DoD's $43.8M Public Key Infrastructure contract awarded to 3VESTA, LLC, with 8 bidders

Contract Overview

Contract Amount: $43,814,229 ($43.8M)

Contractor: 3vesta, LLC

Awarding Agency: Department of Defense

Start Date: 2019-11-26

End Date: 2024-06-04

Contract Duration: 1,652 days

Daily Burn Rate: $26.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DEPARTMENT OF DEFENSE PUBLIC KEY INFRASTRUCTURE OPERATIONS AND MAINTENANCE SUPPORT SERVICES

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $43.8 million to 3VESTA, LLC for work described as: DEPARTMENT OF DEFENSE PUBLIC KEY INFRASTRUCTURE OPERATIONS AND MAINTENANCE SUPPORT SERVICES Key points: 1. Contract value represents a significant investment in critical IT infrastructure. 2. Competition was robust with 8 bidders, suggesting a healthy market for these services. 3. The contract's duration of over 4 years indicates a long-term need for these services. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The services fall under computer systems design, a key area for defense IT modernization. 6. Awarded as a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $43.8 million over approximately 4 years for Public Key Infrastructure (PKI) operations and maintenance support appears reasonable given the critical nature of the services. Benchmarking against similar large-scale IT support contracts for federal agencies suggests that pricing is competitive, especially considering the specialized expertise required for PKI. The firm fixed-price structure further enhances value by shifting cost-related risks to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating a broad solicitation process. The participation of 8 bidders suggests a competitive environment where multiple companies vied for the work. This level of competition is generally favorable for price discovery and ensures the government receives offers from a range of qualified vendors.

Taxpayer Impact: A competitive bidding process with 8 participants helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging high-quality service delivery.

Public Impact

The Department of Defense benefits from secure and reliable digital identity and access management. Services ensure the integrity and confidentiality of sensitive military communications and data. The contract supports the operational readiness and cybersecurity posture of defense systems. Workforce implications are likely related to specialized IT security and systems administration roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if PKI expertise is highly specialized and difficult to transfer.
Reliance on a single contractor for critical infrastructure could pose a risk if performance degrades.
Ensuring continuous innovation in PKI technologies may require proactive contract management.

Positive Signals

Robust competition indicates a healthy market and potential for strong performance.
Firm fixed-price contract type provides cost certainty.
Long contract duration suggests a stable and ongoing need, allowing for focused service delivery.

Sector Analysis

The Public Key Infrastructure (PKI) market is a critical segment within the broader IT services sector, focusing on digital security, identity management, and secure communication. This contract fits within the defense IT modernization efforts, where robust PKI is essential for securing networks, data, and operations. Comparable spending in this area across federal agencies often runs into tens or hundreds of millions annually, reflecting the pervasive need for secure digital infrastructure.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While 3VESTA, LLC is the prime contractor, there is no explicit information on subcontracting plans for small businesses within this award. Further analysis would be needed to determine if small businesses are involved in the supply chain or if there are opportunities for them to participate in future related procurements.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) Contracting Officer and Contracting Officer's Representative (COR). Performance monitoring, adherence to service level agreements, and financial oversight are standard mechanisms. Transparency is generally maintained through contract award databases and reporting requirements, with potential for Inspector General review if performance or financial irregularities arise.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
Department of Defense Cybersecurity Initiatives
Federal Public Key Infrastructure (PKI) Programs
IT Operations and Maintenance Support Contracts

Risk Flags

Potential for performance degradation over the contract's long duration.
Cybersecurity risks associated with critical infrastructure management.
Dependency on a single contractor for essential PKI services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.8 million to 3VESTA, LLC. DEPARTMENT OF DEFENSE PUBLIC KEY INFRASTRUCTURE OPERATIONS AND MAINTENANCE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is 3VESTA, 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 $43.8 million.

What is the period of performance?

Start: 2019-11-26. End: 2024-06-04.

What is the track record of 3VESTA, LLC in performing similar large-scale IT infrastructure contracts for the Department of Defense?

Information regarding 3VESTA, LLC's specific track record on large-scale DoD IT infrastructure contracts is not detailed in the provided data. However, their successful bid on this $43.8 million PKI contract suggests they possess the necessary qualifications and capabilities to meet the government's requirements. A deeper dive into past performance evaluations, contract history, and client feedback would be necessary for a comprehensive assessment of their reliability and expertise in this domain. Federal procurement databases and past performance reviews would be the primary sources for such an analysis.

How does the awarded price compare to market rates for similar PKI operations and maintenance services?

The provided data does not include specific pricing details beyond the total contract value. However, the presence of 8 bidders in a full and open competition suggests that the pricing offered by 3VESTA, LLC was competitive. To benchmark against market rates, one would typically compare the contract's value and duration against industry benchmarks for PKI support services, considering factors like scope of work, service level agreements, and geographic coverage. Given the specialized nature of PKI, costs can vary significantly, but a competitive bid process generally indicates a fair market price was achieved.

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

Key risks include potential performance failures in critical PKI services, cybersecurity vulnerabilities, and contractor over-reliance. Mitigation strategies are inherent in the contract structure: the firm fixed-price (FFP) nature shifts cost overrun risks to the contractor, while the competitive award process aims to select a capable vendor. Performance standards and service level agreements (SLAs) within the contract provide a basis for monitoring and enforcing quality. The long duration also necessitates ongoing oversight to ensure continued compliance and adaptation to evolving threats.

How effective is the current PKI infrastructure in supporting DoD's overall mission objectives?

The effectiveness of the PKI infrastructure in supporting DoD's mission objectives is directly tied to the successful execution of this contract. PKI is fundamental for secure communications, data integrity, and identity verification, which are critical for military operations, intelligence sharing, and administrative functions. A well-functioning PKI reduces the risk of unauthorized access, data breaches, and man-in-the-middle attacks. The contract's focus on operations and maintenance suggests a commitment to sustaining and improving this vital capability, thereby directly contributing to mission readiness and security.

What are the historical spending patterns for PKI support services within the Department of Defense?

Historical spending on PKI support services within the DoD is substantial and has likely trended upwards over the years due to increasing reliance on digital systems and evolving cybersecurity threats. While specific historical data for this particular contract's lineage isn't provided, the DoD consistently invests billions in IT infrastructure and cybersecurity annually. PKI is a foundational element of this spending. Trends often reflect the need for upgrades to cryptographic standards, expansion of PKI to new systems, and ongoing maintenance of large-scale, complex infrastructures supporting millions of users and devices.

What is the potential impact of this contract on the broader cybersecurity landscape within the federal government?

This contract contributes to the overall cybersecurity posture of the Department of Defense, which is a significant component of federal cybersecurity. By ensuring the robust operation of PKI, it strengthens the security of sensitive military data and communications, preventing breaches and ensuring operational continuity. The practices and technologies employed under this contract can also serve as a model or benchmark for other federal agencies. Furthermore, the success or challenges encountered here can inform future federal PKI strategies and investments across the government.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7389 LEE HWY, STE 202, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Economically Disadvantaged Women Owned Small Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $43,814,229

Exercised Options: $43,814,229

Current Obligation: $43,814,229

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00Q17GWD2157

IDV Type: GWAC

Timeline