DoD's $29.6M McAfee AV/AS Contract with Zentek Consulting Raises Questions on Value and Competition

Contract Overview

Contract Amount: $29,574,390 ($29.6M)

Contractor: Zentek Consulting, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-12-13

End Date: 2017-12-15

Contract Duration: 1,828 days

Daily Burn Rate: $16.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MCAFEE AV/AS SOLUTION

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $29.6 million to ZENTEK CONSULTING, INC. for work described as: MCAFEE AV/AS SOLUTION Key points: 1. The contract awarded to Zentek Consulting for McAfee AV/AS solutions represents a significant expenditure. 2. The procurement method, 'Full and Open Competition After Exclusion of Sources,' warrants scrutiny regarding its impact on price discovery. 3. While the contract duration was substantial (1828 days), the lack of small business participation is noted. 4. The 'Other Computer Related Services' NAICS code suggests a broad category, requiring further context for sector-specific benchmarks.

Value Assessment

Rating: questionable

The total award of $29.6M over five years for an antivirus/anti-malware solution needs comparison against industry benchmarks for similar enterprise-level deployments. Without specific per-unit cost data or a clear breakdown of services, assessing value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract utilized 'Full and Open Competition After Exclusion of Sources,' which implies that while open to all, specific sources were initially excluded. This method can sometimes limit the competitive pool and potentially impact price discovery compared to unrestricted full and open competition.

Taxpayer Impact: The significant expenditure of nearly $30 million over five years represents a substantial allocation of taxpayer funds for cybersecurity software and services.

Public Impact

Taxpayers funded a large cybersecurity contract for the Department of Defense. The contract's duration and value suggest a long-term reliance on the chosen solution. The absence of small business involvement in this significant contract is a missed opportunity for economic diversification.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition details
No small business participation
Broad NAICS code

Positive Signals

Firm Fixed Price contract type
Awarded by a major agency (DoD)

Sector Analysis

The cybersecurity sector, particularly for government agencies, is a critical area of spending. Benchmarks for enterprise antivirus solutions can vary widely based on the number of users, features, and support levels. This contract's value should be assessed against comparable large-scale government or enterprise deployments.

Small Business Impact

This contract did not involve small businesses, as indicated by 'sb': false. For a contract of this magnitude, exploring opportunities for small business participation, perhaps through subcontracting, could foster economic growth and innovation.

Oversight & Accountability

The contract was awarded by the Defense Information Systems Agency (DISA), a key component of the DoD for information technology. Oversight would typically involve contract performance monitoring and financial accountability measures to ensure the funds were used effectively.

Related Government Programs

Other Computer Related Services
Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

Potential for limited competition due to exclusion of sources
Lack of small business participation
Broad NAICS code may obscure specific service costs
Need for cost-effectiveness benchmark against similar contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.6 million to ZENTEK CONSULTING, INC.. MCAFEE AV/AS SOLUTION

Who is the contractor on this award?

The obligated recipient is ZENTEK CONSULTING, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $29.6 million.

What is the period of performance?

Start: 2012-12-13. End: 2017-12-15.

What was the specific justification for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' method, and how did this impact the final price?

The justification for excluding sources in this procurement method is crucial for understanding the competitive landscape. If specific vendors were excluded without clear, documented reasons related to capability or security, it could suggest a less competitive environment. This, in turn, might have led to a higher price than what could have been achieved through unrestricted competition, impacting the overall value for taxpayer money.

How does the per-unit cost or cost per endpoint for this McAfee solution compare to similar enterprise-level cybersecurity contracts awarded by other federal agencies or large private sector organizat

Comparing the per-unit cost or cost per endpoint is essential for evaluating the value proposition of this $29.6 million contract. Without this benchmark, it's difficult to determine if the DoD received a competitive price for the McAfee AV/AS solution. Variations in features, support levels, and contract terms can influence pricing, but a significant deviation from industry norms would warrant further investigation into cost-effectiveness.

What specific cybersecurity threats or capabilities was this McAfee solution intended to address, and how effectively has it performed in meeting those needs over the contract's duration?

Understanding the specific threats and capabilities addressed by the McAfee AV/AS solution is key to assessing its effectiveness. Performance metrics, incident response data, and threat intelligence reports related to this contract would provide insight into its success. Without this performance data, the $29.6 million expenditure's return on investment in terms of enhanced national security remains unclear.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HC102812R0075

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1934 OLD GALLOWS ROAD, SUITE 350, TYSONS CORNER, VA, 22182

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,420,836

Exercised Options: $29,574,390

Current Obligation: $29,574,390

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline