Department of the Air Force awards $48.9M contract for cyberspace and information dominance support to Referentia Systems Inc

Contract Overview

Contract Amount: $48,894,113 ($48.9M)

Contractor: Referentia Systems Inc

Awarding Agency: Department of Defense

Start Date: 2019-07-26

End Date: 2024-07-31

Contract Duration: 1,832 days

Daily Burn Rate: $26.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE CONTRACTOR PROVIDES NON-PERSONAL SERVICES TO SUPPORT THE HEADQUARTERS ACC, DIRECTORATE OF CYBERSPACE AND INFORMATION DOMINANCE, CYBER ASSURANCE DIVISION (A6I) MISSION, AND INCORPORATE INNOVATIVE SOLUTIONS TO BE IMPLEMENTED IMMEDIATELY.

Place of Performance

Location: HAMPTON, HAMPTON CITY County, VIRGINIA, 23664

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $48.9 million to REFERENTIA SYSTEMS INC for work described as: THE CONTRACTOR PROVIDES NON-PERSONAL SERVICES TO SUPPORT THE HEADQUARTERS ACC, DIRECTORATE OF CYBERSPACE AND INFORMATION DOMINANCE, CYBER ASSURANCE DIVISION (A6I) MISSION, AND INCORPORATE INNOVATIVE SOLUTIONS TO BE IMPLEMENTED IMMEDIATELY. Key points: 1. Contract focuses on critical cyberspace and information dominance mission support. 2. Innovative solutions are expected to be implemented immediately. 3. The contract duration spans over five years, indicating a long-term need. 4. Firm Fixed Price contract type suggests predictable costs for the government. 5. The award was not competed, raising questions about potential cost savings. 6. Contractor has a significant contract value, suggesting established capabilities. 7. Virginia-based contractor highlights regional economic impact.

Value Assessment

Rating: fair

The contract value of $48.9 million over approximately five years suggests a substantial investment in cyberspace support. Without specific performance metrics or benchmarks for similar services, it is difficult to definitively assess value for money. The firm fixed price structure provides cost certainty, but the lack of competition means there's no direct market comparison to gauge pricing efficiency. Further analysis would require understanding the specific deliverables and comparing them to industry standards or other government contracts for comparable cyber assurance services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from other potential vendors. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances do not permit a competitive process. The lack of competition limits the government's ability to leverage market forces to achieve the best possible pricing and service terms. It is important to understand the justification for the sole-source award to ensure it was appropriate and that the government did not forgo potential cost savings.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. Without a competitive bidding process, the government may not be securing the most cost-effective solution available in the market.

Public Impact

The primary beneficiaries are the Department of the Air Force's Headquarters ACC, Directorate of Cyberspace and Information Dominance, and Cyber Assurance Division. The contract delivers essential support services for maintaining and enhancing cyberspace capabilities. Innovative solutions are to be incorporated, potentially improving the effectiveness of cyber operations. The contract supports critical national security functions related to information dominance. The workforce implications include employment opportunities for individuals with specialized cybersecurity skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source awards require strong justification to ensure taxpayer value.
Performance metrics and specific deliverables need clear definition for effective oversight.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Contract duration suggests a stable, long-term requirement.
Focus on innovative solutions indicates a forward-looking approach to cyber assurance.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on cybersecurity and information assurance. The market for these services is highly specialized and competitive, with significant government spending allocated to protecting critical infrastructure and data. Comparable spending benchmarks would involve analyzing other large-scale cybersecurity support contracts awarded by the Department of Defense and other federal agencies. The increasing threat landscape in cyberspace necessitates continuous investment in advanced solutions and skilled personnel, making this contract a key component of the Air Force's cyber defense strategy.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, Referentia Systems Inc., is not explicitly identified as a small business. This suggests that the primary award was made to a larger entity. There is no information provided regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem for this particular contract is unclear, though large prime contracts often involve some level of subcontracting to smaller firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Air Force. Accountability measures would be tied to the performance requirements outlined in the contract and the firm fixed price structure. Transparency is facilitated through contract databases like FPDS, which provide basic award information. The Inspector General's office may conduct audits or investigations if specific concerns regarding waste, fraud, or abuse arise. However, detailed oversight mechanisms are not explicitly provided in the summary data.

