Dod's Navy Awards $11.6M for Siprnet Pki/Kmi Support to OSI Vision LLC

Contract Overview

Contract Amount: $11,621,105 ($11.6M)

Contractor: OSI Vision LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-30

End Date: 2025-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NAVAL COMMUNICATIONS SECURITY MATERIAL SYSTEMS (NCMS) REQUIRES SECRET INTERNET PROTOCOL NETWORK (SIPRNET) PUBLIC KEY INFRASTRUCTURE (PKI) AND KEY MANAGEMENT INFRASTRUCTURE (KMI) SUPPORT SERVICES.

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.6 million to OSI VISION LLC for work described as: NAVAL COMMUNICATIONS SECURITY MATERIAL SYSTEMS (NCMS) REQUIRES SECRET INTERNET PROTOCOL NETWORK (SIPRNET) PUBLIC KEY INFRASTRUCTURE (PKI) AND KEY MANAGEMENT INFRASTRUCTURE (KMI) SUPPORT SERVICES. Key points: 1. Contract awarded under full and open competition. 2. OSI Vision LLC, a small business, is the awardee. 3. Services include critical cybersecurity infrastructure support. 4. Long-term contract (5 years) with a firm fixed price. 5. Potential for significant taxpayer impact due to contract value.

Value Assessment

Rating: good

The contract value of $11.6M over 5 years suggests a reasonable annual spend for specialized cybersecurity support. Benchmarking against similar government contracts for PKI/KMI services would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust process for price discovery and selection of the most advantageous offer. This method generally leads to competitive pricing.

Taxpayer Impact: The firm fixed price contract aims to control costs, but the total value of $11.6M over five years represents a substantial investment of taxpayer funds for essential cybersecurity services.

Public Impact

Ensures secure communication for the Navy's classified networks. Supports critical national security infrastructure. Impacts personnel requiring access to secure government systems. Contributes to the overall cybersecurity posture of the Department of Defense.

Waste & Efficiency Indicators

Waste Risk Score: 63 / 10

Warning Flags

Potential for vendor lock-in with a long-term contract.
Reliance on a single vendor for critical security infrastructure.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract helps control costs.
Supports essential national security functions.

Sector Analysis

This contract falls within Engineering Services (NAICS 541330) and specifically addresses IT infrastructure related to cybersecurity. Spending in this sector is consistently high due to evolving threats and the need for secure digital operations.

Small Business Impact

While the awardee is listed as a small business, the contract value is substantial. Further analysis would be needed to confirm if OSI Vision LLC is indeed a small business for this specific contract's size standard.

Oversight & Accountability

The contract's duration and critical nature warrant ongoing oversight to ensure performance, cost control, and adherence to security protocols. Regular performance reviews and audits are essential.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Long contract duration (5 years).
Critical cybersecurity infrastructure reliance.
Potential for evolving threat landscape outpacing contract scope.
Firm fixed price may limit flexibility for upgrades.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.6 million to OSI VISION LLC. NAVAL COMMUNICATIONS SECURITY MATERIAL SYSTEMS (NCMS) REQUIRES SECRET INTERNET PROTOCOL NETWORK (SIPRNET) PUBLIC KEY INFRASTRUCTURE (PKI) AND KEY MANAGEMENT INFRASTRUCTURE (KMI) SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is OSI VISION LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $11.6 million.

What is the period of performance?

Start: 2020-09-30. End: 2025-09-29.

What is the specific breakdown of services provided under this contract and how do they align with current cybersecurity best practices for PKI/KMI?

The contract requires support services for SIPRNET Public Key Infrastructure (PKI) and Key Management Infrastructure (KMI). This typically includes managing digital certificates, cryptographic keys, and the underlying infrastructure that enables secure communication and authentication for classified networks. The specific services would detail the operational, maintenance, and potentially upgrade activities required to ensure the integrity and availability of these critical security systems.

What are the potential risks associated with a 5-year firm fixed-price contract for cybersecurity infrastructure support, particularly concerning evolving threats?

A long-term fixed-price contract carries risks related to technological obsolescence and the dynamic nature of cybersecurity threats. The vendor might be incentivized to provide only the minimum required services, potentially lagging behind emerging threats or technological advancements. The government may face challenges adapting to new security requirements or integrating newer technologies without incurring significant change order costs or renegotiating the contract.

How does the $11.6M contract value compare to industry benchmarks for similar PKI/KMI support services, and what does this suggest about its effectiveness?

Without specific service level agreements and detailed scope of work, direct comparison is difficult. However, $11.6M over five years ($2.32M annually) for specialized cybersecurity infrastructure support for a major government agency like the Navy is within a plausible range. The effectiveness will ultimately depend on the vendor's performance in maintaining system integrity, availability, and security against evolving threats, as measured by performance metrics and user feedback.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: N0018920R3026

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 17806 W INTERSTATE 10 STE 300, SAN ANTONIO, TX, 78257

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $12,833,678

Exercised Options: $11,621,105

Current Obligation: $11,621,105

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8245

IDV Type: IDC

Timeline