DoD awards $180M for cyber ops, with Adapt Forward LLC securing a Cost Plus Fixed Fee contract

Contract Overview

Contract Amount: $179,759,237 ($179.8M)

Contractor: Adapt Forward LLC

Awarding Agency: Department of Defense

Start Date: 2020-12-04

End Date: 2026-07-03

Contract Duration: 2,037 days

Daily Burn Rate: $88.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE ITERATIVE DEFENSIVE CYBERSPACE OPERATIONS CAPABILITIES IN SUPPORT OF NIWC ATLANTIC CSSP. THIS WILL BE A CPFF TASK ORDER WITH A BASE PERIOD AND FOUR ONE-YEAR OPTION PERIODS.

Place of Performance

Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29406

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $179.8 million to ADAPT FORWARD LLC for work described as: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE ITERATIVE DEFENSIVE CYBERSPACE OPERATIONS CAPABILITIES IN SUPPORT OF NIWC ATLANTIC CSSP. THIS WILL BE A CPFF TASK ORDER WITH A BASE PERIOD AND FOUR ONE-YEAR OPTION PERIODS. Key points: 1. Contract focuses on iterative defensive cyberspace operations, indicating a need for ongoing, adaptive security solutions. 2. The Cost Plus Fixed Fee (CPFF) structure allows for flexibility but requires careful monitoring of costs to ensure value. 3. The contract spans over six years, suggesting a long-term strategic investment in cybersecurity capabilities. 4. Competition was full and open, which typically fosters better pricing and wider vendor participation. 5. The primary agency is the Department of the Navy, highlighting a significant focus on maritime cybersecurity. 6. The North American Industry Classification System (NAICS) code 541330 points to engineering services, suggesting a technical and analytical approach to cyber defense.

Value Assessment

Rating: good

The total contract value of approximately $180 million over six years for defensive cyberspace operations appears reasonable given the scope and duration. While CPFF contracts can sometimes lead to cost overruns, the fixed fee component provides a ceiling for contractor profit. Benchmarking against similar large-scale cybersecurity support contracts would provide further insight, but the multi-year nature and critical mission suggest a significant investment is warranted.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this method of procurement generally leads to a more competitive environment, potentially driving down costs and improving the quality of services offered. The agency sought a broad range of capabilities in defensive cyberspace operations.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and innovative solutions, ensuring that government funds are used efficiently for critical defense needs.

Public Impact

The primary beneficiaries are the Department of the Navy and its associated networks, which will receive enhanced defensive cybersecurity capabilities. Services delivered include iterative defensive cyberspace operations, crucial for protecting military information systems and operational readiness. The geographic impact is primarily within the purview of NIWC Atlantic's operational areas, with potential implications for naval bases and deployed forces. Workforce implications may include the need for highly skilled cybersecurity professionals, both within the contractor's organization and potentially within the government to manage and oversee the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type requires diligent oversight to manage costs effectively and prevent scope creep.
The long duration of the contract necessitates ongoing performance monitoring to ensure sustained quality of cyber defense.
Reliance on a single contractor for critical cyber operations could pose a risk if performance degrades or if the contractor faces unforeseen challenges.

Positive Signals

Awarding under full and open competition suggests a robust market assessment and a commitment to leveraging the best available solutions.
The focus on iterative operations implies a forward-thinking approach to cybersecurity, adapting to evolving threats.
The significant investment signals the high priority placed on cybersecurity by the Department of the Navy.

Sector Analysis

The cybersecurity sector is a rapidly growing and critical area for government and commercial entities alike. This contract falls within the broader engineering services and IT support categories, specifically focusing on defense applications. The market for cybersecurity services is highly competitive, with significant investment from both government agencies and private companies to protect sensitive data and critical infrastructure. The value of this contract is substantial, reflecting the complexity and importance of maintaining robust cyber defenses for naval operations.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false) and does not explicitly mention subcontracting goals for small businesses (ss: false). This suggests that the primary awardee is likely a large business, and there may be limited direct opportunities for small businesses through this specific contract, unless they are part of a larger subcontracting plan not detailed here.

Oversight & Accountability

Oversight for this contract will likely be managed by the Naval Information Warfare Center (NIWC) Atlantic, the contracting activity. As a Cost Plus Fixed Fee contract, rigorous financial oversight is essential to monitor expenditures against the fixed fee and ensure efficient use of funds. Performance metrics and regular reporting will be key accountability measures. The Department of Defense's Inspector General may also conduct audits or investigations as part of their oversight responsibilities.

