DoD awards $35.5M for cyberspace operations support, with 14 bidders vying for the contract

Contract Overview

Contract Amount: $35,512,449 ($35.5M)

Contractor: Csios Corporation

Awarding Agency: Department of Defense

Start Date: 2022-08-01

End Date: 2026-09-30

Contract Duration: 1,521 days

Daily Burn Rate: $23.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CYBERSPACE OPERATIONS FORCES AND SUPPORT

Place of Performance

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

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $35.5 million to CSIOS CORPORATION for work described as: CYBERSPACE OPERATIONS FORCES AND SUPPORT Key points: 1. The contract's value appears reasonable given the scope of cyberspace operations and support services. 2. Strong competition among 14 bidders suggests a healthy market and potential for competitive pricing. 3. The firm-fixed-price contract type mitigates cost overrun risks for the government. 4. Performance is benchmarked against similar IT support contracts within the defense sector. 5. This contract positions CSIOS Corporation as a key provider in the defense cyberspace domain. 6. The duration of the contract (over 4 years) indicates a long-term need for these services.

Value Assessment

Rating: good

The contract value of $35.5 million over approximately four years for cyberspace operations support is within a reasonable range for specialized IT services within the Department of Defense. Benchmarking against similar contracts for custom computer programming and IT support for defense agencies suggests that the pricing is competitive, especially considering the firm-fixed-price nature of the award. The number of bidders also supports the notion of fair market value being achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 14 distinct bidders participating. This high level of competition is a positive indicator, suggesting that the solicitation was accessible to a wide range of qualified vendors and that the government actively sought the best value. The significant number of bidders likely contributed to a robust price discovery process.

Taxpayer Impact: The extensive competition ensures that taxpayer dollars are being used efficiently, as multiple companies vied to offer their best pricing and technical solutions. This competitive environment helps prevent inflated costs and encourages innovation.

Public Impact

The Department of Defense benefits from enhanced cyberspace operations capabilities and essential support services. Military personnel and national security infrastructure are supported through advanced cyber defense and operational readiness. The contract's impact is primarily national, bolstering U.S. cyber defense posture. The workforce implications include skilled IT professionals and cybersecurity experts employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if CSIOS Corporation becomes indispensable for future cyber operations.
Reliance on a single contractor for critical cyberspace functions could pose a risk if performance degrades.
The specialized nature of the services might limit the pool of readily available alternative contractors in the future.

Positive Signals

The firm-fixed-price contract structure provides cost certainty for the government.
Awarding to CSIOS Corporation, assuming a track record of successful performance, indicates reliability.
The competitive bidding process suggests a strong market offering for these specialized services.

Sector Analysis

The cybersecurity and IT services sector is a rapidly growing and critical component of the federal market, particularly within defense. This contract falls under custom computer programming services, a sub-sector that supports the development, integration, and maintenance of complex IT systems. Federal spending in this area is substantial, driven by the increasing need for advanced cyber defense capabilities and digital transformation across agencies. Comparable spending benchmarks for similar IT support and cyber operations contracts within DoD often range in the tens to hundreds of millions of dollars annually.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no explicit small business subcontracting requirements were mandated. The award to CSIOS Corporation, a presumably larger entity given the contract value, suggests that the primary focus was on securing specialized capabilities. This may limit direct opportunities for small businesses on this specific contract, though they might participate as subcontractors if CSIOS chooses to engage them.

Oversight & Accountability

Oversight for this contract will likely be managed by the USTRANSCOM contracting office and relevant program managers within the Department of Defense. Accountability measures are typically embedded within the contract's performance work statement (PWS), including defined deliverables, service level agreements, and reporting requirements. Transparency is facilitated through contract award databases and reporting mechanisms, though specific operational details of cyberspace activities remain classified.

Related Government Programs

Defense Information Technology Contracting Organization (DITCO) contracts
Cybersecurity Services contracts
IT Support Services
Custom Computer Programming Services
DoD Information Technology Modernization

Risk Flags

Potential for performance issues given the complexity of cyberspace operations.
Risk of cybersecurity breaches if contractor security protocols are inadequate.
Dependence on a single contractor for critical national security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.5 million to CSIOS CORPORATION. CYBERSPACE OPERATIONS FORCES AND SUPPORT

Who is the contractor on this award?

The obligated recipient is CSIOS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $35.5 million.

What is the period of performance?

Start: 2022-08-01. End: 2026-09-30.

What is CSIOS Corporation's track record with the Department of Defense and similar federal contracts?

Assessing CSIOS Corporation's track record requires a review of their past performance on federal contracts, particularly those with the Department of Defense and USTRANSCOM. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented instances of outstanding performance or issues. A history of successful delivery on complex IT and cyber-related projects would bolster confidence in their ability to execute this current contract effectively. Conversely, past performance issues or disputes could indicate potential risks.

How does the $35.5 million value compare to similar cyberspace operations support contracts?

The $35.5 million contract value over approximately four years for cyberspace operations and support services appears to be within a reasonable range when compared to similar federal IT and cybersecurity contracts. The average annual value is roughly $8.875 million. Contracts for specialized IT support, custom programming, and cyber defense within large agencies like the DoD often fall into this magnitude, especially when involving complex operations and long-term sustainment. Factors such as the specific scope of work, required expertise, and security clearances can influence pricing, but the competitive bidding process suggests fair market value was sought.

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

Key risks include potential performance failures, cybersecurity vulnerabilities introduced by the contractor, and over-reliance on a single vendor. The firm-fixed-price contract type mitigates financial risks related to cost overruns. Performance risks are managed through the contract's performance work statement (PWS), requiring adherence to specific deliverables and service levels, with potential penalties for non-compliance. Cybersecurity risks are addressed through stringent security requirements, background checks, and potentially ongoing monitoring. The risk of vendor lock-in is inherent in specialized contracts but can be managed by fostering competition in future procurements.

How effective is the competition level (14 bidders) in ensuring value for taxpayers?

A competition level of 14 bidders is generally considered robust and highly effective in ensuring value for taxpayers. This significant number of participants indicates a healthy and accessible market for these specialized services. It creates strong downward pressure on pricing as companies compete to win the contract. Furthermore, a larger pool of bidders increases the likelihood that the government will receive technically superior proposals at a competitive price, maximizing the return on taxpayer investment and minimizing the risk of paying inflated rates.

What is the historical spending trend for similar cyberspace operations support within the DoD?

Historical spending on cyberspace operations support within the DoD has been on a significant upward trajectory over the past decade, driven by the increasing threat landscape and the critical nature of cyber defense. While specific figures for this exact contract category fluctuate, overall federal IT and cybersecurity spending has consistently grown. This contract's value aligns with the trend of substantial investment required to maintain and advance the nation's cyber capabilities. Analyzing past budgets and contract awards for similar services would reveal consistent, high-level investment in this domain.

Are there any specific performance metrics or KPIs tied to this contract?

While the provided data does not detail specific Key Performance Indicators (KPIs), contracts of this nature within the Department of Defense typically include a Performance Work Statement (PWS) that outlines detailed requirements and metrics. These often encompass aspects like system uptime, response times for cyber incidents, successful implementation of security protocols, and timely delivery of support services. Failure to meet these KPIs can result in contractual remedies, including reduced payment or termination, ensuring contractor accountability.

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 - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HTC71122QD003

Offers Received: 14

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 257 MOHEGAN DR, HAVRE DE GRACE, MD, 21078

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $35,512,449

Exercised Options: $35,512,449

Current Obligation: $35,512,449

Actual Outlays: $32,779

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F657GA

IDV Type: FSS

Timeline