DoD's $28.2M Information Security Contract Awarded to Electrosoft Services, LLC

Contract Overview

Contract Amount: $28,220,027 ($28.2M)

Contractor: Electrosoft Services, LLC

Awarding Agency: Department of Defense

Start Date: 2022-07-21

End Date: 2026-09-30

Contract Duration: 1,532 days

Daily Burn Rate: $18.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 33

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SENIOR INFORMATION SECURITY OFFICER (SISO)

Place of Performance

Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $28.2 million to ELECTROSOFT SERVICES, LLC for work described as: SENIOR INFORMATION SECURITY OFFICER (SISO) Key points: 1. Value for money assessed through firm-fixed-price structure and competitive bidding. 2. Competition dynamics indicate a robust market for information security services. 3. Risk indicators include contract duration and potential for scope creep. 4. Performance context is within USTRANSCOM's critical cybersecurity operations. 5. Sector positioning highlights the growing importance of specialized IT security in defense. 6. The contract's fixed-price nature aims to control costs and incentivize efficiency.

Value Assessment

Rating: good

The contract's firm-fixed-price (FFP) structure is a positive indicator for cost control, as it shifts risk to the contractor. Benchmarking against similar IT security contracts is challenging without more granular data on specific services rendered. However, the total award value of $28.2 million over approximately four years suggests a competitive market rate for specialized cybersecurity expertise within the Department of Defense. The number of bidders (33) further supports the notion of a healthy competitive environment, which typically drives better pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 33 bidders participating. This high level of competition is a strong positive signal, suggesting that the government sought the best possible solution and price from a wide range of qualified vendors. The significant number of bidders likely contributed to a more competitive pricing environment and allowed the agency to select a contractor based on a combination of technical merit and cost-effectiveness.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely resulted in a lower overall price than a sole-source or limited competition award. It ensures that public funds are used efficiently by leveraging market forces to drive down costs.

Public Impact

The Department of Defense, specifically USTRANSCOM, benefits from enhanced cybersecurity posture. Services delivered include critical information security support to protect sensitive military data and systems. Geographic impact is primarily within the operational domain of USTRANSCOM, potentially supporting global logistics and command functions. Workforce implications may involve specialized cybersecurity professionals contributing to national defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 4 years) could lead to potential cost overruns if not managed effectively.
Scope creep is a risk in long-term IT service contracts if requirements are not clearly defined and managed.
Reliance on a single contractor for critical security functions could pose a risk if performance degrades.

Positive Signals

Firm-fixed-price contract type helps control costs and provides budget certainty.
Awarded under full and open competition, indicating a competitive process that likely secured good value.
High number of bidders (33) suggests a healthy market and strong contractor interest.

Sector Analysis

The Information Technology sector, particularly cybersecurity services, is experiencing rapid growth and increased demand, especially within the defense industry. This contract for Senior Information Security Officer (SISO) services falls under Computer Systems Design Services (NAICS 541512). The federal government is a significant consumer of these services, with spending often concentrated in areas requiring high levels of security and reliability. Comparable spending benchmarks for specialized cybersecurity roles within defense agencies can vary widely based on the scope of work and required clearances, but a total award of $28.2 million over four years for a SISO function is substantial, reflecting the critical nature of the role.

Small Business Impact

This contract was not set aside for small businesses, and the contractor, Electrosoft Services, LLC, is not explicitly identified as a small business in the provided data. Therefore, there are no direct subcontracting implications or immediate impacts on the small business ecosystem stemming from a small business set-aside. However, larger prime contractors often engage small businesses for specialized support, so indirect opportunities may exist depending on Electrosoft's subcontracting strategy.

Oversight & Accountability

Oversight for this contract will likely be managed by USTRANSCOM's contracting and program management offices. Accountability measures are embedded within the firm-fixed-price contract terms, requiring Electrosoft to deliver specified services within agreed-upon timelines and quality standards. Transparency is generally maintained through contract award notices and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Cybersecurity Services
IT Professional Services
Information Assurance
Defense Information Systems Agency (DISA) Contracts
Federal Cybersecurity Modernization

Risk Flags

Long contract duration
Potential for scope creep
Critical cybersecurity function

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.2 million to ELECTROSOFT SERVICES, LLC. SENIOR INFORMATION SECURITY OFFICER (SISO)

Who is the contractor on this award?

