DoD's $597M multi-network support contract awarded to SECURIGENCE LLC shows fair value with 3 bidders

Contract Overview

Contract Amount: $596,868,940 ($596.9M)

Contractor: Securigence LLC

Awarding Agency: Department of Defense

Start Date: 2021-02-03

End Date: 2026-06-30

Contract Duration: 1,973 days

Daily Burn Rate: $302.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE AWARD FEE

Sector: IT

Official Description: MULTI-NETWORK SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $596.9 million to SECURIGENCE LLC for work described as: MULTI-NETWORK SUPPORT SERVICES Key points: 1. The contract's value appears reasonable given the scope of custom computer programming services. 2. Competition was robust with three bidders, suggesting potential for competitive pricing. 3. The fixed-price award fee structure incentivizes performance while managing cost. 4. This contract supports critical research and development initiatives within DARPA. 5. The duration of the contract indicates a long-term need for these specialized services. 6. The award is a delivery order under a larger contract vehicle.

Value Assessment

Rating: good

The contract's total value of approximately $597 million over its period of performance suggests a significant investment. Benchmarking against similar custom computer programming services contracts is challenging without more specific details on the services rendered. However, the fixed-price award fee structure indicates an effort to control costs while allowing for performance-based incentives. The presence of three bidders in a full and open competition suggests that the pricing was likely competitive within the market for these specialized IT services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. Three bids were received, which suggests a moderate level of competition for this requirement. While three bidders are better than one or two, a higher number could potentially drive prices down further. The agency's decision to use full and open competition is generally a positive sign for achieving fair market value.

Taxpayer Impact: The full and open competition with three bidders likely resulted in a fair price for taxpayers, avoiding potential overpayment associated with less competitive solicitations.

Public Impact

The primary beneficiaries are the Defense Advanced Research Projects Agency (DARPA) and the Department of Defense (DoD), receiving essential IT support. The contract delivers custom computer programming services crucial for advanced research and development projects. The geographic impact is primarily within Virginia, where the contractor is located, but the services support national defense initiatives. The contract supports a specialized IT workforce, likely requiring highly skilled programmers and network specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the nature of R&D projects.
Reliance on a single contractor for critical network support could pose a risk if performance falters.
The fixed-price award fee structure requires careful monitoring to ensure contractor performance meets expectations.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
The fixed-price award fee structure aligns contractor incentives with agency goals.
The contract duration suggests a stable, long-term need for these services, providing continuity.
The contractor, SECURIGENCE LLC, is likely experienced in providing these specialized IT services.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. The IT services market is vast and highly competitive, with significant government spending. DARPA, as a key research arm of the DoD, often procures highly specialized and cutting-edge IT solutions. Benchmarking this contract's value against the broader IT services market is difficult without granular detail, but the scale suggests a significant project within a niche area of defense IT.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this particular award. However, larger prime contractors often engage small businesses for specialized support, so indirect opportunities may exist.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Advanced Research Projects Agency (DARPA) contracting officers and program managers. Accountability measures are embedded in the fixed-price award fee structure, which links payment to performance. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

DoD IT Services Contracts
DARPA Research and Development Support
Custom Computer Programming Services
Network Support Services
Federal IT Procurement

Risk Flags

Long contract duration may increase risk of scope creep or obsolescence.
Reliance on a single awardee for critical support requires robust performance monitoring.
Need for detailed performance metrics to justify award fee component.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $596.9 million to SECURIGENCE LLC. MULTI-NETWORK SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SECURIGENCE LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Advanced Research Projects Agency).

What is the total obligated amount?

The obligated amount is $596.9 million.

What is the period of performance?

Start: 2021-02-03. End: 2026-06-30.

What is the track record of SECURIGENCE LLC in performing similar federal contracts?

Assessing SECURIGENCE LLC's track record requires a deeper dive into federal procurement databases like SAM.gov or FPDS. While this award indicates they secured a significant contract with DARPA, their past performance on similar IT services, particularly custom computer programming and network support, would be crucial. Information on past contract values, performance ratings, and any past performance issues or awards would provide a clearer picture of their capabilities and reliability. Without this specific data, it's difficult to definitively assess their experience level beyond winning this particular contract.

How does the per-unit cost of these custom computer programming services compare to market rates?

Determining a precise per-unit cost benchmark for custom computer programming services under this contract is challenging without detailed service breakdowns and labor categories. The contract is a fixed-price award fee type, and the total value of $596.8 million covers a period of 1973 days (approximately 5.4 years). To establish a per-unit cost, one would need to identify specific deliverables or labor hours and compare them to industry benchmarks for similar custom development work. Given the specialized nature of DARPA's work, rates might be higher than standard commercial IT services due to required expertise and security clearances.

What are the key performance indicators (KPIs) used to assess SECURIGENCE LLC's performance under this contract?

The provided data indicates a 'FIXED PRICE AWARD FEE' contract type. This structure implies that performance is measured against specific criteria, and the contractor can earn an award fee based on exceeding or meeting these expectations. Key performance indicators (KPIs) would likely include metrics related to project timelines, quality of code delivered, system uptime and reliability, responsiveness to issues, successful integration of new features, and adherence to security protocols. DARPA program managers would define these KPIs, and their assessment would directly influence the 'award fee' portion of the payment.

What is the historical spending trend for multi-network support services at DARPA?

Analyzing historical spending trends for multi-network support services at DARPA would require examining contract data over several fiscal years. This specific contract, valued at approximately $597 million, represents a significant investment. To understand the trend, one would look at the total amount obligated annually for similar services, the number of contracts awarded, and the average contract value. A rising trend might indicate increasing reliance on external support for network infrastructure, while a stable or declining trend could suggest internal capacity building or shifting priorities. This $597M award suggests a substantial, ongoing requirement.

What are the potential risks associated with relying on SECURIGENCE LLC for critical network support over a nearly 2000-day period?

Potential risks include contractor performance degradation over time, technological obsolescence if the contractor doesn't adapt to new technologies, key personnel departures leading to knowledge loss, and security vulnerabilities if the contractor's practices are not consistently robust. Given the long duration (1973 days), there's also a risk that the initial requirements might evolve significantly, necessitating contract modifications or potentially leading to disputes if not managed proactively. Ensuring continuous alignment with DARPA's evolving mission needs and maintaining strong oversight are critical to mitigating these risks.

How does the $597 million contract value compare to other major IT support contracts within the DoD?

The $597 million contract value is substantial and indicates a significant IT support requirement. Within the broader Department of Defense, IT contracts can range from millions to billions of dollars. This contract's value places it in the mid-to-large tier for specialized IT services. For context, major enterprise-wide IT infrastructure or cloud services contracts often exceed several billion dollars. However, for a specific, custom programming and network support function within a particular agency like DARPA, $597 million represents a considerable investment, suggesting a high level of criticality and complexity for the services provided.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HR001120Q0002

Offers Received: 3

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Address: 50 CATOCTIN CIR NE, LEESBURG, VA, 20176

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

Financial Breakdown

Contract Ceiling: $1,208,692,979

Exercised Options: $695,976,004

Current Obligation: $596,868,940

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $352,128,648

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F626GA

IDV Type: FSS

Timeline