DoD awards $14.7M cybersecurity contract to Tetrad Digital Integrity LLC for Military Sealift Command

Contract Overview

Contract Amount: $14,751,534 ($14.8M)

Contractor: Tetrad Digital Integrity LLC

Awarding Agency: Department of Defense

Start Date: 2021-05-15

End Date: 2026-05-14

Contract Duration: 1,825 days

Daily Burn Rate: $8.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CYBERSECURITY SUPPORT SERVICES FOR MILITARY SEALIFT COMMAND

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $14.8 million to TETRAD DIGITAL INTEGRITY LLC for work described as: CYBERSECURITY SUPPORT SERVICES FOR MILITARY SEALIFT COMMAND Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for cybersecurity support services, a critical area for defense operations. 3. The duration of the contract is 5 years, indicating a long-term need for these services. 4. The award amount of $14.7 million over 5 years suggests an average annual spend of approximately $2.94 million. 5. The contractor, Tetrad Digital Integrity LLC, is a new entity in federal contracting, with this being a significant award. 6. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 7. The North American Industry Classification System (NAICS) code 541519 covers 'Other Computer Related Services', indicating a broad scope.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed service descriptions and performance metrics. The firm-fixed-price structure is generally favorable for the government, as it caps costs. However, the lack of historical data for the contractor makes it difficult to assess if the pricing is competitive or if the value delivered will meet expectations. Further analysis would require comparing the specific deliverables and service levels against similar cybersecurity support contracts awarded by the Department of Defense or other agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 10 bids suggests a healthy level of interest and competition for these cybersecurity services. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are being used efficiently by fostering a competitive environment that drives down costs and encourages innovation.

Public Impact

The primary beneficiaries are the Military Sealift Command (MSC) and the Department of Defense (DoD), who will receive enhanced cybersecurity support. Services delivered will focus on protecting critical military information systems and networks from cyber threats. The geographic impact is likely global, supporting MSC's worldwide operations. Workforce implications may include the creation of specialized cybersecurity jobs within Tetrad Digital Integrity LLC and potential collaboration with existing DoD cybersecurity personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited track record of the awarded contractor, Tetrad Digital Integrity LLC, in federal contracting.
The broad NAICS code (541519) could imply a wide range of services, making it difficult to precisely scope and manage performance.
Potential for cost overruns if the fixed-price contract does not adequately account for unforeseen cybersecurity challenges or scope creep.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm Fixed Price contract type, which transfers cost risk to the contractor.
Long-term contract duration (5 years) suggests a stable and ongoing need for these critical services.
The contract addresses a vital area of national security: cybersecurity.

Sector Analysis

The cybersecurity services market is a rapidly growing sector within the broader IT services industry, driven by increasing cyber threats and the digitization of operations across all sectors, especially defense. The Department of Defense is a significant consumer of cybersecurity solutions, with substantial annual spending dedicated to protecting its vast and complex networks. This contract fits within the 'Other Computer Related Services' category, which can encompass a wide array of IT support functions, including network security, vulnerability assessment, and incident response.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. The prime contractor, Tetrad Digital Integrity LLC, is a relatively new entity, and its size classification is not provided. There is no explicit information regarding subcontracting plans for small businesses. The impact on the small business ecosystem will depend on whether Tetrad Digital Integrity LLC utilizes small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of Defense and the Defense Information Systems Agency (DISA). As a firm-fixed-price contract, performance monitoring will focus on ensuring deliverables meet the specified requirements and timelines. Transparency is facilitated by the contract's public award notice. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD Cybersecurity Services
Military Sealift Command IT Support
Defense Information Systems Agency Contracts
Federal Cybersecurity Contracts
IT Professional Services

Risk Flags

Contractor's limited federal contracting history.
Broad scope indicated by NAICS code 541519.
Potential for scope creep in cybersecurity services under FFP.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.8 million to TETRAD DIGITAL INTEGRITY LLC. CYBERSECURITY SUPPORT SERVICES FOR MILITARY SEALIFT COMMAND

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 $14.8 million.

What is the period of performance?

Start: 2021-05-15. End: 2026-05-14.

What is the specific cybersecurity expertise and past performance of Tetrad Digital Integrity LLC?

Information regarding the specific cybersecurity expertise and past performance of Tetrad Digital Integrity LLC is limited, as this appears to be a significant federal contract award for the company. Federal procurement databases often contain contractor profiles that detail their experience, certifications, and previous contract history. However, for newer or smaller entities, this information may be less extensive. A thorough review of the System for Award Management (SAM.gov) and other federal contract databases would be necessary to ascertain the full scope of their capabilities and any prior relevant work, including any subcontracts or smaller prime contracts they may have held. Without this detailed background, assessing their readiness and capability to perform these critical cybersecurity services is challenging.

How does the per-unit cost or hourly rate for this contract compare to similar cybersecurity support services?

Determining a precise per-unit cost or hourly rate for this contract is difficult without a detailed breakdown of the services provided and the labor categories involved. The contract is a Firm Fixed Price (FFP) award for 'Cybersecurity Support Services,' which can encompass a wide range of activities from network monitoring to incident response and vulnerability assessments. Benchmarking against similar contracts would require identifying comparable solicitations and awards with similar scopes of work, geographic locations, and contract durations. Given the NAICS code 541519 ('Other Computer Related Services'), comparisons might be made to other IT support contracts. However, the specialized nature of cybersecurity often commands different pricing structures. The average annual value of approximately $2.94 million suggests a substantial engagement, but without specific labor rates or deliverable costs, a direct comparison to market rates is not feasible from the provided data.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this cybersecurity support services contract. In a Firm Fixed Price (FFP) contract, these metrics are crucial for defining the expected quality and timeliness of the services rendered and for holding the contractor accountable. Typically, cybersecurity SLAs might include response times for security incidents, uptime requirements for security systems, or metrics related to vulnerability remediation. KPIs could track the number of threats detected and neutralized, the reduction in security incidents, or compliance with security policies. Without these details, it is challenging to objectively measure the contractor's performance and the overall effectiveness of the cybersecurity support being provided to the Military Sealift Command.

What is the historical spending trend for cybersecurity support services by the Military Sealift Command or the Department of Defense?

The provided data focuses on a single contract award and does not offer historical spending trends for cybersecurity support services by the Military Sealift Command (MSC) or the broader Department of Defense (DoD). To assess historical spending, one would need to analyze procurement data over several fiscal years, identifying all contracts related to cybersecurity support, their values, and the agencies involved. The DoD, in general, has consistently increased its spending on cybersecurity due to the escalating threat landscape. Understanding these trends would provide context for the $14.7 million award, indicating whether it represents an increase, decrease, or stable level of investment in these services for MSC. Such analysis would require access to comprehensive federal procurement databases.

What are the potential risks associated with a firm-fixed-price contract for complex cybersecurity services?

While a firm-fixed-price (FFP) contract is generally advantageous for the government by capping costs, it can introduce risks when applied to complex and evolving services like cybersecurity. One primary risk is that the contractor may underestimate the scope or complexity of the work, leading to potential quality compromises if they attempt to meet the fixed price with reduced effort or resources. Conversely, if the contractor accurately anticipates high complexity and risk, they may build significant contingency into their bid, potentially leading to a higher overall price than a cost-reimbursable contract might have achieved if risks did not materialize. Furthermore, the dynamic nature of cyber threats means that unforeseen requirements or changes may arise, which can be difficult to manage under a strict FFP structure without costly change orders.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 10

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: $23,299,537

Exercised Options: $14,751,534

Current Obligation: $14,751,534

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0414U

IDV Type: FSS

Timeline