DoD awards $11M for C2 Defense SNN Core Kit, with Countertrade Products Inc. as prime

Contract Overview

Contract Amount: $11,073,125 ($11.1M)

Contractor: Countertrade Products, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-09-19

End Date: 2026-09-11

Contract Duration: 357 days

Daily Burn Rate: $31.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: C2 DEFENSE SNN CORE KIT

Place of Performance

Location: ARVADA, JEFFERSON County, COLORADO, 80003

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $11.1 million to COUNTERTRADE PRODUCTS, INC. for work described as: C2 DEFENSE SNN CORE KIT Key points: 1. Contract value appears reasonable given the scope of IT services for defense systems. 2. Full and open competition after exclusion of sources suggests a deliberate procurement strategy. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance period of over a year indicates a need for sustained support. 5. This contract falls within the broader IT services sector supporting defense operations.

Value Assessment

Rating: good

The contract value of approximately $11 million for a C2 Defense SNN Core Kit seems aligned with typical IT service procurements for specialized defense systems. Benchmarking against similar contracts for network infrastructure and software development in the defense sector would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for the government in managing costs, assuming the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was open, specific sources may have been initially excluded based on predefined criteria. The presence of two bidders suggests a moderate level of competition. This approach can sometimes lead to a balance between ensuring broad market access and focusing on vendors with specific capabilities.

Taxpayer Impact: The competitive nature, even with initial exclusions, likely contributed to achieving a fair market price for the government. A moderate number of bidders generally supports price discovery without the potential inefficiencies of extremely high competition.

Public Impact

The primary beneficiaries are Department of Defense units requiring the C2 Defense SNN Core Kit for command and control operations. The contract will deliver essential IT services and potentially hardware/software components for the specified core kit. The geographic impact is likely concentrated within defense installations where these command and control systems are deployed. Workforce implications may include specialized IT professionals for development, integration, and maintenance of the system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the 'exclusion of sources' was overly restrictive.
Ensuring the 'core kit' definition is precise to avoid scope creep and cost increases.

Positive Signals

Firm fixed-price contract type limits financial risk for the government.
Defense Information Systems Agency (DISA) oversight suggests established procurement processes.
The contract duration allows for stable support and integration of the core kit.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically supporting defense command and control systems. The market for defense IT services is substantial, driven by the need for advanced communication, data processing, and network security. Comparable spending often involves large-scale system integration, software development, and maintenance contracts for military applications, with values frequently in the millions to billions of dollars.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific contract. There is no explicit mention of subcontracting goals for small businesses. This suggests that the prime contractor, Countertrade Products, Inc., is likely a larger entity, and the focus was on fulfilling the technical requirements of the core kit rather than prioritizing small business engagement through set-asides.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Defense, specifically the Defense Information Systems Agency (DISA), which is listed as the servicing agency. Accountability measures are embedded in the firm fixed-price contract type, requiring the contractor to deliver specified goods or services within the agreed budget. Transparency is generally facilitated through federal procurement databases, though specific performance metrics and oversight reports may not be publicly detailed.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
Command and Control Systems Procurement
Department of Defense Core IT Infrastructure

Risk Flags

Potential for limited competition due to source exclusion criteria.
Definition and scope of 'Core Kit' need clear articulation to prevent cost overruns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.1 million to COUNTERTRADE PRODUCTS, INC.. C2 DEFENSE SNN CORE KIT

Who is the contractor on this award?

The obligated recipient is COUNTERTRADE PRODUCTS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $11.1 million.

What is the period of performance?

Start: 2025-09-19. End: 2026-09-11.

What is the specific nature of the 'C2 Defense SNN Core Kit' and its function within DoD operations?

The 'C2 Defense SNN Core Kit' likely refers to a foundational set of components or a system designed for Command and Control (C2) operations within a specific defense network, possibly related to Situational Awareness or Secure Network Nodes (SNN). C2 systems are critical for military decision-making, enabling commanders to direct forces and manage operations effectively. The 'core kit' suggests it provides essential functionalities or building blocks upon which larger, more complex command and control architectures are built. Its specific function would depend on the particular defense branch or mission it supports, but generally, it would facilitate communication, data sharing, and operational oversight in a tactical or strategic environment.

How does the contract's value of $11 million compare to similar DoD IT service procurements?

An $11 million contract for a specialized IT system like a 'C2 Defense SNN Core Kit' is a moderate-sized award within the Department of Defense's vast IT spending. DoD IT procurements can range from a few million for specific software development or hardware upgrades to billions for large-scale system integrations or enterprise-wide solutions. For a 'core kit' implying essential but perhaps not fully comprehensive system components, $11 million appears reasonable, especially considering the firm fixed-price nature which often includes contingency. However, a direct comparison requires knowledge of the kit's exact specifications, deliverables, and the competitive landscape for such niche defense technologies.

What are the potential risks associated with a 'Full and Open Competition After Exclusion of Sources' award?

The primary risk with 'Full and Open Competition After Exclusion of Sources' lies in the potential for inadvertently limiting the pool of qualified vendors, which could lead to less competitive pricing or the exclusion of innovative solutions. While the intent is often to ensure specific technical requirements are met by a manageable set of capable contractors, poorly defined exclusion criteria could stifle competition. If the exclusion criteria were too narrow or not justified, it might suggest a pre-determined outcome or a lack of thorough market research. However, if the exclusions were based on legitimate, well-documented technical or security prerequisites, it can streamline the procurement process and ensure the government receives a solution tailored to specific needs.

What does the firm fixed-price (FFP) contract type imply for contractor performance and government cost control?

A Firm Fixed-Price (FFP) contract type is generally the most advantageous for the government in terms of cost control, as it shifts the majority of the performance risk to the contractor. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This incentivizes the contractor to manage their expenses efficiently and avoid cost overruns. For the government, it provides budget certainty. The main risk for the contractor is underestimating costs, while the government's risk is primarily related to ensuring the scope of work is clearly defined to prevent disputes or the contractor delivering substandard quality to protect their profit margin.

What is the historical spending trend for similar C2 or defense IT core kits within the DoD?

Historical spending on Command and Control (C2) systems and related IT core kits within the Department of Defense (DoD) has been substantial and consistently high, reflecting the critical nature of these capabilities for national security. Over the past decade, the DoD has invested billions annually in C2 systems, encompassing everything from tactical battlefield management to strategic enterprise-level command structures. Spending trends often show an increasing emphasis on network-centric warfare, cybersecurity integration, and the modernization of legacy systems. Contracts for 'core kits' or foundational components, like the one awarded here, are typically part of larger modernization efforts or sustainment programs, with individual contract values varying significantly based on scope, technology maturity, and vendor.

Industry Classification

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

Product/Service Code: IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7585 W 66TH AVE, ARVADA, CO, 80003

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $11,736,605

Exercised Options: $11,073,125

Current Obligation: $11,073,125

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC65B

IDV Type: GWAC

Timeline