: 2021-09-13. End: 2026-09-15.
What specific cybersecurity services are included in this contract?
The contract specifies 'cybersecurity support services' for the FSA's Enterprise Cybersecurity Group. While the exact scope isn't detailed here, it likely encompasses a range of activities such as threat detection, incident response, vulnerability management, security monitoring, and policy development to protect the agency's digital assets and operations.
What is the risk of vendor lock-in with this contract?
There is a moderate risk of vendor lock-in given the long duration (until 2026) and the specialized nature of cybersecurity support. However, the initial award under full and open competition mitigates this somewhat by ensuring competitive pricing at the outset. Future contract renewals will be key points for re-evaluation.
How does this spending align with federal cybersecurity priorities?
This spending directly aligns with federal cybersecurity priorities, which emphasize strengthening defenses against sophisticated cyber threats. Investing in dedicated cybersecurity support for critical operational groups like the FSA's ECG is crucial for maintaining national security and protecting sensitive government data.
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
Offers Received: 13
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1055 THOMAS JEFFERSON ST NW STE 310, WASHINGTON, DC, 20007
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $50,926,571
Exercised Options: $50,926,571
Current Obligation: $50,926,571
Actual Outlays: $43,283,229
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $6,514,135
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 91003121A0015
IDV Type: BPA
Timeline
Start Date: 2021-09-13
Current End Date: 2026-09-15
Potential End Date: 2026-09-15 00:00:00
Last Modified: 2026-04-10
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