DoD's $8.35M DevSecOps Contract with Solute Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $8,351,843 ($8.4M)
Contractor: Solute
Awarding Agency: Department of Defense
Start Date: 2022-08-08
End Date: 2026-08-07
Contract Duration: 1,460 days
Daily Burn Rate: $5.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DEVSECOPS ENGINEERING, CYBER SECURITY ENGINEERING, SOFTWARE LICENSES, AND CLOUD CONSUMPTION.
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92108
Plain-Language Summary
Department of Defense obligated $8.4 million to SOLUTE for work described as: DEVSECOPS ENGINEERING, CYBER SECURITY ENGINEERING, SOFTWARE LICENSES, AND CLOUD CONSUMPTION. Key points: 1. The contract awarded to Solute for DevSecOps and cloud services is for $8.35 million. 2. Competition method is 'Full and Open', suggesting broad market access. 3. Potential risks include ensuring cost-effectiveness and vendor lock-in for specialized services. 4. The IT sector is characterized by rapid innovation and evolving security needs.
Value Assessment
Rating: fair
The contract's value of $8.35 million for custom computer programming and cloud services needs further benchmarking against similar DoD contracts. Without specific performance metrics or detailed cost breakdowns, assessing its value proposition is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific impact on price discovery for these specialized services requires a deeper dive into the bidding process and awarded price.
Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers. Continuous monitoring is needed to ensure the final price reflects market rates and avoids overspending.
Public Impact
Taxpayers may benefit from competitive pricing due to the full and open competition. The contract supports critical cybersecurity and software development for the Department of the Navy. Ensuring the long-term effectiveness and adaptability of the DevSecOps solutions is crucial for national security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if cloud consumption or licensing costs escalate.
- Risk of vendor lock-in for specialized DevSecOps and cybersecurity expertise.
- Ensuring the quality and effectiveness of custom programming services.
Positive Signals
- Awarded under full and open competition, promoting market fairness.
- Contract duration allows for sustained support and development.
- Firm Fixed Price contract type provides cost certainty.
Sector Analysis
This contract falls within the IT services sector, specifically custom computer programming and cybersecurity. Spending in this area is significant for government agencies, driven by the need for modernizing IT infrastructure and enhancing cyber defenses.
Small Business Impact
While the contract was awarded under full and open competition, it's unclear if small businesses were significantly involved as subcontractors. Further analysis is needed to determine the extent of small business participation and its economic impact.
Oversight & Accountability
Oversight will be critical to ensure the contractor meets performance requirements, manages cloud consumption effectively, and adheres to cybersecurity best practices. Regular reviews of deliverables and costs are essential for accountability.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of detailed performance metrics for value assessment.
- Potential for escalating cloud consumption costs.
- Need for clear cybersecurity risk mitigation strategies.
- Uncertainty regarding small business subcontracting opportunities.
Tags
custom-computer-programming-services, department-of-defense, ca, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.4 million to SOLUTE. DEVSECOPS ENGINEERING, CYBER SECURITY ENGINEERING, SOFTWARE LICENSES, AND CLOUD CONSUMPTION.
Who is the contractor on this award?
The obligated recipient is SOLUTE.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $8.4 million.
What is the period of performance?
Start: 2022-08-08. End: 2026-08-07.
How does the awarded price compare to industry benchmarks for similar DevSecOps and cloud consumption contracts?
Benchmarking requires detailed analysis of contract scope, service levels, and specific technologies used. Without this granular data, a precise comparison is difficult. However, the $8.35 million value for a 4-year period suggests a moderate annual spend, which could be competitive if performance metrics are met and cloud usage is optimized.
What are the specific cybersecurity risks associated with this contract and how are they being mitigated?
Risks include potential vulnerabilities in custom-developed software, unauthorized access to cloud environments, and data breaches. Mitigation strategies likely involve rigorous code reviews, adherence to DoD cybersecurity standards (e.g., RMF), secure cloud configurations, and continuous monitoring. The effectiveness of these measures needs ongoing validation.
How will the effectiveness of the DevSecOps engineering and cybersecurity services be measured throughout the contract lifecycle?
Effectiveness is typically measured through Key Performance Indicators (KPIs) tied to software development cycles, system uptime, vulnerability remediation times, and incident response effectiveness. The contract should clearly define these metrics and the process for tracking and reporting on them to ensure the services deliver the intended security and operational benefits.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1660 HOTEL CIR N STE 600, SAN DIEGO, CA, 92108
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $11,717,868
Exercised Options: $8,472,856
Current Obligation: $8,351,843
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0003921D1009
IDV Type: IDC
Timeline
Start Date: 2022-08-08
Current End Date: 2026-08-07
Potential End Date: 2027-08-07 00:00:00
Last Modified: 2025-12-05
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