GSA's $50.6M IT services contract for DHS cybersecurity tools awarded to Knowledge Consulting Group Inc

Contract Overview

Contract Amount: $50,663,684 ($50.7M)

Contractor: Knowledge Consulting Group Inc

Awarding Agency: General Services Administration

Start Date: 2016-06-29

End Date: 2018-07-11

Contract Duration: 742 days

Daily Burn Rate: $68.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: THE PURPOSE OF THIS TASK ORDER (TO) IS TO SUPPORT THE DHS, OFFICE OF CYBER SECURITY AND COMMUNICATIONS (CS&C), OPERATING ON BEHALF OF A SPECIFIC SET OF FEDERAL AGENCIES BY PROVIDING TOOLS AND SENSORS IN SUPPORT OF THE CONTINUOUS DIAGNOSTICS AND MITIGATION (CDM) PROGRAM. IGF::OT::IGF.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $50.7 million to KNOWLEDGE CONSULTING GROUP INC for work described as: THE PURPOSE OF THIS TASK ORDER (TO) IS TO SUPPORT THE DHS, OFFICE OF CYBER SECURITY AND COMMUNICATIONS (CS&C), OPERATING ON BEHALF OF A SPECIFIC SET OF FEDERAL AGENCIES BY PROVIDING TOOLS AND SENSORS IN SUPPORT OF THE CONTINUOUS DIAGNOSTICS AND MITIGATION (CDM) PROGRAM. IGF::OT:… Key points: 1. Contract provides essential tools and sensors for continuous diagnostics and mitigation of cyber threats. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. Task order duration of 742 days indicates a significant, medium-term support requirement. 4. The contract type is labor hours, which can offer flexibility but requires careful monitoring of effort. 5. Focus on cybersecurity aligns with critical national security and infrastructure protection needs. 6. The contract's value is substantial, reflecting the importance of the CDM program.

Value Assessment

Rating: good

The contract value of $50.6 million over approximately two years for IT services supporting the Continuous Diagnostics and Mitigation (CDM) program appears reasonable given the scope. Benchmarking against similar large-scale cybersecurity support contracts is challenging without more granular data on specific services and labor categories. However, the scale of the CDM program suggests that this level of investment is in line with national cybersecurity priorities. The labor hours contract type allows for flexibility in resource allocation, which can be cost-effective if managed efficiently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of two bidders suggests a moderate level of competition for this specific task order. While more bidders would typically lead to greater price discovery and potentially lower costs, the fact that it was competed openly is a positive sign for value.

Taxpayer Impact: Taxpayers benefit from the assurance that the government sought the best available solution through a competitive process, aiming to secure necessary cybersecurity tools and services at a fair price.

Public Impact

Federal agencies, including the Department of Homeland Security (DHS), benefit from enhanced cybersecurity capabilities. Services delivered include the provision of tools and sensors crucial for continuous diagnostics and mitigation of cyber threats. The geographic impact is national, as the CDM program supports a wide range of federal agencies across the United States. Workforce implications include the need for skilled IT and cybersecurity professionals to implement and manage the provided tools and sensors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hours contract type requires diligent oversight to prevent cost overruns and ensure efficient use of resources.
The specific nature of 'Other Computer Related Services' could lead to scope creep if not clearly defined and managed.
Reliance on a single awardee for critical cybersecurity tools necessitates robust performance monitoring.

Positive Signals

Awarded under full and open competition, indicating a fair and transparent procurement process.
The contract supports a critical national program (CDM) aimed at improving federal cybersecurity posture.
The contract duration suggests a stable, long-term need for these services, allowing for focused expertise development.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on cybersecurity solutions. The market for cybersecurity tools and services is rapidly growing, driven by increasing cyber threats to government and private entities. The CDM program is a significant government-wide initiative aimed at providing agencies with the capabilities to identify, classify, and reduce their cyber attack surface. This contract represents a portion of the overall federal spending on cybersecurity, which is a major component of the IT services market.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, Knowledge Consulting Group Inc., may choose to subcontract portions of this work to small businesses, which would be a positive outcome for the small business ecosystem. Further investigation into the contractor's subcontracting plan would be necessary to assess the full impact.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA) as the issuing agency, and the Department of Homeland Security (DHS) as the end-user agency benefiting from the services. The contract was awarded via a BPA Call, which implies adherence to established GSA Federal Acquisition Service (FAS) policies and procedures. Transparency is facilitated through contract award databases. Inspector General jurisdiction would likely reside with GSA's Office of Inspector General and potentially DHS's OIG, depending on the nature of any issues.