Related Government Programs

Naval Information Warfare Systems Command (NAVWAR) Contracts
Department of Defense Cybersecurity Initiatives
Information Technology Support Services
Cyber Operations and Defense Contracts
Engineering Services for Defense

Risk Flags

Cost Overrun Potential (CPFF)
Performance Monitoring Complexity
Evolving Cyber Threat Landscape

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $179.8 million to ADAPT FORWARD LLC. THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE ITERATIVE DEFENSIVE CYBERSPACE OPERATIONS CAPABILITIES IN SUPPORT OF NIWC ATLANTIC CSSP. THIS WILL BE A CPFF TASK ORDER WITH A BASE PERIOD AND FOUR ONE-YEAR OPTION PERIODS.

Who is the contractor on this award?

The obligated recipient is ADAPT FORWARD 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 $179.8 million.

What is the period of performance?

Start: 2020-12-04. End: 2026-07-03.

What is the historical spending pattern for defensive cyberspace operations by NIWC Atlantic or the Department of the Navy?

Analyzing historical spending for defensive cyberspace operations by NIWC Atlantic and the broader Department of the Navy is crucial for context. While specific historical data for this exact task order is not provided, the Navy consistently invests heavily in cybersecurity due to the critical nature of its operations and the evolving threat landscape. Past contracts in this domain often involve significant multi-year commitments, reflecting the ongoing need for adaptive cyber defenses. Trends may show an increasing allocation of resources towards advanced persistent threat detection, network resilience, and rapid response capabilities. Benchmarking this $180 million award against previous similar investments would reveal whether this represents an increase, decrease, or stable level of spending for these vital services.

How does the pricing structure (Cost Plus Fixed Fee) compare to other cybersecurity contracts of similar scope?

The Cost Plus Fixed Fee (CPFF) pricing structure is common for complex, evolving requirements where the exact scope and effort are difficult to define precisely at the outset, such as iterative defensive cyberspace operations. This structure allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. Compared to Fixed Price contracts, CPFF offers more flexibility for the government if requirements change but can lead to higher costs if not managed diligently. Compared to Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF), CPFF provides a more predictable profit margin for the contractor but less incentive for cost savings. For cybersecurity services, agencies often weigh the need for flexibility against cost control, making CPFF a viable, albeit closely monitored, option.

What are the key performance indicators (KPIs) used to measure the success of these defensive cyberspace operations?

Key Performance Indicators (KPIs) for defensive cyberspace operations are critical for ensuring the effectiveness of the services provided under this contract. While specific KPIs are not detailed in the provided data, typical metrics for such contracts include: Mean Time to Detect (MTTD) and Mean Time to Respond (MTTR) to cyber threats, the number of successful threat mitigations, the reduction in security incidents or breaches, the percentage of systems compliant with security policies, and the effectiveness of vulnerability patching. Regular performance reviews and reporting against these KPIs would be essential for the government to assess contractor performance and ensure the iterative improvements in cyber defense capabilities are being achieved as intended.

What is Adapt Forward LLC's track record with similar government cybersecurity contracts?

Assessing Adapt Forward LLC's track record with similar government cybersecurity contracts is vital for understanding their capability and reliability. While the provided data confirms they are the awardee, it does not detail their past performance. A thorough review would involve examining their history with the Department of Defense, other federal agencies, and specifically with NIWC Atlantic. Key aspects to investigate include their performance on previous CPFF contracts, their success in delivering defensive cyberspace operations, any past performance issues or commendations, and their experience with the specific technologies and methodologies relevant to this task order. A strong track record would indicate a lower performance risk for this significant contract.

What are the potential risks associated with a sole-source or limited competition award for critical cybersecurity functions?

This contract was awarded under 'FULL AND OPEN COMPETITION', meaning the risk associated with sole-source or limited competition is not applicable here. Full and open competition is the preferred method as it maximizes the pool of potential offerors, fosters robust price discovery, and increases the likelihood of obtaining the best value for the government. Risks typically associated with sole-source or limited competition, such as potentially higher prices, reduced innovation, and limited vendor accountability, are mitigated by the competitive nature of this award process.

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: N6523620R3019

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 5895 CORE AVE STE 416, NORTH CHARLESTON, SC, 29406

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $189,097,606

Exercised Options: $189,097,606

Current Obligation: $179,759,237

Actual Outlays: $1,319,028

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7035

IDV Type: IDC

Timeline