DoD Awards $43.9M Cyber Security Contract to ASRC Federal, Limiting Competition

Contract Overview

Contract Amount: $43,940,506 ($43.9M)

Contractor: Asrc Federal Professional Services, LLC

Awarding Agency: Department of Defense

Start Date: 2027-01-31

End Date: 2027-01-31

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: PROVIDE ALL LABOR NECESSARY FOR CYBER SECURITY AND INTEROPERABILITY SUPPORT

Place of Performance

Location: BELTSVILLE, PRINCE GEORGES County, MARYLAND, 20705

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $43.9 million to ASRC FEDERAL PROFESSIONAL SERVICES, LLC for work described as: PROVIDE ALL LABOR NECESSARY FOR CYBER SECURITY AND INTEROPERABILITY SUPPORT Key points: 1. Significant investment in critical cyber security and interoperability support. 2. Sole-source award raises questions about price discovery and potential overspending. 3. Contract duration extends to 2027, indicating a long-term need. 4. Lack of small business participation noted.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not carefully managed. Without competitive bidding, it's difficult to assess if the $43.9 million price is reasonable compared to market rates for similar cyber security services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning competition was not sought. This significantly limits price discovery and may result in a higher cost to taxpayers than a competitively awarded contract.

Taxpayer Impact: The lack of competition for this substantial contract raises concerns about taxpayer value and the potential for inflated costs.

Public Impact

Ensures critical cyber security and interoperability for the Department of Defense. Potential for increased costs due to sole-source award impacts taxpayer funds. Limited visibility into the competitive landscape for these essential services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
No small business participation

Positive Signals

Addresses critical cyber security needs
Long-term support through 2027

Sector Analysis

This contract falls under Engineering Services, a broad category often involving specialized technical expertise. Cyber security and interoperability are increasingly vital across all sectors, but particularly in defense, where advanced threats require continuous investment and specialized support.

Small Business Impact

The contract data indicates no small business participation (sb: false). This suggests that opportunities for small businesses in providing cyber security and interoperability support to the Department of Defense may have been overlooked or were not prioritized in this award.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is delivering services efficiently and that costs remain justified. Transparency in reporting and performance metrics will be crucial for accountability.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competition
Potential for cost overruns
Limited small business involvement
Contract type (CPFF) can incentivize spending

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.9 million to ASRC FEDERAL PROFESSIONAL SERVICES, LLC. PROVIDE ALL LABOR NECESSARY FOR CYBER SECURITY AND INTEROPERABILITY SUPPORT

Who is the contractor on this award?

The obligated recipient is ASRC FEDERAL PROFESSIONAL SERVICES, LLC.

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 $43.9 million.

What is the period of performance?

Start: 2027-01-31. End: 2027-01-31.

What specific factors justified the sole-source award, and were alternatives explored?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other qualified sources. Without further documentation, it's unclear if these criteria were met or if alternative acquisition strategies that could foster competition were thoroughly investigated by the Department of the Air Force.

How will the government ensure cost-effectiveness and prevent potential overruns with a Cost Plus Fixed Fee contract awarded without competition?

Effective oversight, robust performance metrics, and regular audits are critical. The government must actively manage the contractor's costs, scrutinize invoices, and ensure that the fixed fee remains appropriate for the scope of work. Benchmarking against industry standards for similar services will also be important.

What is the long-term strategy for cyber security and interoperability support, and will future procurements involve competition?

The current contract extends to 2027, suggesting a significant, ongoing need. Future strategy should aim to foster competition to ensure better value and innovation. Exploring modular approaches or breaking down requirements could create opportunities for a wider range of vendors, including small businesses.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation

Address: 7000 MUIRKIRK MEADOWS DR #100, BELTSVILLE, MD, 20705

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $78,559,137

Exercised Options: $78,559,137

Current Obligation: $43,940,506

Subaward Activity

Number of Subawards: 40

Total Subaward Amount: $6,951,592

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline