DoD's $14.6M contract for key management infrastructure support awarded to Tetrad Digital Integrity LLC

Contract Overview

Contract Amount: $14,626,631 ($14.6M)

Contractor: Tetrad Digital Integrity LLC

Awarding Agency: Department of Defense

Start Date: 2021-04-20

End Date: 2026-04-19

Contract Duration: 1,825 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MILITARY SEALIFT COMMANDS COMMUNICATION SECURITY KEY MANAGEMENT INFRASTRUCTURE SUPPORT

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $14.6 million to TETRAD DIGITAL INTEGRITY LLC for work described as: MILITARY SEALIFT COMMANDS COMMUNICATION SECURITY KEY MANAGEMENT INFRASTRUCTURE SUPPORT Key points: 1. Contract value appears reasonable given the specialized nature of cybersecurity infrastructure. 2. Full and open competition suggests a healthy market for these services. 3. Potential risks include reliance on a single vendor for critical security functions. 4. Performance context is crucial for understanding the effectiveness of key management. 5. This contract falls within the broader IT services sector, specifically cybersecurity. 6. The contract duration of five years allows for sustained support and development.

Value Assessment

Rating: good

Benchmarking this contract's value against similar cybersecurity infrastructure support contracts is challenging without more specific service details. However, the total value of approximately $14.6 million over five years, for a single delivery order, suggests a moderate investment. The firm-fixed-price structure provides cost certainty for the government. Further analysis would require comparing the scope of work and deliverables to industry standards and other government contracts for key management systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. This approach generally fosters a competitive environment, encouraging vendors to offer competitive pricing and robust solutions to secure the award. The number of bidders is not specified, but the competition type suggests a market with available providers for this specialized service.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to better pricing and a wider range of innovative solutions, maximizing the value of federal spending.

Public Impact

The Department of Defense benefits from secure and reliable communication security key management infrastructure. Services delivered include support for critical cybersecurity functions essential for national security. The geographic impact is likely global, supporting DoD operations worldwide. Workforce implications may involve specialized cybersecurity personnel within the contractor organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is not adequately transferred.
Reliance on a single vendor for critical security infrastructure could pose a risk if the vendor experiences financial or operational difficulties.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and potentially good value.
Firm-fixed-price contract provides cost predictability for the government.
Long-term contract (5 years) allows for continuity of essential services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on cybersecurity and infrastructure support. The market for cybersecurity services is substantial and growing, driven by increasing digital threats. Comparable spending benchmarks would involve analyzing other government contracts for key management systems, cryptographic support, and network security infrastructure. The Defense Information Systems Agency (DISA) is a major procurer of such services within the DoD.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, and the prime contractor, Tetrad Digital Integrity LLC, is not explicitly identified as a small business in this context. Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor may engage small businesses as subcontractors, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA). The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the specified services within the agreed-upon budget. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD Cybersecurity Services
Information Assurance
Cryptographic Key Management
Network Security Infrastructure Support
Defense Information Systems Agency Contracts

Risk Flags

Vendor Lock-in Risk
Critical Infrastructure Reliance
Cybersecurity Vulnerability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.6 million to TETRAD DIGITAL INTEGRITY LLC. MILITARY SEALIFT COMMANDS COMMUNICATION SECURITY KEY MANAGEMENT INFRASTRUCTURE SUPPORT

Who is the contractor on this award?

The obligated recipient is TETRAD DIGITAL INTEGRITY 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 $14.6 million.

What is the period of performance?

Start: 2021-04-20. End: 2026-04-19.

What is the specific scope of services provided under this key management infrastructure support contract?

The provided data indicates the contract is for 'MILITARY SEALIFT COMMANDS COMMUNICATION SECURITY KEY MANAGEMENT INFRASTRUCTURE SUPPORT.' While the specific services are not detailed, key management infrastructure support typically involves the secure generation, storage, distribution, and destruction of cryptographic keys. This is critical for ensuring the confidentiality, integrity, and authenticity of communications and data within the Military Sealift Command (MSC) and potentially broader Department of Defense (DoD) networks. Services could include hardware/software maintenance, system administration, security monitoring, and technical support for the key management systems.

How does the $14.6 million contract value compare to similar cybersecurity infrastructure support contracts awarded by the DoD?

Direct comparison of the $14.6 million value is difficult without knowing the precise scope and duration of services for other contracts. However, for a five-year contract supporting critical communication security infrastructure for a major command like MSC, this value appears within a reasonable range for specialized IT services. Cybersecurity contracts can vary widely based on complexity, technology, and the number of users or systems supported. The firm-fixed-price nature suggests a defined scope, and the value should be assessed against the criticality of the systems being protected and the potential cost of a security breach.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

A primary risk is the reliance on a single vendor, Tetrad Digital Integrity LLC, for critical communication security infrastructure. This could lead to vendor lock-in, operational disruptions if the vendor faces financial or technical issues, and potential security vulnerabilities if the vendor's internal security practices are weak. Mitigation strategies likely include robust contract oversight, performance monitoring, clear service level agreements (SLAs), and contingency planning for service continuity. The government may also require regular security audits of the contractor's operations and personnel.

What is the track record of Tetrad Digital Integrity LLC in providing similar cybersecurity or key management services to the government?

Information on Tetrad Digital Integrity LLC's specific track record for this type of contract is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), other contracts awarded to them, and their demonstrated expertise in cryptographic key management and communication security. Their ability to successfully execute this contract depends on their experience with DoD systems, compliance with security standards, and overall reliability as a government contractor.

How does the 'Other Computer Related Services' NAICS code (541519) align with the described contract for key management infrastructure support?

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 other, more precise codes. Key management infrastructure support, involving the implementation, maintenance, and security of systems that manage cryptographic keys, fits within this general classification. While more specific codes might exist for cybersecurity or network security, 541519 serves as an appropriate umbrella for specialized computer services that don't fit neatly elsewhere, especially if the contract involves a mix of consulting, integration, and support.

What are the implications of this contract being a single 'Delivery Order' under a larger contract vehicle?

The data indicates this is a single 'Delivery Order' (DO) with a value of $14.6 million, awarded on April 20, 2021, and expiring April 19, 2026. This implies that the $14.6 million is not the total value of a base contract, but rather the value allocated to this specific order. It suggests that Tetrad Digital Integrity LLC likely holds a broader Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar type of multiple-award contract vehicle. This structure allows the government to procure services incrementally as needed, providing flexibility while potentially leveraging pre-negotiated terms and pricing.

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1718 CONNECTICUT AVE NW, WASHINGTON, DC, 20009

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,266,950

Exercised Options: $14,626,631

Current Obligation: $14,626,631

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0414U

IDV Type: FSS

Timeline