DoD's $2.45M Cybersecurity Support Contract Awarded to Alaska Northstar Resources LLC

Contract Overview

Contract Amount: $2,449,003 ($2.4M)

Contractor: Alaska Northstar Resources LLC

Awarding Agency: Department of Defense

Start Date: 2025-11-27

End Date: 2026-05-26

Contract Duration: 180 days

Daily Burn Rate: $13.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: GBM CYBERSECURITY SME SUPPORT

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36114

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $2.4 million to ALASKA NORTHSTAR RESOURCES LLC for work described as: GBM CYBERSECURITY SME SUPPORT Key points: 1. Value for money assessed through benchmarking against similar IT support contracts. 2. Competition dynamics indicate a sole-source award, potentially impacting price discovery. 3. Risk indicators include the sole-source nature and the contract's duration. 4. Performance context relies on the contractor's ability to deliver specialized cybersecurity expertise. 5. Sector positioning within IT services, specifically cybersecurity support for defense. 6. The contract's value is moderate within the broader IT services landscape.

Value Assessment

Rating: fair

The contract's value of $2.45 million for 18 months of cybersecurity SME support appears within a reasonable range for specialized IT services. However, without detailed task breakdowns and performance metrics, a precise value-for-money assessment is challenging. Benchmarking against similar sole-source cybersecurity support contracts within the Department of Defense would provide a clearer picture of pricing efficiency. The fixed-price nature of the contract shifts some risk to the contractor, which can be beneficial if well-defined deliverables are established.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when urgency dictates a rapid award. The lack of competition means that the government did not benefit from a bidding process that could have driven down prices or spurred innovation from a wider pool of providers. The justification for this sole-source award would need to be thoroughly reviewed to ensure it aligns with federal procurement regulations.

Taxpayer Impact: Sole-source awards can limit opportunities for taxpayers to benefit from competitive pricing. Without a competitive bidding process, there is a risk that the awarded price may be higher than what could have been achieved in an open market scenario.

Public Impact

The Department of the Air Force benefits from specialized cybersecurity expertise to protect critical IT infrastructure. Services delivered are expected to enhance the cybersecurity posture of defense systems. Geographic impact is primarily within the Department of Defense's operational areas, though the contractor is based in Alaska. Workforce implications include the potential for specialized cybersecurity roles to be filled by the contractor's personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential innovation.
Contract duration of 18 months requires careful monitoring of performance and value.
Lack of detailed performance metrics in the provided data makes outcome assessment difficult.

Positive Signals

Award to a company based in Alaska may support regional economic development.
Fixed-price contract structure incentivizes contractor efficiency.
Focus on cybersecurity is critical for national defense.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on cybersecurity support. The market for cybersecurity services is robust and growing, driven by increasing digital threats and the critical need for data protection across all industries, especially in defense. Comparable spending benchmarks for cybersecurity consulting and support services within the federal government can vary widely based on the scope and duration of services. The Department of Defense is a significant consumer of these services, often requiring highly specialized expertise.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. Alaska Northstar Resources LLC's size status is not detailed here. The absence of small business considerations in this sole-source award means there are no direct implications for the small business ecosystem through this specific contract, though the prime contractor may engage small businesses as subcontractors if it aligns with their operational needs.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the program office within the Department of the Air Force. Accountability measures will be tied to the terms and conditions of the firm-fixed-price contract, including deliverables and performance standards. Transparency is generally facilitated through contract award databases, but the specific details of the sole-source justification and performance monitoring may not be fully public. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

DoD Cybersecurity Services
IT Professional Services
Cloud Computing Services
Information Assurance Support

Risk Flags

Sole-source award requires strong justification.
Potential for higher costs due to lack of competition.
Performance monitoring is critical for a fixed-price contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.4 million to ALASKA NORTHSTAR RESOURCES LLC. GBM CYBERSECURITY SME SUPPORT

Who is the contractor on this award?

The obligated recipient is ALASKA NORTHSTAR RESOURCES 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 $2.4 million.

What is the period of performance?

Start: 2025-11-27. End: 2026-05-26.

What is the track record of Alaska Northstar Resources LLC in delivering cybersecurity services to the federal government?

Information regarding Alaska Northstar Resources LLC's specific track record in delivering cybersecurity services to the federal government is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous federal engagements. Understanding their experience with similar-sized contracts, specific cybersecurity domains (e.g., network security, threat intelligence, incident response), and their ability to meet stringent defense requirements would be crucial. Without this historical data, evaluating their capability to successfully execute this $2.45 million contract remains speculative.

How does the awarded price of $2.45 million compare to market rates for similar cybersecurity SME support?

The awarded price of $2.45 million for 18 months of cybersecurity SME support needs to be benchmarked against market rates for comparable services. This comparison should consider factors such as the specific expertise required, the level of clearance needed for personnel, the geographic location of service delivery, and the contractor's overhead. Given this is a sole-source award, direct price comparison with competitively bid contracts is difficult. However, industry reports and government databases (like the GSA schedules or FPDS) can provide benchmarks for IT and cybersecurity consulting services. A detailed analysis would involve breaking down the $2.45 million into labor categories, hours, and estimated overhead/profit to compare against established market pricing models.

What are the primary risks associated with this sole-source contract award?

The primary risks associated with this sole-source contract award include potential lack of price competition, which could lead to a higher cost for taxpayers than if the contract were competed. There's also a risk of reduced innovation, as a competitive environment often drives contractors to offer more advanced or cost-effective solutions. Furthermore, without a broad base of bidders, there's a possibility that the government might not have identified the absolute best-suited contractor for the specific cybersecurity needs. Ensuring the sole-source justification is robust and that performance is rigorously monitored are key mitigation strategies for these risks.

How effective is the firm-fixed-price contract type in managing cost and performance for cybersecurity services?

The firm-fixed-price (FFP) contract type is generally effective in managing costs for cybersecurity services when the scope of work is well-defined and unlikely to change significantly. It places the primary risk of cost overruns on the contractor, incentivizing them to manage their expenses efficiently. For performance, FFP contracts require clear deliverables and performance standards. If these are not adequately defined or monitored, the contractor might focus on meeting minimal requirements rather than exceeding expectations. For complex or evolving cybersecurity needs, an FFP contract might be less suitable than other types if scope creep is anticipated, potentially leading to change orders or disputes.

What is the historical spending pattern for cybersecurity support services within the Department of the Air Force?

Historical spending patterns for cybersecurity support services within the Department of the Air Force are substantial and have been on an upward trend due to increasing cyber threats. The Air Force, like other branches of the DoD, invests heavily in protecting its networks, systems, and data. This spending encompasses a wide range of services, including vulnerability assessments, penetration testing, security operations center support, incident response, and policy development. Analyzing past contract awards for similar services can reveal trends in contract values, durations, and the types of contractors utilized, providing context for the current $2.45 million award.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA877126R0002

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 315 LINCOLN ST STE 300, SITKA, AK, 99835

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

Financial Breakdown

Contract Ceiling: $8,066,457

Exercised Options: $2,449,003

Current Obligation: $2,449,003

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA877121DG001

IDV Type: IDC

Timeline