DoD's $31.5M Continuous Monitoring Contract with Foxhole Technology Faces Scrutiny Over Value and Competition

Contract Overview

Contract Amount: $31,480,179 ($31.5M)

Contractor: Foxhole Technology LLC

Awarding Agency: Department of Defense

Start Date: 2022-11-05

End Date: 2026-09-04

Contract Duration: 1,399 days

Daily Burn Rate: $22.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CONTINUOUS MONITORING AND RISK SCORING

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $31.5 million to FOXHOLE TECHNOLOGY LLC for work described as: CONTINUOUS MONITORING AND RISK SCORING Key points: 1. The contract's value of $31.5 million over nearly four years raises questions about cost-effectiveness for continuous monitoring services. 2. While awarded under full and open competition, the specific impact of this method on price discovery needs further examination. 3. Potential risks include the effectiveness of continuous monitoring solutions and ensuring competitive pricing throughout the contract's duration. 4. The IT sector, particularly cybersecurity and information assurance, is a key area for such monitoring services.

Value Assessment

Rating: fair

The contract's total value of $31.5 million for continuous monitoring and risk scoring over approximately 3.8 years suggests a significant investment. Benchmarking against similar cybersecurity monitoring contracts is necessary to determine if this pricing is competitive and reflects fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, which is generally positive for price discovery. However, the specific details of the bidding process and the number of proposals received are crucial to assess if true competition drove down costs effectively.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment that should lead to better pricing.

Public Impact

Ensures continuous monitoring of systems, enhancing cybersecurity posture for the Department of Defense. Supports risk scoring to identify and mitigate potential threats proactively. Provides critical IT training and support services within the Defense Information Systems Agency. The contract's duration and value could impact the long-term IT security strategy and budget of the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns if not managed tightly.
  • Effectiveness of continuous monitoring solutions may vary.
  • Reliance on a single vendor for critical security functions.

Positive Signals

  • Awarded through full and open competition.
  • Focus on critical cybersecurity functions.
  • Long-term contract provides stability for services.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on cybersecurity and IT training. Spending in this area is substantial across government agencies, with continuous monitoring and risk assessment being paramount for national security.

Small Business Impact

The provided data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

Oversight will be crucial to ensure the continuous monitoring services are effective, meet performance requirements, and remain within budget. The Defense Information Systems Agency (DISA) is responsible for managing this contract and ensuring accountability.

Related Government Programs

  • Computer Training
  • Department of Defense Contracting
  • Defense Information Systems Agency Programs

Risk Flags

  • Potential for cost creep over the contract duration.
  • Effectiveness of continuous monitoring technology may become outdated.
  • Dependence on vendor's expertise and performance.
  • Cybersecurity landscape is constantly evolving, requiring adaptive solutions.

Tags

computer-training, department-of-defense, md, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.5 million to FOXHOLE TECHNOLOGY LLC. CONTINUOUS MONITORING AND RISK SCORING

Who is the contractor on this award?

The obligated recipient is FOXHOLE TECHNOLOGY 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 $31.5 million.

What is the period of performance?

Start: 2022-11-05. End: 2026-09-04.

What is the specific definition of 'continuous monitoring and risk scoring' under this contract, and how is its effectiveness measured?

The contract likely entails ongoing surveillance of IT systems for security vulnerabilities and threats, coupled with a system for quantifying and prioritizing identified risks. Effectiveness is typically measured through metrics such as reduced security incidents, faster threat detection times, improved compliance scores, and successful mitigation of identified risks, often detailed in performance work statements and subject to regular review.

How does the 'full and open competition' process ensure that the $31.5 million price tag represents optimal value for the taxpayer?

Full and open competition theoretically ensures optimal value by allowing all responsible sources to submit bids, fostering a competitive environment. This process should drive down prices and encourage innovation. However, the actual value achieved depends on the clarity of the solicitation, the number and quality of bids received, and the agency's negotiation strategy to secure the best possible terms and pricing.

What are the primary risks associated with a nearly four-year contract for continuous monitoring services, and how are they mitigated?

Primary risks include technological obsolescence, evolving threat landscapes, potential vendor lock-in, and performance degradation over time. Mitigation strategies involve clearly defined performance standards, regular performance reviews, contract flexibility for technology updates, and contingency planning for vendor failure or unsatisfactory performance, ensuring the agency can adapt and maintain security.

Industry Classification

NAICS: Educational ServicesBusiness Schools and Computer and Management TrainingComputer Training

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 205 VAN BUREN ST, HERNDON, VA, 20170

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $47,999,960

Exercised Options: $37,209,726

Current Obligation: $31,480,179

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0569V

IDV Type: FSS

Timeline

Start Date: 2022-11-05

Current End Date: 2026-09-04

Potential End Date: 2027-09-04 00:00:00

Last Modified: 2026-01-14

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