Interior's $18M Cyber Security Contract with Secunetcs Inc. Faces Scrutiny Over Value and Competition

Contract Overview

Contract Amount: $18,058,854 ($18.1M)

Contractor: Secunetics Inc

Awarding Agency: Department of the Interior

Start Date: 2016-03-08

End Date: 2024-03-07

Contract Duration: 2,921 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 24

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: ADVANCED SECURITY OPERATIONS CENTER (ASOC) FOR CYBER SECURITY SERVICES. IGF::CT::IGF FOR THE OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO)

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $18.1 million to SECUNETICS INC for work described as: ADVANCED SECURITY OPERATIONS CENTER (ASOC) FOR CYBER SECURITY SERVICES. IGF::CT::IGF FOR THE OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO) Key points: 1. The contract awarded to Secunetcs Inc. for Advanced Security Operations Center (ASOC) services totals $18.06 million. 2. Competition was full and open, but the contract type (Time and Materials) may limit price discovery. 3. The duration of the contract (2016-2024) is extensive, raising questions about ongoing need and potential for cost overruns. 4. The NAICS code 541519 suggests a broad category, making direct sector benchmarks challenging. 5. The award was a delivery order under a larger contract, indicating potential for multiple awards and varying pricing.

Value Assessment

Rating: questionable

The Time and Materials pricing structure, combined with a long contract duration, makes it difficult to assess value for money without detailed cost breakdowns. Benchmarking against similar ASOC services is needed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While competition was full and open, the Time and Materials contract type can lead to less predictable costs compared to fixed-price contracts. The impact on price discovery is significant as costs are incurred over time.

Taxpayer Impact: Taxpayer funds are being spent on cyber security services. The effectiveness of the spending depends on the actual services delivered and the pricing efficiency achieved over the contract's life.

Public Impact

Citizens rely on secure government systems, making effective cybersecurity crucial for protecting sensitive data. The significant investment in ASOC services indicates a high priority placed on defending against cyber threats. Transparency in contract spending, especially for long-term service contracts, is vital for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep due to Time and Materials contract type.
Long contract duration may not reflect current market prices or evolving needs.
Lack of specific performance metrics makes value assessment difficult.

Positive Signals

Awarded under full and open competition.
Addresses critical cybersecurity needs for the Department of the Interior.

Sector Analysis

The IT services sector, particularly cybersecurity, is experiencing rapid growth and evolving threats. Benchmarking against similar ASOC contracts is essential to ensure competitive pricing and effective service delivery.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The extensive duration of this contract warrants oversight to ensure continued relevance, cost-effectiveness, and adherence to performance standards. Regular reviews of the Time and Materials expenditures are crucial.

Related Government Programs

Other Computer Related Services
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Long contract duration may lead to outdated services or inflated costs.
Lack of specific performance metrics hinders value assessment.
Limited insight into small business participation.
Cybersecurity landscape evolves rapidly, requiring constant adaptation.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $18.1 million to SECUNETICS INC. ADVANCED SECURITY OPERATIONS CENTER (ASOC) FOR CYBER SECURITY SERVICES. IGF::CT::IGF FOR THE OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO)

Who is the contractor on this award?

The obligated recipient is SECUNETICS INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $18.1 million.

What is the period of performance?

Start: 2016-03-08. End: 2024-03-07.

What is the average hourly rate for the services provided under this Time and Materials contract, and how does it compare to industry benchmarks for similar cybersecurity operations center services?

Without specific rate information, a direct comparison is impossible. However, Time and Materials contracts inherently carry a risk of higher costs if not closely managed. Industry benchmarks for skilled cybersecurity personnel can range significantly, but a well-structured contract would aim for rates competitive with market averages, factoring in the specific expertise and service level agreements required for an ASOC.

Given the contract's length (2016-2024), what mechanisms are in place to ensure the services remain relevant and cost-effective against evolving cyber threats and technological advancements?

The long duration suggests a need for robust contract modification and review processes. Mechanisms likely include periodic performance reviews, potential for re-negotiation of rates, and the ability to incorporate new technologies or adjust service scope. However, the effectiveness of these mechanisms is not detailed in the provided data and requires further investigation to ensure taxpayer value.

How was the 'full and open competition' process structured to ensure a fair evaluation of technical capabilities and pricing for a complex service like an ASOC?

A full and open competition typically involves a solicitation (RFP) that clearly defines technical requirements, evaluation criteria, and desired outcomes. For an ASOC, this would likely include stringent security clearances, specific technical expertise, and demonstrated experience in threat detection and response. The evaluation process would weigh technical merit alongside price to ensure the best value is selected, though the Time and Materials aspect complicates direct price comparisons.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: D16PS00044

Offers Received: 24

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 23585 OVERLAND DR, STERLING, VA, 20166

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $21,901,174

Exercised Options: $21,901,174

Current Obligation: $18,058,854

Actual Outlays: $10,542,319

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0452W

IDV Type: FSS

Timeline