Air Force awards $25.7M for cyber test and evaluation, with 9 bidders vying for the contract

Contract Overview

Contract Amount: $25,754,362 ($25.8M)

Contractor: Perdigita, LLC

Awarding Agency: Department of Defense

Start Date: 2023-04-01

End Date: 2026-06-30

Contract Duration: 1,186 days

Daily Burn Rate: $21.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AIR FORCE CYBER OPERATIONAL TEST EVALUATION AND RANGE SUPPORT II

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78226

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $25.8 million to PERDIGITA, LLC for work described as: AIR FORCE CYBER OPERATIONAL TEST EVALUATION AND RANGE SUPPORT II Key points: 1. The contract value appears reasonable given the scope of cyber operational test and evaluation services. 2. Full and open competition suggests a healthy market for these specialized services. 3. The duration of the contract indicates a long-term need for these capabilities. 4. Performance will be assessed against defined objectives for cyber readiness. 5. This contract supports critical Air Force cyber defense and offensive capabilities. 6. The fixed-price nature of the contract shifts performance risk to the contractor.

Value Assessment

Rating: good

The contract value of $25.7 million over approximately four years for specialized cyber operational test and evaluation services appears to be within a reasonable range. Benchmarking against similar contracts for cyber range support and test event execution would provide a more precise assessment, but the number of bidders (9) suggests competitive pricing. The firm-fixed-price structure is appropriate for well-defined services, allowing the government to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple potential offerors were solicited and allowed to bid. The participation of 9 bidders suggests a robust competitive environment for these specialized cyber operational test and evaluation services. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The strong competition for this contract is beneficial for taxpayers, as it likely drove down prices and encouraged offerors to present their best value propositions. This reduces the risk of overpaying for essential cyber testing and evaluation capabilities.

Public Impact

The primary beneficiaries are the U.S. Air Force units requiring validated cyber operational capabilities. Services delivered include testing, evaluation, and range support for cyber systems. The geographic impact is primarily within the United States, supporting Air Force installations. This contract supports a specialized workforce of cyber test engineers and range operators.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if test requirements are not clearly defined.
Reliance on contractor expertise could create knowledge gaps if not managed effectively.

Positive Signals

Firm-fixed-price contract structure incentivizes contractor efficiency.
Multiple bidders indicate a competitive market and potential for high-quality service.
Long contract duration allows for sustained support of critical cyber missions.

Sector Analysis

The defense sector, particularly within IT and engineering services, sees significant investment in cyber capabilities. This contract fits within the broader market for cybersecurity testing, evaluation, and range operations, which is a growing area due to increasing cyber threats. Comparable spending benchmarks would involve analyzing other contracts for similar cyber range support and operational testing services across the Department of Defense.

Small Business Impact

There is no indication of a small business set-aside for this contract, and the prime contractor, PERDIGITA, LLC, is not listed as a small business. However, the contract may include subcontracting opportunities for small businesses, particularly in specialized areas of cyber support or range operations. The extent of small business participation will depend on the prime contractor's subcontracting plan.

Oversight & Accountability

Oversight will be managed by the contracting officer and the Air Force program office responsible for cyber test and evaluation. Performance metrics and deliverables outlined in the contract will be used to assess contractor performance. Transparency is facilitated through the Federal Procurement Data System (FPDS), which reports contract awards. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air Force Cyber Security Services
DoD Cyber Range Development
Joint Information Environment (JIE) Support
Cyber Warfare Operations Support

Risk Flags

Contract duration may exceed current budget authorizations.
Potential for contractor performance issues impacting critical cyber testing.
Evolving cyber threats may require contract modifications or adjustments.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.8 million to PERDIGITA, LLC. AIR FORCE CYBER OPERATIONAL TEST EVALUATION AND RANGE SUPPORT II

Who is the contractor on this award?

The obligated recipient is PERDIGITA, 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 $25.8 million.

What is the period of performance?

Start: 2023-04-01. End: 2026-06-30.

What is the track record of PERDIGITA, LLC in performing similar cyber operational test and evaluation services for the Department of Defense?

PERDIGITA, LLC has a history of performing various IT and engineering services for the federal government, including contracts related to test and evaluation. While specific details on their cyber operational test and evaluation experience would require a deeper dive into their contract history and past performance reviews, their selection as the prime contractor for this significant award suggests they possess the requisite capabilities and experience. Further analysis would involve examining past performance questionnaires and any debriefings from previous solicitations to fully assess their track record in this specialized domain.

How does the awarded value of $25.7 million compare to similar cyber test and evaluation contracts awarded by the Air Force or other DoD components?

The awarded value of $25.7 million for AIR FORCE CYBER OPERATIONAL TEST EVALUATION AND RANGE SUPPORT II, spanning approximately four years, appears to be within a reasonable range for specialized cyber testing and evaluation services. Benchmarking against similar contracts requires access to detailed contract data, including scope of work, duration, and specific deliverables. However, given the complexity and criticality of cyber operations testing, this figure is not inherently excessive. The presence of 9 bidders suggests that the pricing was competitive, and the value proposition was attractive to multiple firms in the market.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential technical challenges in testing complex cyber systems, the evolving nature of cyber threats requiring adaptable test methodologies, and contractor performance issues. Mitigation strategies likely involve clearly defined performance work statements, robust government oversight, regular progress reviews, and performance-based incentives. The firm-fixed-price contract structure also places performance risk on the contractor. The long duration necessitates careful management to ensure continued relevance and effectiveness of the services provided.

How effective is the current approach to cyber operational test and evaluation in ensuring Air Force readiness?

The effectiveness of this contract in ensuring Air Force readiness is contingent on the quality and comprehensiveness of the test and evaluation services provided. The contract aims to validate cyber capabilities, identify vulnerabilities, and ensure systems meet operational requirements. Success would be measured by the extent to which the testing accurately reflects real-world threats and operational environments, leading to improved cyber defenses and offensive postures. Ongoing assessment of test results and their impact on system fielding and operational deployment would be key indicators of effectiveness.

What are the historical spending patterns for cyber operational test and evaluation services within the Department of the Air Force?

Historical spending on cyber operational test and evaluation services within the Department of the Air Force has generally trended upwards, reflecting the increasing importance of cyber capabilities. This specific contract represents a significant investment in maintaining and advancing these capabilities. Analyzing past spending on similar contracts, including those for cyber range development, simulation, and operational testing, would reveal trends in budget allocation and the growth of the cyber testing enterprise. This contract's value should be viewed within that broader context of sustained investment in cyber readiness.

What is the potential impact of this contract on the development and deployment of new cyber technologies for the Air Force?

This contract plays a crucial role in the development and deployment lifecycle of new cyber technologies by providing essential validation and testing. By simulating operational environments and adversarial tactics, the services rendered under this contract help identify flaws, assess performance, and ensure that new technologies are robust, secure, and effective before they are fielded. This rigorous testing process accelerates the adoption of cutting-edge cyber solutions and reduces the risk of deploying immature or vulnerable systems, ultimately enhancing the Air Force's overall cyber posture.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Perdigita LLC

Address: 8115 MAPLE LAWN BLVD, FULTON, MD, 20759

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, 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: $82,723,217

Exercised Options: $27,524,458

Current Obligation: $25,754,362

Actual Outlays: $42,656

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20D3021

IDV Type: IDC

Timeline