DoD's $20M Secure Cross Domain Solution contract awarded to ALVAREZ LLC for IT services

Contract Overview

Contract Amount: $20,112,754 ($20.1M)

Contractor: Alvarez LLC

Awarding Agency: Department of Defense

Start Date: 2012-03-14

End Date: 2013-09-30

Contract Duration: 565 days

Daily Burn Rate: $35.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SECURE CROSS DOMAIN SOLUTION

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $20.1 million to ALVAREZ LLC for work described as: SECURE CROSS DOMAIN SOLUTION Key points: 1. Value for money appears fair given the fixed-price contract type and duration. 2. Competition was limited after exclusion of sources, potentially impacting price discovery. 3. Risk indicators are moderate, with a fixed-price contract mitigating some cost overruns. 4. Performance context is within IT services, specifically cross-domain solutions. 5. Sector positioning is within Defense IT, a critical area for national security.

Value Assessment

Rating: fair

The contract value of $20,012,754 over approximately 1.5 years for IT services is within a reasonable range for specialized solutions. Benchmarking against similar cross-domain solutions is challenging without more specific service details, but the firm fixed-price nature suggests an agreed-upon value upfront. The number of bids (3) indicates some level of interest, but the 'after exclusion of sources' clause warrants further scrutiny regarding the initial competition scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. While this indicates an initial broad solicitation, the exclusion of certain sources suggests a narrowed field before the final award. Three bidders participated in this phase, which provides some competitive tension but may not represent the full market potential. The exclusion process itself could limit the range of innovative solutions and potentially impact the final price.

Taxpayer Impact: The limited competition, even after an initial broad approach, means taxpayers may not have benefited from the lowest possible price achievable through a fully open and unrestricted bidding process.

Public Impact

The Department of Defense benefits from enhanced secure data sharing capabilities. Services delivered include the implementation and maintenance of a secure cross-domain solution. Geographic impact is likely concentrated within DoD facilities, potentially globally. Workforce implications may involve specialized IT personnel for deployment and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to source exclusion could lead to higher costs.
Lack of detailed performance metrics makes assessing effectiveness difficult.
The specific nature of 'cross-domain solution' requires specialized expertise, potentially limiting contractor pool.

Positive Signals

Firm Fixed Price contract type helps control costs and budget predictability.
Award to a single contractor (ALVAREZ LLC) allows for focused accountability.
The contract duration of over a year provides stability for service delivery.

Sector Analysis

The contract falls within the broader Information Technology sector, specifically focusing on cybersecurity and secure data transfer solutions. The Defense Information Systems Agency (DISA) is a major procurer of such technologies to meet the complex needs of the U.S. military. The market for cross-domain solutions is specialized, driven by stringent security requirements and the need for interoperability across different networks. Comparable spending benchmarks are difficult to ascertain without more granular data on the specific functionalities of this solution.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss: false' and 'sb: false'. ALVAREZ LLC is not explicitly identified as a small business in the provided data. Therefore, the direct impact on small business set-asides is negligible. However, the prime contractor may engage small businesses for subcontracting opportunities, which would depend on ALVAREZ LLC's subcontracting plan and the nature of the services required.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management structures, likely involving the Defense Contract Management Agency (DCMA) for performance monitoring. Accountability is primarily vested in ALVAREZ LLC to deliver the specified secure cross-domain solution. Transparency is moderate; while the award is public, the specifics of the 'exclusion of sources' and detailed performance metrics are not readily available in this summary.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
Cybersecurity Solutions Procurement
Secure Data Transfer Technologies
Department of Defense IT Infrastructure

Risk Flags

Limited competition due to source exclusion.
Broad NAICS code may obscure specific service details.
Lack of detailed performance metrics hinders effectiveness assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.1 million to ALVAREZ LLC. SECURE CROSS DOMAIN SOLUTION

Who is the contractor on this award?

The obligated recipient is ALVAREZ LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $20.1 million.

What is the period of performance?

Start: 2012-03-14. End: 2013-09-30.

