DoD's SPAWARSYSCEN ATLANTIC Awards $62.17M for Cyber Security Services to Cerner Federal Solutions LLC

Contract Overview

Contract Amount: $62,170,381 ($62.2M)

Contractor: Cerner Federal Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2018-08-14

End Date: 2022-08-15

Contract Duration: 1,462 days

Daily Burn Rate: $42.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: SPAWARSYSCEN ATLANTIC IS RESPONSIBLE FOR OPERATING A UNITED STATES CYBER COMMAND (USCYBERCOM) ACCREDITED CYBER SECURITY SERVICE PROVIDER (CSSP). VULNERABILITY ANALYSIS AND AUDIT REPRESENTS A SUBSET OF THE SERVICES THAT A CSSP MUST PROVIDE. THIS TASK ORDER WILL PROVIDE SERVICES IN THOSE AREAS OF THE ACCREDITED CSSP AT SPAWARSYSCEN ATLANTIC AS WELL AS SUPPORTING TOOLS AND SYSTEMS REQUIRED TO EFFECTIVELY DELIVER THESE SERVICES.

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29419

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $62.2 million to CERNER FEDERAL SOLUTIONS LLC for work described as: SPAWARSYSCEN ATLANTIC IS RESPONSIBLE FOR OPERATING A UNITED STATES CYBER COMMAND (USCYBERCOM) ACCREDITED CYBER SECURITY SERVICE PROVIDER (CSSP). VULNERABILITY ANALYSIS AND AUDIT REPRESENTS A SUBSET OF THE SERVICES THAT A CSSP MUST PROVIDE. THIS TASK ORDER WILL PROVIDE SERVICES … Key points: 1. Cybersecurity services are critical for national defense and government operations. 2. Cerner Federal Solutions LLC, a known entity, secured this contract. 3. The contract value is substantial, indicating significant service requirements. 4. The sector is IT/Cybersecurity, a high-priority area for government spending.

Value Assessment

Rating: good

The contract value of $62.17M over approximately 4 years suggests a reasonable price for comprehensive cybersecurity services. Benchmarking against similar large-scale cybersecurity contracts is difficult without more granular service details, but the cost appears within a plausible range for accredited CSSP operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method is expected to yield fair pricing and ensure the government receives the best value for its investment in critical cybersecurity services.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure essential cybersecurity services at a fair market price, protecting sensitive government data and infrastructure.

Public Impact

Enhances USCYBERCOM's cyber defense capabilities. Ensures the security of critical government networks and data. Supports the operational readiness of military cyber operations. Provides essential vulnerability analysis and audit services. Contributes to the overall cybersecurity posture of the Department of Defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is long (4 years).
Cost Plus Fixed Fee contract type can incentivize cost overruns.
No explicit mention of small business participation.

Positive Signals

Awarded under full and open competition.
Services are critical for national security.
Contractor is a known entity in federal solutions.

Sector Analysis

This contract falls within the IT and Engineering Services sector, specifically focusing on cybersecurity. Government spending in this area is consistently high due to increasing cyber threats. Benchmarks for accredited Cyber Security Service Provider (CSSP) contracts are difficult to establish due to the specialized nature of the services.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). While this contract is large, future solicitations in this critical sector could explore opportunities for small business involvement in specialized cybersecurity tasks.

Oversight & Accountability

SPAWARSYSCEN ATLANTIC is responsible for operating the USCYBERCOM accredited CSSP. The task order supports these accredited services, implying oversight from both the agency and USCYBERCOM to ensure compliance and effectiveness of the cybersecurity provisions.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Long contract duration may not adapt to rapidly evolving cyber threats.
CPFF structure carries inherent risk of cost overruns.
Lack of small business participation noted.
Specific performance metrics and reporting details are not publicly available.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $62.2 million to CERNER FEDERAL SOLUTIONS LLC. SPAWARSYSCEN ATLANTIC IS RESPONSIBLE FOR OPERATING A UNITED STATES CYBER COMMAND (USCYBERCOM) ACCREDITED CYBER SECURITY SERVICE PROVIDER (CSSP). VULNERABILITY ANALYSIS AND AUDIT REPRESENTS A SUBSET OF THE SERVICES THAT A CSSP MUST PROVIDE. THIS TASK ORDER WILL PROVIDE SERVICES IN THOSE AREAS OF THE ACCREDITED CSSP AT SPAWARSYSCEN ATLANTIC AS WELL AS SUPPORTING TOOLS AND SYSTEMS REQUIRED TO EFFECTIVELY DELIVER THESE SERVICES.

Who is the contractor on this award?

The obligated recipient is CERNER FEDERAL SOLUTIONS 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 $62.2 million.

What is the period of performance?

Start: 2018-08-14. End: 2022-08-15.

What specific metrics are used to measure the effectiveness of the vulnerability analysis and audit services provided under this contract?

The contract likely includes performance work statements (PWS) with specific metrics for vulnerability detection rates, audit completion timeliness, and reporting accuracy. These metrics would be monitored by SPAWARSYSCEN ATLANTIC to ensure the contractor meets the required cybersecurity standards and contributes effectively to USCYBERCOM's mission.

How does the Cost Plus Fixed Fee (CPFF) structure potentially impact cost control for these cybersecurity services?

A CPFF contract allows the contractor to recover all allowable costs plus a predetermined fixed fee. While it provides flexibility for evolving cybersecurity needs, it can potentially lead to higher costs if not managed with rigorous oversight, as the incentive for the contractor is to complete the work rather than minimize costs.

What is the potential impact on future cybersecurity service procurements if Cerner Federal Solutions LLC performs exceptionally well?

Exceptional performance by Cerner Federal Solutions LLC could lead to positive past performance evaluations, making them a strong contender for future, similar contracts. This could also set a benchmark for service delivery and pricing, potentially influencing the competitive landscape for other providers in the cybersecurity services market.

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: N6523618R3086

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Oracle Health Government Services Inc.

Address: 15049 CONFERENCE CTR DR, STE 250, CHANTILLY, VA, 20151

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $64,374,169

Exercised Options: $64,374,169

Current Obligation: $62,170,381

Actual Outlays: $-141,020

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $42,280,797

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017816D8526

IDV Type: IDC

Timeline