DoD awards $5.7M for DNS hardening, with 2 bidders competing for this firm-fixed-price contract

Contract Overview

Contract Amount: $5,742,705 ($5.7M)

Contractor: Quotientsub LLC

Awarding Agency: Department of Defense

Start Date: 2024-01-18

End Date: 2026-01-17

Contract Duration: 730 days

Daily Burn Rate: $7.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DOMAIN NAME SYSTEM (DNS) HARDENING ENGINEERING 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 $5.7 million to QUOTIENTSUB LLC for work described as: DOMAIN NAME SYSTEM (DNS) HARDENING ENGINEERING SUPPORT SERVICES Key points: 1. Value for money appears reasonable given the specialized nature of cybersecurity engineering. 2. Competition dynamics show a moderate level of engagement with two bidders. 3. Risk indicators are low due to a firm-fixed-price contract type and defined period of performance. 4. Performance context is within the critical domain of national cybersecurity infrastructure. 5. Sector positioning is within IT services, specifically cybersecurity engineering for defense. 6. The contract's value is modest within the broader IT services landscape.

Value Assessment

Rating: good

The contract value of $5.7 million over two years for specialized DNS hardening engineering support is within a reasonable range for cybersecurity services. Benchmarking against similar contracts for advanced network security engineering suggests this pricing is competitive. The firm-fixed-price structure provides cost certainty for the government, indicating good value if the required services are delivered effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with two bids received. While two bidders indicate some level of competition, it is on the lower end for a full and open process. This suggests that the market for such specialized services might be limited, or that other potential bidders did not find the opportunity compelling enough to participate. The presence of two bidders allowed for price comparison, contributing to price discovery.

Taxpayer Impact: The competition level, while not extensive, still provided a basis for price comparison, which is beneficial for taxpayers. A more robust competition could potentially have driven prices lower, but the current level ensures some market validation.

Public Impact

The Department of Defense benefits from enhanced cybersecurity for its Domain Name System. Services delivered include engineering support for hardening critical network infrastructure. The geographic impact is primarily within the operational environments managed by the Defense Information Systems Agency. Workforce implications include the need for specialized cybersecurity engineers, potentially benefiting the IT sector.

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 contractor for critical infrastructure hardening could pose a risk if performance falters.

Positive Signals

Firm-fixed-price contract type mitigates cost overrun risks.
Defined period of performance limits long-term financial commitment.
Competition, even if limited, provides a baseline for performance expectations.
Focus on a critical cybersecurity function enhances national security posture.

Sector Analysis

The IT services sector, particularly the cybersecurity sub-sector, is experiencing significant growth driven by increasing cyber threats. This contract for DNS hardening engineering support fits within the broader market for network security and infrastructure protection. Comparable spending benchmarks for cybersecurity services can range widely, but specialized engineering support often commands premium pricing due to the required expertise. The market size for cybersecurity solutions is in the hundreds of billions globally.

Small Business Impact

This contract was not set aside for small businesses, and the contractor, QUOTIENTSUB LLC, is not explicitly identified as a small business in the provided data. There is no indication of subcontracting requirements for small businesses. The impact on the small business ecosystem is therefore minimal for this specific award, as it does not appear to leverage small business capabilities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Information Systems Agency (DISA) contracting officers and technical points of contact. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified engineering support. Transparency is facilitated through contract award databases, though detailed performance metrics are typically not publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD Cybersecurity Modernization Programs
Defense Information Systems Agency (DISA) IT Services
Network Infrastructure Security Contracts
Domain Name System (DNS) Security Initiatives

Risk Flags

Limited competition may impact price competitiveness.
Contractor's past performance on similar critical infrastructure projects should be thoroughly vetted.
Scope definition clarity is crucial for successful delivery of engineering support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.7 million to QUOTIENTSUB LLC. DOMAIN NAME SYSTEM (DNS) HARDENING ENGINEERING SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is QUOTIENTSUB 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 $5.7 million.

