DoD's $17.9M IT and Cybersecurity Task Order for NSWC Corona Division awarded under full and open competition

Contract Overview

Contract Amount: $17,899,324 ($17.9M)

Contractor: Kros-Wise

Awarding Agency: Department of Defense

Start Date: 2018-06-08

End Date: 2025-02-28

Contract Duration: 2,457 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: THIS TASK ORDER SHALL PROVIDE IT AND CYBER SECURITY SERVICES FOR THE IT DIVISION WITHIN THE NSWC CORONA DIVISION, CORPORATE OPERATIONS DEPARTMENT.

Place of Performance

Location: CORONA, RIVERSIDE County, CALIFORNIA, 92878

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $17.9 million to KROS-WISE for work described as: THIS TASK ORDER SHALL PROVIDE IT AND CYBER SECURITY SERVICES FOR THE IT DIVISION WITHIN THE NSWC CORONA DIVISION, CORPORATE OPERATIONS DEPARTMENT. Key points: 1. Value-for-money assessment indicates potential for cost efficiencies given the fixed-fee structure. 2. Competition dynamics show a robust full and open process, likely driving competitive pricing. 3. Risk indicators are moderate, with contract type and duration requiring careful performance monitoring. 4. Performance context centers on critical IT and cybersecurity services for a key Navy division. 5. Sector positioning places this within the broader IT services and engineering support for defense.

Value Assessment

Rating: good

The contract's Cost Plus Fixed Fee (CPFF) structure, while common for complex IT services, necessitates close oversight to ensure costs remain within the fixed fee. Benchmarking against similar IT and cybersecurity support contracts for Department of Defense entities suggests the overall value is competitive, especially considering the duration and scope. The fixed fee component provides a degree of cost certainty for the government, but the 'cost plus' element requires diligent auditing of allowable costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 8 bidders suggests a healthy level of competition for this requirement. This broad competition is generally favorable for price discovery and ensures the government receives offers from a wide range of qualified contractors, potentially leading to more innovative solutions and better pricing.

Taxpayer Impact: The extensive competition for this task order is beneficial for taxpayers as it likely drove down the final price and encouraged contractors to offer their best value propositions. This process minimizes the risk of overpayment and maximizes the efficient use of public funds.

Public Impact

The primary beneficiaries are the Naval Surface Warfare Center (NSWC) Corona Division, which receives essential IT and cybersecurity services. Services delivered include IT support and cybersecurity measures crucial for the division's operations. The geographic impact is concentrated in Corona, California, where NSWC Corona Division is located. Workforce implications include the potential for skilled IT and cybersecurity professionals to be employed on this contract, supporting the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if not managed closely due to the 'cost plus' component of the CPFF contract.
Ensuring consistent cybersecurity posture across evolving threats requires continuous vigilance and adaptation.
Dependence on a single task order for critical IT functions could pose a risk if performance issues arise.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
The CPFF contract type, while requiring oversight, can be effective for complex, evolving IT requirements.
The task order supports a critical function (IT and Cybersecurity) for a key Navy command (NSWC Corona).

Sector Analysis

This contract falls within the broader IT services and engineering support sector, specifically catering to the defense industry's unique requirements. The market for cybersecurity and IT infrastructure support for government agencies is substantial and highly competitive. This task order represents a segment of the Department of Defense's ongoing investment in maintaining a secure and functional digital infrastructure, aligning with national security priorities. Comparable spending benchmarks in this area often reflect the complexity and criticality of the services provided.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely limited unless the prime contractor voluntarily engages small businesses for subcontracting opportunities. Further analysis would be needed to determine if small businesses are participating indirectly through the prime contractor's supply chain.

Oversight & Accountability

Oversight for this task order would typically be managed by the contracting officer and the technical point of contact within the NSWC Corona Division. Accountability measures are inherent in the CPFF contract structure, requiring the contractor to justify all costs. Transparency is generally maintained through contract reporting mechanisms and performance reviews. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

NSWC Corona Division IT Support Contracts
Department of the Navy Cybersecurity Services
Department of Defense IT Modernization Programs
Federal IT and Engineering Services

Risk Flags

Long contract duration may outpace technological advancements.
CPFF contract requires diligent cost oversight.
Cybersecurity threats are constantly evolving.
Potential for key personnel turnover over the contract's lifespan.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.9 million to KROS-WISE. THIS TASK ORDER SHALL PROVIDE IT AND CYBER SECURITY SERVICES FOR THE IT DIVISION WITHIN THE NSWC CORONA DIVISION, CORPORATE OPERATIONS DEPARTMENT.

