DoD's $27.8M software and cybersecurity contract with Hunter Strategy, LLC awarded via full and open competition

Contract Overview

Contract Amount: $27,799,651 ($27.8M)

Contractor: Hunter Strategy, LLC

Awarding Agency: Department of Defense

Start Date: 2020-12-21

End Date: 2026-04-17

Contract Duration: 1,943 days

Daily Burn Rate: $14.3K/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: SOFTWARE DEVELOPMENT AND CYBERSECURITY SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $27.8 million to HUNTER STRATEGY, LLC for work described as: SOFTWARE DEVELOPMENT AND CYBERSECURITY SERVICES Key points: 1. Contract value of $27.8M over approximately 6 years suggests a significant investment in ongoing services. 2. Awarded under full and open competition, indicating a broad market search and potential for competitive pricing. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. Services include custom computer programming and cybersecurity, critical functions for the Department of Defense. 5. The contract's duration of nearly 2000 days (approx. 5.3 years) allows for sustained support but requires careful performance monitoring. 6. The North American Industry Classification System (NAICS) code 541511 points to specialized IT services. 7. The contract is managed by Washington Headquarters Services, a key administrative body within the DoD.

Value Assessment

Rating: good

The contract's total value of $27.8 million over nearly six years averages to approximately $4.6 million annually. Without specific benchmarks for similar custom computer programming and cybersecurity services within the DoD, a direct value-for-money assessment is challenging. However, the firm fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the scope is well-defined. The number of bids received (implied by 'full and open competition') would provide further insight into competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that the solicitation was broadly advertised, but specific sources were excluded for defined reasons. The presence of two bids (indicated by 'no': 2) suggests a degree of competition, though a higher number of bidders would typically indicate a more robust competitive landscape. The exclusion of sources, if not fully justified, could potentially limit price discovery and innovation.

Taxpayer Impact: The full and open competition, even with excluded sources, aims to leverage market forces to secure the best possible pricing for taxpayers. However, the exclusion of certain sources warrants scrutiny to ensure it did not unduly restrict competition and lead to higher costs.

Public Impact

The Department of Defense benefits from enhanced cybersecurity and custom software development capabilities. This contract supports critical national security functions by ensuring the integrity and functionality of essential IT systems. The services are likely to impact personnel within the DoD's IT and cybersecurity divisions. The geographic impact is centered in the District of Columbia, where Washington Headquarters Services is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to exclusion of sources, which could impact price.
The firm fixed-price contract requires clear scope definition to avoid disputes and ensure value.
Long contract duration necessitates robust performance monitoring to ensure continued quality and relevance.

Positive Signals

Awarded through full and open competition, suggesting a broad market approach.
Firm fixed-price contract shifts cost risk to the contractor.
Focus on critical cybersecurity and software development services aligns with DoD needs.

Sector Analysis

This contract falls within the Information Technology (IT) and Cybersecurity sector, a rapidly evolving and critical area for government operations. The market for custom computer programming services (NAICS 541511) is substantial, with significant government spending allocated to IT modernization and defense. Comparable spending benchmarks would typically involve analyzing other large-scale IT service contracts awarded by the DoD or other federal agencies for similar scope and duration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses ('sb': false). As a result, small businesses are unlikely to be direct prime contractors. However, the prime contractor, Hunter Strategy, LLC, may engage small businesses as subcontractors, depending on the contract's requirements and the company's subcontracting strategy. The overall impact on the small business ecosystem would depend on the extent of any subcontracting opportunities created.

Oversight & Accountability

Oversight for this contract would primarily reside with the Washington Headquarters Services and the Department of Defense contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

DoD IT Modernization Programs
Cybersecurity Service Contracts
Custom Software Development Services
Washington Headquarters Services Contracts

Risk Flags

Potential for limited competition due to source exclusion.
Long contract duration requires sustained performance monitoring.
Cybersecurity services carry inherent risks of breaches and vulnerabilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.8 million to HUNTER STRATEGY, LLC. SOFTWARE DEVELOPMENT AND CYBERSECURITY SERVICES

Who is the contractor on this award?

The obligated recipient is HUNTER STRATEGY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $27.8 million.

What is the period of performance?

Start: 2020-12-21. End: 2026-04-17.

What is the track record of Hunter Strategy, LLC in performing similar software development and cybersecurity services for the federal government?

Assessing Hunter Strategy, LLC's track record requires a review of their past performance on federal contracts. This would involve examining contract databases (like FPDS) for previous awards, their values, durations, and agencies served. Key indicators include successful completion of similar projects, positive past performance reviews, and any history of contract disputes or terminations. For this specific contract, understanding their experience with firm fixed-price agreements and the complexity of DoD cybersecurity requirements would be crucial. Without direct access to past performance evaluations or detailed project histories, a definitive assessment of their capabilities is limited to the information available through public contract award data.

How does the average annual cost of this contract compare to similar IT services procured by the Department of Defense?

The average annual cost of this contract is approximately $4.6 million ($27.8M / ~6 years). To benchmark this value, one would need to compare it against similar contracts for custom computer programming and cybersecurity services awarded by the DoD or other federal agencies. This comparison should consider factors such as contract scope, complexity, duration, and the specific services provided. Analyzing the number of bids received under full and open competition can also provide indirect evidence of competitive pricing. A higher number of bids often correlates with more competitive pricing. Without access to a detailed database of comparable contracts and their specific pricing structures, it is difficult to definitively state whether this contract represents excellent, good, or fair value.

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

Primary risks include scope creep, contractor underperformance, cybersecurity vulnerabilities, and potential cost overruns (though mitigated by FFP). Scope creep is managed through clear contract definition and change control processes. Contractor performance is monitored via performance metrics and regular reviews. Cybersecurity risks are inherent and managed through adherence to DoD security protocols, regular audits, and incident response planning. The firm fixed-price (FFP) nature shifts cost overrun risk to the contractor, but inadequate pricing could lead to performance issues if the contractor cannot deliver profitably. The exclusion of sources in the competition also presents a risk of suboptimal price discovery.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring optimal value for this cybersecurity contract?

The 'Full and Open Competition After Exclusion of Sources' approach aims to balance broad market access with specific requirements that might necessitate excluding certain vendors. Its effectiveness in ensuring optimal value depends heavily on the justification for excluding sources and the robustness of the competition among the remaining eligible bidders. If the exclusions were narrowly defined and justified, and if sufficient qualified bidders remained to foster strong price competition, then optimal value can be achieved. However, if the exclusions were overly broad or poorly justified, it could limit the pool of potential offerors, potentially leading to less competitive pricing and reduced innovation. The fact that only two bids were received suggests that the pool of eligible bidders might have been constrained.

What is the historical spending trend for custom computer programming and cybersecurity services within Washington Headquarters Services or the DoD?

Analyzing historical spending trends for custom computer programming and cybersecurity services within Washington Headquarters Services (WHS) or the broader DoD is crucial for context. This involves examining procurement data over several fiscal years to identify patterns in contract awards, total spending, average contract values, and the types of services most frequently procured. Significant increases or decreases in spending in these areas could indicate shifts in strategic priorities, technological adoption, or threat landscapes. Understanding these trends helps in evaluating whether the current $27.8 million contract represents a typical investment, an increase, or a decrease in spending for these critical services.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ003420R0245

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3711 MACOMB ST NW OFFICE 3B, WASHINGTON, DC, 20016

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

Financial Breakdown

Contract Ceiling: $28,090,971

Exercised Options: $27,843,032

Current Obligation: $27,799,651

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline