DoD's $35.3M IT contract with Cipher Tech Solutions Inc. awarded under full and open competition

Contract Overview

Contract Amount: $35,331,354 ($35.3M)

Contractor: Cipher Tech Solutions Inc

Awarding Agency: Department of Defense

Start Date: 2020-08-17

End Date: 2026-02-16

Contract Duration: 2,009 days

Daily Burn Rate: $17.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TECHEX CUSTOMIZED COMMERCIAL IT SOLUTIONS FOR SOCOM

Place of Performance

Location: NYACK, ROCKLAND County, NEW YORK, 10960

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $35.3 million to CIPHER TECH SOLUTIONS INC for work described as: TECHEX CUSTOMIZED COMMERCIAL IT SOLUTIONS FOR SOCOM Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for customized commercial IT solutions, indicating a need for specialized technical support. 3. A firm-fixed-price contract type aims to control costs by setting a predetermined price. 4. The contract duration extends over multiple years, suggesting a long-term need for these IT services. 5. The award was a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 6. The contractor, Cipher Tech Solutions Inc., is the sole awardee for this specific delivery order. 7. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services.

Value Assessment

Rating: fair

Benchmarking the value of this $35.3 million contract is challenging without more specific details on the services rendered and the contract's place within a larger IDIQ. However, the firm-fixed-price structure is a positive indicator for cost control. Comparing the per-unit cost or the overall value against similar custom programming services for defense agencies would provide a clearer picture of value for money. The relatively long duration suggests a significant, ongoing requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows two bids were received. While two bids suggest some level of competition, it is on the lower end for a contract of this value and duration, potentially limiting the full benefits of price discovery that a larger number of bidders might provide.

Taxpayer Impact: A competitive award process, even with two bidders, is generally favorable for taxpayers as it encourages multiple companies to offer their best pricing and terms, potentially leading to a more cost-effective outcome than a sole-source award.

Public Impact

The U.S. Special Operations Command (SOCOM) is the primary beneficiary, receiving customized IT solutions. The services delivered are expected to enhance SOCOM's operational capabilities through advanced technology. The contract's geographic impact is primarily within the United States, supporting federal IT infrastructure. Workforce implications may include specialized IT professionals employed by Cipher Tech Solutions Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only two bids received could potentially lead to higher prices than a more robust bidding environment.
The specific nature of 'customized commercial IT solutions' makes it difficult to assess value without detailed performance metrics.
The contract duration of nearly two years (from award to end date) requires ongoing monitoring to ensure continued value and performance.

Positive Signals

Awarded under full and open competition, maximizing the pool of potential offerors.
Firm-fixed-price contract type provides cost certainty for the government.
The contract addresses a specific need for customized IT solutions within a critical defense agency.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically custom computer programming services. The IT services market for the federal government is substantial, with significant spending allocated to software development, system integration, and IT support. Contracts like this are common as defense agencies require specialized, often proprietary, technological solutions to maintain operational superiority. Benchmarking against similar custom programming contracts for defense entities would be necessary for a comprehensive value assessment.

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 or specific benefits for the small business ecosystem stemming from a set-aside provision. The primary contractor, Cipher Tech Solutions Inc., is likely a mid-to-large-sized business given the contract value.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Special Operations Command's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, requiring delivery of specified services. Transparency is generally maintained through contract award databases like FPDS. The Inspector General for the Department of Defense may conduct audits or investigations if specific concerns regarding performance, cost, or compliance arise.

Related Government Programs

Defense Information Technology Contracting Office (DITCO) contracts
Special Operations Forces Support Activity contracts
Custom Computer Programming Services contracts
IT Solutions for Federal Agencies
Department of Defense IT Modernization Programs

Risk Flags

Limited competition (2 bids)
Potential for cost overruns in fixed-price contracts with complex scope
Need for detailed performance metrics to assess value

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.3 million to CIPHER TECH SOLUTIONS INC. TECHEX CUSTOMIZED COMMERCIAL IT SOLUTIONS FOR SOCOM

Who is the contractor on this award?

