NOU SYSTEMS INC awarded $27.8M for Cybersecurity Engineering Support by Missile Defense Agency

Contract Overview

Contract Amount: $27,816,127 ($27.8M)

Contractor: NOU Systems Inc

Awarding Agency: Department of Defense

Start Date: 2016-06-08

End Date: 2023-10-15

Contract Duration: 2,685 days

Daily Burn Rate: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF CYBERSECURITY ENGINEERING SUPPORT

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $27.8 million to NOU SYSTEMS INC for work described as: IGF::OT::IGF CYBERSECURITY ENGINEERING SUPPORT Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a deliberate selection process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. A duration of 2685 days suggests a long-term need for these cybersecurity services. 4. The contract was awarded to NOU SYSTEMS INC, a single contractor. 5. The North American Industry Classification System (NAICS) code 541690 points to 'Other Scientific and Technical Consulting Services'. 6. The contract was awarded in Alabama, with the primary place of performance likely within the state. 7. The contract has been active for a significant period, ending in October 2023.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure warrants careful review for cost efficiency. While specific cost breakdowns are not provided, CPFF contracts can sometimes incentivize higher spending if not rigorously overseen. Benchmarking against similar cybersecurity engineering support contracts would be necessary to definitively assess value for money. The absence of detailed performance metrics makes a direct comparison challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that while the competition was intended to be broad, specific sources were excluded, potentially limiting the pool of bidders. The number of bidders is not explicitly stated, but the 'exclusion of sources' implies a non-standard competitive process. This approach may impact price discovery compared to a truly open competition.

Taxpayer Impact: Taxpayers may not have received the lowest possible price due to the exclusion of certain potential bidders. The rationale for exclusion needs to be transparent to ensure fairness and optimal use of funds.

Public Impact

The primary beneficiaries are the Department of Defense and specifically the Missile Defense Agency, which receives critical cybersecurity engineering support. The services delivered are essential for protecting sensitive missile defense systems and related infrastructure from cyber threats. The contract's place of performance is Alabama, potentially creating economic benefits and job opportunities within the state. The contract supports specialized technical expertise in cybersecurity, contributing to the national defense workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed effectively.
The 'exclusion of sources' in the competition process may have limited competitive pricing.
Long contract duration (2685 days) requires sustained oversight to ensure continued value and relevance.
Lack of detailed performance data makes it difficult to assess the effectiveness of the cybersecurity engineering support.

Positive Signals

Awarded by the Missile Defense Agency, indicating a critical national security function.
The contract was competed, even with exclusions, suggesting an effort to find a suitable provider.
The contractor, NOU SYSTEMS INC, has been awarded a significant contract, implying some level of trust or capability.
The contract is for specialized cybersecurity engineering support, a high-demand and crucial service area.

Sector Analysis

Cybersecurity engineering support falls within the broader professional, scientific, and technical services sector. This sector is characterized by high demand driven by increasing digital threats across all industries, particularly in government and defense. The market size for cybersecurity services is substantial and growing globally. This contract represents a specific, long-term engagement within the defense sub-sector, focusing on specialized engineering expertise for critical infrastructure.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Therefore, there are no direct subcontracting implications or benefits specifically for small businesses mandated by this award. The focus is on a large, definitive contract likely requiring specialized capabilities.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and financial management regulations. The Missile Defense Agency would be responsible for monitoring performance, costs, and adherence to contract terms. Given the CPFF structure, rigorous financial oversight is crucial to prevent cost overruns. Transparency would be enhanced through regular reporting requirements and potential audits by the agency or relevant Inspector General offices.

Related Government Programs

Cybersecurity Services
Defense IT Support
Technical Consulting Services
Missile Defense Programs
Federal IT Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring to control costs.
Limited competition due to 'exclusion of sources' may impact price discovery.
Long contract duration necessitates sustained oversight and adaptability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.8 million to NOU SYSTEMS INC. IGF::OT::IGF CYBERSECURITY ENGINEERING SUPPORT

Who is the contractor on this award?

The obligated recipient is NOU SYSTEMS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $27.8 million.

What is the period of performance?

Start: 2016-06-08. End: 2023-10-15.

What is the historical spending trend for cybersecurity engineering support by the Missile Defense Agency?