Related Government Programs

Continuous Diagnostics and Mitigation (CDM) Program
Federal Cybersecurity Initiatives
IT Services for Federal Agencies
Department of Homeland Security (DHS) Contracts
General Services Administration (GSA) IT Procurement

Risk Flags

Potential for cost overruns due to labor-hours contract type.
Scope creep risk in 'Other Computer Related Services'.
Dependence on a single contractor for critical cybersecurity components.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $50.7 million to KNOWLEDGE CONSULTING GROUP INC. THE PURPOSE OF THIS TASK ORDER (TO) IS TO SUPPORT THE DHS, OFFICE OF CYBER SECURITY AND COMMUNICATIONS (CS&C), OPERATING ON BEHALF OF A SPECIFIC SET OF FEDERAL AGENCIES BY PROVIDING TOOLS AND SENSORS IN SUPPORT OF THE CONTINUOUS DIAGNOSTICS AND MITIGATION (CDM) PROGRAM. IGF::OT::IGF.

Who is the contractor on this award?

The obligated recipient is KNOWLEDGE CONSULTING GROUP INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $50.7 million.

What is the period of performance?

Start: 2016-06-29. End: 2018-07-11.

What is the specific track record of Knowledge Consulting Group Inc. in delivering similar cybersecurity tools and sensor support to federal agencies?

Information on the specific track record of Knowledge Consulting Group Inc. for this particular task order is limited based solely on the provided data. The contract was awarded under a Best Practices Agreement (BPA) Call, suggesting it's a task order against a larger, pre-existing agreement. To assess their track record, one would need to examine past performance evaluations for Knowledge Consulting Group Inc. on similar federal contracts, particularly those involving cybersecurity tools, sensors, and continuous diagnostics. This would involve reviewing contract databases for past awards, performance reports (e.g., CPARS), and any documented successes or failures in delivering comparable services. Without this detailed performance history, it's difficult to definitively gauge their expertise and reliability for this specific CDM support.

How does the $50.6 million contract value compare to other federal spending on similar cybersecurity diagnostic tools and services?

The $50.6 million contract value for supporting the DHS CDM program is a significant investment, reflecting the critical nature of federal cybersecurity. To benchmark this value, one would compare it against other large-scale federal contracts for cybersecurity tools, sensors, and managed security services. For instance, other agency-specific CDM implementations or broader federal cybersecurity initiatives (like EINSTEIN or TIC) involve substantial funding. The 'Other Computer Related Services' (NAICS 541519) category is broad, but cybersecurity is a major driver of spending within it. While direct comparisons are difficult without knowing the exact mix of hardware, software, and services procured, $50.6 million over approximately two years for a program supporting multiple agencies suggests a substantial, but potentially justifiable, expenditure given the escalating threat landscape.

What are the primary risks associated with a labor-hours contract for cybersecurity support, and how are they mitigated?

A primary risk with labor-hours contracts for cybersecurity support is the potential for cost overruns if the scope of work is not tightly managed or if the contractor's labor efficiency is low. There's also a risk of scope creep, where tasks expand beyond the original intent, leading to increased hours billed. Mitigation strategies typically involve robust project management, clear definition and tracking of work requirements, regular performance reviews, and strong oversight from the contracting officer's representative (COR). For this contract, the General Services Administration (GSA) and DHS would need to ensure detailed task tracking, regular reporting on hours utilized versus work accomplished, and potentially implementing performance metrics tied to cybersecurity outcomes to ensure value for money and control costs.

How effective is the Continuous Diagnostics and Mitigation (CDM) program in enhancing federal cybersecurity, and what role does this contract play?

The Continuous Diagnostics and Mitigation (CDM) program is designed to provide federal agencies with the visibility, information, and capabilities needed to identify cybersecurity risks and vulnerabilities across their networks and systems. Its effectiveness hinges on the consistent deployment and utilization of the tools and sensors it provides. This contract, valued at $50.6 million, plays a crucial role by funding the acquisition and support of these essential tools and sensors for agencies operating under the DHS Office of Cybersecurity and Communications (CS&C). By ensuring these capabilities are available and functional, the contract directly contributes to the program's objective of reducing the federal government's attack surface and improving its overall cybersecurity posture against evolving threats.

What has been the historical spending trend for the CDM program or similar cybersecurity initiatives under GSA and DHS?

Historical spending on the Continuous Diagnostics and Mitigation (CDM) program has been substantial and generally increasing, reflecting the growing emphasis on federal cybersecurity. GSA has been a key facilitator for CDM procurements, often using large-scale vehicles to aggregate agency needs. DHS, as the primary beneficiary and overseer of many cybersecurity initiatives, also directs significant funding. While specific year-over-year figures for CDM alone require detailed analysis of federal budgets and contract databases, overall federal IT security spending has consistently risen over the past decade. Contracts like this $50.6 million task order are indicative of ongoing, significant investments required to maintain and upgrade the nation's cybersecurity infrastructure, suggesting a trend of sustained or growing expenditure in this area.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Contractor Details

Parent Company: Mantech International Corporation (UEI: 053518312)

Address: 2000 EDMUND HALLEY DR STE 500, RESTON, VA, 20191

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $85,430,274

Exercised Options: $85,430,274

Current Obligation: $50,663,684

Subaward Activity

Number of Subawards: 67

Total Subaward Amount: $27,076,190

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00T13AJA0016

IDV Type: BPA

Timeline