Related Government Programs

Cybersecurity Services
Information Assurance
IT Support Services
Defense Information Systems
Federal IT Contracts
Cyberspace Operations Support

Risk Flags

Sole-source award
Lack of competition
Potential for higher costs
Limited transparency on specific deliverables

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.9 million to REFERENTIA SYSTEMS INC. THE CONTRACTOR PROVIDES NON-PERSONAL SERVICES TO SUPPORT THE HEADQUARTERS ACC, DIRECTORATE OF CYBERSPACE AND INFORMATION DOMINANCE, CYBER ASSURANCE DIVISION (A6I) MISSION, AND INCORPORATE INNOVATIVE SOLUTIONS TO BE IMPLEMENTED IMMEDIATELY.

Who is the contractor on this award?

The obligated recipient is REFERENTIA SYSTEMS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $48.9 million.

What is the period of performance?

Start: 2019-07-26. End: 2024-07-31.

What is the specific nature of the 'innovative solutions' to be implemented, and how will their effectiveness be measured?

The provided data does not detail the specific 'innovative solutions' to be implemented. Typically, such solutions would relate to advanced threat detection, improved network defense, data encryption, or enhanced situational awareness within cyberspace. Measuring their effectiveness would require clearly defined performance metrics and key performance indicators (KPIs) within the contract's statement of work. These might include metrics like reduced incident response times, decreased vulnerability exposure, improved system uptime, or successful mitigation of simulated cyberattacks. Without access to the full contract document, the precise nature and measurement of these innovations remain unspecified.

What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The justification for a sole-source award is not detailed in the provided data. Generally, sole-source contracts are awarded when only one responsible source can provide the required supplies or services. Common justifications include: unique capabilities or proprietary technology held by a single contractor, urgent and compelling needs where competition is not feasible, or when the contract is a follow-on to a previously competed effort where the original contractor is the only viable option. For this contract, the specific reason for not competing it would need to be documented by the Department of the Air Force, likely through a Justification and Approval (J&A) document, to ensure proper procurement procedures were followed and taxpayer interests were protected.

How does the per-unit cost or overall pricing compare to similar contracts for cybersecurity support services within the federal government?

Direct comparison of per-unit costs is not possible with the provided data, as specific units of service are not defined. The total contract value is $48.9 million over approximately five years. To benchmark this against similar contracts, one would need to identify other Department of Defense or federal agency contracts for comparable cybersecurity and information assurance services, considering factors like scope of work, contractor experience, and contract type. Without access to a broader dataset of federal cybersecurity contracts and their pricing structures, it is challenging to definitively state whether this contract represents good or fair value. The lack of competition further complicates direct pricing comparisons.

What is Referentia Systems Inc.'s track record with the Department of Defense and other federal agencies, particularly in cybersecurity?

Referentia Systems Inc. has a history of performing contracts for the federal government, including the Department of Defense. While the provided data confirms this award, a comprehensive assessment of their track record would involve reviewing their past performance on similar cybersecurity and IT support contracts. This includes evaluating their on-time delivery, quality of service, adherence to budget, and any past performance issues or awards. Information on past performance is often available through government databases and contractor performance assessment reporting systems, which would provide a more detailed picture of their capabilities and reliability in the cybersecurity domain.

What are the potential risks associated with a sole-source contract of this magnitude, and what mitigation strategies are in place?

The primary risks associated with a sole-source contract of this magnitude include potential overpricing due to lack of competition, reduced incentive for the contractor to innovate or perform exceptionally, and the possibility that the chosen contractor may not be the absolute best fit or most cost-effective option available. Mitigation strategies typically involve rigorous negotiation of contract terms, detailed performance monitoring, establishing clear deliverables and milestones, and potentially incorporating incentive clauses. The government should also ensure that the justification for the sole-source award was sound and that the contractor's capabilities were thoroughly vetted. Regular performance reviews and open communication channels are crucial for managing these risks.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA489019RA026

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 155 KAPALULU PL STE 200, HONOLULU, HI, 96819

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

Financial Breakdown

Contract Ceiling: $69,373,720

Exercised Options: $52,729,755

Current Obligation: $48,894,113

Actual Outlays: $11,762,511

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline