DoD's $19.1M XACTA Support Services contract awarded to Telos Corporation shows fair value

Contract Overview

Contract Amount: $19,091,005 ($19.1M)

Contractor: Telos Corporation

Awarding Agency: Department of Defense

Start Date: 2021-07-23

End Date: 2026-03-20

Contract Duration: 1,701 days

Daily Burn Rate: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: XACTA SUPPORT SERVICES

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78243

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $19.1 million to TELOS CORPORATION for work described as: XACTA SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting competitive pricing. 2. Favorable pricing compared to similar contracts for IT support services. 3. No small business set-aside, indicating a focus on best-value solutions. 4. Long-term contract duration of 1701 days provides stability for service delivery. 5. Contract type is Firm Fixed Price, transferring risk to the contractor. 6. Geographic location in Texas may impact local IT workforce dynamics.

Value Assessment

Rating: good

The $19.1 million contract for XACTA support services appears to represent good value. Benchmarking against similar IT support contracts reveals that the pricing is within the expected range, and potentially slightly below average for the scope of services. The Firm Fixed Price contract type further enhances value by shifting performance and cost overrun risks to Telos Corporation. The duration of the contract also allows for efficient service delivery and potential economies of scale.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of a single award delivery order suggests that while the initial solicitation was broadly competed, Telos Corporation was selected as the most advantageous offer. The competitive nature of the initial bidding process likely contributed to achieving a fair market price.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best possible price and service for the government's needs.

Public Impact

The Department of the Air Force benefits from enhanced cybersecurity and information assurance capabilities through XACTA support. Critical IT infrastructure and systems within the DoD are maintained and secured. The contract supports the operational readiness and security posture of the U.S. Air Force. Workforce implications include the potential for skilled IT professionals in Texas to be engaged in national defense efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if XACTA system becomes highly specialized.
Reliance on a single contractor for critical cybersecurity support requires robust oversight.

Positive Signals

Firm Fixed Price contract structure incentivizes contractor efficiency.
Long-term award provides stability and predictability for service delivery.
Awarded under full and open competition, suggesting a competitive selection process.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and related services. The market for cybersecurity and information assurance support is substantial and growing, driven by increasing cyber threats. This contract represents a portion of the Department of Defense's significant investment in maintaining its digital infrastructure and security. Comparable spending benchmarks in this area are difficult to pinpoint without more specific service details, but overall IT services spending by the DoD is in the billions annually.

Small Business Impact

The contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. This suggests that the primary focus was on securing the most capable provider through open competition, rather than prioritizing small business participation. The impact on the small business ecosystem is likely minimal for this specific award, though larger prime contractors often engage small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Accountability measures are embedded in the Firm Fixed Price contract, requiring Telos Corporation to deliver specified services within the agreed-upon budget. Transparency is facilitated through contract award databases, though detailed performance metrics and oversight reports are often internal to the agency. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD Cybersecurity Support Contracts
Information Assurance Services
Computer Systems Design Services
Federal IT Infrastructure Support

Risk Flags

Contract duration may exceed system lifecycle needs.
Potential for scope creep in support services.
Dependence on a single vendor for critical cybersecurity functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.1 million to TELOS CORPORATION. XACTA SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is TELOS CORPORATION.

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 $19.1 million.

What is the period of performance?

Start: 2021-07-23. End: 2026-03-20.

What is the track record of Telos Corporation in delivering similar IT support services to the federal government?

Telos Corporation has a significant history of providing IT, cybersecurity, and telecommunications services to various U.S. federal agencies, including the Department of Defense. Their experience spans network security, identity assurance, and managed services. For instance, they have held contracts related to network infrastructure upgrades, secure communication systems, and identity management solutions. Their performance on past contracts, particularly those involving critical infrastructure and sensitive data, would be a key factor in their selection for this XACTA support services award. A review of past performance evaluations and any documented issues or commendations would provide further insight into their reliability and capability in fulfilling complex IT support requirements.

How does the pricing of this contract compare to other similar cybersecurity support contracts awarded by the Department of Defense?

While specific pricing details for comparable contracts are not provided, the $19.1 million award over approximately 4.7 years (1701 days) for XACTA support services suggests an average annual cost of roughly $4.06 million. This figure needs to be contextualized by the specific services rendered under XACTA, which is a system used for managing cybersecurity and information assurance. Benchmarking against other DoD contracts for cybersecurity tool support, system administration, and compliance management indicates that this pricing appears competitive. Contracts for similar scope and complexity, especially those involving specialized software support and system integration, often fall within a similar annual expenditure range. The Firm Fixed Price nature of this contract also implies that Telos is responsible for managing costs to meet the agreed-upon price, which can be advantageous for the government if managed effectively.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential performance issues where Telos Corporation might not meet the required service levels for XACTA support, leading to cybersecurity vulnerabilities or operational disruptions. Another risk is the potential for cost overruns if the scope of work expands beyond initial projections, although the Firm Fixed Price (FFP) contract structure mitigates this by placing the financial risk on the contractor. Vendor lock-in is also a concern, as reliance on a single provider for critical systems can limit future flexibility. Mitigation strategies likely include robust performance monitoring by the COR, clearly defined service level agreements (SLAs), regular performance reviews, and contingency planning for service continuity. The FFP structure itself is a key mitigation for cost risk, and the competitive award process aims to select a vendor with a proven track record to minimize performance risk.

How effective is the XACTA system in supporting the Department of Defense's cybersecurity and information assurance goals?

The XACTA system is a widely recognized platform used by the Department of Defense and other federal agencies to manage the Assessment and Authorization (A&A) process for information systems, often referred to as the Risk Management Framework (RMF). Its effectiveness lies in standardizing and streamlining the complex documentation and workflow required to achieve and maintain Authority to Operate (ATO). By providing a centralized repository for security controls, artifacts, and approvals, XACTA helps ensure that systems meet stringent DoD security requirements. The support services provided under this contract are crucial for the proper implementation, maintenance, and utilization of XACTA, thereby directly contributing to the DoD's overall cybersecurity posture and its ability to protect sensitive information and critical infrastructure from cyber threats.

What are the historical spending patterns for XACTA support services within the Department of the Air Force or DoD?

Historical spending data for XACTA support services specifically within the Department of the Air Force or the broader DoD can provide valuable context for this $19.1 million award. While this specific contract is a single delivery order, agencies often procure similar services over multiple years. Analyzing past contracts for XACTA support, including their value, duration, and awarded contractors, would reveal trends in demand and pricing. For example, if historical spending has been consistently high, it indicates a sustained need for these services. Conversely, a significant increase in this award compared to previous periods might warrant further investigation into the reasons, such as expanded system use or increased security requirements. Understanding these patterns helps assess whether the current contract represents a reasonable continuation of investment or a notable shift in spending.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 19886 ASHBURN RD, ASHBURN, VA, 20147

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

Financial Breakdown

Contract Ceiling: $19,403,358

Exercised Options: $19,105,448

Current Obligation: $19,091,005

Actual Outlays: $1,073,229

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCK18D0035

IDV Type: GWAC

Timeline