Who is the contractor on this award?

The obligated recipient is KROS-WISE.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.9 million.

What is the period of performance?

Start: 2018-06-08. End: 2025-02-28.

What is the historical spending trend for IT and cybersecurity services at NSWC Corona Division?

Analyzing historical spending for IT and cybersecurity services at NSWC Corona Division requires access to detailed procurement data beyond this single task order. However, general trends within the Department of Defense indicate a consistent and increasing investment in these areas due to evolving cyber threats and the digitization of military operations. Agencies like NSWC Corona often rely on a mix of contract vehicles, including task orders like this one, to procure specialized support. Without specific historical data for this division, it's difficult to provide precise figures, but the overall DoD budget allocation for IT and cybersecurity has seen significant growth over the past decade, suggesting a sustained demand for such services.

How does the pricing structure (Cost Plus Fixed Fee) compare to other IT support contracts for similar agencies?

The Cost Plus Fixed Fee (CPFF) pricing structure is a common and often appropriate choice for complex IT and cybersecurity services where the scope of work may evolve or is difficult to precisely define upfront. Compared to fixed-price contracts, CPFF offers flexibility but requires robust government oversight to manage costs effectively. For similar agencies within the Department of Defense, CPFF is frequently used for research and development, complex system integration, and ongoing support services. While it can sometimes lead to higher overall costs if not managed diligently, it allows for the incorporation of unforeseen technical challenges or changes in requirements without extensive re-negotiation, which can be advantageous for long-term, critical support functions.

What are the key performance indicators (KPIs) used to evaluate contractor performance on this task order?

Key Performance Indicators (KPIs) for this task order would likely focus on the successful delivery of IT and cybersecurity services as defined in the Performance Work Statement (PWS). Specific KPIs could include system uptime and availability, response times for IT support tickets, successful implementation of security patches and updates, adherence to cybersecurity protocols and compliance standards (e.g., NIST), successful completion of security audits, and timely delivery of project milestones if applicable. The effectiveness of these KPIs would be measured against predefined targets, and performance would be formally assessed through contractually mandated reviews, such as Contractor Performance Assessment Reporting System (CPARS) evaluations.

What is the track record of KROS-WISE in delivering IT and cybersecurity services to the Department of Defense?

Assessing the track record of KROS-WISE requires a review of their past performance on similar contracts, particularly within the Department of Defense. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would provide insights into their past performance, including quality of work, timeliness, cost control, and customer satisfaction. Without direct access to CPARS data or a comprehensive portfolio of their DoD contracts, a definitive statement on their track record is challenging. However, their selection for this task order suggests they met the initial qualification criteria and demonstrated capability to perform the required IT and cybersecurity services.

What are the potential risks associated with the 2457-day duration of this task order?

The 2457-day duration (approximately 6.7 years) of this task order presents several potential risks. Firstly, technology evolves rapidly in the IT and cybersecurity fields; a contract spanning this length of time may struggle to keep pace with the latest advancements and emerging threats without significant modifications or adjustments. Secondly, long-term contracts can sometimes lead to complacency or a decrease in competitive pressure over time, potentially impacting innovation and cost-effectiveness. Thirdly, there's a risk of key personnel turnover within the contractor organization, which could disrupt service continuity and institutional knowledge. Finally, changes in government priorities or budget allocations over such an extended period could necessitate contract modifications or even early termination.

How does the 'Engineering Services' NAICS code (541330) align with the stated IT and Cybersecurity services?

The NAICS code 541330, 'Engineering Services,' might seem broad for IT and Cybersecurity services. However, it encompasses firms that provide engineering services, including the design and development of systems, and often includes related computer systems integration design services. Many defense contracts for complex systems integration, network design, and cybersecurity architecture fall under this code because they involve significant engineering expertise. Therefore, while 'IT Services' or 'Computer Systems Design Services' might seem more direct, 'Engineering Services' can appropriately cover the design, integration, and security engineering aspects of the IT infrastructure and cybersecurity solutions required by NSWC Corona Division.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: N6426718R3003

Offers Received: 8

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 435 E CARMEL ST, SAN MARCOS, CA, 92078

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $18,992,674

Exercised Options: $18,992,674

Current Obligation: $17,899,324

Actual Outlays: $56,135

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017814D8017

IDV Type: IDC

Timeline