DoD awards $15.2M for cyberspace support, with 8 bidders vying for a firm-fixed-price contract

Contract Overview

Contract Amount: $15,190,496 ($15.2M)

Contractor: Sandoval Technology Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2022-08-24

End Date: 2026-08-23

Contract Duration: 1,460 days

Daily Burn Rate: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 688 CYBERSPACE SUPPORT SERVICES (CSS)

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78243

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $15.2 million to SANDOVAL TECHNOLOGY SOLUTIONS LLC for work described as: 688 CYBERSPACE SUPPORT SERVICES (CSS) Key points: 1. Contract value represents a moderate investment in specialized IT services. 2. Strong competition suggests potential for competitive pricing. 3. Firm-fixed-price structure shifts cost risk to the contractor. 4. Contract duration of four years allows for sustained support. 5. Geographic concentration in Texas may indicate regional operational focus. 6. The awardee's track record requires further examination for performance consistency.

Value Assessment

Rating: good

The contract's firm-fixed-price nature, combined with strong competition, suggests a reasonable value proposition. Benchmarking against similar cybersecurity support contracts would provide a more precise assessment of cost-effectiveness. The total award value of $15.2 million over four years appears aligned with market rates for specialized IT services, though specific performance metrics are needed for a definitive value-for-money judgment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with eight bidders submitting proposals. The high number of bidders indicates a healthy and accessible market for these cyberspace support services. This level of competition is generally favorable for price discovery and ensures that the government receives offers from a diverse range of qualified vendors, potentially leading to more competitive pricing.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down prices and ensured the government secured services at a competitive market rate. It also signals that taxpayer funds are being used efficiently by selecting from a broad pool of capable providers.

Public Impact

The Department of the Air Force benefits from enhanced cyberspace support capabilities. Services delivered are critical for maintaining and improving digital defense infrastructure. The primary geographic impact is within Texas, where the contractor is located. Workforce implications include potential job creation within the IT and cybersecurity sectors in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competed.
Dependence on a single contractor for critical cyberspace functions carries inherent risk.
Ensuring continuous innovation and adaptation to evolving cyber threats requires proactive contract management.

Positive Signals

Award to a single entity streamlines management and accountability.
Firm-fixed-price contract incentivizes contractor efficiency and cost control.
The competitive bidding process suggests a strong initial selection of capable providers.

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 cyberspace support is rapidly growing, driven by increasing digital threats and the critical need for robust defense systems. Comparable spending benchmarks in this area are difficult to pinpoint without more specific service details, but the overall IT services market is substantial, with government spending being a significant component.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside criterion for this award (ss: false, sb: false). While the prime contractor is Sandoval Technology Solutions LLC, further analysis would be needed to determine if they intend to subcontract with small businesses. Without specific subcontracting plans or goals, the direct impact on the small business ecosystem from this particular award is unclear, though the competitive nature might allow smaller firms to participate as subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services within agreed-upon costs and timelines. Transparency is facilitated by the public nature of contract awards, though detailed performance reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Cybersecurity Services
IT Professional Services
Information Technology Support
Defense Information Systems
Cloud Computing Services
Network Security

Risk Flags

Potential for scope creep
Contractor performance risk
Cybersecurity vulnerability
Dependence on single vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.2 million to SANDOVAL TECHNOLOGY SOLUTIONS LLC. 688 CYBERSPACE SUPPORT SERVICES (CSS)

Who is the contractor on this award?

The obligated recipient is SANDOVAL TECHNOLOGY SOLUTIONS 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 $15.2 million.

What is the period of performance?

Start: 2022-08-24. End: 2026-08-23.

What is the track record of Sandoval Technology Solutions LLC in performing similar cyberspace support services for the federal government?

A thorough review of Sandoval Technology Solutions LLC's past performance is crucial. This would involve examining their contract history with federal agencies, specifically looking for awards related to cyberspace support, computer systems design, and cybersecurity. Key metrics to assess would include on-time delivery, adherence to budget, quality of services rendered, and any past performance evaluations or CPARS (Contractor Performance Assessment Reporting System) ratings. Understanding their experience with firm-fixed-price contracts and the scale of previous projects will provide insight into their capability to successfully execute this $15.2 million award over four years. Without specific CPARS data or a detailed contract history review, it is difficult to definitively assess their track record.

How does the awarded price compare to market rates for similar cyberspace support services?

Benchmarking this $15.2 million contract against similar cyberspace support services requires access to detailed pricing data and market analysis reports. The contract type is Firm Fixed Price (FFP), which generally aims to secure a set price for a defined scope of work. Given the 'full and open competition after exclusion of sources' with 8 bidders, the pricing is likely competitive. However, without specific breakdowns of labor categories, hours, and overhead rates, a precise comparison to market rates is challenging. Industry reports on IT services and cybersecurity consulting, along with government-wide contract vehicles for similar services, could offer comparative benchmarks. The average annual value of approximately $3.8 million suggests a significant but not unprecedented investment for specialized support.

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

Primary risks include potential performance shortfalls, cybersecurity vulnerabilities introduced or not adequately addressed by the contractor, and cost overruns if the FFP structure is poorly defined or scope creep occurs. Mitigation strategies typically involve robust contract oversight, clearly defined performance standards and Service Level Agreements (SLAs), regular performance reviews, and stringent cybersecurity protocols. The firm-fixed-price nature shifts some financial risk to the contractor, incentivizing efficiency. However, the government must ensure the Statement of Work (SOW) is comprehensive and that the contractor possesses the necessary expertise and security clearances. The competitive nature of the award also serves as a risk mitigation factor, suggesting a capable vendor was selected.

How effective is the chosen contract vehicle (Delivery Order under an IDIQ) for acquiring these specialized cyberspace support services?

A Delivery Order (DO) placed against an existing contract vehicle, likely an Indefinite Delivery Indefinite Quantity (IDIQ) contract, is a common and often effective method for acquiring specialized services like cyberspace support. This approach allows the government to leverage pre-negotiated terms and conditions, potentially speeding up the acquisition process. The effectiveness hinges on the quality of the underlying IDIQ contract, including its scope, pricing structure, and the pool of pre-qualified vendors. For this specific award, the 'full and open competition after exclusion of sources' suggests the IDIQ itself was competed broadly, enhancing the likelihood that this DO represents good value. The duration of the DO (4 years) indicates a need for sustained support, which IDIQ vehicles are well-suited to provide.

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

Analyzing historical spending patterns for cyberspace support services within the Department of the Air Force (DAF) is essential for context. This $15.2 million award needs to be viewed against the DAF's overall IT and cybersecurity budget. Typically, spending in this area has been increasing due to the escalating threat landscape. Examining trends over the past 5-10 years would reveal whether this contract represents a typical investment, an increase, or a decrease in spending for such services. Understanding the historical allocation of funds towards similar contracts, including the number of awards, average contract values, and dominant contract types, provides a baseline for assessing the significance and appropriateness of this current award.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA877322R8006

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3463 MAGIC DR STE 360, SAN ANTONIO, TX, 78229

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

Financial Breakdown

Contract Ceiling: $19,598,835

Exercised Options: $15,207,723

Current Obligation: $15,190,496

Actual Outlays: $3,892,332

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCB21D0166

IDV Type: GWAC

Timeline