What specific capabilities does the 'Secure Cross Domain Solution' provide, and how do they align with DoD's mission requirements?

The provided data does not detail the specific functionalities of the 'Secure Cross Domain Solution'. Generally, such solutions enable the controlled transfer of information between different security domains (e.g., classified and unclassified networks) while maintaining security integrity. For the DoD, this is critical for intelligence sharing, operational command and control, and logistical support across various branches and agencies. The solution likely involves hardware and software components designed to enforce security policies, perform content inspection, and ensure data is transferred securely and appropriately. Without further documentation, it's impossible to assess the precise alignment with mission requirements beyond the general need for secure inter-domain communication.

How did the exclusion of sources impact the final price and competition for this contract?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause indicates that while the solicitation was initially broad, certain potential offerors were excluded before the final bidding stage. This exclusion could be based on various factors, such as specific technical requirements, past performance, or security clearances. If highly capable contractors were excluded, it could reduce the overall competition, potentially leading to a higher price than if the competition had remained fully open. Conversely, if the exclusions were narrowly tailored to ensure only the most qualified vendors participated, it might have streamlined the process and ensured a higher quality outcome, though potentially at a premium. The fact that three bidders remained suggests a competitive, albeit narrowed, field.

What is ALVAREZ LLC's track record with similar DoD contracts, particularly in cybersecurity and cross-domain solutions?

Information regarding ALVAREZ LLC's specific track record with similar DoD contracts, especially in cybersecurity and cross-domain solutions, is not provided in the summary data. To assess their capability and past performance, one would need to review their contract history, including awards, performance evaluations (e.g., CPARS reports), and any past issues or successes on comparable projects. A thorough analysis would involve searching federal procurement databases and agency performance records to understand their experience level, reliability, and expertise in delivering complex IT solutions within the defense sector.

Can the value of this $20 million contract be benchmarked against other similar cross-domain solution procurements?

Benchmarking this $20 million contract against similar cross-domain solution procurements is challenging without more specific details about the scope, complexity, and duration of the services provided. Cross-domain solutions vary significantly in their capabilities, from simple data diodes to complex multi-domain information gateways. Factors such as the number of domains supported, the types of data being transferred, the required security certifications (e.g., NIAP, Common Criteria), and the level of customization heavily influence cost. A comprehensive benchmark would require access to a database of comparable contracts, including their technical specifications, award values, and performance periods, to establish a relevant market rate.

What are the potential risks associated with a firm fixed-price contract for complex IT solutions like a cross-domain system?

While firm fixed-price (FFP) contracts are generally favored for cost control, they can introduce risks for complex IT solutions. For the government, the primary risk is that the contractor may cut corners on quality or scope to maintain profitability if unforeseen technical challenges arise or requirements change. For the contractor, the risk is absorbing cost overruns if the project scope expands or technical difficulties prove more extensive than anticipated. In the case of a cross-domain solution, unforeseen integration issues, evolving cybersecurity threats requiring system modifications, or difficulties in meeting stringent performance requirements could strain the contractor's ability to deliver within the fixed price, potentially impacting performance or leading to disputes.

How does the 'Other Computer Related Services' NAICS code (541519) inform our understanding of this contract's scope?

The North American Industry Classification System (NAICS) code 541519, 'Other Computer Related Services,' is a broad category that encompasses a wide range of IT services not specified under more precise codes. This includes services like computer facilities management, IT support services, disaster recovery services, and IT consulting. For this specific contract, it suggests the 'Secure Cross Domain Solution' likely involves a combination of services beyond just software development or hardware provision, potentially including integration, maintenance, technical support, and advisory services related to computer systems and networks. The breadth of this code means the contract could cover various aspects of IT service delivery tailored to the unique needs of a cross-domain environment.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8601 GEORGIA AVE STE 510, SILVER SPRING, MD, 08

Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $26,490,394

Exercised Options: $20,122,264

Current Obligation: $20,112,754

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG07DA46B

IDV Type: GWAC

Timeline