The obligated recipient is CIPHER TECH SOLUTIONS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $35.3 million.

What is the period of performance?

Start: 2020-08-17. End: 2026-02-16.

What is the track record of Cipher Tech Solutions Inc. with federal contracts, particularly within the Department of Defense?

Analyzing the track record of Cipher Tech Solutions Inc. requires accessing federal procurement databases. While this specific award is for $35.3 million, understanding their history with the DoD involves looking at past performance on similar contracts, any reported issues or awards, and their overall contract portfolio. A review of their past performance ratings, any contract modifications, and the types of services they have previously provided to the government would offer insight into their reliability and capability. Without specific historical data presented here, it's assumed this award reflects a positive assessment of their capabilities by SOCOM at the time of selection.

How does the $35.3 million value compare to similar custom computer programming contracts awarded by SOCOM or other defense agencies?

Comparing the $35.3 million value requires benchmarking against contracts for 'Custom Computer Programming Services' (NAICS 541511) awarded by SOCOM and other Department of Defense entities. Factors such as contract duration, scope of work, and specific technological requirements heavily influence pricing. If this contract represents a typical or below-average cost for the services rendered over its duration, it suggests good value. Conversely, if it appears significantly higher than comparable awards, it might indicate potential overpricing or a more complex scope. A detailed analysis would involve comparing the total contract value, annual spending, and the specific deliverables against a dataset of similar procurements.

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

Key risks for this contract include potential cost overruns if the fixed price doesn't adequately cover unforeseen technical challenges, performance issues if the contractor fails to deliver customized solutions meeting SOCOM's requirements, and schedule delays. Mitigation strategies likely involve robust contract oversight by SOCOM, clear performance metrics and milestones, and potentially penalties for non-performance. The firm-fixed-price nature itself is a risk mitigation tool for the government, shifting some financial risk to the contractor. Ensuring the contractor has the necessary technical expertise and security clearances is also critical.

How effective are the 'customized commercial IT solutions' in meeting the operational needs of U.S. Special Operations Command?

Assessing the effectiveness of the 'customized commercial IT solutions' requires evaluating SOCOM's mission outcomes and operational readiness post-implementation. This involves analyzing whether the delivered IT systems enhance intelligence gathering, communication, operational planning, or other critical functions. Performance metrics defined in the contract, user feedback from SOCOM personnel, and demonstrable improvements in efficiency or capability would be key indicators. Without direct access to SOCOM's internal assessments or performance reports related to this specific contract, a definitive judgment on effectiveness cannot be made from this data alone.

What are the historical spending patterns for custom computer programming services at SOCOM, and how does this award fit within them?

Understanding historical spending patterns for custom computer programming services at SOCOM involves analyzing past contract awards for NAICS code 541511 and similar IT services. This contract's $35.3 million value over approximately 20 months (from award to end date) can be compared to the average contract size, annual spending trends, and the number of awards SOCOM has made in this category. If SOCOM consistently spends similar amounts on such services, this award aligns with historical patterns. Significant deviations might warrant further investigation into the specific needs driving this particular procurement or changes in SOCOM's IT strategy.

Given the 'full and open competition' and only two bids, what is the potential impact on price competitiveness?

While 'full and open competition' theoretically allows all eligible sources to bid, receiving only two bids for a contract of this magnitude ($35.3 million) suggests that the competitive landscape might be narrower than ideal. A limited number of bidders can reduce the pressure on each company to offer the lowest possible price, as they face less direct competition. This could potentially lead to a higher price for the government compared to a scenario with multiple, more competitive bids. However, the specific nature of 'customized commercial IT solutions' might inherently limit the number of qualified bidders, making two bids a reasonable outcome in such a specialized market.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1945 OLD GALLOWS RD, VIENNA, VA, 22182

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,331,354

Exercised Options: $35,331,354

Current Obligation: $35,331,354

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA20D006G

IDV Type: FSS

Timeline