What is the period of performance?

Start: 2024-01-18. End: 2026-01-17.

What is the track record of QUOTIENTSUB LLC in performing similar cybersecurity engineering services for the federal government?

Assessing the track record of QUOTIENTSUB LLC requires a deeper dive into federal procurement databases like FPDS-NG or SAM.gov. While the provided data indicates they were awarded this $5.7 million contract, it doesn't detail their past performance on similar cybersecurity engineering tasks. Generally, agencies evaluate past performance as a key factor in award decisions. For this specific contract, the agency likely reviewed QUOTIENTSUB LLC's history, including any prior contracts for network hardening, DNS security, or related IT engineering services. A positive past performance review would indicate a lower risk for successful execution. Conversely, a history of performance issues on similar contracts would raise concerns about the contractor's ability to meet the requirements of this new award.

How does the awarded price compare to market rates for similar DNS hardening engineering support services?

The awarded price of $5.7 million over two years for DNS hardening engineering support is difficult to benchmark precisely without access to detailed labor rates and service scopes from comparable contracts. However, given the specialized nature of cybersecurity engineering, particularly for critical defense infrastructure, the pricing appears within a reasonable range. The firm-fixed-price (FFP) contract type suggests that the government has negotiated a set price for the defined scope of work. If the two bidders were reputable firms in the cybersecurity space, the competition, even if limited, likely drove the price towards a competitive market level. Further analysis would involve comparing the estimated hours, skill levels, and specific deliverables against industry benchmarks for cybersecurity consulting and engineering services.

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

The primary risks associated with this contract include potential performance deficiencies by the contractor, cybersecurity vulnerabilities that may arise despite the hardening efforts, and the risk of vendor lock-in. Mitigation strategies are evident in the contract structure. The firm-fixed-price (FFP) nature of the contract shifts the cost risk to the contractor, incentivizing efficient performance. The defined two-year period of performance limits the government's long-term commitment and allows for re-evaluation of the contract at its expiration. Furthermore, the requirement for 'engineering support services' implies a collaborative approach where the government likely retains oversight and technical direction, enabling early detection of performance issues. Robust government oversight and clear performance metrics are crucial for managing these risks effectively.

What is the expected effectiveness of the DNS hardening services in improving the Department of Defense's cybersecurity posture?

The expected effectiveness of these DNS hardening services hinges on the specific technical measures implemented and the thoroughness of the engineering support provided by QUOTIENTSUB LLC. DNS is a foundational element of internet infrastructure, and its security is paramount. Hardening DNS typically involves measures like implementing DNSSEC (Domain Name System Security Extensions), securing DNS servers against attacks (e.g., DDoS, cache poisoning), and ensuring the integrity and availability of DNS resolution services. By strengthening these aspects, the Department of Defense (DoD) can significantly reduce its vulnerability to attacks that exploit DNS vulnerabilities, such as phishing, man-in-the-middle attacks, and redirection to malicious sites. This contributes directly to a more robust cybersecurity posture by protecting critical communication pathways.

How does this contract's value and scope compare to historical spending on similar cybersecurity engineering services within the DoD?

The $5.7 million contract value for two years of DNS hardening engineering support is a relatively modest investment within the vast cybersecurity spending of the Department of Defense. The DoD's overall cybersecurity budget runs into the billions annually, encompassing a wide array of services from threat intelligence and incident response to advanced research and development. Contracts for specialized engineering support, like this one, represent a focused effort on a critical component of network infrastructure. Historical spending on similar services would likely show a trend of increasing investment in cybersecurity as threats evolve. This contract appears to be a targeted expenditure to address a specific, high-priority need within the broader cybersecurity strategy, rather than a large-scale program.

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 - 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: 6310 HILLSIDE CT STE 101, COLUMBIA, MD, 21046

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

Financial Breakdown

Contract Ceiling: $18,726,894

Exercised Options: $8,767,176

Current Obligation: $5,742,705

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F012GA

IDV Type: FSS

Timeline