DoD awards $8.9M for Cybersecurity Support, with 14 bids indicating strong competition
Contract Overview
Contract Amount: $8,909,190 ($8.9M)
Contractor: Hyperion, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-01-12
End Date: 2027-01-12
Contract Duration: 1,461 days
Daily Burn Rate: $6.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 14
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 9AF A6 CYBERSECURITY SUPPORT SERVICES
Place of Performance
Location: SUMTER, SUMTER County, SOUTH CAROLINA, 29153
Plain-Language Summary
Department of Defense obligated $8.9 million to HYPERION, INC. for work described as: 9AF A6 CYBERSECURITY SUPPORT SERVICES Key points: 1. Value for money appears reasonable given the competitive bidding process. 2. Strong competition dynamics suggest potential for favorable pricing. 3. Risk indicators are moderate, with a fixed-price contract type mitigating cost overruns. 4. Performance context is cybersecurity support, a critical area for the DoD. 5. Sector positioning is within IT services, specifically cybersecurity. 6. The contract duration of 1461 days (4 years) provides long-term support.
Value Assessment
Rating: good
The contract's value of $8.9 million over four years for cybersecurity support services appears competitive, especially considering the 14 bids received. While a direct per-unit cost comparison is difficult without more granular service details, the broad competition suggests that the pricing is likely aligned with market rates. The firm-fixed-price structure further supports value by capping the government's financial exposure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, attracting 14 bids. This high level of participation is a positive indicator of a healthy and accessible market for these services. The robust competition likely drove down prices and ensured a wide range of qualified vendors could propose solutions.
Taxpayer Impact: The extensive competition benefits taxpayers by increasing the likelihood of securing services at the most cost-effective rates and fostering a market where contractors are incentivized to offer competitive pricing.
Public Impact
The Department of Defense benefits from enhanced cybersecurity capabilities. Critical IT infrastructure and sensitive data are protected. The services support national security objectives. The contract may indirectly support a cybersecurity workforce in South Carolina.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if specific proprietary tools are mandated.
- Ensuring continuous knowledge transfer and avoiding sole reliance on the contractor.
Positive Signals
- Awarded under full and open competition, indicating broad market access.
- Firm-fixed-price contract type limits cost uncertainty for the government.
- Long contract duration provides stability for essential cybersecurity services.
Sector Analysis
This contract falls within the broader IT services sector, specifically focusing on cybersecurity. The market for cybersecurity services is substantial and growing rapidly due to increasing cyber threats. Comparable spending benchmarks for similar cybersecurity support services within the federal government can vary widely based on scope and duration, but the competitive nature of this award suggests a reasonable market price was achieved.
Small Business Impact
While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the presence of 14 bidders suggests that small businesses may have participated in the bidding process. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the awarded contract, which could provide them with valuable experience and revenue.
Oversight & Accountability
The contract is subject to standard federal procurement oversight. The firm-fixed-price nature of the contract helps in managing costs. Accountability will be measured through performance metrics and delivery schedules outlined in the contract. Transparency is maintained through federal contract databases where award details are published.
Related Government Programs
- Cybersecurity Services
- IT Support Services
- Department of Defense IT Contracts
- Air Force IT Services
Risk Flags
- Potential for vendor lock-in
- Ensuring continuous knowledge transfer
Tags
it-services, cybersecurity, department-of-defense, department-of-the-air-force, firm-fixed-price, delivery-order, full-and-open-competition, south-carolina, it-support, professional-services, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.9 million to HYPERION, INC.. 9AF A6 CYBERSECURITY SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is HYPERION, 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 $8.9 million.
What is the period of performance?
Start: 2023-01-12. End: 2027-01-12.
What is the track record of HYPERION, INC. with the Department of Defense?
A review of federal procurement data indicates that HYPERION, INC. has a history of receiving contracts from various federal agencies, including the Department of Defense. Specific details regarding past performance on similar cybersecurity contracts, including any past performance issues or commendations, would require a deeper dive into contract performance reports and award histories. However, securing a competitive bid for a significant cybersecurity support contract suggests a level of capability and experience deemed sufficient by the Air Force evaluators.
How does the $8.9 million value compare to similar cybersecurity support contracts?
Comparing the $8.9 million value requires context regarding the specific services rendered, duration, and complexity. Cybersecurity support can range from basic network monitoring to advanced threat intelligence and incident response. Given this contract spans four years (1461 days), the annual value is approximately $2.225 million. This figure appears reasonable within the federal IT services market, especially considering the competitive bidding process involving 14 offerors. Without specific service level agreements and deliverables, a precise benchmark is challenging, but the strong competition suggests it is in line with market expectations for similar scope.
What are the primary risks associated with this contract?
The primary risks associated with this contract include potential performance deficiencies if the contractor fails to meet cybersecurity requirements, leading to security vulnerabilities. Scope creep, although mitigated by the firm-fixed-price structure, could still pose a risk if not managed effectively. There's also a risk of vendor lock-in if the services become deeply integrated with proprietary systems. Furthermore, the long duration could lead to technological obsolescence if the contractor does not maintain up-to-date cybersecurity practices and tools.
How effective is the competition level in ensuring value for taxpayers?
The competition level, with 14 bids received for this cybersecurity support contract, is a strong indicator of effective price discovery and value for taxpayers. A larger pool of bidders typically drives down prices as companies compete to win the contract. This level of competition suggests that the Department of the Air Force received multiple viable proposals, allowing them to select an offer that balances cost and technical merit. It reduces the likelihood of paying an inflated price and encourages contractors to be efficient and innovative to remain competitive.
What is the historical spending pattern for cybersecurity support services by the Department of the Air Force?
Historical spending patterns for cybersecurity support services by the Department of the Air Force are substantial and have been on an upward trend, reflecting the increasing importance of cybersecurity. While specific aggregate figures for this exact service category over multiple years would require detailed analysis of federal spending databases, the Air Force consistently invests billions annually in IT and cybersecurity. This $8.9 million award represents a portion of that larger investment, and its competitive award suggests a prudent approach to managing that spending.
Are there any specific performance metrics tied to this contract?
While the provided data does not detail specific performance metrics, federal contracts, especially for critical services like cybersecurity, typically include detailed performance work statements (PWS) or statements of work (SOW). These documents outline measurable performance standards, key performance indicators (KPIs), and acceptable quality levels. For cybersecurity support, metrics might include response times to incidents, system uptime, vulnerability remediation rates, and compliance with security protocols. The contracting officer's representative (COR) is usually responsible for monitoring these metrics and ensuring contractor performance meets contractual obligations.
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 - IT MANAGEMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 14
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 11480 COMMERCE PARK DR SUITE 120, RESTON, VA, 20191
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,769,579
Exercised Options: $9,081,490
Current Obligation: $8,909,190
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J18DA033
IDV Type: IDC
Timeline
Start Date: 2023-01-12
Current End Date: 2027-01-12
Potential End Date: 2028-07-13 00:00:00
Last Modified: 2026-01-07
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