The obligated recipient is ELECTROSOFT SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $28.2 million.

What is the period of performance?

Start: 2022-07-21. End: 2026-09-30.

What is the track record of Electrosoft Services, LLC in performing similar federal contracts?

Electrosoft Services, LLC has a history of performing federal IT services contracts. While specific details on past performance for similar cybersecurity roles are not provided in this data snippet, a review of federal procurement databases would reveal their contract history, past performance evaluations, and any awards or penalties received. Agencies typically consider a contractor's past performance as a key factor in award decisions, especially for critical roles like a Senior Information Security Officer. Understanding their experience with the Department of Defense and USTRANSCOM specifically would be crucial for a comprehensive assessment. Their ability to manage complex security requirements and deliver on firm-fixed-price contracts in previous engagements would be a strong indicator of future success.

How does the pricing of this contract compare to market rates for similar cybersecurity services?

The total award value of $28.2 million over approximately 1532 days (roughly 4.2 years) equates to an average annual value of approximately $6.7 million. Benchmarking this against market rates for a Senior Information Security Officer (SISO) role within the federal government, especially within a defense agency like USTRANSCOM, requires detailed analysis of the specific duties, required certifications, and security clearance levels. Given that this was awarded under full and open competition with 33 bidders, it suggests the price is likely competitive. However, without a detailed breakdown of labor categories, hours, and specific deliverables, a precise comparison to market rates is difficult. Generally, specialized cybersecurity expertise commands premium rates, and the FFP structure aims to ensure value for money.

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

The primary risks associated with this contract include potential scope creep, contractor performance degradation over the long duration, and over-reliance on a single entity for critical security functions. Scope creep is mitigated through clear contract definition and change control processes managed by USTRANSCOM. Contractor performance is monitored through contract oversight and performance metrics, with the firm-fixed-price structure incentivizing timely and quality delivery. Over-reliance risk is inherent in such specialized contracts; mitigation might involve ensuring robust knowledge transfer and contingency planning by the agency. The competitive award process itself helps mitigate the risk of selecting an underqualified vendor.

How effective is the current competition level in ensuring value for taxpayers?

The current competition level, evidenced by 33 bidders for this contract, is highly effective in ensuring value for taxpayers. A large number of bidders typically drives down prices through competitive bidding, forcing contractors to offer their best value proposition. It also increases the likelihood that the agency selects a contractor with superior technical capabilities and a more efficient approach to service delivery. This robust competition reduces the risk of price gouging and ensures that public funds are allocated efficiently to acquire necessary cybersecurity services at a reasonable cost.

What is the historical spending trend for similar cybersecurity services at USTRANSCOM?

Historical spending trends for similar cybersecurity services at USTRANSCOM would provide valuable context for this $28.2 million award. Analyzing past contracts for SISO functions, information security support, or broader IT security services would reveal whether this award represents an increase, decrease, or stable level of investment. Factors such as evolving threat landscapes, changes in technology, and agency budget allocations influence these trends. Without specific historical data, it's difficult to ascertain if this contract is part of a growing, shrinking, or steady investment in cybersecurity by USTRANSCOM. Such analysis would also help identify any patterns in contract types or contractor performance over time.

Are there any potential conflicts of interest or ethical concerns related to this contract award?

Based solely on the provided data, there is no direct indication of conflicts of interest or ethical concerns. The contract was awarded under full and open competition, which is a standard procurement process designed to minimize bias. However, a thorough assessment would require reviewing the procurement process documentation, including any pre-award reviews, ethics certifications from involved government personnel, and potential organizational conflicts of interest (OCI) analyses conducted by the agency. The presence of 33 bidders suggests a broad field of competition, which generally reduces the likelihood of undue influence or favoritism.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HTC71122QD001

Offers Received: 33

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Electrosoft Services Inc

Address: 1893 METRO CENTER DR STE 228, RESTON, VA, 20190

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $28,273,022

Exercised Options: $28,220,027

Current Obligation: $28,220,027

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA18D00L8

IDV Type: FSS

Timeline