Analyzing historical spending trends for cybersecurity engineering support by the Missile Defense Agency (MDA) requires access to detailed historical contract data. Without specific historical databases, a precise trend cannot be determined from this single contract award. However, it is generally understood that federal spending on cybersecurity has been on a significant upward trajectory over the past decade due to increasing cyber threats. Agencies like the MDA, responsible for critical national security assets, are likely to have consistently allocated substantial resources to cybersecurity. Factors influencing this trend include evolving threat landscapes, technological advancements, and regulatory requirements. To establish a precise trend, one would need to aggregate and analyze all cybersecurity-related contracts awarded by the MDA over several fiscal years, looking at total obligations, number of contracts, and average award values.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar cybersecurity services?

The Cost Plus Fixed Fee (CPFF) contract type, used here, reimburses the contractor for allowable costs plus a fixed fee representing profit. This structure is often employed when the scope of work is not precisely defined or is expected to evolve, as is common in complex engineering and R&D. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but less cost certainty for the government. FFP contracts provide greater cost predictability as the price is fixed regardless of the contractor's actual costs. However, FFP can be challenging to use when requirements are uncertain, potentially leading to scope creep or disputes. Other types like Cost-Plus-Incentive-Fee (CPIF) or Cost-Plus-Award-Fee (CPAF) introduce performance incentives, aiming to balance flexibility with cost control and quality. For cybersecurity engineering, the choice depends on the level of definition in the requirements and the government's risk tolerance for cost overruns versus the need for flexibility.

What are the potential risks associated with the 'exclusion of sources' in the competition process?

The 'exclusion of sources' in a competitive bidding process, even if followed by a 'full and open' competition among the remaining sources, carries several potential risks. Primarily, it can limit the breadth of competition, potentially leading to higher prices than might have been achieved if all qualified sources were allowed to bid. This exclusion might stem from specific technical requirements, past performance evaluations, or other criteria, but if not clearly justified and transparently applied, it can raise concerns about fairness and optimal resource allocation. It may also inadvertently exclude innovative solutions or more cost-effective approaches from contractors who were not initially considered. For taxpayers, this means a reduced likelihood of securing the best possible value for their money. Ensuring that the exclusion criteria are objective, necessary, and well-documented is crucial to mitigate these risks and maintain public trust in the procurement process.

What is NOU SYSTEMS INC's track record with federal contracts, particularly within the Department of Defense?

To assess NOU SYSTEMS INC's track record, a comprehensive review of their federal contract history is necessary. This would involve examining data from sources like the Federal Procurement Data System (FPDS) or other contract databases to identify all awards, task orders, and their values. Key aspects to analyze include the types of contracts awarded (e.g., CPFF, FFP), the agencies they have served (especially the Department of Defense and its sub-agencies like the Missile Defense Agency), and their performance history, if available through past performance ratings or contract close-out data. A history of successful contract completions, positive performance reviews, and adherence to budget and schedule would indicate a strong track record. Conversely, frequent contract modifications, performance issues, or terminations could raise concerns. Without access to this detailed historical data, it's difficult to provide a specific assessment of NOU SYSTEMS INC's performance beyond the award of this particular contract.

How does the $27.8 million award compare to the typical size of cybersecurity contracts for the Missile Defense Agency?

Determining how the $27.8 million award compares to typical Missile Defense Agency (MDA) cybersecurity contracts requires analyzing the agency's historical spending patterns in this domain. The MDA is responsible for highly complex and critical systems, suggesting that cybersecurity contracts could range significantly in value. A $27.8 million contract, spanning potentially several years given its duration, appears substantial and indicative of a significant scope of work. However, without comparative data on other MDA cybersecurity procurements, it's difficult to definitively label it as large, small, or average. Some cybersecurity contracts, especially those involving research, development, or large-scale system integration, can easily exceed this amount, while others focused on specific support functions might be smaller. A thorough analysis would involve aggregating data on all cybersecurity-related contracts awarded by the MDA over a relevant period to establish a benchmark.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ014715R0022

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7047 OLD MADISON PIKE STE 305, HUNTSVILLE, AL, 35806

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

Financial Breakdown

Contract Ceiling: $33,108,192

Exercised Options: $31,954,708

Current Obligation: $27,816,127

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline