DoD's $33.75M Cybersecurity Contract Awarded to Federal Information Systems, Inc. for SOCOM Support

Contract Overview

Contract Amount: $33,750,926 ($33.8M)

Contractor: Federal Information Systems, Inc

Awarding Agency: Department of Defense

Start Date: 2023-11-06

End Date: 2026-04-30

Contract Duration: 906 days

Daily Burn Rate: $37.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: CYBERSECURITY SUPPORT SERVICES FOR USSOCOM

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $33.8 million to FEDERAL INFORMATION SYSTEMS, INC for work described as: CYBERSECURITY SUPPORT SERVICES FOR USSOCOM Key points: 1. Contract value represents a significant investment in cybersecurity for U.S. Special Operations Command (USSOCOM). 2. The award was made under full and open competition, suggesting a robust market for these services. 3. The contract duration of 906 days indicates a long-term need for sustained cybersecurity support. 4. Federal Information Systems, Inc. secured this contract, highlighting their role in providing critical IT services to defense agencies. 5. The 'Other Computer Related Services' NAICS code suggests a broad scope of technical support beyond standard IT. 6. The contract type (Cost Plus Fixed Fee) may allow for flexibility but requires careful oversight to manage costs.

Value Assessment

Rating: good

Benchmarking the value of this $33.75 million contract is challenging without specific service details. However, the award to Federal Information Systems, Inc. under full and open competition suggests a competitive pricing environment. The Cost Plus Fixed Fee (CPFF) contract type, while common for complex services, necessitates diligent oversight to ensure costs remain reasonable and aligned with the fixed fee. Comparing this to similar cybersecurity support contracts for special operations forces would provide a clearer picture of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 5 bidders suggests a healthy level of competition for this cybersecurity support requirement. This broad competition is generally favorable for price discovery and ensures the government can select from a range of capable providers, potentially leading to better overall value.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices and encourages innovation among contractors vying for the award. This process helps ensure that government funds are used efficiently by selecting the most cost-effective and technically sound solution.

Public Impact

USSOCOM personnel will benefit from enhanced cybersecurity measures, protecting sensitive operations and data. The services delivered will bolster the digital defenses of a critical branch of the U.S. military. The contract is geographically focused on Florida, where USSOCOM has significant operations. This contract supports a specialized workforce within the cybersecurity and IT services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed tightly.
The broad NAICS code (541519) might obscure the specific services rendered, impacting transparency.
Long contract duration requires ongoing performance monitoring to ensure sustained quality.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Federal Information Systems, Inc. is a known entity providing IT services to the government.
The contract addresses a critical need for cybersecurity within a high-priority agency.

Sector Analysis

This contract falls within the broader Information Technology and Cybersecurity sector, a rapidly growing area driven by increasing digital threats. The market for cybersecurity services is highly competitive, with numerous firms offering specialized solutions. This specific contract supports a niche within defense, focusing on the unique cybersecurity challenges faced by U.S. Special Operations Command. Comparable spending benchmarks for cybersecurity support to defense agencies often run into tens or hundreds of millions of dollars annually, reflecting the critical nature of these services.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless Federal Information Systems, Inc. actively engages small businesses for subcontracting opportunities. Further analysis of subcontracting plans would be needed to assess the full impact.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely involve regular reviews of incurred costs and the contractor's performance against the fixed fee. The Department of Defense and U.S. Special Operations Command have established procurement oversight mechanisms and contract management processes. Transparency will depend on the public availability of contract performance reports and any Inspector General audits related to the contract's execution and financial management.

Related Government Programs

DoD Cybersecurity Modernization Program
USSOCOM IT Infrastructure Support
Federal Civilian Cybersecurity Initiatives
Defense Information Systems Agency (DISA) Contracts

Risk Flags

Potential for cost overruns due to CPFF contract type.
Broad NAICS code may require enhanced oversight for scope adherence.
Long contract duration necessitates continuous performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.8 million to FEDERAL INFORMATION SYSTEMS, INC. CYBERSECURITY SUPPORT SERVICES FOR USSOCOM

Who is the contractor on this award?

The obligated recipient is FEDERAL INFORMATION SYSTEMS, 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 $33.8 million.

What is the period of performance?

Start: 2023-11-06. End: 2026-04-30.

What is the track record of Federal Information Systems, Inc. in supporting defense agencies, particularly with cybersecurity services?

Federal Information Systems, Inc. has a history of providing IT services to various government agencies. While specific details on their cybersecurity track record for defense agencies require deeper investigation, their ability to win a contract with USSOCOM suggests they possess the necessary qualifications and past performance. A review of their contract history, including any past performance evaluations or awards related to cybersecurity or similar IT support for defense entities, would provide a clearer picture of their expertise and reliability in this domain. Examining their financial stability and any past issues with contract performance would also be crucial for a comprehensive assessment.

How does the $33.75 million contract value compare to similar cybersecurity support contracts for special operations forces?

Direct comparison of this $33.75 million contract value to similar cybersecurity support contracts for special operations forces is difficult without access to detailed contract databases and specific service scopes. However, cybersecurity is a critical and often expensive requirement for specialized military units like USSOCOM, given the sensitive nature of their operations. Contracts of this magnitude are not uncommon for comprehensive, multi-year support. Factors influencing value include the complexity of threats, the level of security clearance required, the specific technologies employed, and the duration of the support. A benchmark analysis would ideally compare contract values against the number of personnel supported, the scope of services (e.g., threat intelligence, incident response, network defense), and the criticality of the systems being protected.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for cybersecurity services?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for cybersecurity services revolve around cost control and contractor incentive. For the government, the risk is that the contractor may not be sufficiently incentivized to control costs, as the government agrees to reimburse allowable costs plus a fixed fee. This can lead to cost overruns if the contractor's cost estimation is inaccurate or if unforeseen complexities arise. For the contractor, the risk lies in accurately estimating costs to ensure the fixed fee provides adequate profit. Effective risk mitigation requires robust government oversight, detailed cost tracking, clear definition of allowable costs, and strong negotiation of the fixed fee based on realistic projections and market rates.

How effective is full and open competition in ensuring value for money for cybersecurity contracts of this nature?

Full and open competition is generally considered the most effective method for ensuring value for money in government contracting, including for cybersecurity services. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. The presence of 5 bidders for this USSOCOM contract suggests a healthy market and increases the likelihood that the government will receive competitive pricing and technically superior solutions. However, the effectiveness also depends on the clarity of the solicitation, the government's ability to evaluate proposals objectively, and the specific nature of the cybersecurity requirements, which can sometimes be highly specialized, potentially limiting the number of truly capable bidders.

What are the potential implications of the 'Other Computer Related Services' NAICS code on the scope and oversight of this contract?

The NAICS code 541519, 'Other Computer Related Services,' is a broad category that can encompass a wide range of IT services beyond standard software development or hardware maintenance. For this cybersecurity support contract, it could include services like IT consulting, disaster recovery, data recovery services, computer facilities management, and IT support services. This broadness can be both an advantage and a challenge. It allows flexibility in service delivery to meet evolving cybersecurity needs. However, it also necessitates meticulous oversight from the contracting agency to ensure that all services rendered fall within the intended scope and that the contractor is not overcharging for services that are not critical or are outside the contract's objectives. Clear performance work statements and regular reviews are essential for effective management under such a broad classification.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1811 S LAREDO ST BLDG 1811 STE 107, SAN ANTONIO, TX, 78207

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, 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: $82,474,268

Exercised Options: $44,275,272

Current Obligation: $33,750,926

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J18DA072

IDV Type: IDC

Timeline