DoD's $22M NIC Cyber Directorate contract awarded to ManTech for technical support services

Contract Overview

Contract Amount: $22,015,647 ($22.0M)

Contractor: Mantech Advanced Systems International, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-04-16

End Date: 2026-02-15

Contract Duration: 1,036 days

Daily Burn Rate: $21.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: NIC CYBER DIRECTORATE TECHNICAL AND OPERATIONAL SUPPORT SERVICES

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $22.0 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. for work described as: NIC CYBER DIRECTORATE TECHNICAL AND OPERATIONAL SUPPORT SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Significant duration of over 3 years suggests a long-term need for these services. 3. Cost-plus-fixed-fee structure may incentivize contractor to increase costs. 4. The contract's value is substantial, indicating a critical role for cyber support. 5. Performance is concentrated in Virginia, suggesting a localized impact. 6. The specific services are essential for maintaining operational cyber capabilities.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and specific technical requirements. However, the Cost Plus Fixed Fee (CPFF) pricing structure, while common for complex R&D or services where costs are uncertain, can lead to higher overall expenditures compared to fixed-price contracts. Without competitive bids, it's difficult to ascertain if the fixed fee is appropriate or if the government is receiving optimal value for the estimated cost. The duration and scope suggest a significant investment, warranting close monitoring of cost efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one contractor, ManTech Advanced Systems International, Inc., was solicited. This approach is typically used when only one source is capable of meeting the government's needs, often due to unique capabilities, proprietary technology, or urgent requirements. The lack of competition means that price discovery through bidding was bypassed, potentially leading to less favorable pricing for the government compared to a fully competed contract.

Taxpayer Impact: Taxpayers may face higher costs due to the absence of competitive pressure to drive down prices. The government's ability to negotiate the best possible price is diminished in a sole-source scenario.

Public Impact

The primary beneficiary is the Department of Defense's NIC Cyber Directorate, which receives essential technical and operational support. Services delivered include computer systems design and related technical support, crucial for maintaining cybersecurity infrastructure. The geographic impact is concentrated in Virginia, where the contractor will likely perform the majority of the work. The contract supports a specialized workforce in cybersecurity and IT services, potentially creating or sustaining high-skilled jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs.
Cost-plus-fixed-fee contract type can incentivize cost overruns.
Lack of transparency in the sole-source justification requires scrutiny.
Long contract duration may reduce flexibility to adapt to changing needs.

Positive Signals

Award to an established contractor with potential relevant experience.
Contract addresses critical cybersecurity needs for national defense.
Clear performance period and defined scope of work.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design and related services. The federal IT services market is vast and highly competitive, with significant spending allocated annually to maintain and upgrade government systems. This contract represents a portion of the Department of Defense's investment in cybersecurity, a critical and growing area. Comparable spending benchmarks would typically involve analyzing other large-scale IT support contracts awarded by defense agencies for similar services.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, the contractor, ManTech Advanced Systems International, Inc., is a large business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. This suggests that the primary contract is not structured to directly benefit the small business ecosystem, although the prime contractor may engage small businesses as subcontractors independently.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Navy, a component of the Department of Defense. As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing will be crucial to ensure costs are reasonable and the fixed fee is justified. Transparency regarding the sole-source justification and performance metrics should be available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

DoD IT Support Services
Cybersecurity Services Contracts
Computer Systems Design Services
Defense Agency IT Modernization

Risk Flags

Sole Source Award
Cost-Plus-Fixed-Fee Contract Type
Potential for Cost Overruns
Limited Competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.0 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC.. NIC CYBER DIRECTORATE TECHNICAL AND OPERATIONAL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.0 million.

What is the period of performance?

Start: 2023-04-16. End: 2026-02-15.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED' and awarded on a 'SOLE SOURCE' basis. Typically, sole-source awards are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. For this contract, the specific justification would likely relate to unique technical capabilities or specialized knowledge held by ManTech Advanced Systems International, Inc., that are critical for the NIC Cyber Directorate's mission. Without access to the full contract file or justification documents, the precise reasons remain unconfirmed, but it implies a determination that competition was not feasible or advantageous.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types in terms of risk and potential cost to the government?

The CPFF contract type is characterized by the government paying the contractor's actual allowable costs plus a fixed fee representing profit. This structure is often used for research and development or complex services where cost estimation is difficult. For the government, CPFF carries higher cost risk because the final price is not fixed upfront and can increase if actual costs exceed estimates. However, it can be advantageous when scope is uncertain or innovation is paramount. Compared to fixed-price contracts, where the contractor assumes more risk for cost overruns, CPFF shifts more cost risk to the government. The fixed fee, however, provides some predictability regarding profit margins.

What are the potential implications of the contract's long duration (over 3 years) for the government's flexibility?

A contract duration of over three years (1036 days) provides stability and allows for long-term planning and execution of complex technical and operational support services for the NIC Cyber Directorate. However, it also reduces the government's flexibility to adapt quickly to evolving technological landscapes or changing mission requirements. If new technologies emerge or strategic priorities shift, the government may be locked into the current approach and contractor for the duration of the contract, potentially incurring costs or delays if modifications are needed or a new contract is eventually sought. This necessitates careful initial scope definition and potentially built-in review points.

What is the typical performance context for 'Computer Systems Design Services' within the Department of Defense?

Within the Department of Defense (DoD), 'Computer Systems Design Services' (NAICS code 541512) encompass a broad range of activities critical to maintaining and advancing military IT infrastructure. This includes designing, developing, integrating, and managing complex computer systems, networks, and software solutions. For cyber directorates specifically, these services often involve architecting secure networks, developing custom software for threat detection and response, integrating various security tools, and providing technical expertise for system resilience and operational continuity. The performance context is typically highly sensitive, requiring adherence to stringent security protocols, interoperability standards, and mission-critical uptime requirements.

Are there any indicators of potential cost overruns or inefficiencies given the contract type and sole-source nature?

The combination of a Cost Plus Fixed Fee (CPFF) contract type and a sole-source award presents inherent indicators of potential cost overruns and inefficiencies. CPFF contracts, by their nature, do not provide a strong incentive for the contractor to control costs, as the government bears the majority of the cost risk. The fixed fee is negotiated upfront, but the total cost can escalate significantly if actual expenses rise. The sole-source aspect further exacerbates this risk by eliminating the competitive pressure that would normally drive down prices and encourage cost-consciousness. Without competitive benchmarking or transparent cost-plus-fee negotiations, it is difficult to ensure the government is achieving optimal value and avoiding unnecessary expenditures.

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 - IT MANAGEMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0018923RZ036

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mantech International Corporation

Address: 2251 CORPORATE PARK DR STE 600, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,739,317

Exercised Options: $22,739,317

Current Obligation: $22,015,647

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $2,779,223

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline