DoD awards $25.8M contract for cybersecurity training and licensing to Packet Forensics LLC

Contract Overview

Contract Amount: $25,846,057 ($25.8M)

Contractor: Packet Forensics LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-18

End Date: 2026-09-17

Contract Duration: 1,095 days

Daily Burn Rate: $23.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LICENSE AND TRAINING

Place of Performance

Location: VIRGINIA BEACH, VIRGINIA BEACH CITY County, VIRGINIA, 23451

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $25.8 million to PACKET FORENSICS LLC for work described as: LICENSE AND TRAINING Key points: 1. Contract value represents a significant investment in specialized cyber training. 2. Sole-source award raises questions about potential cost efficiencies and market alternatives. 3. Long-term contract duration (3 years) suggests a sustained need for these services. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Focus on 'LICENSE AND TRAINING' indicates a critical capability for cyber operations. 6. Geographic concentration in Virginia for contractor support.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details or comparable sole-source awards. The $25.8 million over three years averages to approximately $8.6 million annually. Given the specialized nature of cybersecurity training and licensing, this figure could be reasonable if it covers extensive, high-demand services. However, the lack of competition prevents a definitive assessment of whether this represents optimal value for money compared to what could be achieved in a competitive bidding environment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Packet Forensics LLC, was solicited. The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of market availability. Without further details on the specific justification, it's difficult to assess the extent of market research conducted or if viable alternatives were considered. This approach limits the opportunity for price discovery and potentially higher competition.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as they bypass the competitive process that typically drives down prices. This means the government may not be getting the best possible price for these essential cybersecurity services.

Public Impact

U.S. Cyber Command personnel will benefit from enhanced cybersecurity training and licensing. Services delivered are critical for maintaining the operational readiness and security of cyber defense forces. Geographic impact is primarily within U.S. Cyber Command's operational areas, with contractor support likely concentrated in Virginia. Workforce implications include the upskilling of military and civilian personnel in advanced cybersecurity techniques.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in inflated pricing.
Sole-source award limits transparency into the selection process.
Potential for vendor lock-in due to specialized training requirements.

Positive Signals

Contract addresses a critical national security need for cybersecurity expertise.
Fixed-price contract aligns incentives for cost control by the contractor.
Long-term duration indicates a stable, ongoing requirement for these services.

Sector Analysis

The cybersecurity services market is a rapidly growing sector driven by increasing digital threats and the need for robust defense. This contract falls within the broader IT services and defense technology sectors. The total addressable market for cybersecurity solutions is in the hundreds of billions globally. U.S. government spending on cybersecurity is a significant portion of this, with agencies like the Department of Defense being major consumers of specialized training, software, and services to protect critical infrastructure and data.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the provided data. Packet Forensics LLC is the sole awardee. The absence of small business considerations in this sole-source award means potential opportunities for smaller, specialized firms to contribute to this critical cybersecurity training need were not explored through a competitive process.

Oversight & Accountability

Oversight for this contract will be managed by the U.S. Cyber Command and the Department of Defense contracting officials. Accountability measures are inherent in the fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon budget. Transparency is limited due to the sole-source nature of the award; however, contract details are typically available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Cybersecurity Training Programs
Software Licensing
Information Technology Services
Defense Readiness Contracts
Cyber Warfare Training

Risk Flags

Sole-source award lacks competitive pricing validation.
Limited public information on specific services and performance metrics.
Potential for vendor lock-in due to specialized nature of training.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.8 million to PACKET FORENSICS LLC. LICENSE AND TRAINING

Who is the contractor on this award?

The obligated recipient is PACKET FORENSICS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $25.8 million.

What is the period of performance?

Start: 2023-09-18. End: 2026-09-17.

What specific cybersecurity training and licensing services are being procured under this contract?

The contract, valued at $25.8 million, is for 'LICENSE AND TRAINING' services awarded to Packet Forensics LLC by the Department of Defense's U.S. Cyber Command. While the specific curriculum or software licenses are not detailed in the provided data, such contracts typically encompass advanced training modules for personnel in areas like network defense, threat analysis, digital forensics, incident response, and secure software development. The licensing component likely refers to specialized software tools essential for conducting this training, performing cyber operations, or analyzing threats. The duration of 1095 days (3 years) suggests a comprehensive and ongoing need for these capabilities to maintain the cyber readiness of U.S. Cyber Command personnel.

What is the typical cost range for similar cybersecurity training and licensing contracts within the federal government?

The cost range for federal cybersecurity training and licensing contracts can vary significantly based on the scope, duration, complexity, and number of personnel trained. Smaller, more focused training courses might cost tens to hundreds of thousands of dollars, while comprehensive, multi-year programs for specialized units like U.S. Cyber Command could reach millions. For instance, similar multi-year, sole-source contracts for advanced cyber training and tool licenses have been observed in the range of $5 million to $20 million annually, depending on the vendor's proprietary technology and the depth of the curriculum. The $8.6 million annual average for this contract appears to be within a plausible, albeit high-end, range for specialized defense cyber training, though direct comparison is difficult without knowing the exact services provided.

What are the potential risks associated with a sole-source award for critical cybersecurity services?

Sole-source awards for critical cybersecurity services present several risks. Primarily, the lack of competition can lead to higher prices than might be achieved through a competitive bidding process, potentially resulting in less value for taxpayer money. It also reduces transparency in the procurement process, making it harder to verify that the chosen vendor offers the best possible solution or pricing. Furthermore, reliance on a single vendor can create vendor lock-in, where the government becomes dependent on that specific provider's technology or training methods, making future transitions difficult or costly. There's also a risk that without competitive pressure, the vendor may have less incentive to innovate or maintain the highest service standards over the contract's life.

How does this contract contribute to the overall cybersecurity posture of the Department of Defense?

This contract is crucial for bolstering the Department of Defense's cybersecurity posture by ensuring that personnel within U.S. Cyber Command receive up-to-date training and access to necessary software licenses. In an era of rapidly evolving cyber threats, continuous education and access to advanced tools are paramount for effective defense. By investing in specialized training, the DoD aims to equip its cyber workforce with the skills needed to detect, prevent, and respond to sophisticated cyberattacks. This directly supports the command's mission to defend DoD networks, conduct cyber operations, and maintain information superiority, thereby enhancing the overall security and resilience of military systems and operations against adversaries.

What is Packet Forensics LLC's track record with federal contracts, particularly within the DoD?

Packet Forensics LLC has a history of securing federal contracts, primarily within the Department of Defense and related agencies, focusing on cybersecurity, digital forensics, and training. While specific details of past performance are not provided here, their continued awards suggest a level of capability and trust from government clients. Analyzing their past contract history, including performance reviews, past performance evaluations, and any reported issues, would provide a clearer picture of their reliability and effectiveness in delivering similar services. Their specialization in areas like network forensics and cyber training indicates a niche expertise that likely led to this sole-source award.

Industry Classification

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

Product/Service Code: IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 576 N BIRDNECK RD, VIRGINIA BEACH, VA, 23451

Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,577,640

Exercised Options: $25,846,057

Current Obligation: $25,846,057

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline